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New commission plan...Deal or no deal?

My boss just instituted a new commission plan (print industry) for the sales team to "try out and see if it works". We went from salaried positions to base salary with commission.

My particular situation looks like this:
  • Salary cut to less than 75%: base now $18,200 with 4.5% commission rate (average in my area is 41k)
  • Increased duties with making deliveries/pickups
  • Been using my personal phone as problematic company phone was never replaced
  • Loosing monthly gas allowance
  • No access (though promised after a year) to sales credit card for treating clients to lunch/work events, etc.
  • Increase in clients going online due to budget cuts/management decree
Is this a reasonable/good deal? Or should I be thankful to have a job?

Thanks for any advice. - by NewToSales
I think first of all, you need to take your original income and "perks" and divide by what you're doing to see if it's a good deal or not. If you used to have a card for lunch, then you should have a reimbursement plan before I accept a change. "Company" expenses should remain company expenses, your "remuneration" should remain yours. If you're picking up "company" expenses as you're own, then you need to have opportunity to make more money.

On the other side of the issue, is just that. What are the upside potentials for you. I did this myself with an insurance company I managed, went on commission. If I was smart, I'd have done it a little differently, but I had all my accounts transferred to me that I "wrote" up for the house. We make about what you do, 5% commissions on the upside, 3.5% on the lowside for some and if you have the potential to expand, it can be much more lucrative.

Aloha... :cool: shds; - by rattus58
I don't mean any disrespect in this, NewToSales, but do you have a choice?

Nobody likes their compensation plan messed with (unless it's a huge raise). But changes happen, and the ultimate decision for most salespeople is eiither stay and make the best of it, or leave and find greener pastures (if, indeed, they exist).

Some of your post sounds like complaining (perhaps justified) about things that are not related to the compensation plan (no access to company credit card, etc.).

My advice: Give it your absolute best for 3 months (maybe 6); don't look back, and don't compare to how it "used to be" because how it used to be isn't applicable any more. If you can't make it work after 3 months, find a position that better suits you. - by Skip Anderson
Sales pay-plans always change. As a sales person, this is something you need to expect.

The managers try to set up a pay structure to be motivating and in line with their vision. They push it as far as possible without trying to demotivate the team.

Inevitably any good team will outlast the payplan by reaching the goals or vision of the management's plan and they will start to make too much money. This is when the management 're-aligns' the plan to reach a new set of goals.

When looking at a sales compensation plans I try to find out what the top 10% of the sales people are earning. This tells me where the ceiling is for this company at this time. (since management ideology can change too) It also gives me an idea of what I expect to earn as a top salesman with the organization.

YRMV :) - by Tony_B
In my limited experience with this... choosing myself to go from Salary to commission, I've little knowledge of how it generally is being done today.

My personal experience, my personal bias, and my personal motivations are that when times are tough, you work more hours, not cut expenses... although that can and should be on everyones budget platter monthly anyway... at least so you know what each sale is worth... each call is worth etc.

Personally I'm not hanging around unless it makes sense. I'm not giving anyone the benefit of my service unless I BENEFIT by my service. Salary plus commissions are a much better way to transition than going to straight commission like I did. How