Know-How Exchange : Other

Personally, I prefer the old MBO approach ... Management By Objectives. The marketing manager and his/her supervisor agree in advance on measurable objectives and timetable for accomplishing those objectives; and the appropriate reward, or "bonus" for accomplishing those objectives.

Are you the marketing manager, or are you hiring a marketing manager? I am not sure if you are proposing it for yourself or for an employee. Regardless, here are my thoughts being one myself:

I work for a "small" privately-owned business. We run very lean. I was presented with several options when I started, but chose to break my salary up with the following:
1) base salary
2) Company growth bonus: for every $XXX,XXX.00 we go over our annual forecast, I get $XXX.00. This obviously is based on your company revenue, projections, etc etc... Try not to make it impossible, but not over compensating too.
3) Bonuses for success of marketing plans he/she presents/develops. Give the marketing manager an incentive to present ideas to grow the business. Outline goals to measure success. If the goals are hit, then he/she gets rewarded as promised.

FYI - option 3 is a little more work depending on your business structure. But you cannot lose with these three options or any combination of them, because if he/she is working harder to drive sales and consequently, grows the business and revenue, then it's a win-win for the business and marketing manager. Just need the right balance.

Maybe present all three options. If he/she chooses all three, then the base salary is less than if he/she chooses only to get compensated on base salary. But if he/she chooses only base salary - I'd be slightly cautious because any ambitious worker with true marketing blood thrives on achievement and success of driving sales, strengthening relationships with customers, and growing business - essentially - doing their job.

Hopefully this helps!