I often thought how to structure the remuneration package for a sales staff in the recruitment or even more specific is the sales of the jobs site subscriptions. The jobs sites sell the three month, six months and the most often the annual subscription that includes the free usage of a number of jobs slots on the site. What it means is that the client, an employer or a recruitment agency can use their XX number of jobs slots as they like. There is usually some side products on the jobs sites like the CV Database Access, or a Hot Job – that is displayed on the home page. Some company branding packages with the company logos around the pages on the job site are also common practice.
The sales staff are usually paid so that there is a percentage of their salary that is a Basic Salary. It is guaranteed and not related to their performance. For a junior sales staff it is not far off the minimum wage, and it grows with the experience of the person. The other part of the salary is the bonus that is related to the performance achieved in each time period. The bonuses are really structured differently in different companies and industries.
Obviously the sales person should bring more in (revenue) the company than what his own costs are. So here is a question then:
Should a sales person rather accept a percentage of the revenue or the classis sales remuneration package comprised of a basic plus a bonus?
Obviously for a good sales person a percentage of the revenue if it is a substantial percentage should be a far more interesting option, since it brings the person to a ‘Partner’ level instantly. It is actually even better then a partnership since the sales person gets a percentage of the revenue generated, regardless if the company is actually profitable at all.
I have heard recruiters saying, that the percentage of the revenue is interesting for them but that the sales process can take long time to close, and there is the mortgage, the car,…
So I tried to look at it from a different perspective. How about a sales person taking home 100% of any revenue he makes for the first month or so? How about 100% of all the revenue made in the first two months??? Surely there should be quite enough clients you can close a deal with within 60 days?
What do you think? Am I on the right track? Would you take a job where you take home everything you make for the first few months?