Sales Commissions

azcontractor

I would like to some general ideas on sales persons compensation packages.

hatchet

It really depends on what the market will allow - this is for a commission package. Look at real estate which is typically around 7%. They found if they went more than that people were turned off and would go look elsewhere. Someday it might be up to 8 or even 10% - but only if the market will allow it.
Another way is to pay them hourly and spread their time over all the jobs your get for the year. This is not good for you because no matter if they get sales or not you are paying them.

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Rich
WIT Construction Co.
Superior MT Contractor

Grumpy

Like hatchet said depends on the market. I've found residential sales make 10% off the bottom line. At my job I make 25% of the profit per job. Commercial sales usually make a bit less commission.

Nathan

I hear 10% as a pretty standard number in the Painting world.

Grumpy: your 25% commission on profit... what does that usually work out to on the total job bid?

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Nathan

"He is no fool who gives what he cannot keep to gain that which he cannot lose." - Jim Elliot

Nathan

My wife's a Realtor and most commissions are 6%.
3% to the buying agent and 3% to the selling agent.

Out of that 3%... 45% goes to real estate company.

So, the agent typically gets about 1.65% of a real estate transaction.

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Nathan

"He is no fool who gives what he cannot keep to gain that which he cannot lose." - Jim Elliot

hatchet

Again it relates to what the market allows - that changes as to where in the country you are located. MT is a little higher due to the influx of Californians.. haha.. that's only a guess.

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Rich
WIT Construction Co.
Superior MT Contractor

Grumpy

Nathan in a perfect world it will be 15% of the bottom line. It's usually somewhere around there too, but theres been times where I paid for the job, and theres been times where I made 20% of the bottom line. It works both ways which is why I like it.

Hmmmm let's see 1.65% of a average home in my area, 300,000 = $4950... Not bad. How many sales does she average per month?

floorqueen

A place I was once emloyed at paid straight salary (like $12.00/hr) - Canadian. Then gave salesperson 1% bonus on sales (up to $100,000).

2% up to $200,000

etc....

Grumpy

That wouldn't promote me to sell very much if I knew I'd get paid anyways. Sure they would fire me for not selling. I'm sure if you could refrence commissioned sales people to salaried sales people you'd find commissioned sales people would be top earners.

But what do I know? I am a highly motivated person.

unshackled

I don't know the answer to that one, but here is one for you. I got a few flirts and e-mails from an azcontractor a long time ago. I don't have paid memberships so I didn't respond. Not being rude, just couldn't answer. I saw this while searching for something else. Is it You? I am debesays at ya hoo if it is you. If not, sorry I bothered you. Either way, Hello! :Thumbs: Debe