greenprodrive

Hi there

(Work related .. sorry).

We run a software company , an dI'm about to take on a Sales Person , and have no idea of the usual rates for salary / commission.

It has been suggested :-
Salary £1500 per month
Commission , depending on sales

£0 -> 15,000 of sales per month - 10% (i.e. she gets £1500 commission if she pulls in £15000 for us (which immediately becomes £13,500 of course when her commission goes off)

£15-30000 - 15%

£30,000 PLUS - 20%

Please help - is this sensible ?

Thanks - Mark

GC8

10% of invoice value or 10% of margin? If its the former it sounds like rather a good craic to me.....


Simon

davegtt

we offer decent wages here and smaller commission. commission is only about 2% I think but then theyre on a basic of £35-50k.

IMO I think thats wrong, gives less motivation to the seller. Should be more like £20k basic and 10% commission.

Mark Miwurdz

Hi Mark

No such thing as typical I'm afraid.

Simon raises a good point, I think your person needs to be measured on gross margin as opposed to turnover. Compensation will be driven by 2 factors:

- what margin your products are services carry
- what target you would expect this person to achieve

Providing there's not a complex mix of product, I'd match their basic pound for pound up to the agreed target. so:

- £18k basic and £18K commission based on a target of x (setting x is your challenge). When they've done what they've signed up to, have a look at inducements to encourage higher performance; 2% increase on 0-25% over quota, 4% on 26-50% over quota and so on.

PM me if you want to chat further.

Cheers
Kav