There's a delicate balance to it: you want them to be aggressive enough to pursue deals with determination, but you don't want them to close bad deals.
Coming up with the right commission plan is a difficult and complex task.
That being said you should likely engage with a expert in selling to discuss putting the right incentives and process in place to ensure that your efforts are effective.
You better hire a BD Executive and provide the basic package that he or she needs.
Success will be achieved by moving and learning fast and course-correcting rather than thinking your way to perfect solutions and getting it right with the first execution.
We know founders that have been waiting for over two years before hiring much needed salespeople because they had analysis paralysis about the "right compensation structure". Once you have decided which way to go, you'll need to think about the actual numbers. How do you align their interests with your business' interests?
We just can't underestimate BD and the role that BD professionals play.
If you're faced with the challenge of developing a commission structure for your first sales hire as a startup, there are two very different ways you can go about it.
If you want maximum learning and growth, join us as you'll work directly with me (one of the founders or senior hires at the startup).
We'll have to create this sales commission plan not just for you, but for every future sales rep as well. Present your first sales hires with a commission structure that's based on the results you want: wishful thinking. Because they will be (rightfully) upset if you gave them a flawed commission structure.