Seeking advice for how to structure compensation for first sales associate at Series A company, no historical sales data

DianePrince's profile thumbnail
Here's my feedback based on years of experience: Keep the structure as simple and transparent as possible. Since you don't have a lot of indication on conversion rates or lead times, and sales during the next few months will continue to be difficult, give them a way to get small and fast wins. For example, make some short wins around numbers of outreach/calls/meetings, or whatever. behavior you wnat from them. If they feel successful early on, that helps them stay motivated.They also need to see a clear path to how much they can earn short and long-term. The biggest part of their paychecks should be commission/equity/bonus and they should have a path to making what they consider to be a lot of money! You may want to be transparent and have them help craft the base + commission plan -- asking them for input can help them to have buy-in to the plan. This is important: Do not ever change the pay structure by lowering commission. So make sure you're not over-compensating at the beginning. One way to prevent this while things are unclear is to offer early one-time bonuses in lieu of a set commission while you're getting more data. For example, if you start out by paying 20% but then you realize that's too high, you can't go backwards. You can only increase commission but you can never decrease it unless you want to hire a new team.It doesn't matter how long they've been in sales, good sales people are motivated by money. Some hiring managers feel uncomfortable with the topic of money, or look for people who have other qualities and say that they're about the mission, etc. But sales is about money. I only hire sales people who have money as one of their top 2 career goals. Find out what their personal motivation is. Recognize them and reward them often. I hope that this helps!
isabelleji's profile thumbnail
super helpful, thank you for your guidance!