purchasing accounts and paying comissions ???

Discussion in 'Business Operations' started by Az Gardener, Oct 9, 2007.

  1. Az Gardener

    Az Gardener LawnSite Gold Member
    Posts: 3,899

    I am purchasing a companies accounts and the current owner will be coming to work for me doing sales and just being available to make for a smooth transition.

    He is going into semi-retirement and will also be doing some design work and consulting on his own. I would like to pay him a base salary for the transition work and commission for the sales, these are all small residential maintenance accounts. So the question is what is the going rate for maintenance sales?

    I am paying 1.5 times monthly gross fro the accounts they are all long time accounts 3-5 years, and are under contract and yes we will be signing new contracts in the spring. No rate increases just getting them into my company name.

    Any input welcome
     
  2. hoskm01

    hoskm01 LawnSite Fanatic
    Posts: 5,690

    If he makes the sales now, my first thought is that they should be part of his "transition." But then whats the motivation to make sales? I wouldnt consider paying more than a months worth of revenue from that account for the sale.

    What part of town do you work in? If I might ask, who are you buying out?
     
  3. Stillwater

    Stillwater LawnSite Platinum Member
    Posts: 4,840

    Hey hoskm01 do you know any Goodwins in town? I have a old friend that I lost track of I think they might have moved to Goodyear
     
  4. hoskm01

    hoskm01 LawnSite Fanatic
    Posts: 5,690

    Joanne? Dont know the husbands name

    I also know a Phalena
     

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