Hey SandOtter, I think I have a better understanding of where you're coming from. Let's clarify a couple things here.
Quote:
Originally Posted by SandOtter
Obviously, you work for a much larger company than I did. Where I worked, the salesperson IS the account manager! This might also explain why you think a 10-15% commission is a living wage. Your clients must have much bigger budgets.
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I haven't worked in a big company before. Biggest I've worked with had about 50 employees. In that case the average ticket was about $25 / month. I wouldn't call that substantial.
I assume fisher318's company would average somewhere between $200 - $500 / month for their services.
Quote:
Originally Posted by SandOtter
I don't dispute that the owners should receive the bulk of the residuals. I disagree over the split. Using your example of 15% residuals for the first 6 mos., the owners are keeping 85% of the residual profits (remember, costs have already been covered)...not much of an incentive for a salesperson to put too much effort into maintaining the account. I mean, if you want good people to hang around, they need to make a living.
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Maybe this is where the disagreement stems from. Considering it would be hard to calculate profits on a case by case basis (also very time consuming) I was saying 15% of the gross sales would be the commission. Again this would not really be on the gross sales but on the payments made by the client.