“Sales is a secret startup weapon!” exclaims host and business coach Tom Ryan. In today’s episode, Tom explores the third major element of the “Four Ps” of sales: Pay. The first big sales question startups generally ask is: “How much should we pay for sales?” It’s a big decision, and one that deserves some careful thought, even for established companies.
In this episode, host and business coach Tom Ryan guides listeners through the fundamental concepts behind establishing the right compensation for their sales teams. As always, Tom is joined by co-host Jason Pyles. To catch up on the “Four Ps of Sales,” check out: Overview; “Process” (Part 1, Part 2, and Part 3); and “Performance.”
• Introduction, and recap of the Four Ps of Sales thus far
• Why commission-only payment structures rarely work
• Testing assumptions around sales compensation
• How will compensation impact sales performance?
• What kind of selling do you need: Passive or active?
• How much will it cost to attract the right level of talent?
• Types of compensation
- Guaranteed compensation (base, salary, hourly wage)
- Variable compensation (commissioned or leveraged)
- Incentives (stock options, bonuses)
• Typical compensation models in Western North Carolina
- Phone-based sales rep: $9 to $15 per hour plus variable compensation
- Inside-sales rep: $24k to $40k base salary, plus variable compensation of 15 to 30% of base
- Outside-sales rep: $36k to $60k base salary, plus variable compensation of 25 to 50% of base
• To come: Hiring a sales rep, creating a fair compensation package, and more
• Sign off, and ways to contact the show
Links for Today’s Episode:
Tweet Tom at: @TomRyanAVL
Do you have a question about your business? Tom would love to help you:
Leave a voicemail: (801) 228-0663
E-mail your questions: SuccessInBusinessPodcast@gmail.com
Like this podcast on Facebook
Follow this podcast on Twitter: @TomRyanSIBP
Get every episode free: Subscribe in iTunes