Regardless of the period, region, market conditions, or products, salespeople are the foundation of sales work. Therefore, motivating sales staff while ensuring the implementation of strategic intentions from senior leadership is a critical issue for manufacturers and distributors. Among various solutions, adjusting the salary structure of sales personnel is the most direct and effective method. This article provides a detailed explanation of how to build a salary system for sales staff, hoping to assist leaders in the liquor industry and distributor partners. To clarify the salary system, three aspects must be addressed:

  1. Components of the salary system: Simply put, it refers to the sources of a salesperson's income, i.e., "what money is paid."
  2. Target elements of the salary system: Factors that affect the salary level of salespeople, or more directly, "why money is paid."
  3. The method of linking salary components with target elements: The way a certain part of a salesperson's salary fluctuates due to certain factors, such as increasing fixed amounts, deducting by percentage, or multiplying by a coefficient. In simple terms, it is "how money is paid." I. Components of the Salary System: Generally, the salary system for sales personnel includes the following eight aspects, among which basic salary and sales commission are the most widely used, while other items vary according to the actual situation of each manufacturer and distributor.
  4. Basic salary: Ensures the basic living needs of sales personnel.
  5. Sales commission: Rewards the sales performance of sales personnel.
  6. Performance-based salary: Extracts key indicators to assess the work process and results of sales personnel.
  7. Seniority pay: Rewards the loyalty of sales personnel.
  8. Position allowance: Subsidies for positions with special work requirements.
  9. Employee benefits: Insurance, leave, and other hidden benefits, which are important factors in enhancing employee belonging and maintaining stability.
  10. Special bonuses: Special rewards for special events or contributions.
  11. Year-end bonus: Annual reward for sales personnel, serving as an overall review and evaluation of their work throughout the year. II. Objectives of the Salary System
  12. Compensation for job responsibilities
  13. Rewards and penalties based on work results and feedback
  1. Sales volume: The actual sales volume of sales personnel.
  2. Total task completion: The extent to which sales personnel complete their tasks.
  3. Proportion of leading product sales: The proportion of leading products in the sales results of sales personnel.
  4. Expense usage: The quantity, quality, and effectiveness of expense usage.
  5. Profit level: The contribution of the employee to the company's profits.
  6. Team management results: The performance of management functions by management-level employees.
  7. Market/customer feedback: Customer satisfaction feedback.
  1. Work process control:
  1. Work process compliance: The extent to which sales personnel meet key indicators during the work process.
  2. Subjective judgment factors: Subjective judgments on the enthusiasm, responsibility, etc., of sales personnel.
  1. Team stability
  1. Loyalty
  2. Fairness
  3. Team spirit
  1. Special contributions/accidents rewards and penalties: Certain special contributions or losses. III. Methods of Linking Relevant Elements with Salary
  2. Linear method: For each additional XX, the salary increases by X yuan. A typical example is piece-rate commission: for each additional item sold, the commission increases by XX yuan; seniority pay: for each additional year of service, the monthly salary increases by XX yuan. For sales personnel, this is a stable income, relatively fair and reasonable, but it provides less motivation and lacks clear strategic direction.
  3. Tiered method: Similar to the linear method but introduces tiered rewards, i.e., when a work result reaches XX-XX (value), the salary is paid according to the XX standard. A typical example is task commission: the commission rate within the task is X%, and the commission rate for the excess part is X%. This method sets a goal for sales personnel, indirectly applying pressure, but the degree of pressure requires wisdom from leaders. Appropriate pressure is beneficial, while too much or too little can cause adverse reactions in the team.
  4. Coefficient method: When a work result reaches XX or above, the coefficient is X; when another work result reaches YY, the salary base is Y; the final salary is X × Y. A typical example: The task completion rate (e.g., 150%) of sales personnel serves as the commission coefficient; if the task is not completed, the coefficient is 50%, with a cap of 200%; the piece-rate commission (e.g., 2000 yuan) serves as the base; the final commission is the coefficient × base (150% × 2000 = 3000 yuan). Of course, the coefficient method itself is a comprehensive method, where the coefficient and base can be set using linear or tiered methods. For sales personnel, the coefficient method is a dual stimulus: they must complete basic sales to obtain a higher commission base, and also exceed targets to obtain a higher coefficient. The multiplication of the two in calculating the final commission can drive salespeople to work harder. However, this method is a double-edged sword: on one hand, it is a powerful motivator; on the other hand, if not properly operated or monitored, it can easily cause imbalance among salespeople, leading to dissatisfaction and harming team morale and stability. Common Methods for Building a Salary System Table In summary, the salary system is essentially a calculation system where salary components and related elements fluctuate through special linking methods. When formulating a salary system, we follow these steps: I. Determine the company's main tasks at the current stage. Is it to prioritize sales volume or market stability? Is it to ensure payment collection or reduce costs? Is it to promote new products or maintain old ones? These require leaders to have a clear understanding and judgment of the market and the company's development stage. II. Based on the company's development goals, clarify the work objectives that salespeople need to achieve. III. Based on actual conditions, consider which core links need to be incentivized for salespeople to achieve these work objectives, and which parts of the salary system are suitable for incentives. IV. Select the salary components for sales personnel. Generally, basic salary, commission, and employee benefits are essential; performance assessment, seniority pay, and year-end bonus are added based on the company's strategic goals; subsidies are more about formal fairness than amount; and special bonus rules reflect the company's values. V. Determine the method of linking salaries with objectives, considering the team situation, company goals, and strength. The salary system is a systematic plan that considers company and market conditions, development strategic goals, team business level, and internal organizational ecology. However, I believe that as long as one element is firmly grasped, there will be no directional problems: that is, grasping the work direction and goals that sales personnel need to achieve at this stage. As long as the work goals of frontline salespeople are clear, the degree is controlled, and clever details are added, the entire salary system will inevitably radiate new vitality. Teacher Fang Gang once said that distributor commissions have three improvement stages:
  5. Initial commission model: base salary + turnover commission. This is the most common method when a distributor's sales team is first established, and I won't elaborate further.
  6. Intermediate commission model: base salary + category commission + new product special project. When a distributor's personnel are stable, if the base salary proportion is high, it will inevitably breed laziness and a "big pot" mentality, and create issues like dependence on old products. At this point, distributors should promptly introduce category-based commissions, increase the commission ratio for new products, and guide salespeople to focus on new product promotion. In new product promotion, commissions are usually reflected in wages at the end of the month. Distributors can consider adding a "new product special project + weekly (daily) category commission" payment method, such as calculating the results of each salesperson's weekly or daily new product achievements, converting them into bonuses, and publicly cashing them out this week or the same day.
  7. Advanced commission model: turnover commission + category commission + performance improvement reward. At this stage, the commission portion is sufficient to support the main income of sales personnel. Consequently, distributors need to establish annual performance growth commissions for salespeople, add a 1000 yuan bonus for the top few salespeople with the fastest monthly performance improvement, add a 2000 yuan reward for the top few with the fastest half-year performance improvement... Various methods, with rewards in place, first mobilize the enthusiasm of salespeople, clarify reward standards, assess daily, and give everyone the desire to strive for progress. In the distributor's vehicle sales model, the driver and salesperson are a combat unit. Without unified coordination, efficiency is low and internal friction increases. When setting assessment indicators, distributors should consider the integrity of this combat unit, such as clarifying the superior-subordinate relationship between the two, linking the driver's salary to the salesperson's salary, and determining the driver's salary based on the salesperson's salary. From Commission System to Contract System However, after reaching the advanced commission model, distributors have not fully solved the initial symptoms, such as oil waste and low efficiency. Once distributor management matures, a "contract system" can be introduced, where the vehicle and market are contracted to subordinates for independent accounting. The distributor only owns the warehouse, is responsible for interfacing with manufacturers, and collects "rent." This avoids the mentality of "spending grandfather's money without feeling pain," and they understand that "the diligent are rewarded" and that there is reward only with effort! But the premise is that distributors must firmly grasp sovereignty, not delegate all market rights, and not turn salespeople into "mountain kings," strengthening management of the contractor. Therefore, to implement the contract system, three preparations are needed, and five precautions must be taken long-term: Three Major Preparations:
  8. A mature financial information system that can accurately and timely classify daily and monthly data. A mature financial information system means calculating detailed accounts. However, many small and medium-sized distributors are often "Monkey King" types, capable of doing everything: warehouse management, finance, delivery, negotiation, and even loading and unloading themselves! They work hard to earn a meager profit, but the result is "meat rotting in the pot," only knowing whether they made or lost money, but not where the profit or loss occurred! They may not even know the annual vehicle costs, let alone provide timely and accurate support for internal management!
  9. Strict regional division. In the early stages, distributor management is often "bandit-style," with a wave of the hand, salespeople scatter, and there is no distinction between east and west of the city. After the initial distribution, they fight each other first, you take my job, I compete for your territory, several vehicles fly around, and the money earned is not enough for gas! After regional division, not only are these problems solved, but the key is that distributors can let their subordinates show their talents.
  10. Not only focus on product commissions but also pay attention to service assessment. For example, in the beer industry, beer bottle recycling occupies an important position in the business process. If distributors do not work on the bottle return link, there will be "one-shot deals": terminals receive goods, but bottles are either unwanted or sold as glass waste. If distributors set inappropriate bottle return commissions for salespeople, problems may arise where salespeople only deliver goods but do not return bottles, leading to increasing terminal customer complaints, gradual loss of outlets, and inevitably declining sales. Five Precautions:
  11. Substitution. The famous "Master Kong" earns less than the counterfeit "Master Kang's Wife," so they secretly sell the counterfeit to earn extra money. The distributor's land was originally for growing grain, but tenants may secretly plant sorghum!
  12. Mutual destruction. Delivering goods to someone else's territory will certainly earn more money. Not only that, but they may even dump goods at low prices into other regions.
  13. Overdrawing resources. The contractor always considers profit maximization; sustainable market development is not their primary concern. Intercepting, transferring, changing promotions, adding prices to new products, or selling off are common tactics used by salespeople.
  14. Establishing their own territory. After market contracting, terminal network customer relationship maintenance is entirely transferred to the contractor. Salespeople inevitably face the temptation of becoming bosses. Once the opportunity matures, salespeople will look at the bowl while eating, find a brand, and become bosses themselves.
  15. Eating away at resources. The reason distributors can successfully contract out is often because the territory has already been established, and there is a best-selling product supporting it. The contractor dares to contract because of this. However, due to fighting separately, the price system gradually becomes chaotic, outlets are gradually lost, and coupled with competitor erosion, advantages will be completely lost. The five precautions are to avoid distributors falling into the trap of being "hands-off bosses" and to avoid planting melons but harvesting beans. Quality Product Promotion Speed 8 Taurine Vitamin Functional Drink Recruiting agents for blank markets nationwide Reasons for recommendation: Superb taste and quality International superstar Donnie Yen as brand ambassador, precise and powerful Patent packaging design Strong corporate strength High profits, professional operation team and after-sales service Wealth Hotline: WeChat: lp780611 [Long press QR code to add WeChat for consultation] For more information, follow the WeChat public account: Tuba Ge Food Shandong Tuba Ge Group Co., Ltd. The best FMCG distributor learning platform in China Focusing on providing professional, practical, and applicable tutorials for enterprises and distributors Committed to helping Chinese FMCG distributors grow rapidly The most professional and practical knowledge base in the FMCG industry Reply with the red number below to get corresponding content Reply with number 1 to view the complete knowledge base | 001 Excellent article selection | 002 Distributor market operation | 003 Terminal visit management | 004 Sales supervisor skills | 005 Sales improvement techniques | 006 Channel expansion | 007 Managing distributors | 008 Distributor development | 009 Distributor internal operation management | 010 Team management | 011 Efficient distribution techniques | 012 Sales manager's eighteen skills | 013 KA operation methods and strategies | 014 First lesson for new salespeople | 015 Internet, brands | [Long press QR code to follow] To join QQ/WeChat groups, click: Read the original text