All tagged Commissions

Unintended Consequences of 100% Commission - Part 3

Beth Carroll

Many industries have gone through or are going through a shift from a 100% commission model to a salary + commission or salary + bonus approach for their sales reps. The latest industry to feel this shake up is Food & Beverage Shipping and Distribution (F&B) as more and more of the big players have incorporated or are considering incorporating some kind of salary component to their sales compensation plan. The final part of this 3 part series continues to explore the unintended consequences the 100% commission model has had on the F&B industry, as well as how to correct them.

Unintended Consequences of 100% Commission - Part 2

Beth Carroll

Many industries have gone through or are going through a shift from a 100% commission model to a salary + commission or salary + bonus approach for their sales reps. The latest industry to feel this shake up is Food & Beverage Shipping and Distribution (F&B) as more and more of the big players have incorporated or are considering incorporating some kind of salary component to their sales compensation plan. Part 2 of this 3 part series continues to explore the unintended consequences the 100% commission model has had on the F&B industry, as well as how to correct them.

Unintended Consequences of 100% Commission - Part 1

Beth Carroll

Many industries have gone through or are going through a shift from a 100% commission model to a salary + commission or salary + bonus approach for their sales reps. The latest industry to feel this shake up is Food & Beverage Shipping and Distribution (F&B) as more and more of the big players have incorporated or are considering incorporating some kind of salary component to their sales compensation plan. This 3 part series explores the unintended consequences the 100% commission model has had on the F&B industry, as well as how to correct them.

Q1 2018 Compensation Problems

Beth Carroll

I recently returned from my 10th TIA conference in beautiful Palm Desert, CA, and it was one of the best shows I’ve been to.  There was a theme that I heard over and over again at the show…what a fantastic year 2018 had been so far, following on a pretty strong Q4 for 2017.  Freight rates have been rising and business has been booming, but this has not come without its challenges – chief among them, from my perspective, is what I’m calling the “January Overpayment Syndrome.”

Freight Broker Commission Rate

Beth Carroll

As compensation consultants who specialize in the transportation and logistics industry, one of the most common questions we are asked is “What is the standard freight broker commission rate?”  While this question is posed with the best of intentions, it is unfortunately off the mark. The truth is that commission rates, like any form of incentive, should be a reflection of a company’s business strategy, freight profile, and organization structure.  A better question to ask would be “What is the best commission rate for my organization, given our unique circumstances, strategy, and goals for the future?”

Dangers of Extreme Compensation Plans

Beth Carroll

In the world of compensation options (and it’s a bigger world than most realize), we see two extremes: 100% variable pay, also known as 100% commission, and 100% salary. Extreme compensation plans do not provide the best motivational bang for the buck and companies who are using one or the other extreme are missing out on higher levels of motivation, reduced turnover, higher revenue, and lower compensation costs.

Traditional Broker Compensation

Beth Carroll

What's wrong with the traditional, "highly variable, straight commission on margin" approach for paying your employees?  Nothing...if every employee has the same opportunity, the same skills, the same training, and all your freight is from the spot market where each day is a new day and no one knows for sure what's coming their way.