10 Ways to Structure a Pay-Per-Lead Sales Commission Model for Your Tech Company
Flat rate per lead: In this model, affiliates or salespeople are paid a fixed amount for each lead they generate, regardless of the quality or conversion rate of the lead.
Example: An affiliate is paid $10 for each lead they generate.
Tiered rate per lead: In this model, affiliates or salespeople are paid different amounts for each lead based on the quality or conversion rate of the lead.
An affiliate is paid $10 for each lead they generate that converts into a sale, $5 for each lead that results in a demo request, and $2 for each lead that simply subscribes to the company's email list.
Percentage of sale price per lead: In this model, affiliates or salespeople are paid a percentage of the sale price for each lead they generate that converts into a sale.
Example: An affiliate is paid 10% of the sale price for each lead they generate that converts into a sale
Hybrid model: In this model, affiliates or salespeople are paid a combination of the above structures.
Example: An affiliate is paid $10 for each lead they generate that converts into a sale, as well as a percentage of the sale price (e.g. 5%) for each lead they generate.
Recurring commission per lead: In this model, affiliates or salespeople are paid a commission for each lead they generate that results in a sale, and continue to receive a commission on a recurring basis as long as the customer remains a paying customer.
Example: An affiliate is paid a one-time commission of $100 for each lead they generate that converts into a sale, as well as a recurring commission of $10 per month as long as the customer remains a paying customer.
Bonuses for high-performing affiliates: In this model, affiliates or salespeople are paid a higher commission or bonus for generating a certain number of leads or sales within a certain time period.
Example: An affiliate who generates 50 leads in a month is eligible for a $500 bonus.
Differential rate per lead based on product: In this model, affiliates or salespeople are paid a different rate for each lead based on the product being sold.
Example: An affiliate is paid $20 for each lead they generate for the premium product, and $10 for each lead they generate for the standard product.
Differential rate per lead based on customer type: In this model, affiliates or salespeople are paid a different rate for each lead based on the type of customer being targeted.
Example: An affiliate is paid $15 for each lead they generate for small businesses, and $10 for each lead they generate for individuals.
Differential rate per lead based on industry: In this model, affiliates or salespeople are paid a different rate for each lead based on the industry of the customer being targeted.
Example: An affiliate is paid $20 for each lead they generate in the healthcare industry, and $15 for each lead they generate in the retail industry.
Revenue sharing per lead: In this model, affiliates or salespeople are paid a percentage of the revenue generated from each lead they generate that converts into a sale.
Example: An affiliate is paid 20% of the revenue generated from each lead they generate that converts into a sale.