How Much Would You Charge In Commission

[CSS - Employee Surveys]

Hi

I run a business management consultancy and I am looking for a commission based sales person to locate, contact and sell our service to SME's in the UK.

Our product ranges from £400 to £600.

How much should I pay in wa of commission, I was thinking £100 for each sale with a minimum target of 3-5 sales per week.

Do you think this is reasonable and do you know anyone who would like to take a position with us?

Any help would be great

Thanks

Rob

 

[liams7]

I think it depends on how much can be sold and profit margins.

 

[telemax]

In my experience ( I used to work as a commision only saleperson) your commisions are way too low to make it worthwhile for anybody to work for your company. If your product was worth £5k and you were offering a £2.5k commision then it would be different.

Sounds like you need to either raise your prices or get out there selling yourself,

I hope this helps

Jonathan

 

[elite123]

Hi,

Im sure we can assist you. Can you tell me exactly what you need to sell and what success you have so far ? ie calls/leads. For each 100 calls how many leads ?

 

[povey_sindall]

I obviously don't want you to disclose profit margins etc. However my sales team work on a 'Percentage of the profit' commission structure. Ive found this is a very good way to keep a sales team motivated. The last thing you need in any business is a good salesperson thinking "These lot are making so much money off of me, I could go do this myself".

The only thing you need to watch out for however is members of the team over-selling your product/service. As a price lead company providing a service this is something we do not tolerate however if it is a physical product/good you are selling it could even be beneficial.

Hope this helps

 

[liams7]

Thats a fair comment about profit margins.

I would say that £100 was a good amount if there is a good chance they can sell between 15 - 25 a month.

I know of people who give £5 commision as its easy to sell 3000 so i think its up to you to judge how easy it is to sell.

I would say anything up to 50% is fine as long as you are still making around 25%+ profit.

But this is just my opinion.