I was recently thinking of hiring a salesman. I was wondering what would be a fair wage to pay them and percentage of profit they would receive for selling a job. Thank you!
I pay my guys a flat 10% commission on the contract total. Some companies pay off the profit margin but my estimator that I created hits my target so I’m able to make it easy like that.
A common practice is a 10/50/50 split. 10% of the top for office cost then split the commissions 50/50. We’re moving more towards W2 salary plus a modified bonus system. Every situation, company and market is unique so you need to develop a plan that is a good fit for your company. I would simply add that any Compensation plan for a Sales Rep should be heavy on incentive. Great Sales Rep don’t work for a straight salary.