Commission

One thought on “Commission”

• 

  RCadmin

  March 14, 2025 at 4:40 pm

  Creating a commission structure for UK-based consultants can be pivotal in motivating performance while ensuring your business remains profitable. Here’s a suggested commission structure you could consider, tailored to your specified fee range:

  Basic Salary

  • Base Salary: £25,000

  Commission Structure

  1. Commission Rate Based on Fee Levels:
  2. Fees up to £5,000: 10% commission
  3. Fees £5,001 – £10,000: 15% commission
  4. Fees £10,001 – £15,000: 20% commission

  5. Fees £15,001 – £18,000: 25% commission

  6. Performance Incentive:

  7. Quarterly Target Bonus:

     • If a consultant meets or exceeds a quarterly target (e.g., £50,000 in fees), an additional bonus of £1,000.

  8. Team Based Goals:

  9. If the entire team meets a specific target (e.g., £200,000 in revenue for the quarter), each consultant receives an additional flat bonus (e.g., £500).

  10. Recurring Revenue Commission:

  11. For ongoing contracts or repeat business, consider a lower commission (e.g., 5-10%) on renewal or follow-up contracts to encourage long-term relationships with clients.

  Example Calculation

  • If a consultant brings in £30,000 in fees (say, a mix of different contracts):
  • For first £5,000: 10% = £500
  • For next £5,000: 15% = £750
  • For next £5,000: 20% = £1,000
  • For last £15,000: 25% = £3,750
  • Total Commission: £6,000

  Considerations

  • Caps: Depending on your budget, consider whether to cap commissions or set limits.
  • Draw Against Commission: You could implement a draw system where consultants can receive a portion of their expected commission upfront, which gets deducted from future earnings.
  • Regular Review: Plan to review and adjust the commission structure regularly based on performance metrics and industry standards.

  It’s essential to align the commission structure with your overall business goals and the behavior you want to encourage in your sales team. Open communication about how the structure works, along with training and support, will help your consultants succeed.