If you’re looking to make a new hire, the first thing you should look for is a compensation plan that reflects your values. You should consider whether a certain bonus threshold will motivate your sales reps to reach quota. For example, if you need an AE to hit 80% of their quota before you give them a commission, you might want to consider a bonus threshold of up to 10%.
If you’re hiring for an account executive role, you should look for a compensation plan that puts more emphasis on commission than salary. This is because an account executive’s responsibilities are more focused on closing deals than building a client list. According to Page, an account executive’s COMP plan should include 50% bonus and 50% base salary. So, a $56k base salary should translate to $112k on target earnings.
An account executive’s COMP plan should focus more on commission than salary. For example, a sales representative should receive a bonus if he closes a sale. Similarly, a commission per unit sold should be 50%. But, note that not all companies will use all of these factors in their compensation plans. So, it’s important to compare different check out comp plans to determine which is best for your specific position. For example, an account executive’s base salary should be no more than $56k.
Another role that requires more commission is the account executive. An account executive’s job is to close deals. This role should have a higher emphasis on commission than on salary. A base salary of $56k should translate to a bonus of $112k on target. A commission structure like this can motivate the team to be more aggressive and exceed their goals. When implementing a compensation plan, make sure it’s based on the needs of the business.
A sales representative’s COMP plan should be based on the type of job. For example, an account executive’s job involves closing deals. Hence, an account executive’s compensation plan should focus more on commission. A good quota for an account executive should equal about half of his base salary and 50% of his bonus. For instance, a $56k base salary should equal about $112k on-target earnings.
Sales compensation plans should also consider the type of job the person performs. The average salesperson earns more if he is paid more than the average employee. Besides salary, commission also helps in motivating the workers. An account executive should not earn a base salary of $56k and will instead earn on target if he makes more than that. And he should be paid between $4k and $8k. In the long run, the salesperson’s comp plan should give them the freedom to choose a salary that works for them.