Paying Commission or Percentage on Sales

[Hanks Signs]

I have had a recent employee move out of town and is doing a real good job at getting new jobs/sales what do all of you guys give for commission or percentage rate on the sales they make, its time I cut a check and I need help on whats fare.

Thanks

 

[tomence]

15% of the gross is what i pay.

 

[Hanks Signs]

Thanks!

 

[Letterbox Mike]

We pay a small base salary (about $10k per year), 10% commission, and health insurance and paid vacation (which is sort of meaningless since it's a salary position).

 

[ddarlak]

Welcome from PA!!!!!!!

oh wait that's gino's line.... i'm sure he'll be here soon!

I would hope you would have planned this out ahead and built it into the job. I guess at this point - enought to keep him happy and not enough to hurt you.

 

[Jon Aston]

What's fair should take what's good for your business into account... What gross margin are you expecting, and on what amount of sales? If you're making 10% gross margin and giving them a 10% commission on gross sales, your business isn't benefiting.