The Tiered Commission Structure Every Business Owner Needs to Know
About this episode
Aleasha Bahr discusses how to create an effective tiered commission structure for salespeople to avoid costly mistakes in compensation.
There’s a question I hear more than almost any other from business owners: “How should I compensate my salesperson?” It sounds simple. It isn’t. Get it wrong early and you create a situation that’s hard to fix. You either end up with a salesperson negotiating from a position you can’t push back on, or a top performer reconsidering their role after a change to commission. Both are expensive. Both are avoidable. In this latest episode of Sales is NOT a Dirty Word, I break down how to build a compensation structure that works for you and your salesperson, without guesswork, frustration, or unintended leverage. Here’s what I cover: The Sales Diva Problem and how to avoid it The base + incentive structure that actually drives performance. The three tiers every comp plan needs. Why monthly and quarterly bonuses outperform annual ones. The most expensive mistake in sales leadership A strong compensation plan should be a win/win. If it doesn’t, it will show up in your results. If you’re not sure how to structure compensation, start with your margins, identify what you need off your plate, and build from there. And if you want support doing exactly that, including building a repeatable…
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