how much should a sales rep make the company?

[Wheelhorse]

Hi all

What is the amount a sales rep should bring into the company.
For example if a rep is on £20 thousand what should he be realistically making for the company.

Thanks

 

[Ian J]

A lot depends on your margin as a rep that is selling a product with a 25% gross margin needs to sell twice what a rep selling a product with a 50% margin needs to sell just for parity

 

[ethical PR]

It also depends on what support you have in place in terms of understanding of your customer channels, sales database, training, marketing support, etc

 

[Paul_Rosser]

Really depends on the product, how long it takes to see a return (some deals can take 1-3 years) and what sector you are in.

We tend to work on 4 x salary, so for £20k we would expect to see a minimum of £80k in client revenue per year.

 

[roydmoorian]

We tend to work on 4 x salary, so for £20k we would expect to see a minimum of £80k in client revenue per year.

Do you mean "client revenue" or "client margin" ?

 

[Paul_Rosser]

Do you mean "client revenue" or "client margin" ?

Client revenue as being a service business our margins are high.

 

[directmarketingadvice]

It also depends on what support you have in place in terms of understanding of your customer channels, sales database, training, marketing support, etc

And, on top of that...

How strong/competitive is your offer? Is it some run-of-the-mill proposition you're expecting the sales person to overcome with the strength of his personality and his perseverance? Or is it superior to the competitors' offerings?

And how qualified are the leads you're giving him?

Steve

 

[telabadmanwot]

Some questions on here are quite silly.

Basically it depends on your margin.

Are you a business. Or a salesman looking for positive reinforcement for your performance?

 

[AlanGuidry]

A lot depends on your margin as a rep that is selling a product with a 25% gross margin needs to sell twice what a rep selling a product with a 50% margin needs to sell just for parity

Completely agree. Your market and product/service will often determine what multiple you use. A £20k sales salary should usually equate to minimum of 3x that in sale revenue. If it doesn't ..get rid of your 20k a year salesman!

 

[Wheelhorse]

Hi,
thanks for the comments. how margin is quite small at approx 10%.
Thanks

 

[Chris Ashdown]

Completely agree. Your market and product/service will often determine what multiple you use. A £20k sales salary should usually equate to minimum of 3x that in sale revenue. If it doesn't ..get rid of your 20k a year salesman!

Sorry but should be a multiple of profit on the total orders he brings in, so that its the profit on the jobs that pays his wage, revenue (turnover) i