sales reps

B

bears

New member
what are you guys with sales reps paying? And what is the breakdown? Base, percentage. I seem to have a problem closing lately. I am thinking it's time for a sales rep. I have a person in mind that might be perfect. Just want to be fair and make it "work" for bolthe of us.
 
No time for sales I have been kicking this around for awhile now. don't know what is best a % of the job or a set rate per job and then monthly maintenance jobs a % i guess
 
If I remember correctly (It's been almost 2 yrs since we had outside sales people) In the past I've offered two choices:

15% of 1st year gross

or

10% 1st yr
5% 2nd yr
2% 3-10 yr


The reason for the second option was to make the salesperson have a vested interest in keeping the account open for at least 10 yrs.

Most always the 15% option was taken. I don't like that option. It promotes hit and run selling.
 
It was just a suggestion bear, no disrespect intended. I just recalled this issue being discussed several times since I've been on this board.

I am my salesperson, but one of these days when I expend I will have at least one salesperson.

Thanks for the info Tony. Did you pay a base salary or just estimate the draw ?

bears said:
did a search. All old posts. Not that much feeback other than Ron.
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Jim Cooney said:
It was just a suggestion bear, no disrespect intended. I just recalled this issue being discussed several times since I've been on this board.

I am my salesperson, but one of these days when I expend I will have at least one salesperson.

Thanks for the info Tony. Did you pay a base salary or just estimate the draw ?
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Draw only. Reps set their own hours, use their own vehicles, pay their own expenses.

I've gone the route DJ went. Company car, all expenses paid and salary. It hasn't worked out well in ANY of the businesses we owned. We always ended up getting the short end of the stick. Even car dealerships don't give out demos and gas cards anymore.

DJ, how long do you give the 7.5%? Is that 7.5% of the first service? the first year? the duration of the account (multiyear?)

If it's only one year a guy with two kids has to sell $300,000 in new accounts each year to make more than 2010 poverty level. If he sells $200,000 he makes minimum wage for the year. (Kentucky minimum wage).

I just made a sale for a filter company. This will be ongoing sales in the hundreds of thousands each year for many years. Previously the owner had told me 10% of gross sales was the normal commission and indicated that it would keep going as long as the account remained open. Once the sale was complete he told me I'd get 5% for the first order only and he didn't know where I had heard that 10% before and denied saying it. This company does 4 million per year in sales. If the 5% were true a salesman would have to do 4 million in new sales each year just to make $200k! I told him to keep his 5%. He obviously needs it worse than I do.

Do you guys think I will EVER make a sale for these guys again? What's going to happen when a better filter alternative comes along? Do you think for one second I will have any loyalty to a company like that?

Consider this simplified scenario:

Salesman sells $100k working part time and chooses scenario B taking commission of $10k the first year.
Company is at $100k gross

Next year salesman sells $100k new.
Commission is $10k + $5k from last year. $15k part time
Company is at $200k (salesman babysits customers to keep their accounts)
Fifth year salesman sells $100k new
Commission is $10k + 5k + $2k +2k +2k = $21k
Company is at $500k

Salesman is loyal because more than 1/2 of his yearly salary is carryover.

Salesman has incentive to keep the customers.

$21k is around 4% of gross.
_______

Consider the alternative scenario:

First year sales $100k
Salesman makes $7500.
Company makes $100k

Fifth year sales $100k
Salesman makes $7500
Company makes $500k
On company car #2 because first one was wrecked
Insurance through the roof
Cell phone has been confiscated for inflated bills over and over again
Salesman despises the company because he's the one who built it to $500k and only made $7500 this year AGAIN
Salesman goes to another company and takes all your customers with him.

I'm just saying. These are things to consider. Some of them have happened to me before (not all of them).
 
I am a "professional salesperson". All I do is sale for the company.
I am on a salary plus commission. I get 7% of everything I sell weekly. I also get a car allowance and gas.
It was tough for the company the first year(break even). But this we are seeing very big gains in the business.
We also have 2 full time sales people along with an operations manager that sells also.
 
Goldstone Exterior said:
I am a "professional salesperson". All I do is sale for the company.
I am on a salary plus commission. I get 7% of everything I sell weekly. I also get a car allowance and gas.
It was tough for the company the first year(break even). But this we are seeing very big gains in the business.
We also have 2 full time sales people along with an operations manager that sells also.
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Hey Doug! Will we be seeing you in Florida in July? We enjoyed the time with you in Dallas.

Do you get any residual?
 
Tony,

We have been really really busy so far this year. I haven't even had much time to look at PWI :-( So I really don't know anything about Florida.

I get paid on every deal that goes through each week. If I sign a monthly contract I get my percentage each time we bill the customer. One this I forgot to mention is that I get half when the job starts and the other half when our company is paid.
 
Goldstone Exterior said:
Tony,

We have been really really busy so far this year. I haven't even had much time to look at PWI :-( So I really don't know anything about Florida.

I get paid on every deal that goes through each week. If I sign a monthly contract I get my percentage each time we bill the customer. One this I forgot to mention is that I get half when the job starts and the other half when our company is paid.
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Doug did you guys Copy me? LOL
 
Goldstone Exterior said:
Tony,

We have been really really busy so far this year. I haven't even had much time to look at PWI :-( So I really don't know anything about Florida.

I get paid on every deal that goes through each week. If I sign a monthly contract I get my percentage each time we bill the customer. One this I forgot to mention is that I get half when the job starts and the other half when our company is paid.
Click to expand...


That sounds like a good deal. That's even more residual than I was paying. I think it's worth it. It makes you have a vested interest in keeping the customer.

Glad to hear you guys are busy!
 
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