Prosperio Group Compensation Blog

In the previous article we looked at the Cradle to Grave organization structure and the common compensation approaches used to go along with those roles.  Now we will look at the Split Model, the roles commonly found in this model, and how they should be paid (spoiler…paying everyone a commission (% of the load), while common, is suboptimal).

Earlier this month Beth Carroll was a guest on an episode of OTA on the Air with President & CEO Tom Balzer. For anyone unfamiliar, OTA on the Air features industry experts and thought leaders who provide updates on the regulatory, legislative and compliance environment. Beth will also be one of the Keynote Speakers at this year’s OTA Annual Conference in September.

n this episode of TIA Delivers Podcasts, Beth Carroll, Managing Principal of Prosperio Group, provides insights into the series she has been writing for TIA's 3PL Perspectives Magazine. The series, “Going Beyond Commissions”, details the different approaches to goal-based incentives. Her unique perspective and range of industry knowledge are extremely valuable to the 3PL community and this is an episode that you won't want to miss!

The Psychology of Motivation and Rewards - In this new category of blog post, guest columnist, John Burkholder, gives us the rundown about how restriction actually fuels temptation.

One of the less common occurrences in the world of sales compensation is a windfall, or “blue bird” sale. Sales reps love them, but they drive compensation managers (and owners who must pay them) nuts; the pay earned from incentives is often grossly out of proportion to the effort involved…

In the first two articles of this series, we looked at the various ways commissions can be calculated in such a way that "costs are covered," namely using a draw, a multiple of salary, or a threshold approach. In the second article, we looked at three different ways of scaling a commission rate relative to production: flat, retroactive, or progressive. We also discussed setting a fixed tier for production (e.g., $20,000) or a relative tier (75% of goal, where goal is individualized based on a person’s book of business). This article will focus on another very popular method for calculating commissions: the matrix.

My mathematical trick here is something that is derived from “The Rule of 78’s” which is typically used in other applications (such as mortgage interest payments), but it works just fine here as well. You can Google “The Rule of 78’s” or “Sum of the Digits Method” to get a deeper understanding. You might ask “how do we get the number 78”? 78 is the sum of …

In the last issue of 3PL Perspectives, we looked at the three basic methods for calculating a commission relative to a production threshold: draw, seat cost, and threshold. Now we will look at the ways you can calculate the commission itself. There are also three methods to consider: flat rate, retroactive rate, and progressive rate.

In this episode of TIA Delivers Podcasts, Beth Carroll, Managing Principal of Prosperio Group, provides insights into the four-part series she recently wrote for TIA's 3PL Perspectives Magazine. The four-part series, “The Economics of Commission” details the different approaches and methods used to figure sales commissions.

In case you missed getting a copy at Truckload 2020, here is the link to the latest issue of Truckload Authority. Pages 32 and 33 house Beth Carroll’s most recent article about Compensation for Trucking Companies. Make sure to check it out, as well as consider signing up the TCA’s Truckload Live Distance Learning program where you can get instruction directly from Beth and other subject matter experts.

When it comes to sales compensation plans, people tend to "know what they know." And because of this myopia, they also don’t know what they don’t know—failing to recognize the different approaches to calculating sales commissions that may be available to them.