Commission Sales Rep

[blingbling4r]

I was offered a commissioned sales position with no salary. It is outside sales, where I have to go find the customers, make the sale and possibly project manage. This company has done $2M 3 years ago, $4M 2 years ago and $2M this past year.

What would be a fair % for this type of position? Lets assume that the gross profit margin is 35-50%.

How much more should I ask for if I also do the companies marketing, find new product segments, estimating, PR and seminars?


I've been told rule of thumb is in construction sales you got to bring in 5 times your wages to pay for yourself. This would equate to 20% commission. Going to Salary.com or PayScale.com they don't have information on commission only outside sales. Any insight you guys have would be great. Thanks!

 

[chris kennedy]

The only real question here is will this new position keep you surrounded by the bling bling your accustom to.

 

[hardworkingstiff]

Any insight you guys have would be great. Thanks!

If it was me I'd go for an small gross % of the job plus a much larger % of the gross profit, which should be defined, and I'd suggest something like selling number less direct job cost (don't let them add overhead to the job costing, plus you need to address what is considered job labor and will there be a labor burden put on the costing).

Don't forget to get an allowance for mileage (gas and wear and tear on your vehicle if you are providing transportation).

If you wind up having to pick up your tools to keep/get a job on schedule, make sure you have payment for that time worked out.

If you are the PM on the job, how are to be paid, with a higher commission or with a lower wage?

The less the business has to committ to you as salary, the more you should be paid on commission.

Don't assume there is an understanding on anything. Everything should be written down and agreed to by both parties.

Good luck