What is a customary percentageto pay a commission-only salesman? Thanks
Posted by Sheila Ferrell (Member # 3741) on :
I think it depends on the dollar amount of the job . . .certainly you would'nt even need to chunk anyone a $20 for gettin' you a standard truck job that was probably comin' your way anyway . . . .
I've only done this a coupl'a times Wayne...and it just did'nt pan out to big enough jobs for me to 'cut someone else' in...
Once a guy went and bragged about me a whole bunch to a customer who asked him about my work, then the guy came by with hand out and assumed I would give him like 20% of the job, even tho' we had never even discussed any kind of deal and I barely knew him...just because he answered a question exhuberantly...
...also got took in by a guy who 'went through me first' then added an outrageous amount to the price (I found out later) tryin' to get even more money for himself and losing the job for both of us. . .
Unless you are dealing with a trustworthy person who is bringing you an enormous amount of work . . .
Are you hiring them for your shop as an employee...will they have other job responsibilities besides feilding jobs??????
Careful that they don't get your price and then price-hop to other shops for a bigger cut . . .
I know I'm just rambling on...but I get people asking me about this all the time... "Hey if I send you some work will ya cut me in-blah-blah-blah..."
Almost every single person who wants me to do this is lazy-by-trade. The only thing they are really skilled at is spottin' a person they think they can take advantage of. . .not to mention some arrogant customers who give you a referal. and when you get the job, expect their 'cut'...
You do not wanna be around when I have to reply to these jerks . . .
I'm fairly rude to such people . . .
[ April 12, 2005, 02:52 PM: Message edited by: Sheila Ferrell ]
Posted by Wayne Webb (Member # 1124) on :
This guy doesn't seem to be that way Sheila. This is a guy who wants to work with me....he can PAINT signs and he has the gift of gab...which, from meeting me, you probably noticed that I do not.
Anyway, he stops by the shop every now and then (like today), is very knowledgeable about the sign trade and seems to know alot about selling. But, even though I'm staying busy enough for myself, I don't have enough work right now to employ him or anyone for that matter. He hasn't asked me for any cut or anything. My son and I were installing a sign way up on the side of a building last Friday and he stopped by to see if we needed any help. We didn't as there were only two ladders and my Wife was handing us tools etc. But the guy wants to work and I asked him if he would be interested in selling for me to which he said yes. We haven't discussed a dollar amount yet so that's why I asked.
I know the kind you're talking about though.
Posted by Sheila Ferrell (Member # 3741) on :
Wayne, sorry...I do realize how cynical and distrustful of people I sound and actually am sometimes... but DRATS... these people just won't let me be any other way...LOL...
Good luck however y'all work it out . . . Posted by Wayne Webb (Member # 1124) on :
Believe me...I totally understand. Going through my own little battle right now because of someone I thought I could trust. I guess you just can't be too careful.
Posted by John Arnott (Member # 215) on :
20 percent is not outragous. If he can sell it, you should be able to make money too. I've done it for a very short time. The problem got to be too much educating the salesman, not enough sales.
Posted by Erik Gastelum (Member # 5341) on :
I've done anywhere from 15-20% Non Illuminated Signs & 10-15% Illuiminated Signs
Posted by Brian Stoddard (Member # 39) on :
10 to 15 would be about right, but I dont think the straight commision is the way to go unless you get the right person. Its takes some time to build up business and you dont want to train someone and then have them give up too early. I have tried several different routes including a base plus 5%. I am starting a very exp. salesperson on Monday that I have high hopes for. What I need is for her to sell the kind of work I want and is profitable, to take on all the interaction with the client and follow up - thats worth the money. We are selling higher end jobs and complete I.D. packages so it does not take too many sales to make it work.
Another thought is to offer every solicitor / friend / niegbor that comes in your door a small commision for worthy leads and give them a stack of cards and a 10 minute rundown on what you are looking for - it works.
Posted by Jon Aston (Member # 1725) on :
For your sake, his sake - and for the sake of your customers - be clear about what you are planning to accomplish before you hire...and before you finalize any compensation package.
Think "sliding scale", based on meeting realistic monthly, quarterly and annual performance objectives that support your overall business objectives.
Maintain control of pricing yourself, or pay commission on percentage of gross profit (not gross sales).
Have a written job description and a contract.
If you think you might want to give him a "draw" against future commissions, get him to sign a credit appication and run a full credit check. Don't do it unless his credit is spotless, or damn close.
Good luck!
[ April 13, 2005, 07:33 AM: Message edited by: Jon Aston ]
Posted by Rick Beisiegel (Member # 3723) on :
GREETINGS FROM SUNNY MICHIGAN!!
Along with what Jon said, make sure you establish a formula for him if he sells something you were already selling, or for long established clients who don't even shop you. The reason they trust you was long established before you brought him on board. Just my .02
Personally I think the credit check is overkill, but Maybe I am too naieve?
Posted by Ron Carper (Member # 999) on :
I hired my first employee about 1 1/2 yrs ago. He is 20hrs. week production and the rest commission at 10%. Since his background is logo design and he worked in the printing industry, he is getting work that I would not normally go after. On that stuff we split the profit 50/50. You have to find the right person (I knew him for 20 yrs. and worked together on many jobs.) I would be real careful of hiring someone off the street, they can give you a bad rep. real fast.
Posted by Todd Gill (Member # 2569) on :
Money? Shucks, a twelve pak usually does the trick.
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