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We are considering adding an ISA to our organization. If you have an ISA, how do you compensate them? I think the best model is fixed amount for each appointment made and kept plus a percentage of the commission income. What is a fair amount to pay for both?
If there is another structure you are using, I would love to hear that as well!
Hey Jason, sorry this got unlisted for some reason, I’ve re-listed it.
Here is my take on ISA’s - they are like BDR’s in sales (they warm up, hand off leads at volume) and so I think their compensation should be the same as a BDR.
2 ways to compensate
#1: My preference, it is a mix of a base salary and a bonus plan that pays out on a “per deal” basis (not a % commission as they must be licensed for that and it drives incorrect behaviour) keep it simple $40k base and $500 per deal (adjust for your market conditions and local salaries and deal sizes)
#2: Mix of base salary and pay on booked apt’s < that show > (instead of closed deals) this gets the $ closer to the result which is more ideal for many BDR types in the lower income brackets. It also removes the risk that they are dependent on an agents ability to close in order to get paid. In this scenario factor in the desired apt to close % (maybe 25% as a starting point) and then adjust the payout accordingly (perhaps $100 per booked (and kept) apt.
What are others thoughts?
One other thing - your ISA’s are massively valuable. Give them time and lots of support and never implement a CAP. If they can make $200k (even $300k) let them! That means you’re winning too!
Hope that helps
No worries and this is super helpful. My initial thoughts were a mix of your suggestions. Base plus small incentive for booked and kept appointment and an incentive for transactions closed (taking licensing rules into account - it might be easier/better for them to have a license). I really appreciate your suggestions on amounts for each compensation component. Is a great start. Thanks!