Keeping your sales team motivated and engaged is not a one-off activity!
Consider it to be an all-year-round process that needs constant tweaking to ensure that your sales reps’ morale is high and their performance – top-notch.
Given the knock-on effects of the pandemic and the changing (in other words, challenging) selling environment, boosting your sales team’s motivation is more important now than ever!
Time and again, sales incentives plans have been proven to work in this department – causing sales performance to scale without barriers. As per a study by UK’s Genesis Associates, over 85% of employees surveyed felt more motivated to do their best with an incentive plan in place.
We’ve put together an exhaustive, industry-wise list of sales incentives plan templates on excel that will act as a clear motivation for sales reps to sell effectively even when faced with an uphill battle. Before we dive in, let’s take a quick look at what you need to consider while devising a great sales incentive plan.
Factors to weigh in before developing a sales incentives plan
Saurabh Sengupta, in his sales rep behavior guide, rightly warns that “throwing money at sales reps will not get you proportional returns”.
Your incentive structure for sales should be designed in such a way that it exponentially benefits your company’s overall sales strategies while driving sales force effectiveness and supporting your go-to-market model.
You see the problem here is that most organizations often consider the value of incentive compensation against the overall revenue while an optimal consideration would be to base it on the gross margin.
We’ve worked out a quick ‘What-if’ analysis to help you draft a thoughtful sales compensation plan that will positively impact your company’s bottom line and allow you to drive up your profit margins.
Questions to ponder over when building a sales incentive structure:
- First up – will your organization be able to calculate revenue earned accurately?
- Are the sales incentives planned in line with your sales cycles and goals?
- Is the incentive plan for the sales team too complex and hard to manage?
- If each salesperson increased their performance by 20%, how much can they potentially earn?
- And, will the company be able to keep up with sales reps earning the highest level of sales compensation plans?
Sales Incentives as Cash or as Non-Cash benefits?
There’s no denying the fact that ‘money talks’. Cold hard cash has been a great bonus for hard work across industries. Which is why most incentive structures and sales compensation plans are cash-based.
If you’re taking the cash route, you need to ensure that your company’s sales incentives plan is compelling and motivates your sales reps to focus on a specific goal.
Non-cash rewards are closing in and gaining more popularity. As per reports, the incentives industry is currently valued at $100+ billion and $46 billion of this is non-cash incentives.
You also get to go all out and get all creative with your non-cash sales incentive schemes. If you’re looking for some inspiration, we’ve rounded up some great non-cash rewards that include a few in-person events as well (in the hope for better days ahead).
- Gym Membership
- Popular tech gadgets or hobby/recreation products
- Free tickets to sales workshops, courses, or conferences
- Gift cards
- Subscription boxes
- Tickets to the big game/rock concerts
- Office upgrades like noise-cancelling headphones
- Can’t make the call? Just spin the wheel! Add a bunch of these options to the wheel and let your reps spin it
Industry-wise sales incentives plan templates on Excel
Not all sales comp plans can be the same. Structuring a sales incentives plan depends on a multitude of factors like the products or services sold, business objectives, and the industry that you are in.
So if you’re looking to arrive at the ideal sales compensation plan for your reps – we’ve got you covered!
We’ve gone ahead and done the groundwork for you. Take a look at the below list of sales incentives templates on excel with the commission formula for the top 20 industries.
Manufacturing
The commission rate varies based on the sector such as supply chain (5%), gears, bushing & structural components (10%), medical pumps & bearings (5%), fitness equipment (10%), etc.
Take a look at a generic incentive plan with 3 different types of commission models for the manufacturing industry.
| Manufacturing Incentive Plan | |
| Model 1 | 30% commissions of net margin per project. |
| Model 2 | $37,500 base salary plus 5% commissions. |
| Model 3 | Base salary of $4500 per month + 25 % commissions on the annual contract value. |
Insurance
In the insurance industry, the commissions are residual and are split on a 50/50 basis of the net expenses. Top-performers can even earn up to $150K in a year.
| Insurance Incentive Plan | |
| Model 1 | Base Salary of $30,000-$40,000, with paid medical and dental. Commission rates range between 2-10% per sale depending on the type of product. |
| Model 2 | Base salary of $24,000- $40,000 depending on experience. Commissions are paid when a 15% commission exceeds the base pay. |
| Model 3 | Commissions at 10%. A rep with 3-4 years of experience can make 100k with residuals. |
SaaS
The rate of commissions here varies from 5% for marketing and data analysis tools to over 40% straight commission for video sharing applications.
We’ve worked out the commission rates for the most popular sectors in the SaaS industry.
| SaaS Incentive Plan | |
| Model 1 | $325 per week base pay + 12% gross sales(Communications Equipment sales). |
| Model 2 | For personal sales – 20% commissions on gross. |
| For company generated leads – 15% commissions on Gross. ( SAAS sales) | |
| Model 3 | $24,000 base salary plus 30 % commissions. ( Employee Tracking Software) |
Logistics
In logistics, the sales reps can earn up to $50,000 in a year along with a 1.5% commission on all collected sales. We’re sharing 3 top sales incentives plans below on excel, hit the download button to know more.
| Logistics Incentive Plan | |
| Model 1 | $500 / week and 35% commissions. |
| Model 2 | 20% straight commissions. |
| Model 3 | 30% commissions on Net profit. |
Merchant Services
Based on our extensive research on what an average rep and a top performer could make, we’re listing out the top 3 commission models for merchant services.
| Merchant Services Incentive Plan | |
| Model 1 | Base salary of $32,000 + 3% commissions on total sales. |
| Model 2 | For each account, agents are paid up to $200 upfront bonus plus up to 75% residual commissions. |
| Model 3 | Commission rates starting at 40% with an opportunity to rise to 60% with enough accounts. Rate increases to 45% after the first 5 accounts. After 200 accounts, agents can expect $100,000 in yearly earnings. |
Financial/Wealth
On average, the sales reps close anywhere between 5-10 deals in a month and earn commissions between 2.5%-5% on the gross amount.
| Wealth Management Incentive Plan | |
| Model 1 | Base pay of $30,000 to $40,000 per year + 2% commission on gross. |
| Model 2 | Payout is 80% of the first month’s billing plus an ongoing residual. |
Marketing
In the marketing field, commissions earned are entirely dependent on the services offered such as SEO, digital marketing, public relations, or online lead generation services. Based on our research, we’ve worked out an average commission rate that you could use across the industry.
| Marketing Agency Incentive Plan | |
| Model 1 | 5% commission on sales up to 30k, 10% commissions on sales up to 60k and up to 15% for sales exceeding $60k per month. |
| Model 2 | Starting commissions of 50% then 30% recurring monthly on SEO, PPC and social media management deals. |
| Model 3 | 25% in commissions with cash bonuses for milestones crossed. |
Advertising
The average commission earned by sales reps in the advertising field is 20% of sales.
While radio advertising could offer an hourly commissions rate such as for the first one and a half months, sales reps can make $10 per hour and then move on to $8.25 per hour. In the magazine advertising and outdoor advertising sectors, sales reps earn anywhere between 20-33% of sales.
| Ad Sales Incentive Plan | |
| Model 1 | 25% straight commission + bonuses. |
| Model 2 | 15% commissions on all ad sales. |
| Model 3 | $30,000 base salary plus 10% commissions. |
Medical Device
When it comes to the sale of medical devices, along with commissions sales reps are also offered stock options and other benefits based on royalties.
| Medical Device Incentive Plan | |
| Model 1 | Minimum wages + 10% gross commission. |
| Model 2 | $2500 for every signed contract. |
| Model 3 | 15% commissions on a $15,000 medical device. |
Home Improvement
In the home improvement space, sales reps earn a handsome share as incentives. With the average sales amounting close to $14,000, at a 10% commission rate they could earn anywhere from $100 to $200K.
We’ve broken down the commission rate for each function of the home improvement industry. Download the template to know more.
| Home Improvement Incentive Plan | |
| Model 1 | $25,000 Base Pay + Commissions ranging from 6-12%. Benefits after 90 days (Shower Door Installation). |
| Model 2 | 50% commissions for Veterans, 35% commissions for Junior reps with $300 weekly training pay (Window, Siding & Gutter). |
| Model 3 | Base Salary of $35,000- $54,000 per year + 2% commissions after break even is met (Bath Remodelling). |
Roofing and Storm Restoration
In the roofing and storm restoration industry, while 10% of the total sales is the standard commission rate, we’re sharing two more models of commission plans that you could use.
| Roofing & Storm Restoration Incentive Plan | |
| Model 1 | Commissions at 10% of total sales is the standard in this industry. |
| Model 2 | Paid housing, $10,000 per annum on an average. |
| Paid training for 7 weeks at $375/ week. | |
| Gas allowance at $75 per week. Paid cell hot spot at $140/ month. | |
| Health insurance. | |
| Model 3 | Commissions range between 3%-10% based on experience. |
Automobile
From volume and factory bonus to backend compensation, in the automobile industry, the sales reps are given additional benefits as well. We’ve broken down the commission rates applicable for both experienced and inexperienced sales reps.
| Automobile Incentive Plan | |
| Model 1 | $250 minimum commissions, 25% of front-end gross, volume bonus, backend compensation, factory bonus. |
| Model 2 | For experienced sales reps – $350 per week, 20% of gross profit. |
| Model 3 | For inexperienced sales reps – $250 per week and 13 % gross profit. |
Consulting Services
Along with commissions, the sales reps can also claim for travel and lodging reimbursements that are incurred in the course of offering the consulting services.
| Consulting Incentive Plan | |
| Model 1 | 3% commission is paid on the credited revenue |
| Model 2 | Flat bonus of $500 if the total hours worked are 150 hours or more for the agreed period |
Real Estate
In the commercial real estate sector, sales reps could earn up to 10% on the sales closed. Take a look at the 2 popular commission models that you could follow.
| Real Estate Incentive Plan | |
| Model 1 | $14 to $16 DOE + .7 % commission on total lease value. |
| Model 2 | 10 % on all sales and $15 per consultation. |
Solar Sales
The commissions earned by a solar sales rep is around $1000 per sale and they are expected to close up to 2 sales in a week.
A top-performing sales rep could even earn $20K per month as compensation.
| Solar Incentive Plan | |
| Model 1 | $12-15/ hour and $25-$50/ appointment based on weekly productivity. |
| Model 2 | Minimum commissions of $500 per Kilowatt |
| Model 3 | $1000 draw against commissions for the first 3 months and 100% commissions thereafter. Gas allowance of $600 per month if more than 1 deal is sold. |
Energy Deregulation
When it comes to the energy deregulation space, the sales reps’ commission could range anywhere between $240 to $3,300. On an average, they could earn a commission of $480 per sale.
| Energy Deregulation Incentive Plan | |
| Model 1 | 40% commission plus bonuses. |
| Model 2 | 7% straight commissions |
| Model 3 | 100% commissions after the first two months. In the first 2 months, a non-profit recoverable draw of $550/ week is assured. |
Kiosks
Typically in this field, a sales rep could earn a 15% commission daily with additional bonuses.
| Kiosk Sales Incentive Plan | |
| Model 1 | 100 % commissions. |
| Model 2 | Base pay of $12- $15 per hour. |
| Model 3 | $120 per day or 15 % commission on all sales, whichever is greater. |
Security and Alarm Services
Sales reps in this field receive a minimum commission of $500 per sale with experienced reps being offered up to $650 per sale.
| Security Incentive Plan | |
| Model 1 | $500 minimum commission per sale. |
| Model 2 | 10% commission on the profit of each sale. |
| Model 3 | Training salary of $2000/month for the first month, $1500 for the second month, $1000 for month 3, and $500 for month 4. A sales rep also receives $500 per month auto allowance. Commissions range between 10-18%. |
Cable & Internet Door-to-Door Services
In most cases, companies in this sector go with a 100% commission model.
You can offer non-cash benefits in the form of health benefits after 90 days of sales.
| Cable & Internet Incentive Plan | |
| Model 1 | Base salary of $1000 + 15% residual commissions. |
| Model 2 | 100% commissions, 50% is paid upfront in the first month and 15% residuals |
| Model 3 | 100% commissions and 4 tiers. Up to 22 sales/ month -$137 per contract, Up to 32 sales/ month- $148 per contract, Up to 42 sales/ month – $160 per contract, Up to 52 sales/ month – $171 per contract. Sign-on bonus of $500 after 15 sales in the first 30 days. Health benefits are provided after 90 days. |
Pest Control
Along with all the cash-based incentives that sales reps can earn in the pest control industry, some companies even offer free paid training courses at $9 an hour and even a gas reimbursement of $100 monthly.
| Pest Control Incentive Plan | |
| Model 1 | 25% commissions on all sales. |
| Model 2 | 20% commissions until 100 sales are closed, then increases to 25%. |
| Model 3 | 20% commissions are paid until agents have proven themselves, then goes up to 25%. |
Boost sales force motivation with the right incentives plan
Structuring your sales incentive plan could make or break the deal.
Here’s our key takeaway – “You shouldn’t be telling your sales reps what they should do, your incentives plan must be so good that it results in sales behaviours that positively affect the future growth of your company.”
According to a study by Mckenzie, a great incentives program defines the performance of a sales team and when compared to shelling out money on advertisements, these incentives programs have a 50% higher impact on sales.
With Quotacal, you will be able to design a winning sales incentives plan that will motivate your team to crush their goals and drive in more revenue!