I'm going to share with you how much I earn after you read this from Pat McGraw:
Posted: 28 Jul 2010 05:30 AM PDT
As we get closer to the end of summer, more and more companies are starting to put together their 2011 plans, including budgets.
For all of you, I have one piece of advice – start off by figuring out how you will increase customer retention by 5%.
Why?
The fact is that a 5% improvement in customer retention rates will yield between a 25 to 100% increase in profits across a wide range of industries. (Source: http://www.loyaltyrules.com/
loyaltyrules/Effect_Overview. )html
You have limited resources. Budgets and staff size aren’t going to grow all that much – but chances are pretty high that your goals are going to be all about growth.
And though new customers are important, remember that the real goal is profitable revenue. That’s what pays the bills and covers your paycheck.
It's me again. Percentages are fun to play with. The radio stations I work for pay a straight 15% commission. That's it. No Salary, just commission. And we get paid when the radio station gets paid, so that's 15% commission on collections. Sounds scary. But it's one of the most straight forward plans I've had.
Except it changed a few months ago. We now earn 15% if we earn from 10 to 100% of our budget goals. If we exceed our budget goals, we can earn a higher percentage.
101% means a 20% commission rate instead of 15%. That means $10,000 is worth $2000 instead of $1500. An extra $500 for doing 1% more.
But there is an even higher level. If we bring in 115% of our budget goal, our commission jumps to 30%. Now $10,000 earns $3000. Double your money with 15% more effort.
I'm sure there are ways you can make the numbers work for you too in your organization.
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