FreeLists / webproducers / [webproducers] Re: sales commissions

["Katherine Gray" <kat@xxxxxxxxxxxxxxxxxxxx>]

Is this assuming there's a base? If yes, what would you expect that to be?
-Katherine


----- Original Message ----- 
  From: Stuart Hunt 
  To: webproducers@xxxxxxxxxxxxx 
  Sent: Wednesday, May 28, 2003 8:01 AM
  Subject: [webproducers] Re: sales commissions


  I've been thinking about this a bit more, and it's becoming apparent that
  the 10% might not be enough to keep them interested for smaller projects,
  and they'd need to get us more projects than we're geared up for in order to
  make a decent income -- so I was thinking of making it 20% and adding a few
  client relationship and interface tasks too.  Not quite sure yet.  Thanks
  for the feedback so far.

  --Stuart

  On 5/23/03 3:00 PM, "Katherine Gray" <kat@xxxxxxxxxxxxxxxxxxxx> wrote:

  > This is exactly why I'm bringing this up. I could never offer 20% again 
(that
  > was without any base at all, on the original budget which ended up growing 
by
  > the end, and it was a one-time deal), but if my true profit is really only
  > about 20% even 10% commission is a little scary. We just raised our rates a
  > little to cover new overhead (bigger space, a few more employees and
  > well-deserved raises), but it wasn't as much as it needed to be, only what I
  > figure the market here could bear.
  > 
  > The other thing I'm trying to balance is capacity. If we get a good sales
  > person who gets a modest base and a healthy commission, which is what I'm
  > leaning towards, how do I keep the schedule from getting overloaded but 
still
  > keep that person happy enough to keep selling? I know there are no easy
  > answers to these questions, but I'm interested to know what other people's
  > thoughts are.
  > 
  > -Katherine
  > ----- Original Message -----
  > From: C L 
  > To: webproducers@xxxxxxxxxxxxx
  > Sent: Friday, May 23, 2003 10:56 AM
  > Subject: [webproducers] Re: sales commissions
  > 
  > 
  > 
  > I was perusing through this topic and thought that the percentages seem to
  > be extraordinarily high.  I haven't done much of this referral sales
  > percentage stuff, but who exactly is paying for these 20-30% commissions?
  > The client or are you as the proprietor eating the cost?  I remember the
  > norm during boom times were 10-15% or cost, which were handsome indeed for
  > six to seven figure projects.  Are these 20-30% commissions also for six to
  > seven figure projects (are there any more seven figure projects?) or for
  > projects that cost a few thousand?  With these kinds of commissions, what
  > are the markups?  If you markup 30% and pay 30% commission, and the project
  > comes in EXACTLY as planned, then how are you/we supposed to pay rent and
  > bills?  And if we markup 50% to make a 20% profit, isn't that an overly
  > bloated budget that's likely to scare the client away (not to mention we'll
  > easily get outbid)?
  > 
  > In the past, for the few times that I actually paid out to sales guys, the
  > commission was 8-12%.  My normal markups were 20-25%.  These days, I haven't
  > dealt with sales guys since I have no money to hire them, and I barely make
  > any markups at all (whatever I profit is actual work I do on the project,
  > minus any preliminary meetings, etc.).  Am I just beating myself to a pulp
  > or is this the kind of norm that we're going through in this market?
  > 
  > My two cents and curiousities.  I'd appreciate any comments...
  > 
  > .chang
  > 
  > 
  >> From: "Katherine Gray" <kat@xxxxxxxxxxxxxxxxxxxx>
  >> Reply-To: webproducers@xxxxxxxxxxxxx
  >> To: <webproducers@xxxxxxxxxxxxx>
  >> Subject: [webproducers] Re: sales commissions
  >> Date: Fri, 23 May 2003 09:17:31 -0700
  >> 
  >> On this subject, throwing this out to the group: what is the markup on
  >> services in your area? We markup 30% and are happy if we come out at 20%
  >> profit. Currently we don't offer sales commissions (I'm the main sales
  >> person but I'm also the CEO) but in the past I've offered 20% on the
  >> original budget, which was too much considering our margins. I'm going to
  >> hire an AE in the next few months and need to work out the base
  >> pay/commission structure.
  >> 
  >> 
  >> 
  >> 
  >> 
  >> 
  >> ----- Original Message -----
  >>   From: Laura Allen
  >>   To: webproducers@xxxxxxxxxxxxx
  >>   Sent: Friday, May 23, 2003 8:54 AM
  >>   Subject: [webproducers] Re: sales commissions
  >> 
  >> 
  >> 
  >>   Because it's such a rough market, I offer people between 25-30% for
  >>   referrals on business.  I don't know what your business is or what your
  >>   mark-up is, but this seems extremely reasonable to me. Just to be clear,
  >> he
  >>   would be getting 5% to manage the agents correct?  That means the new
  >> agents
  >>   would get 10% for closing the deal and he would get 5% for managing
  >> them.
  >>   You probably can't afford to pay them 10% for sales and him 15% for
  >> managing
  >>   them, so I just wanted to throw that out there.  Also, you need to make
  >> it
  >>   clear who is running these new accounts after they are closed.
  >> 
  >> 
  >>   ----- Original Message -----
  >>   From: "Stuart Hunt" <stuarth@xxxxxxxxxxxxx>
  >>   To: <webproducers@xxxxxxxxxxxxx>
  >>   Sent: Friday, May 23, 2003 11:44 AM
  >>   Subject: [webproducers] Re: sales commissions
  >> 
  >> 
  >>> 
  >>> Hi, there,
  >>> 
  >>> We're paying our marketing/sales guy a 10% commission on project
  >> sales,
  >>   and
  >>> for additions/updates too.
  >>> 
  >>> He's proposing getting other agents to make sales at the same rate and
  >>   then
  >>> adding a 5% on top for managing these agents.
  >>> 
  >>> I was wondering if other's have alternative sales commission schemes
  >> and
  >>   if
  >>> they like them?
  >>> 
  >>> Thanks.
  >>> 
  >>> 
  >>> --Stuart Hunt
  >>> 
  >>> 
  >>> 
  >>> 
  >> __________________________________________________________________________
  >>> To unsubscribe send a blank message with unsubscribe in the subject to
  >>   webproducers-request@xxxxxxxxxxxxx
  >>> 
  >>> To access our webform (instead of sending e-mail) for popular commands
  >>   including subscribe, unsubscribe, digest, and vacation  visit
  >>   www.WebProducers.org. You can also access the list archive at the
  >> website.
  >>> 
  >>> Questions and comments are welcome just e-mail  info at webproducers
  >> dot
  >>   org
  >>> 
  >>> 
  >> 
  >> 
  >>   
  >> __________________________________________________________________________
  >>   To unsubscribe send a blank message with unsubscribe in the subject to
  >> webproducers-request@xxxxxxxxxxxxx
  >> 
  >>   To access our webform (instead of sending e-mail) for popular commands
  >> including subscribe, unsubscribe, digest, and vacation  visit
  >> www.WebProducers.org. You can also access the list archive at the website.
  >> 
  >>   Questions and comments are welcome just e-mail  info at webproducers dot
  >> org
  >> 
  >> __________________________________________________________________________
  >> To unsubscribe send a blank message with unsubscribe in the subject to
  >> webproducers-request@xxxxxxxxxxxxx
  >> 
  >> To access our webform (instead of sending e-mail) for popular commands
  >> including subscribe, unsubscribe, digest, and vacation  visit
  >> www.WebProducers.org. You can also access the list archive at the website.
  >> 
  >> Questions and comments are welcome just e-mail  info at webproducers dot
  >> org
  > 
  > _________________________________________________________________
  > Add photos to your e-mail with MSN 8. Get 2 months FREE*.
  > http://join.msn.com/?page=features/featuredemail
  > 
  > __________________________________________________________________________
  > To unsubscribe send a blank message with unsubscribe in the subject to
  > webproducers-request@xxxxxxxxxxxxx
  > 
  > To access our webform (instead of sending e-mail) for popular commands
  > including subscribe, unsubscribe, digest, and vacation  visit
  > www.WebProducers.org. You can also access the list archive at the website.
  > 
  > Questions and comments are welcome just e-mail  info at webproducers dot org
  > 
  > __________________________________________________________________________
  > To unsubscribe send a blank message with unsubscribe in the subject to
  > webproducers-request@xxxxxxxxxxxxx
  > 
  > To access our webform (instead of sending e-mail) for popular commands
  > including subscribe, unsubscribe, digest, and vacation  visit
  > www.WebProducers.org. You can also access the list archive at the website.
  > 
  > Questions and comments are welcome just e-mail  info at webproducers dot org

  __________________________________________________________________________
  To unsubscribe send a blank message with unsubscribe in the subject to 
webproducers-request@xxxxxxxxxxxxx

  To access our webform (instead of sending e-mail) for popular commands 
including subscribe, unsubscribe, digest, and vacation  visit  
www.WebProducers.org. You can also access the list archive at the website.

  Questions and comments are welcome just e-mail  info at webproducers dot org

__________________________________________________________________________
To unsubscribe send a blank message with unsubscribe in the subject to 
webproducers-request@xxxxxxxxxxxxx

To access our webform (instead of sending e-mail) for popular commands 
including subscribe, unsubscribe, digest, and vacation  visit  
www.WebProducers.org. You can also access the list archive at the website.

Questions and comments are welcome just e-mail  info at webproducers dot org