There is one number that separates the sales candidates you want from the ones you are settling for: $100,000 a year.
Top-performing salespeople — the ones with options, with a track record, with the confidence to walk away from a bad deal — need to see a realistic path to six figures in your compensation plan. Not a stretch goal. Not a theoretical ceiling. A realistic, achievable number for someone who does their job well.
If your comp plan cannot get a strong performer to $100K, you are not going to attract strong performers. You will attract people who could not find a better offer.
There are two fundamental structures for sales compensation, and the one you choose shapes who applies and who stays.
A draw against commission means the salesperson receives a monthly advance — say, $2,500 per month — which is drawn against commissions earned. At 20% commission, they need to generate $12,500 in sales per month to cover the draw and break even. To earn $90,000 in a year, at an average sale of $2,000, they need to close roughly 19 deals per month. This structure is straightforward and self-correcting: the math is clear on both sides. Salespeople know exactly what they need to produce. You know exactly what you are paying for performance.
Base plus commission is more common and offers more predictability for the salesperson during ramp. Here the question is the ratio. A plan with a $3,000 base and 10% commission — Plan A — produces $7,500 per month at $45,000 in monthly sales ($4,500 commission + $3,000 base). A plan with a $2,000 base and 15% commission — Plan B — produces nearly identical total pay at the same volume ($5,499 commission + $2,000 base = $7,499). The difference is who those plans attract. Top performers prefer Plan B. A lower base with higher commission upside tells them you believe in their ability to perform — and that you won’t cap what they can earn. Comfort-seekers prefer Plan A. If your plan has a high base and low commission, you have already filtered toward the wrong candidate.
A new salesperson cannot be expected to perform at quota from day one. They are learning the product, the buyers, the process, and your systems. If you offer commission-only or a draw from the first week, you will lose good candidates who cannot afford to go three months with uncertain income while they ramp.
The solution is a guaranteed ramp-up payment for the first 60 to 90 days. The number should be a living wage — enough to cover rent and basic expenses without requiring the salesperson to panic about money while they are learning. A range of $2,700 to $3,500 per month is appropriate for most markets. After the ramp period, they transition to the full commission structure.
This is not charity. It is an investment in getting the hire off to a strong start rather than a desperate one.
Commission-only plans attract a certain kind of candidate and repel most others. Before you offer one, be honest about whether your business actually supports it.
Commission-only only works when four conditions are met. First, you are providing confirmed appointments — the salesperson is not generating their own leads from scratch. Second, your product or service is delivered reliably, so the salesperson is not fighting your operations problems while trying to close new business. Third, you are providing consistent training and support, not just handing someone a phone and a prayer. Fourth, you are continuously recruiting, because turnover in commission-only environments is higher and you need to be able to backfill quickly.
If those four conditions are not in place, commission-only will churn through candidates until you find someone desperate enough to stay. That is not the profile you want representing your company.
Top performers evaluate comp before they evaluate anything else about your company. If your job ad says “competitive compensation” or “commensurate with experience,” you have already lost them. They will not call to ask. They will move to the next listing.
Name a number. Show the realistic annual comp for someone who hits their targets. Describe the structure: base, commission rate, how leads are generated. If you have a ramp-up period, say so. This level of specificity does not attract more applicants. It attracts better ones — people who read the plan, ran the math, and decided it was worth their time.
Before you post, run the numbers. If a salesperson closes at your average sale price, at a realistic close rate, with the leads your business generates — what do they actually earn? If the answer is under $80,000 for solid performance, your plan has a structural problem, not a candidate problem. Fix the plan before you post the job.
If you are not sure whether your comp plan will attract the caliber of salesperson you need, book a call and we will run the numbers with you: advancedhiring.com/lets-talk/
