Home  » Solutions  » Checklists  » Sales Commission Plan Checklist

Task Management Software

Business Management
Project Management
Process Management
Task Management
Employee Management
Customer Management
Sales Management
Finance Management
Product Management
Company Activity
Office Management
Document Management
Other Management
Crisis Survival
Skills Development

VIP Task Manager Professional

Play VIP Task Manager demo Play Demo >>


Forgot your password?
Login As:
Login As
You can log in if you are registered at one of these services:
"...This is an excellent program. I'm so glad that I stumbled on to this when researching for task management programs. Very low learning curv, quite flexible, and the price is right. Tried at least 20 other programs, either too complicated, too expensive, or poor documentation..."
Chad Lindsey -
Honolulu, HI

Sales Commission Plan Checklist


All Travel Checklists

Sales Commission Plan Checklist A sales commission plan shows an amount of money a sales representative receives as a compensation for the sales volume generated by this person. The following Sales Commission Plan Checklist explains how to establish commission for sales agents and representatives.

Order 750 checklists in MS Word and PDF printable format at $49.99 USD only. BUY NOW! 


1. Reasons to Choose Commission-based Payout.

  • Selling cycles in your company are rather short and performance measures are straightforward, so you can implement an incentive payout system
  • Sales success is the achievement of an individual salesperson’s effort (rather than a team effort)
  • Motivation and commitment of sales agents are high
  • The management team no more feels it is important to closely supervise and monitor sales force effort, because commission payout entails effective sales management based on actual results achieved by salespeople
  • Sale force is expected to focus on sales-related tasks
  • The market is fast-growing, and so it is difficult to forecast future demand

2. Commission Components.

  • Quotas. There are two kinds of quotas including targets and floors
    • Target Quota is the planned amount of products/services a salesperson needs to sell
    • Floor Quota  is the minimum amount of products/services a salesperson is allowed to sell
  • Revenue. Consider making this component of sales compensation lower for sales representatives and higher for business development personnel
  • Gross Profit. Calculate gross profit from sales by determining different types of revenue (sales channels, verticals, or product lines) and then use quotas (either Target or Floor) to estimate total cost of purchases that have been made.

 3. Commission Types.

  • Salary Only. Use this type of sales commission for several reasons, as follows:
    • New sales employees are brought into your company
    • A new territory is opened so the company needs some time to deploy and speed up sales activities
    • Motivating salespeople to achieve key success factors that do not relate to sales revenue
  • Straight Commission. Add this commission type to your plan if you want to:
    • Motivate highly aggressive selling behaviors
    • Maximize sales volume in a shorter period
    • Focus salespeople on sales activities rather than other tasks such as customer service and support
  • Combined. Choose a combination of both commission types if you are sure that:
    • Salespeople in your firm want to receive a stable average salary
    • The senior management wants to get the advantage of rewarding salespeople for their tasks related to mid-term revenue
    • There is a need to motivate salespeople for generating sales revenue and profitability smoothly, without sudden changes in sales volume

4. Commission Considerations.

  • Develop your sales commission plan in conjunction with the company\'s overall planning process
  • Involve your sales team in designing the plan, so that they can contribute their valued ideas and feedback taken from real-life experience
  • Make certain the compensation plan focuses on both tactical sales goals and the company\'s strategic objectives
  • Be sure the plan considers business-related measures, including profit, growth, market share, products, company development
  • Keep your plan up-to-date and relevant to the industry level
  • Develop metrics and measurable criteria for assessing status of sales performance
  • Keep your plan simple yet complete
  • Add adequate commission rates to the plan in order to motivate your sales force and decrease employee turnover
  • Make your plan oriented towards the desires of your sales staff
  • Consider including a fixed salary component to the plan if you want your sales team to be committed to long-term engagements and relationships with customers
  • Keep your sales commission plan differentiated, so that.....


Order 750 checklists in MS Word and PDF printable format at $49.99 USD only. BUY NOW! 

CentriQS Tasks Management Solution new

Looking for multi-user task management software? Try CentriQS complete task management solution for planning, tracking and reporting tasks, projects, and schedules. Increase productivity of your small business or office by better organizing your employees' tasks and time.

FREE Download CentriQS

CentriQS new -15% OFF
All-in-one business management software
for small and midsize enterprises

VIP Task Manager
Multi-user project management software
to plan, schedule and track project tasks.

VIP Checklists
More than 750 ready-to-use to-do lists
to plan your personal and business life

VIP Team To Do List
Professional task management software
to make and send team todo lists by email

VIP Organizer
Personal time management software
to organize time at home and at work

VIP Simple To Do List
Simple and effective to-do list software
to plan daily chores, trips, wedding, etc.

  Products *Solutions* Download Buy Support Contact My Account 

  Copyright 2004 - 2024 VIP Quality Software, Ltd. All Rights Reserved.

Site Map
Legal Information