Laboratory Sales Jobs: Salary and Commission Packages

Here’s an interesting article from The Ladders on Negotiating a Bigger Sales Package.  It includes definitions of eight types of sales and/or commission packages, meetings 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 position or revenue 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.  Laboratory sales (including pharma sales, biotechnology sales, medical diagnostics sales, imaging sales, laboratory revenue, clinical device sales, hospital equipment sales, and medical 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 nice (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 medical sales.  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 Headhunter at the nationally
recognized laboratory and lab revenue recruiting team of PHC Consulting.
© Copyright 2008 PHC Consulting | All rights reserved

Medical Sales Jobs: Salary and Commission Packages