Sales Person on Commission... What Salary?
Discussion
Morning All and welcome to Monday, I hope you enjoy your stay...
Been thinking over the weekend that I need to expand and have a greater sales force, as at the moment the sales person is me and it's not my forte.
The trouble being, that like most small businesses, I haven't got a massive wad of cash to put towards wages which leads me down the route of commission based sales etc.
The question being, what would be considered as a 'fair' salary for someone on commission?
I'm thinking 20% commission per job, which is likely to be around £250 per sale. The opportunities for sales are definitely there - I would estimate 4-5 sales a month to begin with?
Cheers
Been thinking over the weekend that I need to expand and have a greater sales force, as at the moment the sales person is me and it's not my forte.
The trouble being, that like most small businesses, I haven't got a massive wad of cash to put towards wages which leads me down the route of commission based sales etc.
The question being, what would be considered as a 'fair' salary for someone on commission?
I'm thinking 20% commission per job, which is likely to be around £250 per sale. The opportunities for sales are definitely there - I would estimate 4-5 sales a month to begin with?
Cheers
Sorry the initial post is not meant to read as commission only, it is meant to read as what Salary to accompany a 20% Commission.
I offer production services so my profit margin is very good as my overheads are very low.
I'm hoping that with a decent commission available I would encourage people to work for a lower basic rate. Does that seem plausible?
I offer production services so my profit margin is very good as my overheads are very low.
I'm hoping that with a decent commission available I would encourage people to work for a lower basic rate. Does that seem plausible?
jonah35 said:
Sales is an area which pays well but non salesmen don't seem to agree.
Sales is tough, demanding and can wear you down. As you've seen its not your forte.
The potential to earn £15k is just too little, you could work in a chip shop and earn that!
There has to be meat on the bone, an incentive to get out there, work long hours and sell. Many salesman should be able to earn over £40k.
Which is why, as I clarified in an earlier post, I'm looking for what the basic salary should be to accompany the commission... Sales is tough, demanding and can wear you down. As you've seen its not your forte.
The potential to earn £15k is just too little, you could work in a chip shop and earn that!
There has to be meat on the bone, an incentive to get out there, work long hours and sell. Many salesman should be able to earn over £40k.
Perhaps I should be more specific with what the sales person may be selling.
I have 2 Holographic projection products.
Both rent out between £200 & £100 per day.
Average rental is 3 - 5 Days.
On top of the rental price is the video production cost - This can be anything be anything from £800 - £3,500.
These products are also available to purchase - at approximately £4,500. Clients also request bespoke variations of the products that can be upwards of £15,000.
In addition to this I also provide standalone video production services. In the past these have been between £500 and £45,000, with the average being about £7,000
I would be looking at the commission being based on profit, but as I own the majority of the kit and the video production is mainly done in house those figures are fairly similar.
The sales person would be required to have a knowledge of the market but more importantly would need to be an excellent 'people person' as I want to be able to grow relationships with clients rather than just make a quick sale.
Hope this helps.
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