how much to pay salesman?

[DBL]

early this year we had a salesman contact us about a job. he was weird but was willing to work for free for a week or so to show us what he could do. let me say again he was weird but he went to ten houses in one day... got 4 lawn accounts... and thousand dollar tree job... and i think 3 or 4 we got mulching jobs. then we liked him so we had to discuss a contract. he got us to give him 25% on jobs he got us. he does all the work on these jobs even if theyre referals from jobs he sells and closes the jobs. thats the major part of his salary..he only gets a few bucks on the lawn accounts. my question is is the 25% on the PROFIT MARGIN too much to be paying this guy. he has been pretty steady but then he broke his leg and has been out for a while.

[Brendan Smith]

to me it sounds high. a more realistic figure would be 10% of NET instead of 25% of the entire amount.

[harryhomeowner]

25% of something is better than 100% of nothing. How much time can you dedicate to getting new business?

[rodfather]

if you come across a dog that can talk, you don't correct his grammar...hire that guy and let him make ya some $$$

[rodfather]

early this year we had a salesman contact us about a job. he was weird but was willing to work for free for a week or so to show us what he could do. let me say again he was weird

What do ya mean by weird...hell, everyone I just about know is weird in "some way". :laugh:

[DBL]

hes just a weird guy but he can talk and he only gets 25% on the profit margin thats after we pay for supplies employees materials...

[ENDURO]

I wish I could find some self sufficient employees like that. You've found a unique employee. Most lawncare employees are not good salesman. Like the other guy said, 75% of something is better than 100% of nothing. Of course, you do have some expenses, but still sounds like a good deal to me. I would also assume that the high sales commision may motivate him to sell more. If you cut his %, it may cut into his sales motivation.

[TPnTX]

I've got a similar situation. This guy is so good and knows the business well. He can sell and also does the work with helpers I provide. We agreed to 1/3 of the net on jobs he brings in and I'm happy with that. Jobs that are referrals I pay him labor only.

[Freddy_Kruger]

I owned a window cleaning franchise for while they also had lawn care franchises. I was getting 65% and lawn care was 80% and we didn't even get the jobs.

[macomb-lawn]

If he's good, put him on a flat salary plus a small commision. But, put in stipulations like collections, etc. This is how we do it.

$250.00 a week salary, BUT the employee has to meet a minimum of $4K in sales per month.

3% Commission (if customer pays on time and in full.)
2% Commission (if customer is 30 days past due.)
1% Commission (if customer is 60 days past due.)
0% Commission (if customer is more than 60 days past due.)

This is on landscape and snow jobs. Commisison is paid monthly, and only AFTER payment has been recieved on the invoice.

On lawn jobs, it's 3% flat on the monthly bill. So, we don't pay commission unless the bill is actually paid, and it's paid monthly so if the customer is past due, the commission goes down. The sales rep. is responsible on collecting. So far, it's been pretty good for us. Everyone is happy. Now, our sales director "baby sits" all the sales reps. He's on flat salary. But, all proposals and quotes are reviewed by the sales director prior to "closing" the bid/estimate/sale to make sure the margins are right.

[AintNoFun]

so a guy gets a whopping $6 for signing up a $200 maint. account on top of $250.00 a week... and if he lines up 4g worth of work he get $120... i dont think so... and you have a sales director and how many reps?


If he's good, put him on a flat salary plus a small commision. But, put in stipulations like collections, etc. This is how we do it.

$250.00 a week salary, BUT the employee has to meet a minimum of $4K in sales per month.

3% Commission (if customer pays on time and in full.)
2% Commission (if customer is 30 days past due.)
1% Commission (if customer is 60 days past due.)
0% Commission (if customer is more than 60 days past due.)

This is on landscape and snow jobs. Commisison is paid monthly, and only AFTER payment has been recieved on the invoice.

On lawn jobs, it's 3% flat on the monthly bill. So, we don't pay commission unless the bill is actually paid, and it's paid monthly so if the customer is past due, the commission goes down. The sales rep. is responsible on collecting. So far, it's been pretty good for us. Everyone is happy. Now, our sales director "baby sits" all the sales reps. He's on flat salary. But, all proposals and quotes are reviewed by the sales director prior to "closing" the bid/estimate/sale to make sure the margins are right.

[rodfather]

If he's good, put him on a flat salary plus a small commision. But, put in stipulations like collections, etc. This is how we do it.

$250.00 a week salary, BUT the employee has to meet a minimum of $4K in sales per month.

3% Commission (if customer pays on time and in full.)
2% Commission (if customer is 30 days past due.)
1% Commission (if customer is 60 days past due.)
0% Commission (if customer is more than 60 days past due.)

This is on landscape and snow jobs. Commisison is paid monthly, and only AFTER payment has been recieved on the invoice.

On lawn jobs, it's 3% flat on the monthly bill. So, we don't pay commission unless the bill is actually paid, and it's paid monthly so if the customer is past due, the commission goes down. The sales rep. is responsible on collecting. So far, it's been pretty good for us. Everyone is happy. Now, our sales director "baby sits" all the sales reps. He's on flat salary. But, all proposals and quotes are reviewed by the sales director prior to "closing" the bid/estimate/sale to make sure the margins are right.

how in the hell does someone live on that I would like to know?

[AintNoFun]

i think in make believe land hes in you can live on that...


how in the hell does someone live on that I would like to know?

[macomb-lawn]

so a guy gets a whopping $6 for signing up a $200 maint. account on top of $250.00 a week... and if he lines up 4g worth of work he get $120... i dont think so... and you have a sales director and how many reps?

No no no... you guys got it wrong. We don't do residential. These are all $2K or $3K a weekly cuts. They are all either large corporations or apartment complexes. That's all the sales reps. do is go after management companies and such. They don't do small business even. They chase after the big money contracts, and they are seasonal or multi year contracts. On the landscape jobs, they are dealing with full installs start to finish. Sod, sprinklers, design, installation, etc. It's easy to make the $4K mark during the summer. That's only a couple or 3 residential sod installs.

We have 4 sales reps. and one sales director.

[rodfather]

No no no... you guys got it wrong. We don't do residential. These are all $2K or $3K a weekly cuts. They are all either large corporations or apartment complexes. That's all the sales reps. do is go after management companies and such. They don't do small business even. They chase after the big money contracts, and they are seasonal or multi year contracts. On the landscape jobs, they are dealing with full installs start to finish. Sod, sprinklers, design, installation, etc. It's easy to make the $4K mark during the summer. That's only a couple or 3 residential sod installs.

We have 4 sales reps. and one sales director.

First you say you don't do residential and now you do. I find it hard to believe that there are that many 2 and 3 thousand a week mowing jobs in SE Michigan to support all these sales people btw.

[AintNoFun]

get real... a friend of mine works for one of the biggest companies in nj. they have over 300 employees and 100 trucks.. you know how many salesman they have 1... so that leads me to believe you have at least 3 times the amount of work they do? most of the chasing for your "big contracts" can only be done in the spring and fall, so these guys starve in the summer... i read an old post about this guy and his billboards... people called him out for many many pages to post pictures of his stuff and he couldn't produce..





We have 4 sales reps. and one sales director.

[rodfather]

We have 4 sales reps. and one sales director.

more like 4 guys mowing and one foreman :rolleyes:

[FLAhaulboy]

25% is great. think of the money he is saving you on advertisment, and freeing you up from having to sit down with the client and hash out an agreement. if he's happy with 25%, you ought to be happy too.

[AintNoFun]

funny after being called out, he doesn't reply, eh rodfather..

[rodfather]

funny after being called out, he doesn't reply, eh rodfather..

my sentiments exactly...kind of like bs'ing a bs artist huh.

[One of Three]

. you know how many salesman they have 1... so that leads me to believe you have at least 3 times the amount of work they do?

uh... 1 x 4 = 4...not 3

[Chris@CRU]

As a former saleman in the pest control industry, I made 33% for selling and working the account. Sales is not easy, in fact it is just as hard in not harder than actually keeping the account. If you are getting the volume of business from him as you stated, and he made an offer to work a week for free to prove himself, you had better keep him.

[AAELI]

Keep him or send him my way. If you are only paying him 25% on the profit of the job you are getting a bargain. I don't understand the delay in locking this guy in .. My profit margin is fairly good and I do not mind sharing 25% of my profit with the one who brought the business in. That is not 25% of the gross for the job just 25% of the profit. How can you not keep him?

Again, if he is willing to travel out here then send him my way. Year round mowing, installs, pest, fert, irrigation install / maint, tree removals, etc.

I could retire very shortly with a salesman like that! (If I really wanted to that is.)

[DBL]

his contract is up in august if he wants more hes gone but if he wants to renew what he already has then he stays

[Tim Wright]

I need a salesman like this for my video production and my lawncare/landscaping that will sell on commission only.

Does this guy have a twin?

Tim

[smarino21]

With these sales people, is there a lot of people that can do this or no. Also how do you show him how to estimate?
Do you pay for Gas or give him a truck and gas card or hows this work cause i would love to do this but idk?

[DBL]

he used to work for a very very large nation wide chain of landscape and fertilizer company but i dont know why he left like i said in the beginnning hes a little weird but he knows his stuff and can talk to people great

[smarino21]

do you guys give a car and all that or no

[DBL]

he has nothing he doesnt have a cell phone and he drives his own car