In this simplified approach to implementing performance-based pay structures, appointment booking, product sales, and membership sales are discussed.

1. Performance Pay Structures
/jial14
jon@championsway.com

2. Goal: To provide simple performance based pay
structures you can implement in a school not
already using them.

3. Key Takeaways from this discussion:
1. The Primary Purpose of your staff’s pay
structures
2. Choosing how you will measure performance
based on your current situation
3. Matching up measurements with $$$.
4. Introducing the pay structure to staff
5. Making the compensation visible to staff at
all times

4. 1) The Primary Purpose of your staff’s pay structures

5. What IS the primary purpose?
Align the behaviour of your staff,
with the goals of your business!

6. Think about this for a moment!
Question - What does an hourly rate truly
suggest?
Answer - For each hour you are here, you will
get paid $X.XX for that hour.
(There is no clear indication of what should be done
during that hour though)

7. Paying staff based on specific measurements
provides a consistent answer to the question:
“What should I work on?”
(One of the most expensive questions)

8. Time to change to Paying based on measurements.
So, what do we measure?
It will depend on
your situation…

9. 2) Choosing how you will measure

10. Current situations: What to measure:
You are the closer but have a Number of visits (“shows”) to
staff that can assist you. the school, and number that
closed.
You have a staff member you Number of memberships sold
would like to be the closer. (dollar value).
You have two staff members, Both.
where 1 can close and the other
can assist.

11. Before we can make any changes!
• You need to compile a 6 month sample
of those stats.
• Next best sample is one low, one
medium, and one high month.
• If you don’t have either, it’s dangerous
to estimate.

12. Once you have the stats for
Appointment Booking
We Choose between:
Goal Based Pay
or
Per/Instance Pay

13. Goal Based Pay
How it works How it Performs
The staff member is given targets for Staff will shoot for the goals always in the
number of “shows”, and number of beginning of the month.
“closes” that occur from the “shows” they
create. If numbers aren’t solid by the week 3,
giving up can occur without coaching.
You pay a bonus for each target they hit. (Back to going through the motions)
You can pay a flat rate per goal, or do It’s really simple to manage.
tiered goals.
Without tiers, web leads in the final part
of the month sometimes are not called
for a few days.

14. Example of How Tiers Work for
Goal Based Pay
3rd Target
Very
2nd Target Meaningful
Higher Bonus is
bonus is paid
1st Target paid
Initial Bonus
is Paid

15. Per/Instance Pay
How it works How it Performs
For each “show” pay is added to the The Staff Member will be more engaged
staff’s monthly total. consistently. (They’re paid on each one)
For each “show” that closes, pay can also Without Tiers, final portion of the month
be added (optional). can be held hostage by those that are fine
with an average month’s pay.
You can apply tiers or leave it as a flat (“Why push it if it’s the same pay and I
rate. can set the beginning of next month?”)
A little harder to manage when you
incorporate tiers.

16. How Tiers Work for
Per/Instance Pay
Rate 3
Begin at point
Rate 2
Of Outstanding
Begin at point of Month
High Month
Rate 1
From Average
to point of
High Month

17. Sample Breakdowns
for
Tour Booking

18. Paying on Shows
Below Average
Average Shows +5 +10 +15
Goal Based Reduce pay Same as Add $100 Add $250 to Add $450 to
Pay by 10% current To current current current
-$20 for each Same as $20/show $25/show $30/show
Per/Show under, stop current
at -$100
A Little Extra for Shows that Close
Below Average
Average Closed from +5 +10 +15
Shows
Goal Based Same as Same as Add $50 Add $150 Add $300
Current Current
Per/Close ^ ^ $10/close $15/close $20/close
*Both examples utilize a forgiving approach to lower months

19. Once we have the stats
For Closers
We Choose between:
Goal Based Pay
or
Commission Pay

20. Goal Based for Closers
How it works How it Performs
A planned dollar payout Staff will start to see the month the same
for reaching a predetermined way you do. (“It’s the 8th, and we’ve sold
levels of sales. this much so far…”)
Ex. $400 bonus if we break $28,000 in If numbers are not solid by half-way in the
contracts sold, and another $400 for month, motivation can drop.
every additional $6,000 we are over (“There’s no way we’ll hit that now…”)
$30,000.
It’s really simple to manage.
You can keep it flat, or add tiers.
Without tiers, “sand bagging” can occur.
(“We’re good for this month, I’ll save this
so starting next month isn’t so hard”)

21. Example of How Tiers Work for
Goal Based Pay
3rd Target
Very
2nd Target Meaningful
Higher Bonus is
bonus is paid
1st Target paid
Initial Bonus
is Paid

22. Commission Pay
How it works How it Performs
You pay the staff a % of every dollar sold, You will need to think long and hard
or a % of every dollar sold after a certain about your approach.
amount.
This kind of structure will be familiar to
%’s range based on how aggressive you outside hires you get with sales in mind.
want to be.
Staff will treat every lead more like you
You can add tiers. would now. ($ on the line at all times).
Tiers add engagement but also add
complexity and risk.
It requires more energy to manage.

23. How Tiers Work for
Commission Pay
Rate 3
Begin at point
Rate 2
Of Outstanding
Begin at point of Month
High Month
Rate 1
From Average
to point of
High Month

24. Sample Breakdowns
for
Membership Sale

25. Sample Membership Sales Pay
Below Average +$6,000 +$12,000 +$18,000
Average
Goal Based Reduce Pay Same as +$400 +$1000 +$2000
by 10% Current
Commission -6% of $ Same as 6% of $ over 8% of $ over 11% of $ over
under, stop Current
at -$180
*Both examples utilize a forgiving approach to lower months
*The Commission example assumes we are paying for only for $ sold above the
current average vs. on every dollar, where a larger reduction in current pay
would be required, and the structure is harder to implement.

26. Equipment Sales
- 5% of profit of the pro-shop (1 person)
- 5% of sales made by them (group)
- Don’t bother with tiers (distracts from core sales)

27. #4) Introducing it to your staff

28. Existing Staff New Staff
Inform them of the upcoming Explain training pay and
change in pay. performance pay during hiring
process.
Give them 1 month of
“whichever more is paid” Give them 1-2 months on
(increase to 2 if needed) training pay.
Complete Transition Implement performance pay

29. 5) Making the compensation
visible to staff at all times

30. In Your Face Board
Add to the top:
-Total Shows MTD
- Shows the Closed
MTD
-Total CV MTD
-Total Pro-Shop MTD

31. Digital Reporting
• Use combination of billing service or software
and Spreadsheet on Google Docs
(or use PerfectMind)

32. Questions?
Jon@championsway.com
/jial14

33. PerfectMind Reporting
(Live Product)

35. Appointment Booking
(MAsimple):
- Report = attendances with “create date” equals “this month”, and “status” equals “attended”,
group it by the class “organizer” to know who should be credited for each booking.
*requirement:
- Must enter classes for each intro booked, and put “intro” or a keyword in the class name
each time you enter one.
- You then book the person for the class
- If they come, you change them to “attended”
(PM version 1)
- Report = attendances with “create date” equals “this month”, and “status” equals “attended”,
“class subject” contains “intro” or keyword, then group it by the intro “owner” to know who
should be credited for each booking, and then group by intro status to know how many of each.
- Columns would include “lead full name”, intro start time, intro status, intro owner
*Requirement
- - Must enter an event with type = intro each time an intro is booked
- book the person for the intro
- if they come, change them to attended

36. Closers
• Sales Report MAsimple:
- Report = purchased items “create date” equals “this month”,
group by “created by”, then group by purchased item “type”,
make sure to have price in columns and check off sum before
saving report.
* requirement: sell everything through the shopping cart
Sales Report (PM version 1):
- Monthly Contracts by Salesperson report under “Sales
Performance” folder
- Products sold by Staff report under “Sales Performance” - see
criteria and replicate
*requirement: use contracts, use store.