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news.Specialty pharmaceutical firm Auriga Laboratories has implemented an innovative commission-only structure that the company hopes will allow it to expand its sales force significantly within the next 18 months.
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Auriga is among the first pharmaceutical companies to apply a commission-only structure. While many pharmaceutical companies compensate sales employees with an estimated 70% salary and the remainder in bonus, Auriga’s innovative new structure will provide 100% commission with an additional performance incentive of stock option grants.
“By adopting this commission-only structure, we will attract only the most motivated and the most entrepreneurial sales people in our industry,” said Philip Pesin, CEO of Auriga. “Our new structure not only lays the groundwork to create a cash-positive sales force, but most importantly, enables us to do so with minimal cash ramping up costs.”
The new sales force structure was developed following an internal audit which demonstrated that a small percentage of Auriga’s sales force was producing a large percentage of the company’s revenues. The company, therefore, recently reduced its sales force to a core group of top performers.
Now, additional commission-only representatives will be added as necessary, with the sales force possibly growing to as many as 100 representatives over the next 18 months.