A Question About Sales Commission

Jhammer

What is a reasonable percentage of sales commission for me to expect if I am selling residential remodeling in Nassau County on Long Island? Are there accepted formulas for calculating commissions or is it usually just a percent of the total job?

I've taken a job with a local company and the owner has a formula for calculating commission that is unfamiliar to me. I'm wondering if anyone has seen it before. Salesmen receive 3% upon the signing of a contract. Then, when the job is completed, the total client cost is divided by the total expenses. Then, depending on what that number is, the salesman makes as little as no additional commission or as much as 6% additional commission. Has anyone ever seen this before? Does this seem reasonable?

Aiken Colon

been in sales my whole life for the most part, and I have never seen one that isn't flat rate percentage of the sale or flat rate percentage of the profit. Then monthly incentives for hitting goals or what not.

Flat rate of sale is always the most clear cut as far as honesty goes. Flat rate of profit can be manipulated.

Sales is a huge demand industry, if you don't feel like your being treated fairly then move on. Construction sales in particular is even more in demand. Most of the guys doing the work, work insane hours and just don't have time to sell on top of it. Their time is more valuable in the field.

Good Luck

JJ

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Knipex
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MGSProperties

10% is decent for no salary salesman

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Kenny K

never heard of this. sliding scale as a percent of sale is most equitable plan. prices are set. more money you get for product, the comission increases. also motivating

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Replacement Windows and Vinyl Siding by Illinois Remodeling Company