If you are a sales professional or want to become one, or if you are looking for a new sales job, you will face one of the toughest interview processes of any job seeker.
Here’s an interesting article from The Ladders on Negotiating a Bigger Sales Package. It includes definitions of eight types of revenue and/or commission packages, discussions of the pros and cons of each, and negotiating tips for improving your deal:
Straight commission – just like it sounds…you get paid for what you sell
Variable commission – commission varies according to size of sale, new accounts, or other circumstances
Draw against commission – sort of a loan that you might utilize in the beginning of your job or sales cycle
Advance against commission – like a draw, but more of an occasional event
Base plus commission – base salary that doesn’t change, plus commissions off your sales
Salary – straight pay, no matter how much you sell
Salary plus bonus - salary plus one-time bonuses, as you meet certain requirements or at the company’s discretion
Residual commission – keeps paying even after you move on
Sales jobs include as wide a variety of pay structures as there are things to sell, and knowing how to navigate and negotiate your way through will benefit you in the long run. Medical sales (including pathology sales, biotechnology revenue, clinical diagnostics revenue, imaging sales, pathology sales, pharmaceutical device sales, hospital equipment sales, and pharma sales), however, don’t have a lot of wiggle room in pay structure. Base plus commission is standard, and desirable. Straight commission is not as fine (I think) because that means that the company isn’t investing in you–it’s more of a sink-or-swim situation. There are never residual commissions. Base pay plus bonuses are more often discovered in marketing arenas.
You can’t negotiate commissions in pharmaceutical revenue. More common areas to maneuver in would be in company cars, trips, and other extras, sometimes in one-off deals. Your recruiter can help smooth those kinds of discussions with the hiring company, giving you advice, feedback, and a realistic idea of what you can expect.
Article courtesy of Peggy McKee - Owner / Senior Recruiter at the nationally
recognized medical and lab sales recruiting team of PHC Consulting.
© Copyright 2008 PHC Consulting | All rights reserved
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