Forum Discussion

DmvExteriorC's avatar
DmvExteriorC
Contributor 2
4 months ago

pay

should i pay my sales rep hourly or commision

7 Replies

  • Sales people tend to be very motivated by the sales they make.  A combination of salary and commission works the best.  We pay a monthly salary and then a commission on each different type of sale.  

  • fmaksad's avatar
    fmaksad
    Contributor 2

    If you set up a good system to reward your reps using commission only or having a set guaranteed commission for a certain amount of time then after that period (possibly 3-6 months) jump to commission only.  

  • FredHodgeJr's avatar
    FredHodgeJr
    Jobber Ambassador

    We offer a compensation structure that combines base pay with commission, designed to total approximately 10% of total sales. For example:

    Sell $1M and earn $100K
    Sell $1.5M and earn $150K

    • judithvirag's avatar
      judithvirag
      Contributor 5

      Linkedin worked the best for us when we were looking for a sales rep. 

  • Here’s what worked well for us:

    We paid our sales rep a weekly salary that came out to about $45K per year, plus a 10% profit-based bonus. The key was that their commission wasn’t just tied to making sales — it was tied to how well they quoted the jobs.

    Since they were responsible for estimating, we structured commissions around job profitability. If a job lost money because it was underquoted, that negative profit was deducted from their monthly commission check.

    It created real accountability and aligned sales with operations. The rep was motivated to close deals, but also to price them correctly so every job was profitable. It worked well because it rewarded smart sales, not just volume.