CPMR News: MRERF compensation study for manufacturers' representatives
MRERF needs your help. MRERF strives to continue to provide good research and data to better operate your rep company.
We are going to share some great data on compensation plans for outside sales. (see definitions below).
All information will be strictly confidential and anonymous. Please provide your candid feedback, as accurately as possible.
Please click on the survey link below. It is only 10 questions and should take you 6 minutes to complete. Your input is critical, and the results will be posted on the MRERF website, as well as your own association website. If receive this more than once, just fill out the first one you receive.
The results and data will also be discussed in the CPMR 201 class on Motivational Compensation for Outside Sales.
For the purpose of this survey, use these definitions:
Straight Salary: Outside salesperson is paid a fixed salary ONLY and the salary remains constant for the entire year. Their W2 = Salary. No bonuses, no commission, no pool.
Salary plus Commission: Outside salesperson receives a fixed salary with periodic commission payments which is calculated as a percentage of the commission from their specific accounts. No other compensation, or maybe a very small year-end bonus or pool OK.
Salary plus Bonus: Outside salesperson receives a fixed salary with a period bonus. Bonus can be quarterly, annually, etc... Bonus is not specifically a percent of their commissions.
Straight Commission: Outside salesperson receives commission from their own specific accounts with no salary, OR, they have a recoverable draw (salary) that is then deducted from the commissions that they generate from their accounts.
Pool plan (profit share): A specific amount or percentage of the companies monthly commissions is put into a pool and each outside salesperson receives a percent of that pooled amount. Typically each salespersons percentage is different, based on objective and subjective parameters. Typically no (guaranteed) salary.
Note: You may have a plan that is a combination of the above plans, and we will ask you for those details.
W2: The outside salespersons annual income (reported W2 earnings) and does not include any expenses, car allowances, company stock ownership, deferred compensation or pension.