1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

how much do you pay a sales manager / sales representative?

Discussion in 'Making Money' started by "Don Vito" Genovese, Nov 4, 2013.

  1. "Don Vito" Genovese

    "Don Vito" Genovese Junior Member

    Joined:
    May 15, 2013
    Messages:
    119
    Likes Received:
    24
    Location:
    France
    I want to know how much do you, on average, pay the person that goes out there and finds you clients?

    to give you a clear example, here's what I'm currently thinking about doing: I get a list of companies that work in my geographical area, and I want to give it to a person that has more than 10 years of experience in sales, cold calling and such; I have a team that works for me, having a lot of different web services at my disposal, from making websites, to SEO, local SEO, e-reputation management, social activity management and such. Basically I want to offer web services to companies that need them.

    My question is, how much, expressed in percentage of the sales it generates, do you pay the sales guy? then same question, just what if the person searches the market and finds the clients themselves?
    (please mention if the percentage you express is part of the income, or net profit?)

    thanks, guys!
     
  2. TheMoolaMan

    TheMoolaMan Registered Member

    Joined:
    Oct 10, 2013
    Messages:
    62
    Likes Received:
    5
    Occupation:
    Affiliate Manager At Society Invite
    Location:
    USA
    A commission basis is solid. It limits your risk and provides incentive to your representative.
     
  3. Stone Arche

    Stone Arche BANNED BANNED

    Joined:
    Oct 22, 2013
    Messages:
    210
    Likes Received:
    29
    I Think you Fixed Commission of Sales Person about approx 10 to 15% on his total sales.
     
  4. "Don Vito" Genovese

    "Don Vito" Genovese Junior Member

    Joined:
    May 15, 2013
    Messages:
    119
    Likes Received:
    24
    Location:
    France
    That's why I am thinking about doing exactly that; however, my question was how much is the commission supposed to be?

    Ok, that sounds about right; when you say "on his total sales", is that the value of the sales, before or after applying taxes and expenses?
    for example, on a 100€ per month contract, including taxes (meaning the client really pays 100€, but with the tax called (in France) TVA, I only get around 80€, from which I will then take out expenses, like hosting, management (paying a person to take care of the site for that month), and then get a bit more than 50€ as net profit), should the seller get 10-15€ (% from 100), or should he get 5-7€ (10-15% from ~50€ which is the net profit) ?
    thanks
     
  5. WinBoot

    WinBoot Registered Member

    Joined:
    Aug 25, 2010
    Messages:
    61
    Likes Received:
    14
    [QUOTE="Don Vito" Genovese;6231180]That's why I am thinking about doing exactly that; however, my question was how much is the commission supposed to be?


    Ok, that sounds about right; when you say "on his total sales", is that the value of the sales, before or after applying taxes and expenses?
    for example, on a 100? per month contract, including taxes (meaning the client really pays 100?, but with the tax called (in France) TVA, I only get around 80?, from which I will then take out expenses, like hosting, management (paying a person to take care of the site for that month), and then get a bit more than 50? as net profit), should the seller get 10-15? (% from 100), or should he get 5-7? (10-15% from ~50? which is the net profit) ?
    thanks[/QUOTE]
    Paying them from the net profit is next to impossible unless you create a company just for the purpose of paying someone. There are to many variables in the costs to use it on a commission base.

    You should write down a business plan first. You should figure out what you want to reach (ex. how many $$$$/month), look what's reasonable in a certain time period for your sales representative to come by.

    Since you are thinking about paying him only in commissions, you can pay him lower then the normal fee. Because his expenses will be seperated between different jobs he does and not his 100% of energy will go to your company.

    Also know that if you take this person on as an employee, and only paying him by commission, it is illegal in some countries. There are minimum fees which people should make depending on their job description.

    I will give you a short example.

    Let's say you'd like to have $10.000,00 in sales each month. So before you're expenses, etc. If your representative will be selling contracts of $100.00/month, then it will take him 100 contracts. Try considdering how much time this will take him.

    You should pay enough to get him motivated and not to much just to make sure he doesn't start up his own company because he thinks he earns you to much money. If $10000.00 monthly is your goal i'd give him 10% of your sales which results in $10.0

    This way if you reach your goal he will have a steady income of $1000.0
     
  6. "Don Vito" Genovese

    "Don Vito" Genovese Junior Member

    Joined:
    May 15, 2013
    Messages:
    119
    Likes Received:
    24
    Location:
    France
    That's exactly what I've been thinking about doing.
    I appreciate your help, man!

    Thanks - "Vito"
     
  7. Rafempz

    Rafempz Newbie

    Joined:
    Oct 11, 2013
    Messages:
    15
    Likes Received:
    2
    According to GlassDOor, these are their salaries on a US national basis:

    Sales Manager median $60,000

    Sales Representative median $48,000
     
  8. sags22

    sags22 Junior Member

    Joined:
    Feb 14, 2013
    Messages:
    112
    Likes Received:
    4
    First determine the value of the client he got for you. Then determine the mode or the service for which you want to pay him. I would suggest you to pay him regularly on a commission basis as it would give your sales person good incentive to work.
     
  9. JMesrn

    JMesrn BANNED BANNED

    Joined:
    Oct 28, 2013
    Messages:
    22
    Likes Received:
    0
    I pay them based on their sales
     
  10. Angel A

    Angel A Junior Member Premium Member

    Joined:
    May 15, 2013
    Messages:
    116
    Likes Received:
    15
    Occupation:
    SEO / SMM /SMO /Marketing
    Location:
    Europe