what is a fair commision to an outside sales rep
by Republic of chad Bronstein, CEO
Are you ready to hire sales reps only aren't sure about the ideal sales compensation plan? Have you searched the internet looking for an answer? Have you contacted competitors to meet if they'll aid yous out? If so, yous've probably realized there is trivial help available for this monumentally important decision.

Here at Time To Rent, we get at to the lowest degree three or iv new potential customers per week who ask u.s.a. this question: "So… is xx% nearly what people are paying in sales rep commissions?"
We've been generally unable to answer until now.
Since 2003, we've been compiling sales bounty plans and salary info on a variety of industries. In that fourth dimension, Fourth dimension to Hire has completed over 30,000 campaigns—that's a lot of information! We compile data by request our clients for a full general thought of what an average rep and a superstar rep could brand as a salesperson for their organization. A very pocket-size percentage of those clients volition give us more information than we actually need such as their exact sales rep commission percentages or base pay amounts. While simply about three percent of our clients provide that much detail, it's enough to compile helpful sales compensation plan examples for the benefit of other businesses.
While creating the program is individual to your unique business, we know that examples of what works for others are a great place to start the brainstorming.
So here they are: a listing of committee structures for sales reps in every industry.
To find a sales commission structure for the specific manufacture you're looking for in this blog, simply press:
Control-F (Command F ON ) and type in the data in the search window (eg., "MERCHANT" "SOLAR" "Roofing" or "Improvement").
Notation: Each new line beneath denotes a different sales rep commission model.
Expert luck on your search for sales superstars!
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SALES Compensation PLAN EXAMPLES: MERCHANT SERVICES (Exterior SALES)
Lease commissions ranging from $125-$450.
Up to $200 up front end bonus for each account plus up to 75% residual.
For each activation, agents are paid a 1-fourth dimension $200 bonus plus a monthly residual of xxx%.
Starting commission rate of 40% with an opportunity for 60% with plenty accounts. Rate increases to 45% after first 5 accounts. After 200 accounts, expect $100k in yearly earnings.
Sell 6-8 locations per month and make $100,000 plus residuals. Two sales per week averages $1500-2000 plus l% residuals.
50% signing bonus plus 15-25% lifetime residuals. Vesting reps tin can sell residuals for 30x value.
Each airtight business relationship nets 4300 up front bonus and 20% commission for lifetime of business relationship.
Lifetime residuals. 25-40% residuals for lifecycle of customer. 30x buyout options twice yearly. 401k after 90 days. Medical, dental, vision after ninety days. Life and Advert&D insurance. Includes iPad.
Starting base bacon of $32,000 plus 3% commission on total sale.
20% commissions on gross revenue for a catamenia of 2 years, even if non employed with a cap of $20,000 per client. Register fifty+ businesses and commission rate grows to 25%
SALES COMPENSATION PLAN EXAMPLES: CABLE INTERNET DOOR TO DOOR
100% committee (duh), and $130-$140 per contract
Nosotros pay $180 per contract and average reps sell about 25 per month.
We have two options. $k/base of operations plus 15% residuals. Or 100% committee, 50% get-go month up forepart and fifteen% residuals.
Boilerplate sale pays $162 for AT&T and upward to $250 for DirecTV.
100% commission and 4 tiers. Upwards to 22 sales/mo $137; upward to 32 sales, $148; upwardly to 42 sales $160 and upwardly to 52 sales, $171 per contract. $500 sign on bonus subsequently fifteen sales offset 30 days. Health benefits after xc days.
SALES Compensation Program EXAMPLES: Roofing AND Tempest RESTORATION
10% of the full sale seems to be the standard in the roofing restoration business organization.
10% of full contract. Incentives and bonuses after $250,000 in sales.
We pay based on sales invoice minus costs for office and materials. Sales rep receives l% of profit after costs. If invoice is $20k and material and office cost is $14k, remaining turn a profit is $six,000 and rep makes $3,000.
Boilerplate commission is $800-$2000 per chore and paid 50% upon plow-in. iv week paid grooming. Paid housing at storm location along with 75% paid medical and dental.
Paid Housing, $10k per twelvemonth on average. vii weeks of paid grooming at $375/week. Gas assart, $75/week. Paid cell hot spot, $140/month. Health insurance and we pay 50% of your HSA deductible. Profit sharing. 401k. Vacations.
x% of gross sale. 401k and medical insurance.
ten/50/50 Split. ten% off the height and fifty% of the profit goes to the roofing sales rep.
7.5% of the full price of roof.
12-15% of the overall claim.
6% commission until proven, then 10%.
4% of initial contract signed.
40% net income paid on all completed claims.
Commissions range from three-ten% depending on experience.
10% commission on first $800k in sales. 11% until 1m and 12% over 1m in sales.
7-10% of total task depending on feel for in-home sales reps. Canvassing reps make $20 per inspection.
SALES COMPENSATION Program EXAMPLES: HOME Improvement (Windows, Doors, Bathroom, Kitchens)
Our average sale is $xiv,000 and with 10% commission reps are making between $100-200K. 100% commission.
$400 a calendar week for 4 weeks preparation. Then 100% Committee – 7% committee on provided leads. ix% committee on leads self generated. Wellness Insurance and Unproblematic IRA. (Basement Solutions)
25,000 Base Bacon + Commissions ranging from 6% – 12% based on a Par selling calibration. Benefits afterwards xc days. (Shower Door Installations)
l% commission for veteran reps / 35% commission for non feel reps with $300 weekly training pay. (Windows, Siding, Gutters)
Base of operations salary of $35,000-54,000 per year plus 2% commission after break-fifty-fifty is met. (Bathroom Remodeling)
Base salary of $300/week plus commission at 5% of all expert sales generated. (Windows, Roofing, Siding, Doors)
eight% committee of total of contract sold. Figurer must pay for his/her ain gas, and provide their own transportation. (Patios)
Two options. $400 per calendar week base of operations pay plus 7% commission, or 100% committee and x% committee on job total.
$450 per calendar week for upwards to 60 days, then ten-12% of the total sale. Average auction is $seven,000. (Iron Fencing)
10% for in-business firm leads, 12% for rep generated leads. fifty% paid of profit for all upwards-sells.
10% of gross sales.
True base salary of $800/week plus 10% commission on job total.
Large window visitor: $x-$14/60 minutes plus 3% commission on total job.
SALES COMPENSATION PLAN EXAMPLES: SOLAR SALES (IN-HOME + DOOR TO DOOR)
$xl,000 base plus 3% commssion ($iii-$4 watt), 4% (4-$4.60) and v% above $4.60 watt. Squad commission is also paid at .05% on sales above $four watt.
$m describe against commission for commencement xc days and 100% committee thereafter. $600 gas bonus per calendar month if 1+ deal sold.
$100 per lead plus 1% entire gross of sold project (this is for canvassers only, not the in-home sales rep)
Solar canvassing sales managing director earns $50,000 base plus $250/sale override on managed rep. Solar sales rep earns $1000 per sale (expected to close 2 sales per calendar week).
True base salary of $30,000 plus three% commission on gross system cost. 3% of system costs will be paid 25% on Friday later on signed and residuum (75%) later on install is complete. Promotion targets include opportunity to earn 4-5% commission rates as well as higher salaries. $20K per month in compensation is possible for the highly motivated rep.
We pay $12-xv per hour and $25-$50 per appointment depending on weekly productivity.
We pay $50 for setting an appointment with bonuses for higher number of appointments, plus $200 for each appointment that becomes a auction.
$300 commission per KW sold on self generated deals. Average deal is 5kw or $1,500. 70% of commission paid the post-obit Fri so remaining 30% when bargain is closed.
$500 per Kw minimum commission.
SALES Compensation PLAN EXAMPLES: PEST CONTROL DOOR TO DOOR
25% commission on all sales.
xx% committee until 100 sales airtight, then goes up to 25%.
xx% committee until reps have proven themselves, then 25%.
One company mentioned paid training at $9/hour for two weeks and a $100/month gas reimbursement.
SALES COMPENSATION Programme EXAMPLES: ALARM AND SECURITY DOOR TO DOOR
Start with training salary of $2000/mo for calendar month i, $1500 for month 2, $1000 for month 3 and $500 for month 4. Rep also receives $500/mo auto assart. Commissions range from 10-eighteen%.
We pay $500 minimum committee per sale.
5x monthly contracted revenue paid out in ii installments at signing and at 6 month ceremony. Once successful, converts to 3 month draw confronting commission of $2,000/month.
We pay 10% committee on turn a profit of each sale.
Committee plus $2,000 guarantee against commissions per month. iPad, iPhone and full benefits after 90 days plus bonuses.
Sell 1 new account per day and make $100,000.
Earn $200-$500 per auction
Experienced reps are guaranteed $650 per sale.

SALES COMPENSATION PLAN EXAMPLES: ENERGY DEREGULATION DOOR TO DOOR
100% commission after the first 8 weeks. Offset 8 weeks non-recoverable depict of $550/calendar week guaranteed.
7% straight commission.
Boilerplate sale is $16,000 with a range of $8,000-$110,000. Committee averages $480 per auction and ranges betwixt $240-$iii,300.
25% on personal production, no overrides. At 250,000 kwh = $one,125 per week or $2,250 at 500,000 kwh.
40% commission plus bonuses.
SALES Compensation Programme EXAMPLES: FUNERAL / MORTUARY SERVICES (OUTSIDE SALES)
2 week paid preparation, then 100% committee. W2 with benefits. (Medical, Dental & Vision afterward 90 days). 401k retirement 6% matching. Typical first year pay is $45-65,000.
120 hours of paid preparation @ $xv/hour, then 100% commission at twenty%.
SALES Compensation Programme EXAMPLES: INSURANCE SALES (Outside SALES)
12-month accelerate 17% commission + vested renewals. Motivated reps can make $150k/twelvemonth.
New business commissions paid at 50%. Renewal business 25%. $1500-$2000 describe confronting commissions monthly and a 90 twenty-four hours base is provided while building your pipeline.
We provide a base of $thirty-$twoscore,000 with medical and dental. Commissions range between 2-x% per sale based on type of production.
40% new business commission and 25% on renewal income. 5% new renewal committee income of agency team and up to 49% ownership of book of concern.
Base of operations of $24,000-$40,o00 based on feel, and when a xv% commission exceeds the base of operations, the commission is paid. Similar to a draw, but base is never rescinded.
All commissions are residual and most splits are a 50/l footing net of expenses.
Base of operations salary of $2000 outset month, $1500 2d and $one thousand calendar month 3. Commission are 5% P&C, 22% 50&H and 50% annuities (damn, I am never buying an annuity!)
10% commission and 3-4 twelvemonth rep can brand 100K with residuals.
SALES COMPENSATION Program EXAMPLES: MARKETING (VARIOUS TRADITIONAL/NEW MEDIA/SEO)
20% commission on first payment from customer (average $960), then x% of second payment ($480)
Initial committee of 50% then 30% recurring monthly on SEO, PPC and social media direction deals.
2 options. W2 with base salary of $2,500/calendar month plus fifteen% commission. Or 30% direct commission. (Automotive Marketing)
Facebook advertising $250 for each new client and $75/month residual. If you sell all services you make $450 one time plus $110-175 monthly residuum. (and fifty% of our clients purchase all our services)
25% commission on all signed contracts, 5% of entire contract upwards forepart and xx% in monthly increments over the life of the contract. A 10% monthly rest commission is paid up to v years when customer renews contract.
5% commission on sales up to 30K, x% on 60K monthly and up to xv% for sales exceeding $60K monthly.
30% of cyberspace sales including setup fees and monthly payments. $500 minimum sale.
33% of net sales
25% recurring on all marketing services
20% of contract
25% commission with cash bonuses for milestones
20% committee plus ramped bonus system with $3,000/month potential. 5% remainder commission after 12 months upwardly to 24 months.
50% first month of contract and 5% residual in perpetuity.
50% initial commission plus 10% abaft lifetime residual.
90 day committee-only probationary period with xv% of full contract and viii% on contracts acquired from existing clients. After 90 days base salary ($14,000-$20,000) plus aforementioned commission structure as committee simply. (fifteen% and 8%)
ten-12% on gross auction (SEO Company)
10% monthly recurring commissions with $50 bonus for each new campaign (SEO Company)
20% gross committee (Local SEO Marketing Visitor)
15% monthly (SEO Company)
twoscore% residual (rolling commission) (Local SEO)
20% of sales and five% override of anyone y'all recruit
$thou sign upwards bonus for each new client signed plus 15% commission (recurring) while client is retained.
40% front end and 10% every month for life of customer (Lead generation service)
25% on net sales (Public Relations company)
25% commission each month customer remains (Digital marketing company)
20% monthly for year ane and x% for year 2 residuals. (Digital Marketing)
x% up to 5k in sales, 15% $5-$15k, twenty% over $15,000 (Social media sales)
30K base of operations plus xv% commission (Web development)
SALES COMPENSATION PLAN EXAMPLES: ADVERTISING SALES (OUTSIDE SALES)
Note: Average committee for this position is 20%. Some clients offer a base salary with power to abound to 25% committee.
20% commission for each new advertiser plus 10% of advertiser'south spend for year 1. Subsequently year 1 you earn 1% for life on advertizing spend.
$x/hour for first 6 weeks, so 8.25/hour. Commission charge per unit is 23-25%. (Radio Advertizement)
Base of operations bacon of $ii,750/month with 4-viii% commissions on gross. Commissions depend on price per spot. (Total Service Ad Brokerage)
$25,000 base salary plus 15% uncapped committee charge per unit
25% straight commission plus bonuses
Agents receive an exclusive territory and 25% commission on gross revenue.
30% committee. (Magazine Advertizing)
fifteen% commission on all advertisements sold
20% commission for W2 employee (includes telephone, gas and leads) or thirty% for 1099 and you lot generate your own leads.
20% starting commission with ability to move to 25% and a base salary.
twenty% committee to start and then 25% afterwards 30 days.
$200-$325 weekly base pay plus 20% commission
25-xxx% straight commission on advertising sales
20% directly commission (Mag Advertizement)
20% commission (Luxury Real Estate Mag)
20% commission plus $10k/year to cover auto expenses, plus bonuses and healthcare afterward 90 days (Local Round Paper)
xx-33% committee range (Magazine Advertising)
We will consider a draw for the right person. Reps get 35% of the garment cover which is $2,100.
25% committee plus residuals
20% for each new advertiser and x% of the advert spend for that client for 1 yr.
20% straight commission
$30,000 base plus x% committee. (Local Business Coupons Mailed to Residences)
$450/week base plus 8.5% commission (Coupon Advert)
thirty-$45,000 base of operations plus 15% committee (Magazine Advertising)
Base of operations salary of $two,000-$3,000/month plus 20% commissions with no cap. (Digital Advertisement)
$300/week plus 18.5% committee on all sales. After $v,000 in revenue is reached, commission jumps to 20%. Weekly car allowance of $125. Cell phone allowance (Neighborhood Magazine)
$15-$xx/hour plus xx% committee (Magazine Advertising)
20% commission OR $9/hour and x% commission (Digital Advertising)
$125 base of operations plus 50% commission rate on all sales over $125 (Neighborhood Coupons)
$25,000 base bacon plus 30% commission. 50% health insurance coverage later xc days. (Grocery Store Advertising)
thirty% on gross receipts (Mag Ad)
twenty% straight commission (Radio Advertising)
SALES COMPENSATION PLAN EXAMPLES: Engineering science SALES (SAAS, MANAGED SERVICES, SOFTWARE)
twenty% commission on total sales. (Mobile App Development)
$10,000 base plus 8% commission on recurring contract of 12 months or more. If total recurring contract sales are greater than $500K during the starting time 12 months, rep will receive v% commission for an additional 12 months. A $25k bonus is available for sales over $750k. (Managed Services)
20% commission at signing plus 4% residuals. (Managed Services)
$325/week base of operations plus 12% gross sales. (Communications Equipment Sales)
twenty% on all sales and 5% override of recruits (360 Degree Video Production)
20% committee on gross for personal sales or 15% on company generated leads. (SAAS Sales)
Base of $1500/month until $4,000/calendar month in commissions, then becomes 100% commission. 50% commission for first month contract then fifteen% for adjacent half-dozen months. (Managed Services)
25% commission on first year of contract. (Mobile App Solutions)
20% committee, no cap (Managed Services)
25% commission on gross sales (Staffing Software)
50% commission for offset 12 months then decreases to fifteen% equally long every bit salesperson continues to service account. (Automotive Software)
20% commission on 10K monthly sales or less, 25% above 10K. $1000 monthly base salary. (Investment Trading Software Platform)
20% commission on life of account (Logistics Software)
$24,000 base plus thirty% commission (Employee Tracking Software)
5% base commission (Market Data and Analysis Tools)
15% committee on all sales (Web Evolution B2B)
30% commission plus residuals on all sales. (Web Development B2B)
twoscore% directly commission. (Video Sharing Application)
SALES COMPENSATION PLAN EXAMPLES: LOGISTICS SALES (Outside SALES REPS)
$500 per week and 35% committee rate
$fifty,000 per year and 1.5% commission on all collected sales
15% commission with $two,000 monthly draw. 401k, medical, dental, vision, life insurance, long term disability.
20% straight committee
30% commission on NET profit
x% profit for every shipment of about 20% markup at an boilerplate of $150/shipment.
SALES COMPENSATION Plan EXAMPLES: KIOSK/DEMONSTRATORS
15% commission plus daily bonuses and base of operations pay of $9-$10 D.O.East.
100% committee, typical rep makes $600-800/calendar week
$120/mean solar day or fifteen% commission on all sales, whichever is greater. Typical pay is $500 over a weekend.
Base pay $12-$15/hour
SALES COMPENSATION Program EXAMPLES: MANUFACTURING SALES (OUTSIDE SALES)
Commissions are typically xxx% of net margin per project.
$37,500 base plus v% commission
$4,500 monthly base plus 25% commission on annual contract value. Commission payout does not begin until $3,750/calendar month has been reached.
vi% committee off invoice upwardly to $100k per month. Over 100K, goes upward to 8% of invoice.
Base salary of $35,000 plus 5% commission (Tool maker)
5% of unabridged invoice (Makes Medical Pumps & Bearings)
10% straight committee of invoice. (Manufacturer of Gears, Bushings and Structural Components)
x% commission per arrangement (systems are $5000-8000) (Manufactured Fitness Equipment)
5% commission on invoice (Supply Chain Consulting and Manufacturing)
SALES Compensation PLAN EXAMPLES: MEDICAL DEVICE SALES (OUTSIDE SALES)
Minimum wage plus 10% gross commission
$2500 per signed contract
15% commission on a $15,000 medical device
$500 per contract and 10% in perpetuity
Royalties paid for 24 months subject to renewal. Full benefits and stock options based on performance. Compensation is based on royalties upward to 2 years subject to renewal to some other ii years.
SALES COMPENSATION Program EXAMPLES: REAL ESTATE SALES (OUTSIDE SALES)
$14-$16 DOE plus 0.7% commission on full lease value (Commercial Existent Manor)
$15 per consultation and 10% on all sales (Commercial Real Estate)
SALES Compensation Plan EXAMPLES: AUTOMOBILE/Machine/BOAT SALES (Outside SALES)
25% of front-stop gross. $250 minimum commission. Volume bonus, backend compensation, factory bonus
$350 calendar week plus 20% of gross profit for experienced machine sales reps. $250/week and 13% gross profit for inexperienced
$ane,600/month depict on 15th and 30th of each month. 25% commissions on gross on new and used vehicles including holdback less $375 pack plus whatsoever costs added to vehicles on sales ane through ix. On auction 10-fourteen commissions will be 30% retroactive to your first sale. On sales 15 and above, this volition be 35%. CAC deal pays $200 with no F&I. Commissions on finance bargain over $500 reserve $25, $25 for warranty and $15 for gap, maintenance plan or lease protect. Entire auto protect $75. Salesman of the calendar month $250. $100K bonus for selling 800+ vehicles in 4 years.
SALES COMPENSATION PLAN EXAMPLES: Financial/INVESTING/WEALTH (OUTSIDE SALES)
They payout is 80% of first month's billing plus an ongoing residual (eg., close v clients at $1,750/month level equals $7,000/month in commissions)
Our average rep closes ten deals per calendar month. Average funded amount is $thirty,000 and commissions are 2.five-5%. (Capital Funding Visitor)
After the company 7-ten% is deducted from the loan amount, yous make 25% of the profit. Once you lot achieve $250k in loans, you go up to 30% commission. (Capital Funding)
True base of $30,000-$xl,000 per year plus 2% commissions on gross (Pre Settlement Funding Visitor)
When you're ready to hire sales reps with u.s., give us a call at 888-447-3001. One time you sign up, nosotros'll send you training videos to assistance y'all know what to say to candidates to get them interested in your commission-merely position.
Source: https://timetohire.com/blog/must-read/find-your-ideal-compensation-structure-for-your-sales-organization/
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