Compensation for outside Salesperson

What do you think is the best set up to compensate an outside sales person who is responsible mainly to set up new regular commercial accounts. I wonder what Fish does???

I’d start off with commision only at like 15% of cash in hand then if this person seems to fit adjust the scale accordingly. IE salary + commision.

But I’m no salesman:cool:

I believe that you will have to think this through and run several scenarios. You cant really pay a great hourly wage + commission. Slackers will get the best of you. Kinda like a waitress or a waiter. Pay them a base hourly scale with a % of sales (this would be a tip for the waiter/waitress) that are sign contracts that they land. This is kind of tough to do when you are talking storefront bidding. Not much of a % for a salesman if we are talking $10.00-$20.00-$30.00 accounts. Residential would be very rewarding for a salesperson though. Bigger money-Bigger % for them.
Just my .02. Excluding myself, I dont have a salesperson either.


I’m paid a salary + I receive commissions on any job/account that I sell. When I started in this position with Chris and All County, I was at a much lower base pay. However, through time I proved myself and took on some daily tasks that on occasion keep me from full time sales work and therefore was moved up to a higher salary. I think the best would be to start someone out at a low base pay + a commission and see how they work out. It worked in my case and I’m still here today.

Yeah, I would make it pure commission.

No sales, no pay. Big sales, big pay.

Gotta be big, brash, and tempting for a solid salesman

A lot dependes on the size of your company. If you are a Mom and Pop operation (like we are) it’s probably best to do the sales yourself. If you are an outfit the size of All County, you have to have a salesman to keep all of those employees busy.

I agree with the pure commission at first. Most non sales types will be scared away by then, its kind of a filter to only get a true salesperson. 15% is a good amount and if they turn out to be great you could either offer bonus for performance or change to salary + commission.

thanks Sean, So If you sign an account to contract … say a twice a month client is the commission paid just on the very 1st job or every time the work was done ?

The way the company I use to work for did it was like this. 15% Projected Annual Revenue. 7.5% after the first cleaning 3.75% each the next 2 cleanings. You dont really wanna pay someone full commission up front because if you have the luck I do you will get someone setup for biweekly/ monthly then after the first cleaning or 2 they will decide they either want to start calling you or just wave you off half the time.

Thks for your input Sean, to clarify is your commission paid on new accounts pad to you when obtained once and for all or is your percentage paid to you for as long as the company maintains the account? Example tom the sales guy signs up a storefront that is done monthly and the price is 100 per service if he’s paid 10% commision does he get 10.00 and thats it for the year or after 12 mths will he have accumalated 12 x 10.00 = 120.00 thx

what about straight commission until they reach a certain number, for example $50K in commercial acquisitions and then they receive a salary of 15% of those acquisitions PLUS still receiving commission on new accounts. Give them a goal, and once they reach that they now make residual income from the accounts they picked up and every account they pick up they get commission and a % residual of that.

Just an idea. I would love to hire a sales guy, but the best person who knows the “in’s and out’s” of my company is me for right now, so I’ll keep juggeling :smiley:

I’m paid once. I receive the full first months value. It keeps me moving to acquire more because I’m only seeing that one payment from each new account.

So Sean forgive me I am not real smart, if you sell a Chili’s restaraunt and it is 50 a week account or 2600 a year. You are paid what? I understand you only get paid once, its 10-15% of yearly amount or first month’s revenue?

First months revenue. If an account is to be done once a week and it is $50.00, I’d take $200.00.

As evidenced by your affinity for the Blackhawks. :smiley:

First thanks Sean for your response.

Larry some are champions and some aspire to be champions…I’ll tell you at the end of season which we are. :smiley:

The season’s not over yet?:stuck_out_tongue:

I know this thread is really old, but I have tried various salesman over the years and I am always looking to improve.

Sean, I understand that you receive the “first full months revenue”, but what if the job is a one time gig? Or what if the job is done quarterly or twice a year? How do you get paid then?

Thanks in advance!!

I would forecast a years revenue for the storefront, regardless of frequency, and simply divide by 12

That makes sense… Thanks blackrangie.

That ends up being a very small percentage of a job. For example, if a salesman gets a one-time job of $1000, then he only gets paid $83.33. That is less than 10%.

Seems kind of low, but works for me. :slight_smile:

I have typically paid salesman 15% of a job’s yearly revenue.