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Hi,

We are new at hiring and working with sales executives/reps, so we would appreciate sales pros’ feedback on the compensation plan draft we’ve researched and developed. Please, provide full critique if possible. Here it goes:

Industry: Internet Marketing, product: selling site memberships and access to training resources, sale closing time: 1-2 weeks, products price range: 0 – ,000

1. The model would be draw vs. commissions + bonuses for desired sales behavior

2. Sales person would get 30% on reaching target sales amount

3. Sales person would have to hit ,500 (50%) target in sales first month, and ,000 (100%) in the second and further months to earn 30% commissions

4. This target would mean selling around 10-15 memberships a month

5. There are bonuses like, increased % (to 50%) on reaching ,000 in sales, ,000 bonus on 3 consecutive months of reaching or exceeding the targets.

6. The draw against commissions would be ,000/mo

7. If the person doesn’t reach targets after 2 months or owes the company more than ,000 (2 draws), he/she is out of the team

Thanks in advance,

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