Incentive Plan - Sales - IT Staffng Company - CiteHR
Accounting/business Consultant

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I am looking for a suitable incentive payout plan for my sales team - we are into IT Staff Augmentation, I do have one where we share a percentage with the sales team based on targets achieved but looking for something which is more beneficial to the company as well as the Sales team and is a win win solution for both the parties.

Dear Tasneem,

The best way for commission structure is break the commission in various parts and create a automatic system in excel or any other small application.
1. Commission should be based on gross profit/profit of the assignment.
2. Each Business consumes stationary, utilities (telephone, electricity) on daily basis so before calculating the commission there should be some thing for business for these kind of small expenses. Which would be only for business such as 10% management fee.
3. Then remaining value would be 90% which should be used for commission.
4. Further commission should be separate for sales lead such as 10%. (effectively 9%). This is very necessary specially in UAE market so that commission structure is clear and who so ever bring the business (employee/outsider) will get 10% after management fee.
5. Person who is responsible or in charge of the completion of work (software development, software implementation or other IT work) should get some % like say 5%. (effectively 4.5%)
6. In last dont forget about the team who is working on the project/assignment, lets say 3 employees are working on a project so 15% should split between them based on time they spend on the project or based on milestones they achieve or equally. (effectively 13.5%).

So company would be paying total of 30% but effectively 27%. Which is i guess a win win situation.


Amad Memon

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