How should the compensation plan for salesmen be designed? [closed]





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Should it be like:



 Plan A: Base pay:2000dollars/month 
selling amount:
0-50,000dollars: 5%
50,000-100,000 dollars: 10%
100,000-20,0000 dollars: 15%
200,000+dollars: 20%
So if a salesman sells 200,100 dollars, he should get:
2,000+50,000*5%+(100,000-50,000)*10%+(200,000-100,000)*15%+(200,100-200,000)*20%



Plan B: Base Pay: 2000 dollars/month
selling amount:
0-50,000dollars:20%
50,000-100,000 dollars: 15%
100,000-20,0000 dollars: 10%
200,000+dollars: 5%
So if a salesman sells 200,100 dollars, he should get:
2,000+50,000*20%+(100,000-50,000)*15%+(200,000-100,000)*10%+(200,100-200,000)*5%









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closed as primarily opinion-based by NotMe, Justin Cave, Strader, IDrinkandIKnowThings, Richard U Nov 16 at 18:58


Many good questions generate some degree of opinion based on expert experience, but answers to this question will tend to be almost entirely based on opinions, rather than facts, references, or specific expertise. If this question can be reworded to fit the rules in the help center, please edit the question.















  • FIgure out how much you are willing to pay. Then figure out how it should work from there. Also, 40% of anything sounds incredibly high.
    – NotMe
    Nov 16 at 17:31

















up vote
-11
down vote

favorite












Should it be like:



 Plan A: Base pay:2000dollars/month 
selling amount:
0-50,000dollars: 5%
50,000-100,000 dollars: 10%
100,000-20,0000 dollars: 15%
200,000+dollars: 20%
So if a salesman sells 200,100 dollars, he should get:
2,000+50,000*5%+(100,000-50,000)*10%+(200,000-100,000)*15%+(200,100-200,000)*20%



Plan B: Base Pay: 2000 dollars/month
selling amount:
0-50,000dollars:20%
50,000-100,000 dollars: 15%
100,000-20,0000 dollars: 10%
200,000+dollars: 5%
So if a salesman sells 200,100 dollars, he should get:
2,000+50,000*20%+(100,000-50,000)*15%+(200,000-100,000)*10%+(200,100-200,000)*5%









share|improve this question









New contributor




Steven is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.











closed as primarily opinion-based by NotMe, Justin Cave, Strader, IDrinkandIKnowThings, Richard U Nov 16 at 18:58


Many good questions generate some degree of opinion based on expert experience, but answers to this question will tend to be almost entirely based on opinions, rather than facts, references, or specific expertise. If this question can be reworded to fit the rules in the help center, please edit the question.















  • FIgure out how much you are willing to pay. Then figure out how it should work from there. Also, 40% of anything sounds incredibly high.
    – NotMe
    Nov 16 at 17:31













up vote
-11
down vote

favorite









up vote
-11
down vote

favorite











Should it be like:



 Plan A: Base pay:2000dollars/month 
selling amount:
0-50,000dollars: 5%
50,000-100,000 dollars: 10%
100,000-20,0000 dollars: 15%
200,000+dollars: 20%
So if a salesman sells 200,100 dollars, he should get:
2,000+50,000*5%+(100,000-50,000)*10%+(200,000-100,000)*15%+(200,100-200,000)*20%



Plan B: Base Pay: 2000 dollars/month
selling amount:
0-50,000dollars:20%
50,000-100,000 dollars: 15%
100,000-20,0000 dollars: 10%
200,000+dollars: 5%
So if a salesman sells 200,100 dollars, he should get:
2,000+50,000*20%+(100,000-50,000)*15%+(200,000-100,000)*10%+(200,100-200,000)*5%









share|improve this question









New contributor




Steven is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.











Should it be like:



 Plan A: Base pay:2000dollars/month 
selling amount:
0-50,000dollars: 5%
50,000-100,000 dollars: 10%
100,000-20,0000 dollars: 15%
200,000+dollars: 20%
So if a salesman sells 200,100 dollars, he should get:
2,000+50,000*5%+(100,000-50,000)*10%+(200,000-100,000)*15%+(200,100-200,000)*20%



Plan B: Base Pay: 2000 dollars/month
selling amount:
0-50,000dollars:20%
50,000-100,000 dollars: 15%
100,000-20,0000 dollars: 10%
200,000+dollars: 5%
So if a salesman sells 200,100 dollars, he should get:
2,000+50,000*20%+(100,000-50,000)*15%+(200,000-100,000)*10%+(200,100-200,000)*5%






salary compensation






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Steven is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.











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edited Nov 17 at 2:09





















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asked Nov 16 at 17:28









Steven

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New contributor





Steven is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.






Steven is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.




closed as primarily opinion-based by NotMe, Justin Cave, Strader, IDrinkandIKnowThings, Richard U Nov 16 at 18:58


Many good questions generate some degree of opinion based on expert experience, but answers to this question will tend to be almost entirely based on opinions, rather than facts, references, or specific expertise. If this question can be reworded to fit the rules in the help center, please edit the question.






closed as primarily opinion-based by NotMe, Justin Cave, Strader, IDrinkandIKnowThings, Richard U Nov 16 at 18:58


Many good questions generate some degree of opinion based on expert experience, but answers to this question will tend to be almost entirely based on opinions, rather than facts, references, or specific expertise. If this question can be reworded to fit the rules in the help center, please edit the question.














  • FIgure out how much you are willing to pay. Then figure out how it should work from there. Also, 40% of anything sounds incredibly high.
    – NotMe
    Nov 16 at 17:31


















  • FIgure out how much you are willing to pay. Then figure out how it should work from there. Also, 40% of anything sounds incredibly high.
    – NotMe
    Nov 16 at 17:31
















FIgure out how much you are willing to pay. Then figure out how it should work from there. Also, 40% of anything sounds incredibly high.
– NotMe
Nov 16 at 17:31




FIgure out how much you are willing to pay. Then figure out how it should work from there. Also, 40% of anything sounds incredibly high.
– NotMe
Nov 16 at 17:31















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