Calculate what and how much you need to pay sales managers for

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We divided sellers into three groups depending on the client category: large business, the public sector, and the mass segment. Working with large business and the public sector involves a long transaction cycle, so the monthly incentive system does not work here. Managers have quarterly plans and quarterly bonuses. At the same time, employees not only sell, but also act as project managers. They need to organize implementation and support, motivate them to scale up, since large companies spain telegram number database often start with a pilot project. Renewal of such a client also requires incentives.

In the mass segment (small and medium businesses), the transaction cycle is short, so monthly sales plans and a focus on revenue volume rather than MRR are suitable. Bonuses depend on transactions with new clients.

To calculate the bonus amount for each target action — sale, subscription renewal, increase in the number of users — you need to take into account the cost of attracting a client. To calculate the bonus, you need to calculate the profitability of sales using the following algorithm:

How much does a manager bring to the company? We calculate the average sales volume of managers by multiplying the average check by the number of transactions. We take 80% of the resulting amount, based on the assumption that the plan will not be fulfilled 100%, and calculate how much one manager brings in a month, quarter, year.
How much a manager costs the company. We determine the target total income of the manager, which consists of a salary and a bonus (that is, how much the company is ready to pay specialists, taking into account market realities). We add personal income tax and insurance contributions, as well as paid leave (7.7% of the annual salary).