Hi, I am looking for a suitable incentive payout plan for my sales team. We are into IT Staff Augmentation. I do have one plan where we share a percentage with the sales team based on targets achieved, but I am looking for something that is more beneficial to the company as well as the sales team and is a win-win solution for both parties.
From United Arab Emirates, Dubai
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From United Arab Emirates, Dubai
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Commission Structure for IT Staff Augmentation
The best way to establish a commission structure is to break the commission into various parts and create an automatic system in Excel or any other small application.
1. Commission should be based on the gross profit/profit of the assignment.
2. Each business consumes stationery and utilities (telephone, electricity) on a daily basis. So, before calculating the commission, there should be an allocation for these kinds of small expenses, such as a 10% management fee.
3. The remaining value would be 90%, which should be used for commission.
4. Further commission should be separate for sales leads, such as 10% (effectively 9%). This is very necessary, especially in the UAE market, so that the commission structure is clear, and whoever brings the business (employee/outsider) will get 10% after the management fee.
5. The person who is responsible or in charge of the completion of work (software development, software implementation, or other IT work) should get some percentage, say 5% (effectively 4.5%).
6. Lastly, don't forget about the team working on the project/assignment. Let's say 3 employees are working on a project, so 15% should be split between them based on the time they spend on the project, milestones they achieve, or equally (effectively 13.5%).
So, the company would be paying a total of 30%, but effectively 27%, which I guess is a win-win situation.
Regards,
Amad Memon
From United Arab Emirates, Dubai
Acknowledge(0)Amend(0)
The best way to establish a commission structure is to break the commission into various parts and create an automatic system in Excel or any other small application.
1. Commission should be based on the gross profit/profit of the assignment.
2. Each business consumes stationery and utilities (telephone, electricity) on a daily basis. So, before calculating the commission, there should be an allocation for these kinds of small expenses, such as a 10% management fee.
3. The remaining value would be 90%, which should be used for commission.
4. Further commission should be separate for sales leads, such as 10% (effectively 9%). This is very necessary, especially in the UAE market, so that the commission structure is clear, and whoever brings the business (employee/outsider) will get 10% after the management fee.
5. The person who is responsible or in charge of the completion of work (software development, software implementation, or other IT work) should get some percentage, say 5% (effectively 4.5%).
6. Lastly, don't forget about the team working on the project/assignment. Let's say 3 employees are working on a project, so 15% should be split between them based on the time they spend on the project, milestones they achieve, or equally (effectively 13.5%).
So, the company would be paying a total of 30%, but effectively 27%, which I guess is a win-win situation.
Regards,
Amad Memon
From United Arab Emirates, Dubai
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