Compensation CNBAM Compensation Plans Compensation plans vary widely from one paper to another, but these are some general guidelines. Adapt these to your situation. Types of plans for sales reps: Hourly Pros Fixed amount Security Consistency
Cons Lack of incentive Limited income
Commission â€“ typically 5-15% of sales Pros Highest incentive to maximize sales No limit on income
Cons Income ďŹ‚uctuations No income security
Hourly plus commission - typically smaller percentage Pros Guaranteed base income Incentive to maximize sales
Cons Increased bookkeeping
Special commission policies National accounts are typically handled by a manager or inside sales rep with limited or no commission. Payment of commission Payment for ads may be made when the contract is signed or when the contract is paid, depending on your situation.
Compensation CNBAM Contest Bonuses Sales contests are a great way to get your staff’s competitive juices ﬂowing! Sales contests take all forms. They can run for a pay period, a month, or a semester. Speciﬁc type of sale - special sections, new product, color Scavenger hunt - many types of sales for varying number of points Golf course - progressive contest with cumulative point totals Game board - progressive contest with different challenges Contest prizes can be money added to the rep’s paycheck, cash, school merchandise, trade-outs from advertisers such as movie tickets or food, or attendance at the CNBAM convention.
Compensation CNBAM Sample Sales Rep Commission Plan Hourly The sales rep is paid per hour and is expected to work a minimum number of hours in the ofﬁce each week. Commission Commission sales reps are expected to work as many hours as needed in the ofﬁce to achieve goals. More work time = more sales = more commission Hourly plus commission The sales rep is expected to work a minimum number of hours in the ofﬁce each week. More effort increases commissions. Regardless of the payment plan, sales reps will spend additional hours outside of the ofﬁce working with clients.
Compensation CNBAM Bonus and Incentive Plans for Sales Reps Bonuses can take many forms depending on your situation. Bonuses can be monetary, recognition certiﬁcates, gift cards, free meals, staff parties, or merchandise. New account bonuses Bonuses may be awarded for new accounts or for renewing inactive accounts. Special section bonuses Recognition for the most ads in a Special Section – for example, a restaurant gift card for the most Dining Guide ads. Contract bonuses Based on the value of the contract. Awarded when the contract is completed. Color bonuses Bonus commission for selling color. Sales rep of the Month, Semester Monetary bonus, trophy or certiﬁcate, special parking place. Staff awards Staff parties to recognize outstanding teamwork.
Incentive Plans for Designers Some schools offer incentives or bonuses for designers. A percentage or ﬂat fee for placement of a spec ad is a great way to get the creative juices ﬂowing for hourly designers.
Compensation CNBAM Business Manager Payment Plans Hourly The business manager is paid an hourly rate and is expected to work a set number of hours each week. This guarantees a more steady income. Stipend The business manager is paid a stipend for the term. Again, this guarantees a more steady income, and can be the base pay with bonuses additional. Commission The business manager is paid a percentage of all sales. This encourages the business manager to stay involved with each rep to be sure they are meeting their personal goals. The business manager may also earn a percentage of national placements. Special payments A percentage earned on revenue if goals are achieved. These may be paid monthly, by the term, or annually. These payments can be added to any of the other payment types. Special projects The Business manager may be paid a bonus for special sections completed.