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Common Sales Commission Schemes

Profile for Rob Scott, Managing Director of Aaron Wallis Sales Recruitment

  1. Commission Scheme Based on a Percentage of Turnover

    Commonly adopted as it is easy to calculate for both employer and employee. However it can be potentially corporate suicidal as it means that the sales person can win unprofitable business but still earn decent commission! If adopted it should be based on achieving a minimum level of gross profit within the deal (or in an environment where your sales team are unable to negotiate in any way so that the GP level is maintained)

  2. % of GP

    Probably the most common commission scheme of all as the employer remains in control of the bonus pot and sensibly is only paying out bonus on definite contribution to the company coffers. However it can often be difficult for the employee to work out how much that £100K deal that they've just won is worth to their back pocket. Therefore it sometimes doesn't act as a motivator to take yourself 'out of your comfort zone' and to close that little bit harder to secure the deal.
     
  3. % of GP and other factors such as meeting customer satisfaction, key performance indicators

    In my years I have seen some unbelievable commission schemes based on points systems, meeting milestones as well as fiscal targets, meeting KPIs as a percentage of the commission scheme and so on and so forth. These schemes are normally introduced with every good intention to ensure that the sales professional doesn't win bad business or only sells products that the client actually wants. However, they are often ill thought through with the consequence that they are messy to calculate and are so complicated that the sales professional doesn't know if they're due 1p or £10K and it therefore doesn't act as a motivator.

    A good scheme that does work taking in other factors would be commission paid out based upon the scores from a customer satisfaction surveys. For instance overall if the customer feels the service received was between 5 and 7 out of 10 then commission is paid at the standard rate. If it is below 4 then commission is paid at a lesser rate (or not at all) and if it is over 8 an additional accelerator or bonus is paid. In this way the scheme is motivational to the sales professional AND ensures that customers are satisfied. This type of scheme can be put to powerful use by Sales Directors looking to change their sales culture or approach to business.
     
  4. % of GP above a threshold

    I personally think this type of scheme is the best as it is both the fairest to the employer (i.e. a sales professional doesn't earn a bonus until they've covered their costs) and yet it is still easy for the sales person to know how much the 'deal' is going to be worth in their 'back pocket'. It therefore meets its purpose as a 'motivator' and is easy to calculate for all parties.

Read More about Devising Sales Bonus Schemes

 

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Rob’s knowledge of the recruitment industry and his thoughts and how to make it better for his clients have always been eye opening. I would recommend Rob to anybody who is looking for a professional, knowledgeable and flexible recruitment specialist.

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Giles Phillips is a rare find in the minefield of sales recruitment; an honest and thoughtful recruiter who considers the needs of both the client AND the candidate to create perfect role matches. I look forward to working with him again in the future.

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I found Aaron Wallis to be very professional and efficient, taking time to understand the role and the type of candidate we were looking for. The candidates they put forward met our criteria and were of a high standard. The service they provided was exemplary and I would have no hesitation in recommending them, and will certainly consider using them again in the future.

HR Assistant, Fischer Connectors Ltd

We appointed Aaron Wallis in February and the successful candidate, out of the six which Aaron Wallis introduced, was able to join Alphametrics before the end of April. The whole process took less than three months. I would recommend Aaron Wallis’ services to others without hesitation.

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I just wanted to thank you for your help with our recruitment process which went very smoothly and has – we hope – found us just the person for the job!

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Giles is highly professional and was a pleasure to work with. He achieves excellent results through his personable skills and tenacity. I have no hesitation in recommending Giles to anyone who considers employing his services.

Commercial Director, G4S Government & Outsourcing Solutions

Since joining DSGi, Rob has been a supplier of permanent staff and has performed to an extremely high standard, successfully filling 98% of roles he has worked on. If anyone is looking for a good sales and marketing based consultancy with an informal yet professional approach, I would recommend Rob.

Senior Recruitment Consultant, DSG International

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Sales Director, Inside Business

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Aaron Wallis Sales Recruitment are a very friendly and professional recruitment organisation who listen to your needs, work with you and act on your behalf which sets them apart from many of their competitors who in my experience are willing to throw anything at you. We discussed my history, my preferences and my wishes - one opportunity was introduced. It was perfect. I start at the end of June.

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