I am in the process of hiring an road sales & marketing person to sell
a line of industrial rubber & urethane products that our factory
produces.
I want to structure the remuneration package where the person gets a
base salary and a commission on sales (& possible a bonus for
achieving certain targets).
What is the structure of some typical remuneration programs that
incorporate these variables? Are the comissiin rates fixed or
variable depending on the levels of sales, type of prodcut, gross
margin,
What are they based on – total sales, gross profit, net profit, new
business only or,,,,?
I need access to a site or sites that illustrates/compares a number of
various commission structures.
Also is there some rule of thumb ttaht stats how much a sales perdosn
has to sell to cover thier costs? i.e, if total cost is $150,000 per
yr (salary, automobile, travel expenses), do thay have to sell 3x (ie
$450,000 gross slaes just to cover their costs?
I have no idea what these questions are worth?
Would $15 be too low? |
