There's an ongoing debate among sales executives about how best to compensate salespeople — a conversation that centers on what's best for business.
Have you ever noticed, however, that little is said about what is best for you, the gifted sales rep?
There are, of course, a range of compensation options. A common one is a salary plus bonus, which provides a baseline income for hitting a quota plus a bonus for sales that go above and beyond that target. Often there is a limit, however, on that bonus.
Management likes this structure. That's because it provides an incentive for the salespeople to perform while capping how much the company will have to budget for sales compensation.
Who else reaps the rewards of this arrangement? Salespeople who are just getting their feet wet and those who are struggling with low to average performance levels.
Another possibility is a simple commission plan, which pays salespeople strictly based on sales targets they hit with no limit to an individual salesperson's compensation. With such a pay structure, top performers' earnings can elevate rapidly.
So which compensation structure would provide you with the best opportunity?
That depends. Are you motivated, conscientious, talented and persistent? Do you tend to rise above the pack in sales situations?
If you answered yes to these questions, you likely would not receive the income you deserve when handcuffed by a base plus bonus plan. You want and deserve the promise of unlimited income that comes with the commission-only pay structure.
After all, why should your income be constrained? You're good at what you do. You know how to develop a rapport with clients. You actively listen, build trust and put the puzzle pieces together to match them to a solution that fits like a glove. You know how to lead them gently along the path from “hello” to a closed deal.
Do you currently have the potential to earn significantly more than the lowest producers? Do you feel you're being rewarded for your performance?
If not, consider whether your current compensation package is right for you. Perhaps you shouldn't settle for a sales position where there's a ceiling to your earnings.
Think about it. In a salary plus bonus scenario, all the sales reps are compensated at a base level whether or not they are successful. True, the top reps make more than those who don't pull their weight, but their earnings are usually lower than they would be in a commission-only position. The best reps' contributions are effectively subsidizing the weaker performers' salaries.
While the commission-only pay structure with unlimited earning potential is probably the best fit for you, that's not your only consideration.
Rather than waiting 10 or 15 years to age into a management position, you should have a shot at advancing as soon as you prove your mettle.
Plus, let's think long term. Because you'll want to retire one day and reap the rewards of your successful career, it's vital to own your book of business.
Finally, there's the cherry on top — the travel rewards. It's always fun to celebrate your success with your peers in beautiful, faraway destinations.
At American Senior Benefits (ASB), your talent and dedication determine what you earn. There are no caps. It's up to you. Plus, you don't have to wait years to climb the career ladder. If you're pulling in the sales, you'll have the opportunity to lead a sales team. You can move from insurance agent to agency owner in just a few years.
And that book of business? After three years at ASB, you're vested for three years. After ten, you're vested for life. That's why salespeople who are already earning in the high six figures at other companies switch to ASB. They can rebuild their earnings quickly, and when they are ready to retire, they can sell the company they've built.
Lastly, as a top performer, you'll receive recognition and travel awards. You'll likely qualify for ASB's annual convention along with others sponsored by some of our 150 leading carrier partners.