Hosting company owners - how do you compensate your salespeople?
 

trying to figure out a fair commission plan for salespeople for a hosting company

trying to incentivize them to bring in new hosting business, upsells and bandwidth

could pay a straight percentage, but the problem there is if they are making good $ off of their residials, they may not want to persue new business

wanted to get some ideas from people with experience, any thoughts?

Are we talking about a new hosting company?

Say it isn't so

this has been a question that companies have wrestled with for years, ross perot was once one of the top sales guys for ibm, i think. then the execs decided that the sales guys were making too much money, so they put a ceiling on how much they could make. ross perot made the ceiling in his first month, left and started his own company

We have a requirement that new business must be brought in every 45 days and at $XX,XXX amount to prevent this.

When we first hired sales people, we ran into this problem pretty quick. One person was pissed, but I'm not paying salary + commission to someone who works one month, than takes the next 11 off because they bought in a decent sized client

3 month forgiveable draw, xx% on first term contract, x% on renewals.

So what if sales guys make gobs of money, hopefully if they are doing their job they are growing your business.

true salesmen don't need to live on base salaries. And if they do they are not normally worth it.

hence why you should put hooks into their contract stating if they don't perform X or bring a minimum in you drop their commision to something miserable.

as long as i get my 3 rations of oatmeal every day, im happy.
just a tip

people should be able to make as much as their work is worth!!