MedCepts is the market leader when it comes to creative compensation for medical sales professionals. We support vendors and employers utilizing out-of-the-box creative compensation for performance-based sales or other performance results. We thrive on notifying our rep network about vendors and employers offering creative compensation and the potential earnings of hot opportunities …  and, the sales professionals have come to truly appreciate creative commission compensation offered through opportunities on MedCepts. Over the years, we have introduced tens of thousands of creative compensation plans with medical sales reps. For additional insight, see Commission Structure Variables for Independent Manufacturer Representatives (Independent Sales Contractors) in Medical Sales

Below are samples of creative compensation we have pulled out of a few of the compensation clauses in some of the sales reps’ agreements.

We have added a few quick notes around the company’s thoughts behind the incentives. There really isn’t a better creative compensation than another. Consider your company’s goals, explore some of the creative compensation ideas of others, and discuss with your legal and accounting advisors.

Software: SaaS (Software as a Service) – Samples of creative commission compensation for software sales

  • Web demonstration $250.00 paid to the sales rep for bringing a customer to a web demonstration with a bonus of $1,250.00 when the customer signs up. In addition, residual commissions ranging from 15-25% depending on the volume of users for the lifetime of the account. Note: This company tweaked its presentation and maintained around a 97% closing ratio once in a web demonstration with a potential customer. Upfront compensation (without a sale first) is not recommended until certain metrics and successes are met.
  • $3,500.00 upfront bonus for each account signed up plus 20% residual. Note: This company had smaller profit margins but opted to pay the reps a much bigger portion upfront for establishing new accounts. The company was confident in its customer retention capabilities.
  • Account activation: sales reps are paid a one-time $350 bonus, plus a monthly residual of 30% of revenue.
  • Initial signing bonus: 40% of initial dollar amount collected plus 15-45% lifetime residuals. Note: Commission variables were based on specific services and clearly outlined in the sales agreement.
  • In addition to the company’s commission structure, one company offered a $3,500.00 bonus for “targeted logos” of healthcare facilities the company could utilize on their website.
  • Multiple companies offer choices: here’s one example – You have two options. $1000.00 base pay plus 15% residuals on all sales. Or 100% commission, with 50% commissions your first 90 days and 15% residuals. Note: We also have seen where the first 90 days is, replaced with a number relative to the number of sales. Example: 50% commission on your first 5 sales. Often, the first sale can be the most difficult. By the time the rep has 5 sales under their belt, the next become smoother/easier, and commission is reduced.
  • Bonuses added on top of the main commission structure for variables such as pre-paid one-year contracts, bonuses added for multi-year contracts.
  • Reviewing numerous sales agreements, it was noted there was a special bonus specific for a select module which was found in several different company’s sales agreements. The focus for this bonus was a select module was more valuable to the company over time. Whereas, another company paid a bonus for a module utilized because the longevity of the customer contract was enhanced by the usage of that module, reducing customer churn.

Below are samples for products where there are Quantity sales of lower cost per unit items such as Disposables, Pharmaceuticals, Nutraceuticals, Software – per-use, or others where individual smaller fees or costs are incurred:

Most pharma companies utilize a creative compensation plan and have done so historically. It is common to see a small base salary or stipend with a commission, based on territory results. Often, the commission entity will ultimately double the pharmaceutical rep’s base salary.

  • Pay per call or activity compensation. MedCepts partnered with a company developing a disruptive and innovative platform with compensation based on a single call, action, doctor’s signature, survey, or other special needs of the employer. MedCepts assisted with the development of the entire rep process and employer onboarding within the platform. The platform was primarily developed for highly regulated pharmaceutical companies while we eventually added capital equipment for a diversity of income opportunities. MedCepts took the lead in developing email and various marketing campaigns inviting pharma reps to explore the platform, resulting in over 1,200 pharma reps into the system in just a few months… and, at the same time, MedCepts invited and directly worked with vendors and employers with amazing creative compensation plans resulting in over 100,000 opportunities within the first 90 days, all offering some truly impressive creative compensation plans. The platform grew exponentially.


Diagnostics, Medical Devices, Capital Equipment

Commission percentages are all over the board in this area, from 2-3% to over 50%. The commission is often based on variables for the opportunity, such as product or sales challenges, ease of market penetration, profit margins, price.

  • Easy sales, high demand for your products or services, or high-priced capital equipment will often require less commission compensation.

Challenging, heavy competition, (low positioning in a competitors’ matrix – think: does your sales pitch focus on how your cost is higher compared to competitors but a better product), or is your product or service much needed and welcomed for quicker market penetration.

  • Reward with a commission based on the extra efforts the reps need to put forth to close the sale.

Telehealth & Remote Patient Monitoring quick clips of sales rep agreements specific to the compensation clause:






































***Note: “Base pay”, monthly allowance, stipend, draw, commission only, or any other payment structure can range across the board.  Companies should carefully evaluate their situation from the IRS standpoint to identify an employee versus an independent contractor. There are many situations where an “Employee” may become an independent contractor. Additionally, often an Independent may transition to an Employee status. Be sure to communicate closely with your own tax and legal advisors/consultants. MedCepts does not provide legal or tax consultative advice. Information provided is simply a resource for further discussion with your tax and legal advisors.

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