Commision Only Sales

the_turd_man

Have any of you used salesmen to increase your coverage area using a commision only salary based on a percentage of either gross or net?

and how do you impliment it in a trade like septic systems, excavation or roofing?

I am toying with a idea which are bid off engineered plans with all my soils done already so I know what I need. including product and my pricepoints

I would have them make the initial contact and fax me the plans and I can have them a bid to present to client the same day. And let them close increasing my geographical coverage area widely

is this a good idea?????????????????????

Ed the Roofer

For me, I add 10 % to the entire base contract amount for my commission to be earned directly by the salesman or myself. Any additional change orders for additional work provides 10 % of the change order for either the salesman or the forman of the crew as compensation depending on who initiated and convinced the HO or the requirement and necessity of the upgrade.

If the process is handled between two parties to affect the change order, then it gets split proportionately. The payout on commission are based on % of payments made on the contract to date and are added on to the following weeks paycheck, either as a 1099 or as wages, depending on how the pay structure is set-up.

Ed

Grumpy

In my opinion any residential saleman should be paid commission only. Perhaps the same can be said for commercial salemen as well, but the markets are different.

I pay my salesmen a base of 11% plus bonuses for hitting monthly targets. Also I reimburse them up to $200 a month for gas and usage of their own vehicle.

I sell my jobs at the same price as I would ask my salemen to sell the jobs. Why not? At the same time I don't "Eat" their commissiona s part of my profit lost. ALL costs are passed along to the customer even commission.

I provide 99% of the leads to my salesmen by advertising. Sometimes they get referrals or operate within their circle of friends. I also do 99% of the new construction bids, since new construction is always tight, plus they don't want to be bothered with reading prints. That's fine with me, we do very little new work anyways.

the_turd_man

Its simmilar to what I had in mind. Do any of them do their own lead generating? contacting builders? or other methods? Or is it strictly off your advertisment venue? If you had salesmen do marketing to builders in another region how much would you adjust margins of profit? would it be residual or 1 time? And how would you have your salesman approach builders?