Forum Discussion

kpm's avatar
kpm
Contributor 2
1 day ago

Has anyone hired a commission-based sales rep for their business?

Has anyone hired a commission based sales rep for their landscaping company?

Looking to grow our company and it’s getting harder to handle all the requests in a timely enough manner, but same time we aren’t busy enough to have another crew lead. Looking to weigh options and interested in feedback on how it’s worked for others. 

6 Replies

  • HauerPower's avatar
    HauerPower
    Contributor 2

    Following! We hired an outside sales rep internally and it came with alot of pros and cons. The biggest takeaway was a solid process. Where are you in your journey in the sales expansion of your company?

    • kpm's avatar
      kpm
      Contributor 2

      We’re currently in the early stages putting feelers out there and looking for feedback that have gone through this step before. 

  • HauerPower's avatar
    HauerPower
    Contributor 2

    Landscaping and Electrical are similar because the range and type of jobs can vary so much by volume, product type, and labour for the jobs. Are you looking to Have someone just bring in leads or have someone quote jobs?

  • HUGEHandyman's avatar
    HUGEHandyman
    Jobber Ambassador

    One way you could do it is give them a percentage of gross profits over a certain theshold - that way you make sure the jobs they are selling are profitable. For example: 

    1) Gross Profit Bonus

    • Measured quarterly using QuickBooks financials.
      - Tiers:
        * 50%–52% GP: 0.25% of Gross Profit
        * 52%–55% GP: 0.50% of Gross Profit
        * 55%–57% GP: 0.75% of Gross Profit
        * 57%+ GP: 1.00% of Gross Profit

    This was for an ops manager position. Basically had a base salary then there is no cap on the amount they can make using these calculations. I don't know how sales reps would like that but it could be a hybrid model. 

  • Yes we have a part time sales rep for 2 years now.  She has salary and a commission based on what type of cleaning she sells. 

  • FredHodgeJr's avatar
    FredHodgeJr
    Jobber Ambassador

    For our exterior cleaning company we give our sales reps a base pay plus commissions. The total amount equals 10% of their sales. Everyone always talks about commission only sales people but I haven't found that to be realistic but I also want to incentivize them so the combo works out well for us.