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CM Sales Info


CAL

#23639

CM Sales Info | 4 March, 2003

I am doing some work for a company that does it's own Manufacturing. They want to make their services available to the out side world. To do this they want to bring in a sales engineer as an Independent Contractor. 100% Commission and no Benefits. What is a good % number we should expect for a sales commission? 1% or 5% or 7% or 10+%. We want to keep it fair but also not over pay. Please advise and keep on target with the question posted.

Best regards,

Cal

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MA/NY DDave

#23645

CM Sales Info | 4 March, 2003

Hi

I think you answered your own question.

How much depth have you already established If 0 than commissions are high and base salary high Without a base salary forget it for a good professional

If a cake walk due to past practices than commissions can be lower and base salaries stable

If opportunity is high Commissions can be high and base salary reasonable.

YiEng, MA/NY DDave

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#23647

CM Sales Info | 4 March, 2003

Do the numbers. A good dog needs maybe $100k per year. So at 10%, he's got to sell $1M the first year.

In order to sell $1M, he looks at the odds, scratches himself, licks his nose, and thinks, "ooo baby, this is pretty risky": * These guys don't have a clue. * They don't know how to bid or price jobs. * They have no contacts or leads. * They have no reputation. * Their overheads are probably sky-high. * They're selling into a down market. * They're a tough sell, because even if they're technically excellent, what customer is going to believe [1] these guys are going to be around after the market turns around and [2] that a customer's job isn't going to get bumped for internal requirements.

Why doesn't the president of this firm charge-up his cell phone, get in his car, and save the commission? He's the only one that can sell this.

As another point of reference, the numbers you're talking about might get a factory sales representative's interest.

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MA/NY DDave

#23654

CM Sales Info | 5 March, 2003

Hi

Excellent David F.

I don't know about the company CAL is working for but I will tell you that sometimes companies hire a weak talent and convince them that they have a high sales potential. They offer a big commission yet a low salary in the 30Ks. After a little bit the weak talent finds that they can't afford living off of non existant long term potential that takes months to cultivate.

Another thing they will do is remove the commission from existing repeat accounts.

Potential Real clients, current clients and potential revenue should be calculated in advance with honesty.

Another alternative is to find a Market Representative in your area that will cover or wishes to cover your product line. They too will want to know potential revenue unless they already know it from their base of customers.

YiEng, MA/NY MrDave

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