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Commission Structure

 
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Old 02-18-2013, 08:29 PM   #1
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Commission Structure


Hello, and I'm new here, I am inquiring of the commission rate for a sales representative who has brought the business to the builder (GC) for a remodel.What would be an accceptable commission for the lead generator? It is a contracted non-salaried commission only employee representative who directed and implemented the sale of a project.Is a % of the total bid,or a % of the profit normal practice?Thnks in advance.Just looking for a guideline.
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Old 04-23-2013, 01:58 AM   #2
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Re: Commission Structure


Here's what we used to do. In our structure, we paid 10% commission to sales reps when we supplied the marketing/appt (which was most typical).

However, if the sales rep brought the marketing in and sold the job, we paid them an extra 5% commission.

Our business model allocated 10% of our revenue to marketing. So, 5% paid to the sales rep was great for us, and gave the sales rep reason to work referrals, etc.

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Old 04-23-2013, 10:36 AM   #3
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Re: Commission Structure


Quote:
Originally Posted by homepro1 View Post
It is a contracted non-salaried commission only employee representative
Wow, employee or contractor? Chose one only
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Old 04-23-2013, 10:46 AM   #4
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Re: Commission Structure


Let me clarify, this thread went sideways,not sure if admin erased it or it was in a different section, but I represent my own property mngmnt company,and run across situations where one might want to do a remodel,build,etc.I am referring the work to a friend,colleaugue and builder and walking said potential client through the process.my inquiry was as to what would be a reasonable expectation for a commission on say a project that was oh say 500K.A percentage of the total job? Or a % of the profit margin?
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Old 04-23-2013, 11:20 AM   #5
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Re: Commission Structure


Oh, so asking what you shod get for referring the job?


Typically its either a finders fee for the lead ($***) - or a percentage of the gross sale.

Again, in most cases id gladly pay a 5% commission for the business. There are, however, certain industries where large sales do not net the same type of profit margins, and this would not work.
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