Sales Structure Analysis
Sales business models vary significantly. The field ranges from sales clerks who work in department and retail stores to corporate salespeople who market their products to other companies on a much larger scale. Various sales structures exist to maximize potential profits.
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Different sales structures vary, depending on how large their respective companies are and how much revenue they are generating. Larger companies usually lean toward using in-house sales people, who work for a base salary and then are further awarded commissions. Smaller companies that are just starting out and don't have the capital for salaries may opt with working for a broker agency, where payment to temporary salespeople is made more in commissions.
Commissions
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Commissions, which are bonuses based upon the total sales made by a representative, play a large role in structuring a sales team. In-house salespeople usually make a commission on top of a base salary, which maximizes sales incentive. Sometimes commissions are capped, while other times they are not, increasing the total amount of income a salesperson can earn. Representatives managed by broker agencies will work mostly for, if not completely, commissions, and as such, they will want a larger percentage to make their efforts worthwhile.
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Additional Incentives
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Incentive structures and models are also used to further encourage the hard work of salespeople. Incentives can range from additional bonuses to non-monetary goods, such as dinners and vacations.
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References
- Photo Credit sales manager checking the sales image by Peter Baxter from Fotolia.com
