However, determining the best method of remuneration for these professionals is not a simple task as there are many factors at play.

Here are the elements to take into account when paying a salesperson.

How do you pay a salesperson properly?

You do not know how to pay a salesperson within your company? We will give you all the information to ensure optimal management of all the criteria.

1. Understand the different components of compensation

The remuneration of a salesperson is not limited to a simple base salary. It is generally composed of several elements, the main ones of which are:

• The base salary: It is the fixed component of a salesperson's remuneration. This is the guaranteed amount the salesperson will receive regardless of sales performance. The base salary is often based on the experience, skills and responsibility of the salesperson;
  

• The commission : it is the variable component of remuneration. It is based on sales made by the salesperson. The more a salesperson sells, the higher their commission. Commission rates vary from one company to another but they are generally linked to the sector of activity and to the complexity of the products or services sold;
  

• Bonuses and bonuses : these are additional payments that reward exceptional performance or the achievement of specific goals. For example, a salesperson may receive a bonus for exceeding their monthly sales quota or for entering into an important contract;
  

• Social benefits : they take into account health insurance, retirement, paid leave and other benefits that are also part of a salesperson's total compensation. They may vary depending on company policy.

2. Determining compensation goals

Before deciding on the compensation structure for a salesperson, it is essential to define compensation goals for salespeople. These goals should be clear, realistic, and aligned with business goals.

Here are some examples of questions that can be asked when setting compensation goals:

• What is the target remuneration level for salespeople? (for example, base salary plus commission)
  

• What are the annual or monthly sales goals that salespeople need to meet?
  

• What are the specific performance criteria used to assess the performance of salespeople?

3. Choosing the right compensation structure

There are several possible remuneration structures. You must choose yours according to the objectives of the company and the sector of activity.

Here are some of the most commonly used structures:

• Commission-based remuneration only : some salespeople are paid exclusively on commission, with no base salary. This approach can be motivating for high-performing salespeople because they have the potential to earn more based on their sales. However, it can also be risky, as revenue varies greatly depending on performance.
  

• Combined remuneration (base salary + commission) : Most businesses opt for combined compensation, where salespeople receive a guaranteed base salary as well as a commission on sales. This approach provides financial stability while providing an incentive for performance.
  

• A remuneration based on objectives : with this model, salespeople are paid based on their ability to achieve specific goals. These can be based on sales, but also on other criteria such as the number of new customers acquired, customer loyalty, sales growth, etc.
  

• Remuneration in stages : some compensation plans like this include levels where the commission rate increases as the salesperson reaches certain sales thresholds. This makes it possible to motivate and aim for higher levels of performance.
  

• Variable remuneration depending on the product or the profit margin : in some industries, it may be appropriate to base remuneration on the profit margin generated by sales rather than on gross sales. This encourages salespeople to focus on profitable sales.

4. Measuring and adjusting compensation

Once the compensation structure is in place, it is essential to regularly measure the performance of salespeople against compensation goals. If salespeople are unable to reach their goals, adjustments to the chosen structure, goals, or training may need to be made.

It is also important to keep in mind that the remuneration of a salesperson should not be static. Market conditions, business goals, and the individual performance of the professional change over time. That is why it is recommended that compensation plans be reviewed and adjusted at least once a year to ensure that they remain competitive and motivating.

Otherwise, you risk losing your salesperson who will then be interested in more stimulating and rewarding horizons for him!

5. Call on Maslo!

Do you want to double the performance of your sales team? Do you want to create a stimulating environment for your employees in order to increase productivity?

Maslo invites you to discover a gamification application particularly effective in meeting your needs. It is an ultimate tool that will allow you to set up all sorts of challenges and specific rewards to boost your sales! Thanks to it, perfect your commission plan by determining objectives and levels that vary according to performance.

It is also ideal for increasing your chances of reaching business goals desired since it makes it possible to set up a system of bonuses that are directly imported into the control space. Thus, sellers can consult their commission statement in real time to know their level of performance.

At the end of the month, the compensation plans are sent to HR and finance so that they can be validated and then quickly distributed!

The remuneration of a salesperson is a key element in the field of sales management but also for the motivation of the sales team. By understanding the various components of compensation, setting clear goals, choosing the appropriate structure, and regularly measuring the performance of your salespeople, it is possible to implement effective compensation plans that encourage sales performance and growth.

Remember, it's also important to consult with salespeople themselves and consider their feedback and needs to create fair and engaging compensation plans over the years!

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