There are different ways you can structure a salesman’s commission: as a percentage of the business they’ve brought in, per hour, per closed deal, and so on. Learn what I recommend for your salesman’s commission.
Hey, so Bill asked, what is a good sales commission for an actual sales rep?
If you have a sales rep that’s going out and actually selling services for you and you’re going to do maybe the backend work or you’re going to be working with dash fix to do the fulfillment and the project management. What I would recommend doing is there’s multiple different plays that you can have here. You can do definitely or percentage based a system where you pay x percentage for every sale that they make. That’s usually what I like to do and what we’ve been doing for the past couple of years. You know, you can pay 25% of the first month’s sales. So if you’re closing a deal for $1,000, that person would get $250 for that sale as an example. And then you would reap the awards moving forward of actually servicing that client because that’s where your job comes in, right?
The sale has already been done after that. Or what you can do is you can do an hourly rate where that person just works on hourly or you put them on salary or something like that. So there’s multiple different plays that you can do. You can do hourly or you can do salary plus spiffs and plus commission where you can do maybe like x amount per week plus x amount percentage of all of your sales. So that way levels it out. So there’s multiple ways that you can structure it. And if you’re trying to get past the hole, I don’t want to pay somebody on salary, I don’t want to pay somebody an hourly rate, I want to pay them like performance space, then I would recommend doing a higher commission rate. So maybe doing like a 25 or 30% commission for that sale, since they’re not getting paid hourly and they’re doing, you know, maybe multiple conversations, a multiple consultations, right. And not getting paid for it. Maybe, you know, not every consultation with clothes. Right. So that’s definitely what I would recommend doing. Just a higher percentage.