Forum Discussion

kpm's avatar
kpm
Contributor 3
4 months 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. 

18 Replies

  • HUGEHomePros's avatar
    HUGEHomePros
    Verified Community Coach

    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. 

  • 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?

    • kpm's avatar
      kpm
      Contributor 3

      We're looking for someone who can bring in leads and quote jobs. 

       

  • 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 3

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