sales and marketing position

[zyklone]

Hi Guys,

I want to hire sales and marketing staff in my small business. which is software development. more on creating websites.

I have some few questions regarding marketing staff:

1. do i need to require a quota each month for my sales and marketing? is it what usually the process in a company?

2. if he reaches the quota each month. i need to give him a commission. how will i compute the commission? or what is the average percentage in giving commission for sales and marketing position?

3. i want to give him monthly salary aside from commission if he reaches the monthly quota. is this kind of system is usual thing in a company?

4. in line with my business as software development or website development. is PHP150,000 quota each month is too high or too low?

If you could give me more information about marketing it is highly appreciated.

I hope you would help me figuring this out. Thanks in advance....

[justin8]

1. A quota each month is a requirement.
2/3. You either do all commission or commission and salary. If you do commission and salary you would not give him commission until they hit their goal. Commission only you really have nothing to loose!

I would also say around 20% - 35% is a great commission percentage, thats what I work for!

[albertamaven]

You should reward your staff if he exceed the requirement that you set for him.

[peteyflow]

I get salary and commission at this telecom company I work for. The commission percentage increases as I sell more which is a definite motivational factor.

[inle]

There are differences between a Sales and a Marketing position..
From the above posts, I reckon that there is a misconception that a Marketing job is a Sales job because most sales positions take the label of marketing positions..

Marketing is to pull customers in through strategies & action plans, a physcologically activity..
Sales is to deliver the offerings to the customers, a more physical activity..
I think it is good to define what exactly is the job nature about before any engagement..

[Alexishost]

Set 10 orders for example!

[shariROCKS]

You do need to qualify what exactly will the person be doing for you. Are they selling? Or is it marketing? Or are you doing a position that is both?
Here's my thoughts on your questions:

1. do i need to require a quota each month for my sales and marketing? is it what usually the process in a company? Yes, quotas that are SMART goals are the best. Make sure you can track, measure and that they are attainable. If is often best, depending at what your end result is, to ask have a sliding scale. For example, they sell XXX they get YYY, sell % over XXX and get an extra ZZZ..Scale commission structure encourages the aggressive salesperson to keep pushing to make more.

2. if he reaches the quota each month. i need to give him a commission. how will i compute the commission? or what is the average percentage in giving commission for sales and marketing position?
Commission can be computed as a percentage to revenue: either net sales, receivables, or gross sales. Which ever matches your business model the best. Most 100% sales commission jobs pay 20-35% of net sales.

3. i want to give him monthly salary aside from commission if he reaches the monthly quota. is this kind of system is usual thing in a company? I am not clear what exactly you are asking. If you want to pay them a salary plus commission. Then, I would recommend that you pay them a commission percentage less than mentioned. Again look at your business model and your cost of sales. You could pay commission only when they reach quota and then added incentive or increase in commission if they exceed that quota. Or, with 100% commission, you can pay a commission that is considerably lower from zero dollar to the quota that you need. Once they get to quota it can be an extra bonus or considerable increase in % payout.

4. in line with my business as software development or website development. is PHP150,000 quota each month is too high or too low? Currently, what is your average sales per month. What are your expense to adding an additional employee and what are you expecting them to bring to the table in sales. Look at all of those factors and then you can answer that question for yourself.

I hope that helps!