Jack Brandt is a leading expert in channel development for organizations addressing the SMB. He has helped numerous organizations develop online sales channels for their Internet/cloud based services as an advisor and an individual contributor in domains, web hosting, cloud services, and local & hyperlocal search. He as worked directly with hosters, telcos, cablecos, YP’s and drectories, both on and offline to help achieve their goals. Jack Brandt is currently President of Mixed Media Ventures, LLC, and continues to help channel organizations better serve and market to their customers and clients.
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These are other active projects that I work on, on a constant basis.
Sales Commission: How to Develop an Effective Sales Compensation Plan
March 31, 2008 Jack Selling

by Alan Rigg

The most common question I hear concerning sales compensation goes something like this: “What commission percentage should I pay for _____________?”

I’m sorry, but there is just isn’t a “standard” answer to this question! Why? Because there are a huge number of variables that impact commission percentage calculations. Here are just some of the variables:

  • Products or services sold
  • Target markets
  • Target geographies
  • Target contacts (C-level, department manager, purchasing, etc.)
  • Sales environment (company office, home office, etc.)
  • Sales approach (telephone, in-person, etc.)
  • Company profitability
  • Individual product or service profitability

Despite the fact that there is no simple answer to the “What commission percentage should I pay?” question, determining the right commission percentage is not rocket science, either. There ARE specific questions you can answer that will lead you to the right commission percentage(s) for your company.

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  • Name: Jack Brandt
  • Address: PA, NY, and NJ
  • E-mail: jack@jackbrandt.com
  • Phone: 917.740.0010

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