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Hiring a out side sales rep

Discussion in 'Landscape Architecture and Design' started by alc, Feb 26, 2006.

  1. alc

    alc LawnSite Member
    Messages: 21

    My business has grown to the point I can no longer personally keep up with all the sales calls, and new leads. I spend alot of time in the office running the business and working on bids. I want to hire a sales rep. to handle the calls and new leads. I have found a person who is very familiar with our type of work. He has had a similar business in the past. If I hire a out side sales rep. I thought about a reasonable salary and commissions. But, this is all new too us and I am unsure what to pay the person, and I have no idea how commissions are based. Anyone have any suggestions. Thanks James :cool2:
  2. BCFLawnLandscape

    BCFLawnLandscape LawnSite Senior Member
    Messages: 333

    Depends on what kind of work he's going to get, if he's getting commercial properties i'd pay him no more than 2%... Residentials maybe 4%. I WOULD never pay a sales guy hourly... They will take advantage of the system and not be as productive as they would be if they were straight commission!
  3. alc

    alc LawnSite Member
    Messages: 21

    Ok, I was going to give him a weekly salary. Thanks so much for your help. Have a great year. James:drinkup:
  4. YardPro

    YardPro LawnSite Gold Member
    Messages: 3,570

    what we have seen done in other industires is give them a "base" salary.. then over X dollars in sales (when thier commission would pass thier base), they begin to get commissions..
    if they go too long at thier base and thier sales are low... need a new sales rep.
  5. EgansCountryGardens

    EgansCountryGardens LawnSite Member
    Male, from Plymouth, MA
    Messages: 165

    How about commision ONLY. I've thought about this route also for my company, and why can't a sales rep get commision only for the jobs that he sells. Maybe something like 15 - 20% of profit from every job that he sells. I know its kind of unorthodox, but so isn't losing money on a job, after paying these sales guys salary plus commision. Plus it will give them the motivation to go sell these jobs. They don't get paid until you get paid by the job. 15 - 20% of profit is alot of money, but as long as your making money who cares.

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