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Sales Staff/Representative

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  • Sales Staff/Representative

    I know this may be a bit vague as it will depend on the geographical location, but, what is the average that a company will pay a sales representative? Or how are they normally paid; hourly, salary, commission, etc?

    I've got a nitch for gaining some contracts through my current business operations and people I personally know, but I'd like to expand our reach further and I know that I do not have the knowledge needed to obtain larger and more contracts.

    Send all complaints to my supervisors... 1-888-382-5633. Just ask for Stew Pedashol or Idat Gevasheet.


  • #2
    Obviously, the most logical arrangement for a small/new company is to pay on pure commission. However, this can be problematic in B2B sales that may involve potentially lengthy bidding processes, etc. You'd likely have to pay salary-plus-(incentives or commissions). If you make commissions renewable (in other words, when a client landed by the salesman renews their contract the following year, he gets an ongoing "residual"), you can get away with a lower salary because he has a chance to build up a very decent residual income (and incentive to work for high-quality repeat business).

    You don't need to know what salaries/commissions are being paid before you place an ad. Place the ad, with wording something like "compensation plan commensurate with experience" - and get the information from your applicants by simply asking them how they are being paid in their current sales position. After a number of such interviews, you should have an idea how compensation is done in your area. During the initial interviews, you would commit yourself to nothing, saying that details regarding compensation will be discussed with the final candidates for the position (in other words, after you've gathered this intelligence and created your own compensation plan).

    Incidentally, both interviewing, selecting, compensating and managing sales people (the whole process of creating the "sales position" and what its requirements/expectations/evaluation methods, etc. should be) is a very unique can of worms compared to other types of employees, especially if you've never done it before. I suggest you find some good literature on these topics, either at your library or on Amazon, etc. Sales is a funny game, and managing sales people is not unlike herding cats.
    Last edited by SecTrainer; 06-30-2011, 12:41 PM.
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    • #3
      The other problem in pure commission sales is that many people won't take you seriously. "Well, I want a paycheck." That's great, kid, and we'll get you one. But honestly, you aren't worth a paycheck to me yet, you haven't performed.

      We do a 25% commission / 8% residual for the first 90 days. Past 90 days, they get a paycheck and their commission drops to 10% / 4% residual on contracts. This is not for a security company.

      Where you are trying to hire, also, is important. If you're thinking about Craigslist, stop.
      Some Kind of Commando Leader

      "Every time I see another crazy Florida post, I'm glad I don't work there." ~ Minneapolis Security on Florida Security Law