Sales Commissions question and help required.

[SalesUK18]

Hello all,

I was wondering if I might take a poll on the average percentage of GP that you are either being paid, or you pay your sales staff. Specifically in telecoms and IT. I am fighting fire with a very complex pay structure and arguments around acceptable percentages.

Interested to know your thoughts please.

 

[patientlady]

This surely depends on what margin percentage is available in your product and whether you offer a basic, commission only and so much more. I am not in IT or telecoms but have worked in different categories and commission levels have ranged between 6% and 60%. How long is a piece of string. In my experience achievable, simple and understandable structures work best.

 

[MBE2017]

Not sure of the current market rates, but I used to get 20% from my main companies as a salesperson, commission only. Nice, simple, and rewarding.

This was many years ago.

 

[lesliedocherty]

Fashion agents are commision only and the norm is 10%

 

[Mr D]

Got offered a job once that was commission only and had to turn it down.
Owner wanted to just pay 5% commission every year end. I wanted 40% commission and payment the month after order confirmation including for all multi year orders.

Don't think I've ever worked for 5% commission without a basic pay package too - which at the time was a quid above minimum wage and sat in a nice office.

 

[AttentionAgency]

This surely depends on what margin percentage is available in your product and whether you offer a basic, commission only and so much more. I am not in IT or telecoms but have worked in different categories and commission levels have ranged between 6% and 60%. How long is a piece of string. In my experience achievable, simple and understandable structures work best.

Having been in marketing and sales for many years, I agree with patientlady - there are so many factors to consider. A sales commission structure needs to have an achievable target and to this end the amount of sales support provided by the company is a critical factor.

For example.. does the sales person need to go generate his/her own leads from scratch? Or is there a pipeline of qualified inbound leads they can draw upon? If the former then more of your total sales budget ought to be directed to the sales agent.

 

[antropy]

Having been in marketing and sales for many years, I agree with patientlady - there are so many factors to consider. A sales commission structure needs to have an achievable target and to this end the amount of sales support provided by the company is a critical factor.

For example.. does the sales person need to go generate his/her own leads from scratch? Or is there a pipeline of qualified inbound leads they can draw upon? If the former then more of your total sales budget ought to be directed to the sales agent.

I agree every industry is different but to put it simply is your commission based on what the company profit is as a whole or what you personally make for the business? Alex