Exactly HOW much $$$ for a commission sales rep

by 26 comments
There's a lot of talk about sales reps here and how to get them, how to pay them etc etc.

I feel that there are a lot of unrealistic expectations about how much one needs to make per sale to be properly motivated to take on the full sales process from cold call to close.

For clarification I am talking about sales of web services...so SEO, web design, facebook fan pages, mobile sites whatever.

So I want to give the question to the forum...

How much actual commission, not percentages, how much actual cash per sale should someone be offered to properly motivated them to sell seo, web design etc in your opinion?

I'll hold my opinion for now.
#offline marketing #$$$ #commission #rep #sales
  • Profile picture of the author vndnbrgj
    That all depends on the person.
    Money isn't always the motivation... It is, but it isn't.

    Maybe they need to pay their rent.
    Maybe they need to get a new car.
    Maybe they .....

    Find out why they are looking to work with you.

    Then, worry about payment.
    For example.... I need to pay my mortgage.. $1,000
    Your tell them, "Great! I can help you with that. Just contact xxx prospects, and you will generate xx appointments. From those xx appts. you will close x deals."
    I will pay you xxx per deal closed, and take you to go pay your xxxxxx

    Hope that makes sense.
  • Profile picture of the author af7850
    Monte is exactly right. Think about the mindset of a great salesperson:

    ***

    I've made a life of working commissioned sales, and done so for one reason:

    I am very effective.

    I prefer performance-based pay because I know I can perform! I've grown quite comfortable giving up "wage security" in exchange for the opportunity to earn as much as a Harvard Law School graduate. I know by experience that this is what I'm worth, and anyone paying me can feel great about that because they're making a small fortune from my efforts.

    Moreover, my employer takes on virtually zero risk in hiring me, even though he doesn't have to babysit me, manage me or double check my work. Why? Because I'm always paid exactly what I'm worth, and if I'm not effective it costs him nothing.

    ***

    Now think about it, how would you properly entice this person to work for you? How would you virtually guarantee that he (or she) will stick around?

    Remember, you will always catch what you bait your hook for... so don't try to catch a shark with goldfish food.

    ***


    Posted from Warrior Forum Reader for Android
  • Profile picture of the author af7850
    Originally Posted by MaxwellB


    How much actual commission, not percentages, how much actual cash per sale should someone be offered to properly motivated them to sell seo, web design etc in your opinion?

    I'll hold my opinion for now.
    It depends on how easy the sale is and how quickly the sales cycle completes. These factors, in turn, are dictated in large part by you:

    Where is your company positioned in the marketplace? How strong is your brand? How high is the perceived value of your company's services (in relation to both your competition and your clients expected derived benefit)? How am I getting leads? How many leads how often? Are they hot, warm, cold or dead?

    I'd work for $1 per sale if I could close 1,000-1500 sales per day.

    Hope that this helps...


    Posted from Warrior Forum Reader for Android
  • Profile picture of the author shockwave
    I have to agree with everyone else. I think you will probably end up having to convince a sales person of this caliber why they should even consider working for you in the first place.

    A hardcore sales PRODUCER working on commission only knows EXACTLY what he/she is worth. This type of person is going to be the kind of person that says "What's in it for me?" - and it will certainly be all about the money.

    Then you have the next logical step in the salesperson's mind: "Why should I sell web-services, when I can go sell yachts, exotic pets, a timeshare in tahiti, enterprise software?" ...etc...etc. The payoff would be much bigger for those even if the volume was lower.

    There are a thousand different companies that would LOVE to have a proven PRODUCER working for free until a sale is made. Take a look on any job board, Craigslist, or your local newspaper sometime and see for yourself. You'll can easily pic these out because it's always the same story: "uncapped commissions", "unlimited earning potential".

    The real problem is that most "companies" that want a commission salesperson want to:

    a) Control the Salesperson as if they are an employee. Usually this is some sort of ridiculous micro-managment.

    b) Want to only give a commission that is chump-change for the amount of work done.

    c) all the above.

    I think the reality is that you would either have to basically do like a 75/25 split (and the salesperson makes the 75%) or price your offering so high (in order to make up for what you are paying in commissions) that it would price your whole service out of the market.

    ...just my $0.02
  • Profile picture of the author Michael Bucker
    I am usually not this forward about a subject and play nice. However in this one case let me be very clear. Companies pay me up to $3,000 to find them one sales person that will actually make them money. I have a recruiting and hiring service and it works my clients are very satisfied. I am a sales trainer and recruit and hire sales people as well.

    No offense to you MaxwellB and you may not have quite meant it when you said you will hold your "opinion". But my friend that is the problem with this subject as well as many others, they are not opinion based. A lot of subjects are this simply is not one.

    I have worked with literally thousands of sales people and the facts are clear. You get what you pay for. I can understand a person wanting to give an amount instead of a percentage especially if one sale is twice the profit and you still only have to pay the amount you paid on the sale that was half the profit.

    If that is your mindset or any other person’s mindset on here let me help you out now. That is lack thinking. The salesman worth their weight in gold will not work with that mindset.

    If you want someone that you can pay only a certain dollar amount and not have to go any higher regardless of amount made, you can do that and it will work, however you will be hiring order takers with a salesman costume on.

    My fellow warrior, change your mindset or be ok with mediocre results. If a mediocre result is all you want then you don’t need our advice there is always someone that will take a job for little pay. You can set whatever you think is fair.

    The sales person that can help a company grow properly is going to work off percentages. They know their value and potential and will not work otherwise.

    Midasman09 has a pretty close structure that most businesses pay good salespeople.

    Real sales people don’t have an opinion on what you should pay them; they know exactly what they will accept and will produce accordingly. Order takers will pay whatever you will give them and will under produce and be twice to work to maintain.
  • Profile picture of the author vndnbrgj
    As far as the people critiquing my post about rent money...

    When backed into a corner.. People do two things. Fight or Flight
    So, when they have no money, but have bills they have to pay....
    They will either end up homeless, or work their tail off to get the money.

    People will work harder when they have their backs against the wall. They will be motivated. They will get the job done. Period.

    Ask yourself, if you had to make $1,000 by tomorrow.. and I walked you through how to do it....Would you?
  • Profile picture of the author vndnbrgj
    My point was:
    To think outside the box...
    To find out why they are looking for a new position

    @Maxwell
    Look into the Local Pricing Professor
    What I can pay per sale and what you can pay per sale will be different.
    We each have different situations.

    You need to figure out your costs, and how much profit you would like to make.
    Anything over and above, can then go to the sales rep.
    Also, web design and seo should have different pricing.

    You can give 75% of the upfront SEO costs to the rep, because you will make your money on the monthly payments. Although, I would give the rep 25% of that as well.
    Now they are making immediate, and residual cash.
  • Profile picture of the author Eddie Spangler
    Do you just want people to spout off a number?
    You are giving a pissy attitude to people trying to give you real knowledge and insight.
    Who the heck knows what other people need to make .

    Just look at this forum for proof, you got guys here that are selling, making and supporting a website for just a few hundred bucks. Others will do it for just the hosting or the affiliate commission from the hosting or even worse some people are giving them away in hopes of future business!

    Dont you get it , there is no exact number. If you want a "real" number, put some test ads out and find out what they will take, although unless they have sold websites they have no idea really until after they do it and fiqure out if that number was reasonable or not.

    People dont think about how much they make per sale necessarily, they think about how much they can make overall in a week, in a month, etc.

    You ask me what is the min I need to sell a website and I say $500, only because I know about how long it will take. And thats based on a total job of up to about $1200. You want me to sell a $3k website and I need alot more.

    Then again if you had some killer leads with a killer program to a hot market then I might be willing to take a lot less. Get it?
  • Profile picture of the author af7850
    Happily forgotten.


    Posted from Warrior Forum Reader for Android
  • Profile picture of the author massiveray
    I had a sales guy who I pay on percentage, he gets 50% of a sale and for the first month he made 4 sales, now I stole him from a telecoms firm where he was pulling in a couple of grand a week.

    I asked him why he wasn't pulling the same in here and his response, I don't make enough per sale, my sites at the time were selling at £600 a pop, sp £300 wasn't enough of a motivation for him.

    So I said to him, okay sell the sites for however much you can get for them, dude started selling at £1000 plus for the exact same sites, the point is he wanted £500 a sale minimum. Since I allowed him to do this he started selling at a ridiculous rate, I actually had to bring in a few new designers to deal with his sales.

    So to get a good salesperson and keep them I would say £500 a sale is the bare minimum that it takes to motivate them.

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