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TR - Sales Commission

Base Salary:

$54,000 per year

Commission Structure:

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https://docs.google.com/spreadsheets/d/1CL482vTRLy6KEIoCR2SOKUc_ZhtQhK7kLNK-DoF7m_Q/edit?gid=0#gid=0⁠

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Qualified Leads:

MQL (Marketing Qualified Lead):

Definition: A lead who has shown interest in your company's products or services through interactions with marketing content (e.g., downloading a white paper, attending a webinar) and meets basic demographic criteria (e.g., industry, company size).

Commission: $25 per MQL

SAL (Sales Accepted Lead):

Definition: An MQL that has been reviewed by the sales team and deemed worthy of further follow-up based on additional criteria such as budget, authority, need, and timeline (BANT).

Commission: $50 per SAL

SQL (Sales Qualified Lead):

Definition: An SAL that has been further qualified by the sales team and is ready for a direct sales pitch, having expressed a clear interest in purchasing and demonstrated the ability to make a buying decision.

Commission: $75 per SQL

Closed Deals:

Deals up to $50,000: 7% commission

Deals between $50,001 and $100,000: 10% commission

Deals over $100,000: 15% commission

Individual Bonuses:

Qualified Leads Bonus:

Tier 1: 50 Qualified Leads (combined MQL, SAL, and SQL) per Quarter - $500 bonus

Tier 2: 75 Qualified Leads (combined MQL, SAL, and SQL) per Quarter - $1,000 bonus

Closed Deals Bonus:

3 Closed Deals within a Quarter - $1,500 bonus

5 Closed Deals within a Quarter - $3,000 bonus

Team Bonuses:

Team Lead Generation Bonus: If the entire sales team collectively achieves a predetermined qualified lead target (combined MQL, SAL, and SQL) within a quarter, each team member receives a $500 bonus.

Team Sales Target Bonus: If the entire sales team collectively achieves a predetermined sales target within a quarter, each team member receives a $1,000 bonus.

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Current Offer Breakdown:

Base Salary: $54,000 per year

Bonus: $10,000 for 100 SQLs by Dec 1st (one-time)

Proposal Fee: $100 for every prospect requesting a quote

Commission: 4% of deal value, paid monthly as the project progresses

Key Metrics:

Range of Project Values: $5K - $200K

Average Project Value: $40K

Annual Salary Targets:

$100K

$150K

$200K

Calculations:

$100K Annual Salary Goal:

Base Salary: $54,000

Remaining Needed: $100,000 - $54,000 = $46,000

SQL Bonus: $10,000 (if achieved)

Remaining Needed After Bonus: $46,000 - $10,000 = $36,000

Proposal Fees: Let's assume 1 proposal request per SQL.

For 100 SQLs: 100 x $100 = $10,000

Remaining Needed After Proposal Fees: $36,000 - $10,000 = $26,000

Commission: To earn $26,000 from 4% commission, you need to close:

$26,000 / 0.04 = $650,000 in deal value.

At an average project value of $40K: $650,000 / $40,000 ≈ 16.25 deals.

$150K Annual Salary Goal:

Base Salary: $54,000

Remaining Needed: $150,000 - $54,000 = $96,000

SQL Bonus: $10,000

Remaining Needed After Bonus: $96,000 - $10,000 = $86,000

Proposal Fees: For 100 SQLs: 100 x $100 = $10,000

Remaining Needed After Proposal Fees: $86,000 - $10,000 = $76,000

Commission: To earn $76,000 from 4% commission, you need to close:

$76,000 / 0.04 = $1,900,000 in deal value.

At an average project value of $40K: $1,900,000 / $40,000 = 47.5 deals.

$200K Annual Salary Goal:

Base Salary: $54,000

Remaining Needed: $200,000 - $54,000 = $146,000

SQL Bonus: $10,000

Remaining Needed After Bonus: $146,000 - $10,000 = $136,000

Proposal Fees: For 100 SQLs: 100 x $100 = $10,000

Remaining Needed After Proposal Fees: $136,000 - $10,000 = $126,000

Commission: To earn $126,000 from 4% commission, need to close:

$126,000 / 0.04 = $3,150,000 in deal value.

At an average project value of $40K: $3,150,000 / $40,000 = 78.75 deals.

Summary:

$100K Goal: 16-17 deals with 100 SQLs and $650K in deal value.

$150K Goal: 48 deals with 100 SQLs and $1.9M in deal value.

$200K Goal: 79 deals with 100 SQLs and $3.15M in deal value.

Potential Challenges:

High Deal Volume Requirement: The number of deals needed to reach higher salary targets (48 to nearly 79 deals) is quite significant. Depending on the sales cycle length, competition, and the market's readiness, this could be difficult to achieve consistently.

SQL Generation: Hitting 100 SQLs by December 1st for the $10K bonus may be a stretch depending on current lead generation strategies and market conditions.

Commission Percentage: A 4% commission might feel low given the volume of work required to hit higher earnings, especially if heavily involved in the sales process.

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