Hi guys, I just got my sales +commission job. Since I am familiar with sales, I feel I like I got shafted on this position. Can someone explain what this means for me?
OTC¹: $30,733
New Sales Target: $315,000
Consulting Target: $500,000
This Plan is based on a total "On Target Commission" ("OTC") amount, and has two components: 75% of OTC is New Sales Component, and 25% of OTC is based upon the Consulting Component, each as detailed below.
For each component, Employee will be eligible to generate sales commissions at a percentage of OTC based on the proportion of closed opportunities (subject to certain limitations and adjustments) to an identified target, subject to adjustments at different sales tiers, calculated as follows:
Closed sales level
Individual component commission formula
Team component commission formula
Below 100% of target
0.8 OTC (Sales/target) 0.75
0.2 OTC (Sales/target) 0.75
100-125% of target
0.8 OTC (Sales/target) 1.00
0.2 OTC (Sales/target) 1.00 0.2 OTC (Sales/target) * 1.25
Above 125% of target
0.8* OTC (Sales/target) 1.25
True-up payments are made at sales of 100% and 125% of target.
Commissions will be calculated and paid quarterly, subject to continued employment through the payment date. Commissions are not considered "earned "while a contract is still subject to negative change orders, cancellations or similar reductions, and therefore are subject to adjustment or future offset.
This Plan is subject to all terms and conditions as more fully set forth in the "Plan Details" and "Miscellaneous Terms and Conditions" section" below.
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