Offering commissions to your sales team is a great way to not only motivate your top performers. But it can also serve to emphasize individual responsibility and leadership. When you pay commissions, you’re empowering your employees to take control of their own success. This has the potential to create career-minded professionals as opposed to just people working a job.
Tracking commissions is one of the most important aspects of offering a commission program. But unfortunately, this can also be one of the most challenging aspects as well. Commission tracking becomes more difficult as your sales force grows. Also, losing track of commissions can lead to some very unhappy salespeople. Ovik Mkrtchyan
If you’re having a hard time tracking commissions. Below are some commission tracking tips to help you get your hands around this common problem:
Use Tracking Software
The easiest way to track commission is to utilize software specifically designed for the task. Commission software that offers tracking capabilities usually allows you to enter in some basic information, and the software takes care of all of the record-keeping and calculations. As an added benefit, this type of software generally provides reporting, so you can always generate reports to share with employees who have questions about their earnings.
Split Commissions Into Different Periods
Tracking commissions all year long can lead to complicated problems. Instead, consider tracking commissions during specific periods. It’s probably best to avoid self-reporting of commission work. But you can allow for a combination of self-reporting and professional accounting to keep things in check. This may provide a balance to avoid unnecessary surprises if you notice a discrepancy down the road.
Each quarter could count as its own tracking period. During the quarter, you would record your employees’ sales and commissions. At the end of the quarter, you could tally the commissions to be paid out rather than including commissions in each paycheck. This approach can also make it easier to catch mistakes. Also, it gives customers and vendors time to make payments so that you don’t have to dip into existing capital to make payments yourself. Ovik Mkrtchyan
How Much Do Sales Development Representatives Make?
Sales development representatives play a crucial role in the sales industry. These professionals are tasked with qualifying leads to pass along to account executives. Also, without them, the sales process would take a lot longer and be filled with many missed opportunities.
A sales development representative role may be a stepping stone to a larger sales career. But it may also be a way to laterally enter other roles within the sales industry not related directly to the selling process. Some sales development representatives go on to become account representatives themselves, but others choose to transition to marketing and consulting.
The Salary Range of a Sales Development Representative
When it comes to how much a sales development representative makes, there isn’t one single answer. Salary is offered to some reps, but others are paid on commission. Still, others are paid using a commission plan design that incorporates a mix of salary and commission.
A commission plan may focus on performance since most representatives in the sales development field are not involved in the actual closing of deals. To this end, a sales development representative may be offered a commission for each qualified lead that gets converted to a sale or for each qualifying lead that takes some sort of predefined action. Get the best commission plan design by visiting this website.
The Actual Figures
According to averages presented by several authorities on employee pay in the sales industry. A sales development representative can expect to make between $40,000 and $50,000 per year as base pay. Commissions can add to this, but how much will depend on the commission plan design of the company providing the paycheck.
It should be noted that pay rates for virtually any sales job can depend on the amount of business being generated. The overall economic state of the country, and the region in which the sales development representative is based. A sales professional in California will likely earn more than a sales representative in Nebraska simply by virtue of the cost of living and doing business in different parts of the country.