S-L Sales Compensation Calculator Example©

The purpose of the Sales Compensation Calculator Example© is to enable managers to quickly see the effects of various sales compensation components on the bottom line of the company.

The Sales Compensation Calculator Example© is useful for:

What is the Sales Compensation Calculator Example©?

A common pitfall of compensation plans is that they often fail to either be attractive to the employee or they are not affordable by the company. This valuable tool enables managers responsible for setting or evaluating sales compensation plans to see the interaction and results of various components of the sales plan: revenue mix, gross margins for each type of revenue, commissions for each type of revenue, commission "hurdles", and so on. The tool then shows the results in terms of commissions and total sales compensation as a percents of gross margin and of revenue, as well as showing marketing costs, blended gross margins and bottom line profit. By using this tool, managers are able to quickly play "what-if" with the full range of assumptions usually incorporated into a sales compensation plan, to arrive at a compensation structure that is both attractive to the employee and affordable by the company.

Uses of the Sales Compensation Calculator Example©

Used during sales compensation plan design, critique or validation.

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