Saswatabanerjee
Partner - Risk Management
Biisu
Service

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Dear All,
Our company recently ventured in to BPO service and i have procured a new process from a client (XYZ). Now the billing is monthly say Rs. 100000
1. So what is the average incentive structure for a Business Development officer.
2. Say after 6 month/1 year down the line I get another project from the same client, will I get incentive for that project
Regards
JB

What is your position ?
Are you on business development team ?
If so, the incentive structure and rules should be clearly specified in your appointment letter.
If nothing is specified that means you have no incentives

I am in BD & This is the first project which I have procured and my MD wants me to prepare an incentive structure for myself and henceforth.
The Only instruction which the management has given to me is " As per Industry Standard ". So I want to know what is the Industry standard for BPO backend NON Voice project.

yes, i was looking it up.

I cant find any standard package for incentives.

Spoke to my friends in the industry also.

The incentive rates vary widely. It depends on the value of orders, the difficulty in getting it and the base salary. Generally if the orders are of a decent size, the incentives would be 1-2% of the estimated value going down to 1/4% also. Again some give a lumpsum some give based on collection (never on billing). In case of smaller firms where the order size is smaller and the margins are wider, the incentives are higher.

In most cases, follow up orders incentive will go to the team that is handling the client (or to the accounts executive managing / interacting with the client). But there is no fixed norms there either. It depends on the structure.

Some of the companies have incentives split between the sales and the services teams as without both the teams doing well it cant be successfully completed.

I also found a company that is working on a commission pool. The incentives are pooled and distributed between the entire sales team based on their salary. Like a bonus at the end of the year. Again, most of the companies give bonus after base targets are met. If the sales targets are not met no incentive is given at all.

So i guess the end result is : there is no industry standard practice.

You make a plan that is fair to the company and attractive to you and place it before the company.

Remember that the company must make at least 15 times your earning to make it worthwhile employing you in sales. (thats another bench mark)

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