sales people

Discussion in 'Business Operations' started by skurkp, Jan 17, 2008.

  1. skurkp

    skurkp LawnSite Member
    Posts: 248

    I am look at the idea of hiring a full time sales person. I have been doing this in the past and am not real sure what to consider as pay. How are some of you handling this?

    Do you pay 100% commission
    Do you pay up front for the entire year or each month that the contract remains valid
    Do you pay a minimum salary and a lower commission

    Thanks in advance
    Kurk
     
  2. EgansCountryGardens

    EgansCountryGardens LawnSite Member
    Posts: 163

    I'm playing with this idea myself. I'd like to pay 100% commision. If the person can perform, they can make a great deal of money. If they can't, then this is their problem, and it doesn't cost me anything. I don't know if anyone else has tried this though.

    What do you do with recurring customers? Everytime they renew yearly, maybe your salesman has to handle the renewal and contract, then he gets commision? If something doesn't work out and you have to get rid of the salesman, then of course its your obligation to get the renewal, and he's not entitled to it anyways? Not sure. Opinions???
     
  3. dwlah

    dwlah LawnSite Senior Member
    from Argo Al
    Posts: 558

    I'm not to the point of having a sales guy but here's my .02
    If you put the guy on straight commission then he has to perform to eat
    With the renewals Id go with what the local paper does with their sales reps
    They get a lower percentage for renewals than they do with new sales(let the
    sales rep handle the renewal contract paper work)

    Another thing Id have is pay as you collect from the customer
    What are you going to do when he signs a big contract then they don't pay or cancel for some reason?
    I don't know what kind of policy Id have but Id have something in the sales reps contract about what happens to unpaid commission fees
     
  4. jnlenterprise

    jnlenterprise LawnSite Member
    Posts: 7

    100% commision is great, but reality is that most salesmen won't do it. Just like the rest of us they have to live and most require some sort of guarantee. I have done a draw against commision as a way to keep them fed so to speak. Put a max limit on how much and stick to it. One salesman I had seemed good on paper but couldn't convert when it came down to it, he maxed out his draw at about the same time I realized he wasn't going to work out. I think you pay them a start up salary for a short period of time, then go to a draw against commission with a three months in the hole limit before they are cut off. A draw is nothing more than a loan against earnings.
     
  5. dlram

    dlram LawnSite Member
    Posts: 2

    I am a salesman for a landscape and construction company. They do masonary and site work. I get 10% commision on all work that is profitable. I also collect a salary, a company vehicle, gas, vacation and health insurance.
     
  6. Fert33

    Fert33 LawnSite Member
    Posts: 132

    I would think that anyone would have a hard time getting a salesman to come on for 100% commision. If he or she is worth anything, it would probably be better to collect a salary of some sort plus a percentage of each sale. Or Maybe a percentage of sales past a sales goal for the company, plus a salary. I mean what kind of leads would this person have, and how good is the company's advertising? Where do they advertise? We all know how far you get with cold calling and handing out flyers. Hardly enough commision there to raise a family, or obtain and maintain a home for that family. If you can afford it, go with a salary and a percentage of sales.
     

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