Stephen-Bradford's business developer gives advice on compensating interactive salespeople.

During our firm's presentation at ad:tech New York City, many of the questions we received were from hiring managers who are building their sales teams. Their concerns ranged from appropriate base salaries to commission structures to offering equity. The following are several recommendations we made that seemed to satisfy the audience. 

Offering the right base salary
Most successful salespeople are quite interested about what they can make on the back end. However, in order to recruit and retain top talent, your base compensation needs to be competitive. For more junior positions, you might be okay offering a lower base as long as it's competitive. But to engage senior professionals, you often have to put more upfront because they may need to maintain a higher cost of living (such as mortgage payments, children's college tuition, et al). 

Providing compelling commission
At plan, our clients pay 50 to 100 percent of the base on the back end. Certain companies start paying commission at dollar one while others require their salespeople to hit a specific target. 

We recommend that our clients do not cap commission. It's also easier for them to recruit true hunters when it's known that a salesperson has no limits working for their company. Some of our clients offer a tiered structure where they pay higher commissions after a certain point

Equity opportunities
Our firm works with a number of start ups that give equity. Some of these companies offer equity as way to supplement the base salary if they can't afford a hefty front end, others do it because they are start-ups and are building their company. They might offer it on top of an impressive base and commission package in order to lure stellar talent from established brands. 

Environment and expectations
Once a strong compensation plan is developed, it's up to you and your company to provide an environment where these salespeople can be successful. Based on how much they want to earn, you should show them a plan which details exactly how much business they need to develop and meet with them regularly to track and encourage their progress.

Any more questions?
If you would like typical salary requirements for directors to SVP of sales, or have any other questions about compensating your sales team, please feel free to email.

Brandon Gutman is director of marketing & business development, Stephen-Bradford Search. Read full bio.