A medical device is any health technology required for prevention, diagnosis, treatment, monitoring, rehabilitation, and palliation.

Some examples of medical devices include:

• Pace-makers
• Wound VACs
• Computer aided diagnostics
• Anesthesia machines
• Ultrasounds

Medical device sales necessitate in-person selling to properly demonstrate how to use the device as well as to foster direct relationships with physicians and other healthcare providers involved in decision-making. All this to say, sales reps in the medical device field are often on the road a lot to make connections with as many healthcare facilities and personnel as possible.

Medical Device Sales Commission Structures

Sales compensation is the cornerstone of medical device sales, with commissions and other incentive-based pay making up to roughly 40% or more of a sales rep’s annual income. As mentioned above, most medical sales positions provide sales reps a base salary and the rest of their income is based on sales compensation such as commissions and bonuses as outlined below.

Commissions: Commissions for sales reps are typically based on a percentage of the total sales they generate. On average, reps in medical device sales can expect to earn between 15-25% of revenue generated. However, as with any industry, the exact commission rate can vary based on the product sold and a sales rep’s tenure and quota attainment.

Commission Tiers: Similar to other industries that reward high-sales earners, medical device sales reps are often capable of unlocking higher commission percentages by meeting outlined sales quotas. Sales quotas serve as benchmarks for measuring sales performance that may be divided into multiple tiers.  For each tier that commission rep meets, they become eligible for a higher commission rate.

Bonuses: As another form of sales incentive, bonuses are often used to reward sales reps for meeting key performance targets. Bonus incentives can be tied to various metrics, including individual sales targets, team performance, and overall company goals. Ultimately, high-performing sales reps have several opportunities to achieve additional income by meeting or exceeding the company’s sales goals.

Other Common Variables of Medical Device Commissions

Sales Territories: An important aspect to a medical device company’s sales strategy is how they target a given sales territory. For sales reps, it’s not uncommon for their specific sales goals to be tied to growing their designated sales territory. Because of this, sales reps often receive bonuses or other incentives based on growth in their market.  

New Business vs. Account Management: As is the case with most industries, compensation structures may differ between sales made with new customers and renewals on contracts with existing customers. Commissions on sales made to new customers typically yield a higher commission rate than contract renewals.

Sales Contests and Spiffs: A common motivation tactic for medical device companies is to offer sales contests or spiffs as a way to encourage sales reps to meet specific company goals. While some sales contests may award winners with a bonus, other non-monetary rewards may also be included as prizes for sales contests and spiffs. Prizes such as gift cards, concert tickets, or a weekend getaway, are often mixed with financial rewards as a way to keep sales reps interested and engaged with participation.  

Automate Medical Device Sales Commissions

With an industry that records such a high-volume of sales, having a reliable and accurate commission platform to track and manage sales data is crucial. From simplifying account management of your sales reps, to tracking product sales, and seeing revenue trends across sales territories, Core can automate any aspect of commission management for medical device companies.   

Contact us for more information or schedule a free demo to learn how Core can completely automate commission management for your business.