LumberJocks

Reply by DS

  • Advertise with us

Posted on Sales person

View DS's profile

DS

2132 posts in 1142 days


#1 posted 11-15-2012 09:17 PM

The only appropriate answer is; that depends.

You have to consider a couple of things.
1) The salesperson is going to want to earn a reasonable paycheck.
2) How much after sale involvement will this person have?
3) What is the overall sales volume of your company – current and projected.
4) The workload required for the person to handle the projected sales volume should be reasonable to a normal work week schedule.

If your sales volume is fairly low, you would want to pay a higher commision, but perhaps require more involvement in each project. I’ve seen some companies require sales and design as part of the package.
If your sales volume is fairly high, you might pay a lower commission, but the salesperson would pass the “after the signature” work (or some other portion of the work) off onto an inside sales staff.

I’ve seen anywhere from 4% to 8% commissions being paid.
A couple examples;
- A $2M/yr sales producer, would earn a nice income at 4%, but wouldn’t necessarily be able to handle after sales project tasks.
- A $500k producer would want to earn closer to 8%, which is a modest income, but you might require involvement in design and coordination of other aspects of the project, perhaps, all the way to closing the job.

All these things depend on your company’s needs at the current moment and for the projected future and should be settled upon as part of the job interview process.

-- "Hard work is not defined by the difficulty of the task as much as a person's desire to perform it.", DS251


DISCLAIMER: Any posts on LJ are posted by individuals acting in their own right and do not necessarily reflect the views of LJ. LJ will not be held liable for the actions of any user.

Latest Projects | Latest Blog Entries | Latest Forum Topics

HomeRefurbers.com

Latest Projects | Latest Blog Entries | Latest Forum Topics

GardenTenders.com :: gardening showcase