Re: Commission for a sales team

From: Stuart Hochwert <bbecker_at_myfree.com>
Date: Sat 8 Jan 2000 08:13:57 -0600

GIUSEPPE FARESE WROTE:
> I wish to know which is the common comission paid for a
> banner sales's person in the sales department of a
> website.
>
> I'm not talking about agency comission, but the the
> comission that the sales person get for every sale.
>
> Is there a standard, max. and min.?
>
> Does it depends on the number of impressions and CPM of
> the site? Does it depends on the type of information
> and content of the site?


The average total compensation for media sales should
run about 30% of the space costs. This is based on my
experience in print, direct mail and online, along with
studies from University of Chicago Sales Compensation.
Some annual reports will also break out sales expenses,
although most group with general and administrative.

Keep in mind that the 30% includes salary, commissions,
benefits, overhead (ultitiles, phone, space) along with
travel, promotions, etc.

Direct personnel expenses such as wages, benefits and
commissions typically run 50 - 75% of the total of
about 15% - 23% of sales.

Keep in mind there are many compensation packages and
structures, with more flavors than ice cream. Studies
have shown that a compensation package of roughly 50%
base and 50% commissions is quite effective at
attracting, motivating and keeping sales personnel.
Studies also show that the typical 100% commission
sales team will do much better on average than base and
commissions. However, it is difficult to attract
talent at 100% commission.

Hope this helps.

Stuart Hochwert
www.myfree.com
A Guide To Free Stuff
Ranked 344 by PCDataOnline for Web Traffic





Received on Sat Jan 08 2000 - 08:13:57 CST