Commission rate

[John HC]

Hello all...
Anyone have any suggestions for commission rates for freelance sales reps...?

 

[TopFliteGraphics]

If they are truly freelance, I'd say treat them as a broker. Give them your bottom line price and let them mark it up accordingly. That way, they pay you instead of you paying them

BTW - That is how I started in this business. I brokered for a local shop. Quickly became one of his best customers and when an opportunity came up for him to buy his father's (very profitable) business, he offered to sell me his sign business.

 

[Andy D]

If they are truly freelance, I'd say treat them as a broker. Give them your bottom line price and let them mark it up accordingly. That way, they pay you instead of you paying them
.

I agree with you top flight, just wondering how payment should be handled?
Does the broker pay upfront and then wait for his money?

 

[TopFliteGraphics]

I agree with you top flight, just wondering how payment should be handled?
Does the broker pay upfront and then wait for his money?

Unless you have a track record with the person, I would just treat a broker like any other customer, 50% deposit with the order, balance due upon completion. They should be doing the same with their customer. Just think of it this way, if they were a straight commissioned sales person, they would still need to get the 50% deposit. It is up to the broker to collect their money. This leaves you with zero liability if the broker flakes out. Believe me, it happens.

If you really want to extend terms, that is up to you. With brokers, I would offer 2% 10 Net 30. Meaning, offer an additional 2% discount if paid within 10 days, otherwise balance due in 30 days. This incentivizes them to pay you within 10 days.