Question
We are currently recruiting a B2B account manager. As we noticed with the last one (who left at the end of August) our salary package
We are currently recruiting a B2B account manager. As we noticed with the last one (who left at the end of August) our salary package is not very competitive. We are at the very final steps of our interview process and, based on what we have learned, I have put together the proposal below. I understand that you don't know the market, which is fine; your "common sense" feedback would be highly appreciated.
We would offer a base salary + commission. Based on the candidates we have seen the base salary should be between $80k and $100k per year. The commission structure should enable her/him to earn an additional $30k to $50k per year (if the B2B business grows).
Below is a proposal in terms of commission structure; let me know what you think:
- 5% commission for orders with price discount <10% (strictly lower than 10%) |
- 2.5% commission for orders with price discount between 10% and 30% |
- 1% commission for orders with price discount >30% (strictly higher than 30%) - Maximum price discount is 40% (unless exceptions approved by management) |
Price discount takes into account free products. Commissions are earned on all accounts (including the existing accounts that re-order and including corporate accounts), with the exception of accounts not handled by the B2B account manager (e.g. Holland America). The commission is the same for new and existing accounts (the reason is: money is money); the commission is the same for wholesale and corporate accounts: the % commission is not based on the type of account but on the % discount vs. retail prices. |
My assumption is that the annual commission would amount to $12k to $16k, based on 2017 numbers. In other words: the B2B account manager will have to work hard to get to the $30 to $50k in additional commission that they told me they wanted to reach.
Below are the 2017 B2B numbers; based on what I have seen it looks like the B2B business has been down at least since 2016 (I don't have B2B sales numbers before 2016):
| Total 2017 | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 |
Corporate sales 2017 (price discount is typically between 0% and 10%; can go up to 15%) | 176,127 | 10,075 | 8,079 | 2,515 | 155,458 |
Wholesale sales 2017 (excluding Edible Arrangements) (price discount has typically been 40%, but should be 30% for smaller clients) | 293,153 | 64,403 | 45,394 | 66,065 | 117,291 |
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Total B2B sales | 469,281 | 74,478 | 53,474 | 68,580 | 272,749 |
Your feedback would be highly appreciated.
from my experience, $80,0000- $110,000 is a competitive base salary for that position.
Commission is an elusive incentive, but I have dealt with a similar breakdown:
- 5% commission for orders with price discount <10% (strictly lower than 10%) * If the sales are lower that 10% then, commission should be 5%. But is there a minimum sale amount? Or a goal amount? |
- 2.5% commission for orders with price discount between 10% and 30% * 2.5% for 10%- 20% 3.0 for anything about 25% |
To reach $60K / year it would mean that this person would have to make an average of $10,000/ year sales which is very possible but extremely difficult due the variables. Have you thought an immediate incentive as the person breaks a threshold of a certain amount within a specific period of time ( besides a bonus) maybe adding a point in commission.
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