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Sales commission scheme

Business Team Sales Commission Scheme

At present, the most popular salary calculation methods for salespeople are: 1 pure commission system, 2-pure salary system, 3-basic system, 4-share system, 5-floating quota system, 6-simultaneous comparison system, 7-lagging penalty system, 8-negotiation system and 9-ranking reward method, and these nine calculation methods are introduced in detail from the aspects of definition, calculation formula, applicable conditions, advantages and disadvantages.

1 pure commission system

Pure commission system refers to a certain proportion of sales (gross profit and profit) as sales incentives. In addition, salespeople don't have any fixed salary, and their income is completely variable. The sales compensation system of pure commission system is adopted by 20% enterprises in the United States, and it is also widely adopted by domestic enterprises. The calculation formula is as follows:

Personal income = sales (or gross profit, profit) × royalty rate

The implementation of the unified commission system requires a series of conditions, including that some people have obtained a well-known high income, and once they have obtained it, they have certain stability and continuity; The time from the start of work to the first entrustment cannot be too long; The products for which the pure commission system is applicable should be products with not particularly high unit price but considerable gross profit margin.

The biggest advantage of pure commission system is that the direction of sales salary is very clear, which can motivate sales staff to work hard. It also completely transfers the risk of the salary cost of the sales staff to the sales staff themselves, greatly reducing the pressure of the company's operating costs. Of course, its disadvantages are also obvious: the complete commission behavior orientation makes salespeople keen on profitable transactions, but ignores other things that do not produce direct benefits, and sometimes even damages the company's image: the pure commission system brings great risks and pressures to salespeople and weakens the stability and cohesion of sales teams; It is easy to encourage the arrogance of sales staff, disobey management and disrespect leaders.

2 pure salary system

Pure salary system refers to the fixed salary system of sales staff, regardless of whether the current sales are completed or not. 28% of enterprises in the United States adopt the pure salary system. The formula can be expressed as:

Personal income = fixed salary

When the salesman has a strong demand for things other than money (such as honor, status, ability training, etc.). ), simply using the commission incentive method will not have the incentive effect, so it is appropriate to adopt the pure salary system; Especially in the sales team where intellectuals gather, or in the enterprises that implement the lifelong employment system, it has actually become an inevitable means to adopt the pure salary system.

The advantage of pure salary system is that it is easy to manage and mobilize, and it keeps the high rusticity and loyalty of employees. However, because there is no money to stimulate sales staff, it is easy to form a big pot of rice; The implementation of fixed salary system brings difficulties to the performance appraisal of sales staff; It is not conducive to the company's control of sales expenses; The salary promotion system is complex, resulting in many contradictions; It is impossible to attract and retain more enterprising salespeople.

3 basic system

The basic system refers to dividing the income of sales staff into two parts: fixed salary and sales commission. Salespeople have a certain sales quota, and they can get the basic salary, that is, the basic salary, regardless of whether they achieve the sales target in the current month; If the sales volume completed by the sales staff in the current period exceeds the set index, the above part will be deducted in proportion. In fact, the basic system is a mixture of the characteristics of fixed salary system and pure commission system, which makes the income of sales staff not only guaranteed by fixed salary, but also linked to sales performance; It not only stimulates the commission, but also provides employees with a relatively fixed income base, so that they will not be completely unsure of their future income. It is precisely because the basic system has the characteristics of pure salary system and pure commission system that it has become the most popular sales salary system at present, which is adopted by about 50% enterprises in the United States. Expressed by the following formula:

Personal income = basic salary+(current sales-sales quota) × royalty rate

or

Personal income = basic salary+(current sales-sales quota) * gross profit margin × royalty rate

In practical work, some companies also nominally implement the income system of 10% commission, but it is stipulated that if the sales target is not achieved in the current month, it will be deducted from the basic salary according to a certain proportion. For example, a company stipulates that the sales target per person per month is 65438+ 10,000 yuan, and the basic salary is 1000 yuan. Dissatisfied with the sales target of the current month will be deducted according to the proportion of 1%. This is actually a disguised full commission system, because it is essentially the same except that the ratio before and after the index is not necessarily the same.

4 carve-up system

The sharing system is to determine the sum of the total income of all sales staff in advance, and then determine the remuneration according to the proportion of the sales completed by individuals to the total sales after the end of this month, so as to divide the total income. The formula is as follows:

Individual monthly salary = total group salary × (individual monthly sales ÷ total monthly sales)

or

Individual monthly salary = total group salary × (total individual monthly sales ÷ total monthly sales)

Total salary of the group = single rated salary × number of people to be divided up (at least five or more), otherwise it is easy to collude and cheat, which will not encourage internal competition and improve work efficiency.

The advantages of carve-up system are: simple operation, easy to learn and understand; The cost is relatively fixed, but it can still encourage competition. Its main shortcomings: employees are difficult to understand; The fierce internal competition caused by the divide-and-rule system is not conducive to the coordination of work between departments.

5 floating quota system

Floating quota refers to the monthly sales quota (the total sales of the month divided by the per capita sales of the number of salespeople) multiplied by a certain proportion. If an employee's actual sales are below the quota, he will only get the basic salary. If the sales amount is above the floating quota, the part exceeding the quota shall be deducted according to a certain proportion, plus the basic salary. The formula is as follows:

Personal salary = basic salary ten (personal current sales-current floating amount) × royalty rate

Current floating quota = current per capita sales × proportion

Among them, the set proportion is generally 70%-90%.

When adopting the floating quota system, the following two items should be guaranteed: 1. The sales opportunities of each salesman are relatively balanced. 2. The number of salesmen participating in the floating quota system should be as large as possible.

The floating quota system can fully reflect the market situation and weaken the impact of environmental upheaval on the income of salespeople; The operation is relatively simple, which can reduce the degree of error; It can fully encourage internal employees to compete, greatly improve work efficiency and help control costs. However, the fierce internal competition caused by the floating quota system is not conducive to internal unity and cooperation.

6 synchronous comparison system

The same period comparison system refers to comparing the sales volume of each person with the same period of last year. If it is worse than the previous year, it will be punished, and the degree of punishment is linked to the proportion of decline. The formula is as follows:

Personal salary = [basic salary ten (current sales quota) × royalty rate ]× (current sales ÷ sales in the same period last year) n

N can be 1 or 2 or 3 ... as required.

The implementation of the comparative method of the same period is mainly to prevent salespeople from being old-fashioned because of their long working hours and old qualifications; Or they are not at ease with their work and work part-time outside, resulting in a decline in sales. Not suitable for the overall deterioration of the market, resulting in a decline in sales. Its greatest advantage lies in its quick effect, but its shortcomings are also obvious and it is easy to produce contradictions. Moreover, due to the difficulty of conversion before and after operation, the adoption of the simultaneous comparison system often lasts only a few months.

7 backward punishment system

It is stipulated that those with the lowest sales volume, the second and the third will be fined.

The backward punishment system is a kind of law to deal with chaos in view of the company's salesmen's lax efforts. Its advantages are small punishment and great influence, and it can serve as a warning to others. But at the same time, it is easy to make backward people have negative psychology, even confront managers or leave their jobs, so this method is mainly used in state-owned enterprises.

Orderly reward method

The so-called ranking salary method is to fix the remuneration or wages of all salespeople, count the sales of salespeople in that month, and finally pay wages in the order of first, second and third.

In order to avoid eating the same pot, we should pay attention to widening the wage gap between the penultimate person and the penultimate person. The enthusiasm mobilized by this method is positively related to the income gap.

Calculation formula:

Personal salary = the highest personal salary (the gap between high and low wages ÷ the number of people in the current period) × (ranking 1 1)

When the market situation changes rapidly and it is impossible to determine the sales quota and commission rate, ranking reward method can be considered.

The ranking system eliminates the influence of market changes on sales, ensures the income of employees and encourages moderate competition; It is beneficial to the stability of the sales team and improve the loyalty of the sales staff. However, when the original sales are already high, it is difficult to encourage new breakthroughs.

8 negotiation system

The so-called negotiation system is based on the basic system (10% of the basic salary) to adjust the gap between sales revenue and commission amount, and the sales staff will pay wages according to the adjusted standard. Expressed as:

Salary of sales staff = [basic salary 10 (sales revenue quota) x commission rate] x (price coefficient) n

The price coefficient is determined by the ratio of the actual sales price to the planned price, namely:

Price coefficient < = (actual sales/planned price sales) n

Therefore, the sales compensation system of the negotiation system can be comprehensively expressed as:

Salary of sales staff = [basic salary 10 (sales income is fixed) × royalty rate ]× (actual sales ÷ planned price sales) n

Quota and royalty rate can be determined and adjusted by enterprises according to their own situation. According to the specific situation of the sales price, the enterprise can adjust the price coefficient. For example, if you adopt a loose strategy, you can set n to 1, and if you need a stricter strategy, you can also set n to 2 or even 3,4 ... to strictly control the transaction price.

The compensation system of negotiation system can overcome the shortcomings that the product sales price elasticity is too large and the enterprise is difficult to control, and to some extent, it can prevent the sales staff from deliberately lowering the price in order to clinch a deal. Because the commission standard is closely related to the coefficient between the actual price and the planned price, if the salesperson deliberately closes the transaction at a low price, then this coefficient will inevitably decrease, so even if the salesperson completes a large number of sales, it is difficult to get the commission or the commission is very small, and the salesperson will inevitably weigh the pros and cons and maintain the price of the enterprise at a reasonable level.

Wu Hao's personal view:

No matter which set of sales commission method is adopted, if the sales team of online merchants should have characteristics suitable for online merchants, such as:

1. The salesman's performance in operating the website for the company (including management, effect, lasting value, etc. ).

2. Fame, contacts, prestige, etc. Produced by sales staff at work.

3. The corporate image established by the salesman for the company, such as Alibaba's online business enterprise, also includes the salesman's activities in forums, blogs, business circles, shops, online and offline.

The above three points are very important. These are chronic effects, which need long-term persistence and accumulation, but the longer it takes, the better the effect. In particular, the popularity, credibility, product popularity and promotion benefits of enterprises on the Internet all need a certain amount of time to accumulate. Therefore, the commission of network marketers should include a potential value. Of course, if the salesman or salesman team can persist in the sales position of the enterprise for a long time, some effective businesses can be directly enjoyed (rewarded) during their employment.

However, due to the characteristics of the network, network salesmen need to pay special attention to the image of the enterprise, including the positive or negative effects that may be brought to the enterprise in service and peacetime activities. If it is positive, it can be rewarded according to the above three items. If it is positive, it will be investigated for its direct or indirect damage to the enterprise.