After building a team of the right talent, compensate them accordingly to see results. How you compensate your salespeople will vary by your vertical, your product's wholesale/retail price, and your stage of growth. Below is a general guideline:
- Base + Commission: best for early-stage and growth-stage startups
- Base + Bonus: best for large and established corporations
- Commission Only: best for contracted brokers and direct sales reps
It's common to compensate early employees with less cash up front and with equity in the company, due to a tighter budget. If you plan on selling your startup, reward your early team members with vested stock options with a one-year cliff and three-year vest. Considering the insane amounts of funding many tech startups receive, they can afford to give some equity. Use Glassdoor to check local salary market rates for the roles you're hiring for.