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Sales base salary?

Discussion in 'Business Operations' started by Bunton Guy, Sep 16, 2010.

  1. Bunton Guy

    Bunton Guy LawnSite Bronze Member
    Messages: 1,902

    Looking to add a sales person on in the next 6 months. IF I were to pay a low base salary + commission...what would be a good starting point for both.

    The main focus of the expansion is commercial mowing/maintenance & small installs.

    I may be shooting to low but I was thinking $450.00 per week salary + 8% commission on maintenance sales.

    How do you generally work the commission? They get one time commission on the gross of the account or do they get a smaller amount of commission every month off that account until they day you no longer maintain that client?
  2. Bunton Guy

    Bunton Guy LawnSite Bronze Member
    Messages: 1,902

    Also do you guys set a quota for 90 days & 60 days worth of sales to keep them on as an employee?
  3. bohiaa

    bohiaa LawnSite Fanatic
    Messages: 5,220

    I belive finders fee is 10%
  4. Bunton Guy

    Bunton Guy LawnSite Bronze Member
    Messages: 1,902

    What I worry about is if you pay that commission right then and there when the contract is landed and you loose it 3 months into the contract...the company can take a hit!

    The last sales guy I had was a huge joke. He nearly took over my company and was a smooth talker (mainly towards me) and had talked me into paying his commission up front the week the sale was made...then months down the road we would loose the contract (come to find out he was rude to the clients over the phone or in person)
  5. Will P.C.

    Will P.C. LawnSite Senior Member
    Messages: 966

    Well, you need to keep your sales guy motivated. On lawn care sales, some owners give the first cut as a bonus. Good motivator to get lawns.

    I would probably give in half of the first cut until he proved himself. Then I would give him the whole amount.

    I think around 4 percent on landscape/hardscape/irrigation jobs is pretty standard. Or you could pay the salesman a percentage of the PROFIT. This keeps them motivated to see the project through and keep the customer happy.

    A good salesman should always provide customer service until the project is over. It makes the customer feel better about handing over their money. In reality, you do not make an actual sale until that check clears.

    You need to adjust your base pay and bonuses around your specific market. I know around my market, guys would have trouble eating with some type of base pay since it is so saturated and no one wants to spend money

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