I’m new to this and wasn’t sure how I should pay my salesman I have a friend who wants to do commercial sales but I’m not sure how to pay him? He wants to be invested in the business and possibly have this be his future career. He knows I don’t have Capitol to pay premium commission. So how should I pay him? And what percentage of a Rusidual worked for you guys? Thanks!
I worked as a storefront window cleaning sales representatives. Big company. Nation wide. Three months of what ever they were charged. Ten percent on residential and commercial work.
PS
On second thought I think it was only one month.
If a guy gets payed 10% on everything he sells he’s going to need about half a million dollars in sales every year, because a good salesman will expect to earn at least $50,000 a year. Can you handle that kind of growth? If he’s any good that’s what he’ll bring in. If you can’t keep up he will probably quit!
We are altering our commision structure quite a bit this year. In a dream world you could have 100% commsioned sales people with no problems. But in reality it simply doesn’t work long term, there needs to be some sort of base salary so they dont:
Quit on bad months
Under price accounts just to get a sale
I would always recommend a one month trial basis as well.
We have one FT storefront salesperson and we pay him $500 per week base and 100% commission on the first month’s revenue. 10% residential and 5% large commercial or new construction. Plus, if he picks up $1,000 in monthly commercial program work we pay him a bonus of 10% of one month’s revenue of all the active stores he picked up that are in the system with a $500 monthly cap (makes for a car payment or something).