Increase Sales with Commission based Sales Agents
Posted by Joe Thomas on 16 September 2015 05:07 PM


 There are typically three types of commission structures used in the telecom industry, one-time bonus per line or handset, residual commission based on the amount of revenue billed by the sales agent, and a combination of one-time and residual commission.


The easiest one to manage and implement is the one-time payout model. This is usually employed for new sales reps during a probationary period. Once the rep has proven themselves and is in it for the long haul, you may want to employ a residual based commission structure to ensure that quality reps will continue to stick around. At the same time, residual income can also turn a once productive rep into a complacent one because they have a nice residual stream of income that they can rely on. In order to combat that, you may want to only pay out residual commission only if the rep hits a reasonable quota that has been pre-determined. That way both parties can mutually benefit from the situation. Below are sample compensation plans that can be used for Sales Reps:


One time Commissions - $50 - $100 per handset

Residual Commissions – 10-15% Residual   

A combination of an upfront commission and a residual commission is best meant for a sales agent that works for you full time. In lieu of paying a salary, you would offer a compensation plan like the one outlined below:

Combination Plan = $50 per handset, plus a 10% Residual




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