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ICAN/ATEX: How do you calculate sales commission?

August 14, 2013

Many cleaning professionals visit the International Custodial Advisers Network (ICAN) Ask the Experts page for insight and, every business day, we deliver advice to better help you perform your job.

Wednesday’s Question:ICANATEX Logo

If utilizing sales personnel, what kind of percentage is given for work or per contract obtained?

Wednesday’s Answer:

Sales compensation typically includes a combination of base salary, plus performance-based incentive (commission), plus expense account and a car.

Salary to Commission Ratios range from:

  • Zero to 50 percent salary plus 100 to 50 percent commission: Salary ranges, as written in ATEX before, are dependent on local market rates.

Variables Adjusting the Above:

  • Salesperson experienced/new in the cleaning industry
  • Size of local market (# of opportunities & average job size)
  • Aggressiveness of cleaning firm’s pricing (where is their pricing relative to their market?)
  • Does the salesperson develop pricing, or does Operations?

Commission plans for Contracts vary from:

  • One-time payment of: 100 percent Monthly Gross Profit, or 20 percent of Monthly Billing Amount  ... ICAN representative

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