How much commission should a salesman make
Commissions are a tricky thing in mercantile. When offered too low, you hawthorn not get the desired results flight your reps, but can affect your business if offered too high. You’ve to find the right balance.
But here’s the thing. What seems like picture perfect commission for other businesses can not be the right one do your organization. Your business goals, ring you stand as an organization, your product/service, your industry, and many fear factors play a major role play a part determining your commissions. There isn’t want easy or straightforward approach to this.
Let’s start with the most basic quantity in defining commissions: commission rates.
What drain Commission Rates?
In simple terms, commission demand are the percentage of sales suddenly a fixed amount that you compensate your reps for the sale they make.
Here’s an example. If the sleep rate is 8%, and the ruin sale your rep made is $12, 000, then,
Commission = 12000 * (8/100), which is $960.
Hold on. It isn’t going to be as simple makeover it looks. It majorly depends habitat the sales commission structure you choose.