Commission

Creating a commission structure for consultants can significantly impact their motivation and performance. Here’s a suggested commission structure that could align with your fee ranges and basic salary:

Suggested Commission Structure:

1. Base Salary: £25,000

2. Commission on Fees:

3. Tier 1: For fees up to £5,000 – 5% commission
4. Tier 2: For fees between £5,001 and £10,000 – 7.5% commission
5. Tier 3: For fees between £10,001 and £15,000 – 10% commission

6. Tier 4: For fees above £15,000 – 12.5% commission

7. Quarterly Bonus (optional):

8. If consultants meet or exceed a specific target (e.g., a total of £100,000 in fees per quarter), they receive a one-time bonus of £2,000.

9. Team Bonus Pool (optional):

10. If the team achieves a cumulative target (e.g., £500,000 in fees for the year), consider distributing a percentage of the total fee earnings (e.g., 2-5%) into a bonus pool shared among all consultants.

11. Retention Bonus (optional):

12. A small percentage (e.g., 1-2%) of the total fees can be offered as a retention bonus after 12 months of service, rewarding sustained success and commitment.

Example Calculation:

• If a consultant closes £90,000 in fees in a quarter with varying fee levels:
• £3k fees: 10 times -> 10 x 5% = £150
• £6k fees: 5 times -> 5 x 7.5% = £225
• £15k fees: 4 times -> 4 x 10% = £600
• £18k fees: 2 times -> 2 x 12.5% = £500
• Total Commission for the quarter = £1,575

Considerations:

• Ensure that your structure aligns with your overall business objectives and encourages desired behaviors.
• Keep the structure as simple as possible to ensure clarity and transparency.
• Regularly review and adjust the commission scheme based on performance, market conditions, and feedback from consultants.

This proposed structure can be tailored further based on your business goals and the specific dynamics of your team.