Average b2b sales commission
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Sales commission percentage of revenue!
Commissions are a tricky thing in sales.
Sales commission rates by industryWhen offered too low, you may not get the desired results from your reps, but can affect your business if offered too high. You’ve to find the right balance.
But here’s the thing. What seems like the perfect commission for other businesses may not be the right one for your organization.
Your business goals, where you stand as an organization, your product/service, your industry, and many other factors play a major role in determining your commissions. There isn’t an easy or straightforward approach to this.
Sales commission structure examples
Let’s start with the most basic metric in defining commissions: commission rates.
What are Commission Rates?
In simple terms, commission rates are the percentage of sales or a fixed amount that you pay your reps for the sale they make.
Here’s an example. If the commission rate is 8%, and the total sale your rep made is $12, 000, then,
Commission = 12000 * (8/100), which is $960.
Hold on. It isn’t going to be as simple as it looks. It majorly depends on the sales commission structure you choose.