Compensation Programs for Sales Associates

10 Perks Every Salesperson Will Want

Money talks, but it isn’t the only option. For example, you can offer:

1.  Vacations—arrange a group trip for qualifying sales associates

2.  Season tickets to a home team

3.  A corner office for the quarter or a special parking space

4.  A PDA or other new device to enhance productivity

5.  Enrollment in a free training or motivational seminar of the associate’s choice

6.  Exclusive use of a personal assistant for a month or quarter

7.  Certificates for a car wash or detailing

8.  Registration fees for a state or national industry convention

9.  Jewelry and watches (Today’s REALTOR^® Compensation Survey, 1997)

10. Matching funds for retirement

TIP: Bonuses work best when the reward is close to the endeavor. An annual bonus payment is nice, but a year is a long time to wait. A quarterly payout offers more immediate gratification. Another approach is to pay half of the earned bonus each quarter and the other half only if they meet their annual production goals.

TIP: Be sure that bonuses to buyer’s reps are paid to the associate’s broker, not directly.

Keep It Legal: "The best advice I can give brokers about bonuses is to review Section 3508 of the IRS Code—statutory non-employees—to be sure that your bonuses and company benefits do not interfere with a salesperson's independent contractor status," says attorney Oliver FrasconaGRI, Frascona, Joiner, Goodman, and Greenstein, P.C., oliver@frascona.comor (303) 494-3000.

5 Things to Say When a Salesperson Wants More Money

1. “Here’s a list of all the services—copying, research material—you receive as part of your desk cost.”

2. “I’d be happy to consider a new compensation plan. Would you be willing to work with me to find a plan that pleases all the associates?”

3. “I understand your concerns. I’d be willing to consider increasing your compensation for a six-month trial. If at the end of that time, you’ve met your increased sales goals, we’ll look at making it permanent.”

4. “I understand that you need to make more money, but I also need a certain amount of profit to stay in business. Here’s a copy of my profit and loss statement, so you can see where the company’s money is spent. You can see that we’re not making a huge profit.”

5. “Have you considered how much our broad name recognition and strong company advertising program help you generate business?”

TIP: No matter what, don’t just panic and give away the store, even to a top producer. —Rich Rector, president of Realty Executives, in REALTOR^® Magazine Online, February 1997

TIP: Don’t wait until an associate asks for a higher split to sell the benefits your company offers. Use newsletters and sales meeting to regularly remind associates of the benefits you provide to them. —Mike Beal, CRB, Century 21 Beal Inc., College Station, Texas, in Texas REALTOR^®, July 1996