Fert company commissioned sales person

Discussion in 'Pesticide & Herbicide Application' started by DiscoveryLawn, Jun 16, 2005.

  1. DiscoveryLawn

    DiscoveryLawn LawnSite Senior Member
    Posts: 408

    Lawn fert and pest control companies please respond.

    It seems as though all of the large companies around here have sales people going door to door selling lawn care. I am told these guys are obtaining 3-4 new sales per day using this method. I have decided to go this route as well.

    I am preparing a commission-only pay scale. I think I would prefer to pay a higher commission rather than commission plus salary. With the pay scale I have thus far a sales person selling 3 new sales per day will average $119.00 or $159.00 per day selling 4 per day. I think a good sales person can sell more than 4 on a pretty regular basis.

    I want this to be win win for both of us. The commission I am willing to pay will be 15% to 20% of the annual revenue the account will generate the first year.

    Is it realistic for me to believe I can attract a good sales person to agree to a commission only pay scale?

  2. A.T.A.K

    A.T.A.K LawnSite Senior Member
    Posts: 286

    You are more likely to pay 25%-30% SALES commision, which is the average in my area.
  3. DiscoveryLawn

    DiscoveryLawn LawnSite Senior Member
    Posts: 408

    Really? That would be $66.25 to $79.50 per sale. At those rates a person would earn $1100.00 to $1440.00 per week on a 5 day work week or as high (or more) as $1728.00 on a six day work week. If that is the case, I am on the wrong side of this equation.

  4. DiscoveryLawn

    DiscoveryLawn LawnSite Senior Member
    Posts: 408

    A local company I know of pays $300.00 salary plus 5% commission. This is similar to what I was paid when I did sales for a national company back in the early 90's.

  5. Markf

    Markf LawnSite Senior Member
    Posts: 407

    I am not a fan of that arrangement. The sales person, although he may not be a direct employee of yours, he is, however, an agent. This agent represents your company and in most situations has the legally authority to bind you to the contract and ALL of the amendments to the contract. Did you ever think that the salesman will promise the world to the customer to earn his commission from you? My .02
  6. kootoomootoo

    kootoomootoo LawnSite Platinum Member
    Posts: 4,369

    Are you paying the commission up front before you actually receive the revenue. How do you treat cancellations etc etc
  7. GreenUtah

    GreenUtah LawnSite Senior Member
    from SLC, UT
    Posts: 866

    you will likely have a very tough time recruiting straight commission sales people for door to door sales. There is a reason the national players have a base plus commission payscale and their door to door sales are more like quick estimate hanging then telemarketing the snot out of the reverse directories of the neighborhoods they canvassed that afternoon. Make sure that your city allows door to door soliciting in the first place, many cities are enacting ordinances against it. I understand why you don't want to make a commitment to a token salary for the sales people, but you will likely not even get a qualified base of candidates to choose from unless you do. Set a salary, even it's for a training period of say 90 days, set quotas and pay your commissions when the sale has been collected to keep out the "slime" sales. If you cannot afford to pay a salary to a person that is working for you yet, then you need to continue to do it yourself.
  8. DiscoveryLawn

    DiscoveryLawn LawnSite Senior Member
    Posts: 408

    That is a good question. I am thinking about paying the commission up front and backing out commissions paid on cancellations of future sales. That seems like a book keeping nightmare but I think my software can track this.
  9. DiscoveryLawn

    DiscoveryLawn LawnSite Senior Member
    Posts: 408

    Good points GreenUtah.

  10. Ric

    Ric LawnSite Fanatic
    Posts: 11,956


    Don't expect the same sales volume as a national brand company. They have a name that has been promoted for many years across the nation. Their sale force is backed up by tons of advertising and a Boiler room of phone solicitors. Etc Etc.

    Best way to build a route is clover leafing off your present customers. Just be darn sure their yard is the greenest on the block. Consider using the best fertilizer you can and write the additional expense off to Advertisement. My $ 0.02.

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