I just had to chime in here, as this is a topic I had looked for in the past quite a bit.
In years past I had a few plans set up:
$24k a year plus 5% commission
$16k a year plus 8% commission
$12k a year plus 10%
Straight 13% commission (with benefits)
Straight 15% commission (no benefits)
Another company I know pays $80k a year plus 3%, but the next year's base is 10% of total sales from previous year. Low guy is let go and replaced with a new person. (seems a little harsh, but it is a business!)
I'm in sales full time now, after 23 years as an owner. I'm on the 15% plan, provide most of my own designs, and I have a huge pipeline of business.
I think when you get a guy started, you have to make sure he can eat, and put gas in the car. I used to give my salespeople the opportunity to move up the commission ladder, but only after they did their time in the position they were at. ie: if they were on the 24/5 plan for 6 months and wanted to change, they had to put in another 6 months at that rate before they could move up. This kept them from sandbagging, and they would have to continue to earn at the lower rate until "we were even".
I hope that info helps! Wish I had found it 20 years ago. :)
Sales Commissions and Incentives
in General Message Board
Posted
I just had to chime in here, as this is a topic I had looked for in the past quite a bit.
In years past I had a few plans set up:
$24k a year plus 5% commission
$16k a year plus 8% commission
$12k a year plus 10%
Straight 13% commission (with benefits)
Straight 15% commission (no benefits)
Another company I know pays $80k a year plus 3%, but the next year's base is 10% of total sales from previous year. Low guy is let go and replaced with a new person. (seems a little harsh, but it is a business!)
I'm in sales full time now, after 23 years as an owner. I'm on the 15% plan, provide most of my own designs, and I have a huge pipeline of business.
I think when you get a guy started, you have to make sure he can eat, and put gas in the car. I used to give my salespeople the opportunity to move up the commission ladder, but only after they did their time in the position they were at. ie: if they were on the 24/5 plan for 6 months and wanted to change, they had to put in another 6 months at that rate before they could move up. This kept them from sandbagging, and they would have to continue to earn at the lower rate until "we were even".
I hope that info helps! Wish I had found it 20 years ago. :)
Vern Harris