Paying salesman salary plus commission

I have a guy that has been with me for 2 years now. He does mainly sales working on door to door and our call center. Next year he will mainly be on commercial sales and a little bit helping out with quality control and customer support. I want to pay him a salary +commission. Do any of you guys pay employees like this a salary + commission. If so can you let me know how much revenue they bring in and how much you pay them.

$32k per year + commission and 1-3% residual on accounts. We did residual because we can’t provide health benefits and it’s hard to get a sales person to come work for you without that. Commercial sales only. $4k per month quota with a goal of 20% of that quota being monthly recurring revenue (calculated based on all recurring schedules gained) so basically $9600 in new annual revenue gained per month.

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Thanks, that helps. About what percentage on commission? And what is an average of revenue that most guys can bring in for you?

I would do a tiered commission based on sale price. No discounts get a higher percentage. I think you should run the numbers based on your labor and determine what to pay. We get $3-4k per month. So our guys at quota. Did $6k in November.

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So let me make sure I understand. You pay them 32k a year + Comission+residuals. And most guys are bringing in around 3k-9k per month in revenue. I’ve ran the numbers and feel like 10%-20% Comission would work if I pay a 32k salary. Is that about what you pay in commission?

Yes

Perfect, thanks and do you have them do any thing else besides sales (e.g quality control, operations) or give other incentives for building sales teams, doing meetings, etc?

No. Only sales. Our office managers handle operations items

Thank you

Take this for what it’s worth, but I came across this gem a while back. This is what a random FISH franchisee pays out. I’m guessing they have a lot of turnover in the sales department.

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wow, that framework sounds like a mess, lol

Couple of other things I forgot. We pay for 3 sick days per year plus 40 hours a year of vacation. I also provide a vehicle for the sales person. I provide the vehicle because the mileage rate jumped to $.58 per mile and a sales person can easily do 50-60 miles per day depending on the territory. So it was just cheaper for me to provide a vehicle. Up to you if you want the liability of a sales person driving a vehicle but we already have techs driving trucks so all the same to me as far as I’m concerned.

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That fish guy is asking for a lawsuit if you ask me. $100 per week? You have to pay minimum wage at the least. Fish is so low rank it’s not even funny

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That makes since. Seems like you have a good set up for your sales reps. Thank you for your help! Are your sales reps working 40 hour weeks?

Yes, seems like very different way of doing it. Thanks

Yes. Full time only

At what point in your business did you hire a sales rep?

2nd year. Started out as part time inside sales only. Went to a full time outside sales model when we opened Vegas. Will be hiring another sales person to work our CA location this year. I’m trying to move to being mostly commercial and limiting the amount of new residential we take on. The idea being to have a consistent and more importantly predictable revenue stream every month.

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Thanks