7 replies to this topic

[KathyC]

We want to hire an outside sales rep to do some business development. I'd like some feedback on how others in the industry pay their reps. Salary/commission, any advice would be appreciated.

[djoctagone]

There's a tag for that.

[AdmanGR]

Here's the feedback on how we do it:

The distributorship that we represent uses independent contractors ( 1099 ) exclusivley and pays a sliding scale straight commission based on annual sales volume - we have about 3,000 individuals selling under this plan:

less than 50K in sales = 50 / 50 split of gross profit
50-99K in sales = 55 / 45 split "
100-149K in sales = 60 / 40 split "
over 150K in sales = 65 / 35 split "

Commissions are paid at the time the order is booked verses the traditional industry norm of paid on paid. Year-end bonus on earnings is also part of the equation. Our reps are paid from true supplier nets ( 200+ suppliers at EQP or better).

Reps, like myself, that choose to recruit and mentor are also paid monthly "overrides" on recruits' earnings that range from 15-20% of the recruit's earnings.

Reps are responsible for all of their business expenses. We co-op marketing materials ie print and digital proprietary catalogs, sales flyers, self-promos, ESP, and samples for those that sell at least 50K annual.

[djoctagone]

And this is how we do it . . .

W-2 employee status with eligibility for health, dental and 401(k)

60% commission on gross profits

60% share on supplier rebates

$250 annual marketing allowance to use for samples, industry events, etc.

Free e-commerce platforms with organic search engine optimization for niche marketing (can also be used for company stores)--with no reduction to the 60% commission rate

ESP Online and ACE [All Catalogs Electronically] (soon to be ESP Web) provided for free

Validated preferred pricing (outlined on ESP Online) with commissions paid from true supplier nets from at least 150 suppliers

Commissions earned on deposits of 25% or greater are never reversed if customer fails to pay for balance of order

Commissions paid the month after the order ships and bills or deposit is invoiced (we get really, really, really big paychecks 12 times a year and learn to budget)

Up to $5000 paid for each referral you provide that we hire

Online order management system that allows you to enter, submit and edit orders on your own with no reduction to the 60% commission rate

[ciapromo]

AdmanGR said:

less than 50K in sales = 50 / 50 split of gross profit
50-99K in sales = 55 / 45 split "
100-149K in sales = 60 / 40 split "
over 150K in sales = 65 / 35 split "

Please clarify splits:

House / Rep ?

or

Rep / House ?

Thanx ... John G.

[AdmanGR]

ciapromo said:

Please clarify splits:

House / Rep ?

or

Rep / House ?

Thanx ... John G.

Rep / House

[royster13]

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[Scooteristi]

royster13 said:

There is a good article in this months Advantages Magazine.......There is a link to it on this page...http://www.asicentra...ages/index.aspx

Shhhhh…that sounds like you're saying something nice about ASI. :eek: