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business:muftasoft:jobs:sales_agent [2023/08/24 12:34] – wikiadminbusiness:muftasoft:jobs:sales_agent [2024/02/26 20:50] (current) – [Commission Rates in Software Reselling] wikiadmin
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-**Job Description: Commission-Based Sales Representative - Technical Solutions**+====== Job Description: Commission-Based Sales Representative - Technical Solutions ====== 
  
 {{:atrc_website:muftasoft_logo_hires_13_oct_2018-1.jpg?400|}} {{:atrc_website:muftasoft_logo_hires_13_oct_2018-1.jpg?400|}}
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 To apply send an application to hr@atrc.net.pk with the subject line. "Sales Commission Agent Application"  To apply send an application to hr@atrc.net.pk with the subject line. "Sales Commission Agent Application" 
 +
 +
 +----
 +
 +====== Commission structure ======
 +
 +^ Slab number  ^ Minimum months of meeting minimum sales required for moving into this slab  ^ Fixed percentage  ^ Variable percentage  ^ Minimum sales target  ^ Monthly salary  ^ Commission percentage rate on sales above the minimum  ^
 +| 1            | 3                                                                           | 0                 | 100                  | 0                     | 0               | 30                                                     |
 +| 2            | 6                                                                           | 10                | 90                   | 30000                 | 10000           | 25                                                     |
 +| 3            | 9                                                                           | 20                | 80                   | 60000                 | 20000           | 20                                                     |
 +| 4            | 12                                                                          | 30                | 70                   | 90000                 | 30000           | 15                                                     |
 +| 5            | 15                                                                          | 40                | 60                   | 120000                | 40000           | 10                                                     |
 +| 6            | 18                                                                          | 50                | 50                   | 150000                | 50000           | 5                                                      |
 +
 +
 +
 +
 +
 +----
 +
 +[[https://www.proposify.com/blog/compensate-saas-sales-reps|How to Compensate Your SaaS Sales Reps]]
 +
 +[[https://www.rephunter.net/blog/determining-commissions-for-independent-sales-reps/|Determining Commissions for Independent Sales Reps]]
 +
 +For new businesses where a general split method is required for revenue and profits. 
 +
 +Commission on closed deals and all paid up. 
 +
 +Khawar Nehal's 5 Slices of 20% each Method
 +
 +Sales : 20% made up of two parts 
 +
 +Sales part 1 : Reference : 5% 
 +
 +Sales part 2 : Requirements gathering meetings and making proposals : 15% 
 +
 +Admin, company and project management : 20% 
 +
 +Taxes : 20% 
 +
 +Income taxes, Sales taxes and others. 
 +
 +Investors, growth, profits, dividends : 20% 
 +
 +Doing the work : 20% 
 +
 +Provided to the workers, contractors, and employees. 
 +
 +
 +
 +
 +
 +----
 +
 +====== Commission structure for selling ICT services ======
 +
 +
 +
 +The most effective sales commission structure for selling ICT services can vary depending on the specific circumstances and goals of the business. However, here are a few commonly used commission structures in the ICT industry:
 +
 +1. Straight Commission: This structure offers a percentage-based commission on each sale. It motivates salespeople to close deals and can be effective if the sales cycle is relatively short and the average deal size is consistent.
 +
 +2. Tiered Commission: In this structure, the commission rate increases as the salesperson reaches higher sales targets or achieves specific milestones. It provides an additional incentive for salespeople to exceed their goals and can encourage continuous improvement.
 +
 +3. Profit-Based Commission: Instead of basing commissions solely on the sales revenue, this structure takes into account the profitability of each sale. It aligns the sales team's incentives with the company's profitability goals and encourages them to pursue higher-margin deals.
 +
 +4. Hybrid Commission: This approach combines elements of different structures to create a custom commission plan. For example, you could offer a base salary with a percentage-based commission on sales or incorporate elements of tiered commissions with a profit-based component.
 +
 +5. Performance Bonuses: In addition to regular commissions, salespeople can earn bonuses based on specific performance metrics, such as achieving quarterly or annual sales targets, customer satisfaction ratings, or new client acquisition goals. Bonuses can provide extra motivation and reward outstanding performance.
 +
 +It's important to note that there isn't a one-size-fits-all commission structure. The most effective approach will depend on your company's objectives, the nature of the ICT services being sold, market conditions, and the individual preferences and motivations of your sales team. Regularly assessing and refining your commission structure based on feedback and performance analysis can help optimize its effectiveness.
 +
 +----
 +
 +====== Commission Rates in Software Reselling ======
 +
 + 
 +Commissions rates depend on many factors. 
 +
 +
 +**Involvement**
 +
 +Many software vendors offer commission rates to their channel partners depending on the level of involvement.
 +
 +Most typically, 3 compensation plans are offered
 +
 +1. Referral partnership: The partner generates the leads and hands over the interested parties to the vendor. Referral partners are typically compensated with 10%-15% out of the closed deals.
 +
 +2. Reseller: The partner manages the sales process, presents the product, follows up with the prospects, closes the deal, and gives post-sales support. The commission rate for resellers ranges between 25% to 40%
 +
 +3. Distributor: Apart from selling directly, the partner assigns sub-resellers, engages in advertisement and PR activity for creating brand awareness. 
 +The total margin for the distributor (including the sub-reseller margin) starts from 45% and can go up to 55%.
 +
 +**Efforts Required for Selling the Products**
 +
 +Some products are easy to sell and some are more difficult. 
 +
 +Obviously, the vendor of a more sellable product will be less generous in reselling terms.
 +
 +The factors that affect "sellability" are:
 +
 +The product's level of recognition and current penetration in the market.
 +
 +The demand for the product
 +
 +The competitive advantages of the product
 +
 +If the product is niche or not. A product introducing a new concept is more difficult to sell initially, however once accepted, the product's selling potential will be high in the absence of competition. 
 +
 +**The Vendor's Implementation Cost**
 +
 +For our cloud based, Software as a Services based offerings, the vendor does not have to do much in terms of implementation costs. They just need to make the accounts and provide the accounts to the customer's users.
 +
 +On Site or On premises installations shall require the acquisition of hardware, having the software setup. The software shall be setup by the supplier in coordination with the vendor. The vendor shall need to setup the basic OS and provide access to the software supplier. Then the vendor shall provide the access to the user to the machine. The machine can be setup in the vendor's premises or at the customer's premises based on whatever is suitable to the case. 
 +
 +Mostly, high-value business software products (such as CRM) will involve an implementation effort in each sale.
 +
 +Our systems are mostly web based so they can be offered in the Software as a Service and also on premises model. There can also be a hybrid where some of the admin tasks on premises are managed by the software supplier. 
 +
 +In such cases, the total sales revenue consists of the license cost and implementation service.
 +
 +The reseller commissions for implementation services are lower due to their lower profit margin. The typical commission rate for such services is 10%.
 +
 +Some vendors provide their resellers with the tools for accomplishing the implementation work. In such cases, the share of the implementation in the transaction will be insignificant.
 +
 +**Sales Volume**
 +
 +In order to motivate their resellers, some vendors offer a progressive commission structure.
 +
 +With such a scheme, the reseller's commission rate increases with more sales.
 +
 +In some cases, the vendor pays a bonus at the end of each period depending on the accomplished sales volume. 
 +
 +The Aggressiveness of the Vendor for Finding Channel Partners
 +
 +The reseller commission rates will also be affected by the level of importance ascribed by the vendor to 
 +the reseller channel in general.
 +
 +Vendors seeing the reseller channel as strategic offer more favorable terms in order to attract more resellers. 
 +
 +After all, the resellers are a limited resource. The resellers will prefer vendors offering better business opportunities.
 +
 +Being involved in software reselling/referral partnerships for more than a decade, I have seen commission rates ranging from 5% up to 60%.
 + 
 + 
 +----
 +
 +Earning a sales commission typically depends on meeting certain criteria or achieving specific sales goals. 
 +
 +Some tips to help you ensure you receive a sales commission are:
 +
 +1. **Understand the Commission Structure:**
 +   - Familiarize yourself with the commission structure in your organization. Know how commissions are calculated, whether it's based on a percentage of sales, a tiered system, or other criteria.
 +
 +2. **Set Clear Expectations:**
 +   - Clearly understand the expectations and goals set by your employer. This might involve meeting a specific sales target, acquiring new clients, or reaching a certain revenue threshold.
 +
 +3. **Consistent Communication:**
 +   - Regularly communicate with your supervisor or manager to get feedback on your performance. This can help you understand where you stand in terms of meeting your sales targets.
 +
 +4. **Document Your Sales:**
 +   - Keep detailed records of your sales transactions, including customer names, dates, and amounts. This documentation can serve as evidence of your sales achievements if any disputes arise.
 +
 +5. **Utilize CRM Systems:**
 +   - If your organization uses Customer Relationship Management (CRM) software, make sure to update it regularly. This can help in tracking your sales activities and can be used as a reference point during commission discussions.
 +
 +6. **Be Proactive:**
 +   - Take initiative in seeking out new sales opportunities. Don't rely solely on inbound leads; actively pursue potential customers and work towards converting them into sales.
 +
 +7. **Know the Sales Policies:**
 +   - Understand the company's sales policies and procedures, including any conditions or restrictions related to commission payouts. Being aware of these guidelines will help you navigate the sales process more effectively.
 +
 +8. **Provide Excellent Customer Service:**
 +   - Satisfied customers are more likely to make repeat purchases, leading to additional sales. Focus on providing excellent customer service to build long-term relationships and increase your chances of earning commissions.
 +
 +9. **Negotiate in Advance:**
 +   - If there's room for negotiation on your commission structure, discuss this with your employer before accepting the position. Clarify the terms and conditions to avoid misunderstandings later.
 +
 +10. **Track Performance Metrics:**
 +    - Monitor key performance indicators (KPIs) related to your sales performance. This could include conversion rates, average order value, and other relevant metrics. Use this data to identify areas for improvement.
 +
 +11. **Be Persistent:**
 +    - Sales can be challenging, and not every prospect will convert into a sale. Be persistent, learn from rejections, and continually refine your sales approach.
 +
 +12. **Follow Company Policies:**
 +    - Adhere to company policies and ethical standards in your sales efforts. Violating policies could jeopardize your commission eligibility.
 +
 +If there are specific concerns or questions about your commission structure, it's always advisable to discuss them directly with your supervisor or the relevant department in your organization. Clear communication is key to avoiding misunderstandings and ensuring that you are appropriately compensated for your sales efforts.
 +
 +
 +
 +
 +----
 +
 +====== Sales and Marketing Partnership Agreement ======
 +
 +
 +**Sales and Marketing Partnership Agreement for Dubai Computer Services (TM)**
 +
 +**1. Introduction**
 +
 +This Sales and Marketing Partnership Agreement (the "Agreement") is entered into on [Date] by and between:
 +
 +
 +**Acronyms :** 
 +
 +ATRC : Applied Technology Research Center
 +
 +DCS : Dubai Computer Services
 +
 +
 +**Provider:**
 +
 +Dubai Computer Services is a brand which is a part of ATRC 
 +
 +Applied Technology Research Center 
 +
 +C-55 Block A KDA Officers
 +
 +Karachi 75260, Pakistan
 +
 +Contact Person : Khawar Nehal 
 +Title : CEO 
 +dcs@atrc.net.pk
 ++92 343 270 2932 
 +
 +**Partner:**
 +
 +[Partner Company Name]
 +
 +[Address]
 +
 +[City, State, Zip Code]
 +
 +[Contact Person and Title]
 +
 +[Email Address]
 +
 +[Phone Number]
 +
 +
 +**2. Purpose**
 +
 +The purpose of this Agreement is to establish a sales and marketing partnership between Provider and Partner for the promotion and sale of ICT services provided by Provider.
 +
 +**3. Terms of Agreement**
 +
 +This partnership shall commence on [Start Date] and continue for an initial term of [X] months/years, unless terminated earlier as per the terms of this Agreement. After the initial term, the Agreement may be renewed upon mutual agreement.
 +
 +**4. Roles and Responsibilities**
 +
 +4.1 **Provider's Responsibilities:**
 +
 +- Provide detailed information about ICT services.
 +
 +- Support Partner with necessary sales and marketing materials.
 +
 +- Offer training sessions for Partner's sales team.
 +
 +4.2 **Partner's Responsibilities:**
 +
 +- Actively promote and market Provider's ICT services.
 +
 +- Use best efforts to generate sales leads and opportunities.
 +
 +- Maintain a knowledgeable and trained sales team.
 +
 +**5. Compensation and Incentives**
 +
 +Provider agrees to compensate Partner based on the following terms:
 +
 +- [Specify commission rates, bonuses, or incentives]
 +
 +[[business:sales:sales_commissions_for_ict_services|Commission structure]]
 +
 +- Payment terms: [Specify payment schedule]
 +
 +[[business:payment_terms|Payment Terms]]
 +
 +**6. Intellectual Property**
 +
 +6.1 **Provider's IP:**
 +
 +- Provider retains all rights to its intellectual property related to the ICT services.
 +
 +6.2 **Partner's Use of IP:**
 +
 +- Partner is granted a non-exclusive right to use Provider's trademarks and marketing materials solely for the purpose of promoting and selling ICT services.
 +
 +**7. Confidentiality**
 +
 +Both parties agree to maintain the confidentiality of any proprietary or confidential information shared during the term of this Agreement.
 +
 +**8. Termination**
 +
 +This Agreement may be terminated by either party for material breach, by providing written notice to the other party. Termination shall be effective [X] days after receipt of notice.
 +
 +**9. Dispute Resolution**
 +
 +Any disputes arising out of or in connection with this Agreement shall be resolved through [Specify mediation, arbitration, or other dispute resolution method].
 +
 +**10. Governing Law**
 +
 +This Agreement shall be governed by and construed in accordance with the laws of [Jurisdiction].
 +
 +**11. Liability**
 +
 +Neither party shall be liable to the other for any indirect, consequential, or incidental damages.
 +
 +**12. Entire Agreement**
 +
 +This Agreement constitutes the entire understanding between the parties and supersedes any prior agreements or understandings, whether oral or written.
 +
 +
 +----
 +
 +
 +====== Commission-Based Sales Agreement ======
 +
 +
 +Below is an example template that can be used as a starting point for creating such an agreement. Keep in mind that legal requirements and specific details may vary based on your jurisdiction and the nature of your business. It's advisable to consult with legal professionals when drafting such agreements.
 +
 +**Commission-Based Sales Agreement**
 +
 +**Parties:**
 +
 +This Commission-Based Sales Agreement ("Agreement") is entered into on [Date] ("Effective Date") between:
 +
 +1. **Applied Technology Research Center** (hereinafter referred to as "Center"), with its principal place of business at [Address], represented by [Name and Title].
 +   
 +AND
 +   
 +2. **Sales Representative/Agent** (hereinafter referred to as "Sales Representative"), with a business address at [Address], represented by [Name].
 +
 +**Agreement Terms:**
 +
 +1. **Scope of Services:**
 +   
 +The Sales Representative shall be responsible for promoting and generating sales of technology research services/products offered by the Applied Technology Research Center. The Sales Representative's efforts shall be geared towards identifying potential clients, presenting the center's offerings, and facilitating the sales process.
 +
 +2. **Commission Structure:**
 +
 +The Sales Representative shall be compensated based on a commission structure as follows:
 +   
 +- The commission rate shall be [Percentage] of the total net sales generated by the Sales Representative.
 +   
 +- Commissions shall be calculated based on the actual payments received by ATRC from clients referred by the Sales Representative.
 +   
 +- Commissions shall be payable within a week of the completion of the service, project, task or product that is sold. 
 +
 +**Completion includes the following.** 
 +
 +ATRC has completed delivery of the product, project, service or task. 
 +
 +The customer has completed the payment and nothing is due. 
 +
 +The customer provided a clearance to ATRC that the complete product, task, service or project has been delived and nothing is due from ATRC to the customer. 
 +
 +3. **Client Referrals:**
 +
 +The Sales Representative shall introduce potential clients to the Center. The Center shall have the discretion to evaluate and decide whether to accept or reject the referred clients. Commissions shall be payable only for those clients accepted by the Center.
 +
 +4. **Sales Reporting:**
 +
 +The Sales Representative shall provide the Center with accurate and timely reports detailing the sales activities, client interactions, and progress towards sales goals. The Center shall also maintain records of all sales generated by the Sales Representative.
 +
 +5. **Confidentiality:**
 +
 +The Sales Representative shall treat all proprietary and confidential information of the Center as confidential and shall not disclose such information to third parties without the Center's written consent.
 +
 +6. **Termination:**
 +
 +Either party may terminate this Agreement at any time with [Notice Period] written notice to the other party. Upon termination, all outstanding commissions earned up to the termination date shall be paid to the Sales Representative.
 +
 +**Governing Law and Jurisdiction:**
 +
 +This Agreement shall be governed by and construed in accordance with the laws of [Jurisdiction]. Any disputes arising under or in connection with this Agreement shall be subject to the exclusive jurisdiction of the courts of [Jurisdiction].
 +
 +By signing below, the parties acknowledge and agree to the terms and conditions set forth in this Commission-Based Sales Agreement.
 +
 +**Applied Technology Research Center:**
 +
 +Signature: __________________________
 +Print Name: ________________________
 +Date: ______________________________
 +
 +**Sales Representative/Agent:**
 +
 +Signature: __________________________
 +Print Name: ________________________
 +Date: ______________________________
 +
 +
  
  
business/muftasoft/jobs/sales_agent.1692862485.txt.gz · Last modified: 2023/08/24 12:34 by wikiadmin