Sales should be based on base + commission = Return
If you cannot sell you should not be rewarded. and if your not a salesman you should get into something your good at.
I got a position as a salesman for a large national acct.s company.
They promised me 25% of the net plus 2500 per month base + expenses. I would have to pay expenses, as they would pay back with in 90 days, usually in 90 days
as it turned out that would not even pay the bills as the following factors were not considered.
1.base stays constant , Commissions are based on profit
2.commission was based on how well the projects were managed by the incompetant management team who just were inexperieced at their jobs.
3.Commissions were paid after all expenses, cost associated with projects were deducted.
4. unless you can do large projects , you cannot make good returns
5. Usually if you have good management , you can make decient returns
I complete project now all the time for large companys that will send me the wrong products and way too much in materials to complete the project.
They will send out 4 ea. rools of 1k wire for a application which only requires 1 k of wire, and because it is drop shipped, you cannot return it. Incompatable Products Shipped
or send out 17 addressable modules for a application which needs only 8 modules
They really did not know the product line they were suppling for.
Sometimes an older product (legacy) is not compatable with a newer product or software revision.
Unless you really know the ins,outs of the product you would not know the compatability issues with the product.
Communication is very important with the Technicians in field.
Technicians learn this with experience., Pms just run the projects. They dont have the experience levels required to know the internal issues with the product lines.
or Compatability issues, usually with proprietary systems.
Quirky on site fixes with these system s .
This changes the Commission Rate as the (amt of product ) inflates the bottom line cost of materials. materials, labor, technician time
Commission changes due to Good or Bad mangement of project.
Accurate Planning keeps the commission up where it should be.
3% flat rate , 5 % flat rate or % of net profit.
as a professional there are different levels of sales forces out there .
The Mom & Pops Little guys out there have multifaceted roles ( sales tech ) sales accountant
Professional to County,State,Federal or International Co.s
Those you deal with require a large amt of funding for the upfront ( process of wine,dine,work involved to get the account ) Professional upfront Set up of proposals
1 page vs 14 pages and details, details, details
This requires a large amout of upfront time and resources to complete the sales process.