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| *Ostroff, Fair and Company>>>Marketing & Sales |
How many percent of commission fee we should pay to the "sales" for a project? |
Hi, we're starting a software outsourcing company. We usually get projects from companies or independent(not hired by us) sales people ("sales") who gets projects directly from the end users (client). What I want to know is usually how many percent of commission fee we should pay to the "sales" for a project? It really depends on what type of margins your company operates on. Yes some companies offer a 2% commission, and sometimes this still allows for high earnings. In fact, my employer is trying to implement a new pay structure, and is considering 20% commission of profit from each invoice. Work the numbers out using various formulas. When you find one that works for the company and is fair to the sales staff, stick with it. Source(s): 10 years in sales. I am in sales and I would say that 10% would be fair. It depends on the size and complexity of the project. Also, is the salesperson commission only? Commissions can range from as low as 2% to possibly 10%. But 10% would be very high. |
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