Setting the right commission rate is crucial for ensuring that the system is both motivating and sustainable. Here are some factors to consider:
Industry Standards: Research what competitors are offering to remain attractive to top talent. Profit Margins: Ensure that the commission rates do not erode the companyâs profitability. Employee Roles: Different roles may require different commission structures based on their impact on sales. Company Goals: Align commission rates with broader business objectives to ensure coherence in strategy.