Are you interested in having a simple formula to determine your Income Goal(s)? If you are an independent sales representative that is driven by commission sales, what I like to call “paid on performance”, when you perform you get paid! This formula will assist in setting your desired sales and personal income numbers. Enjoy!
This example is for anyone who is selling a product and earning commission on that sale and generating the number of (what I call) parties to get there.
Complete the following:
My Income Goal for the month of ______________ is $____________
Income Goal: $__________ ÷ _____% (your Commission Rate) = Sales Needed
Sales Needed ÷ Average Party Sales (your Average Party)* = # of Parties Needed this Month
*To determine what YOUR average party sales are, add up the sales from your last six parties and divide by 6. That number should give you an idea of your average sales this time of year. Six parties is a good sampling because it assumes that two of the parties were above average, two were below and two were about average
Stepped out example;
I’d like to earn $2,000 in personal income in April (my income goal).
I divide $2,000 by .30 (which is my commission percentage on the products I sell). That means I need to sell $6,666 in April. If my average show comes in at $800 each then I simply need to host 8 shows at this level which will earn me an additional $2,000 in personal income this month.
That’s 4 weeks, hosting only 2 shows each week gets you this extra revenue stream…GO FOR IT and remember goals not written down are simply wishes.
Ignite Your Success,