Commission goal breakdown:

[Justinmarketing]

Hi all, I'm sure this is more simple than I'm making it.

I have a goal/Target of $500,000 per year generated by the sales team I'm assembling.
My commission per transaction made by each salesman is $80 up front one time. Then $8 per month moving forward.
If I have 10 salesmen, what will it take to reach my goal?

I hope I explained my question correctly. Thanks for your help!

 

[lev888]

Are you asking how much you would need to pay in commissions to get to $500,000? How much does each transaction generate in sales?

 

[Justinmarketing]

Are you asking how much you would need to pay in commissions to get to $500,000? How much does each transaction generate in sales?

No, I'm asking how many sales would my team need to generate in order for me to hit my personal income target of $500,000. Each transaction generates $80 up front one time and $8 per month moving forward to me.

 

[lev888]

No, I'm asking how many sales would my team need to generate in order for me to hit my personal income target of $500,000. Each transaction generates $80 up front one time and $8 per month moving forward to me.

I don't think there is a unique solution. You can get $500,000/$80 sales in December. Or one sale in November ($80 + $8) and $499,912/$80 sales in December. Etc.

 

[Justinmarketing]

OK, ya I figured there wouldn't be a definite answer. I am being coached to generate a target, and then reverse engineer the target to create actionable steps to reach it. I was really looking for a round about idea. Thanks though lev888!

 

[lev888]

OK, ya I figured there wouldn't be a definite answer. I am being coached to generate a target, and then reverse engineer the target to create actionable steps to reach it. I was really looking for a round about idea. Thanks though lev888!

You can come up with a solution if you add constraints. E.g. the same number of sales each month and for each salesperson.
10 people - $50,000 each.
n sales in January: $80*n + 11*$8*n
February: $80*n + 10*$8*n
...
December: $80*n + 0*$8*n

Total: 12*$80*n + ((11*12)/2)*$8*n = $50,000
Simplify, solve for n.

 

[Justinmarketing]

Great, Thanks!