To ask you about bonuses at work?

[BonBonBonBonBon]

I need some help… my work has proposed a sales target for me.

They suggested that I get a 1% bonus after approx £400k annual net turnover.

Not sure but to me this sound quite low? I appreciate that these things depend on the industry too but still.

Anyone with any experience?

bump

It's going to depend on the context of your realistic sales performance.

If you are selling something for £10 then realistically you'll never hit target. If your average annual turnover is generally £500k then you have the likelihood of a 1% annual bonus which is low, if you could realistically hit £4m turnover and a 10% bonus then it sounds about right.

I'm in a senior role at work and have the ability to get a 20% annual bonus but it's not a sales based role. I think you need to try to find some baselines for what so distort standard is for sales based bonuses.

Are you new to the business? Have you not worked in sales before?

Someone with a 400k target in my place would be expected to hit about 500-700k.

I disagree with the previous poster, in my industry anyway you wouldn’t be set a 400k target if you were hitting numbers like 4M.

1% of the sales or 1% of your salary?

In one industry we recruit for it’s common for the salesperson to get 3% of the sales in the year the deal is done, 2% the next year and 1% the year after. That adds up to some very big bonus payouts.

Sorry I'd read it as 1% bonus for every £400k bought in in sales, is that not the case? Or does the total possible achievable bonus stop at 1%.

What are you selling??

Depends what your salary is

Yes, I know it’s very vague and yes I’m new to working with targets. Before I just had a salary and that was it

to answer some of the questions:
my salary is £50k and we are selling high end products (think of luxury bathrooms/tiles) with margins varying between 40-60%

does this help?

The bonus doesn’t stop at 1%. There is a tier system in place.

Just giving this another bump(sorry)
I could really do with some help

You need to provide more information about the exact bonus structure that has been proposed.

What is your annual salary
What is the bonus structure
What are the targets

A salary of 50k for selling kitchens and bathrooms doesn’t seem bad to me especially if you are getting a bonus in top which you have said is tiered.

4k if you sell 400k worth of product isn’t that bad - roughly 7k worth of product a week or 33k a month.

It’s almost one months salary bonus which many companies operate these days