Sales Commission


Sales Commission Plan

This is the crucial underpinning of the sales commission program. The plan is in essence the agreement between the company and the employee as to the performanceexpected of the employee and the compensation for the performance at varying levels.This is generally put down in document form and provided to the sales people.When hiring a new employee this is one of the items that the employee and company may negotiate.

This document generally includes information regarding the duration of the Sales Commission Plan and actions that the company and employee are responsible for in the case of events such as employee termination/transfer, etc.This is an important document and should be created with the goal of clearly communicating the plan purpose.It should have clear information on the goals,the calculation logic with examples and activities to be done in the case of exceptional situations.

Plan Duration
Plan Period
Performance Measure
Commission Rate
Commission Tiers