Wednesday's Ask the Experts: Commissioned sales personnel

January 21, 2009

Wednesday''s Ask the Experts question from a cleaning professional on the International Custodial Advisors Network (ICAN) "Ask the Experts" page: If utilizing sales personnel, what kind of percentage is given for work or per contract obtained?

The 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:
• 0-50% salary + 100-50% 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:... — Chris Arlen, President, Service Performance
Ph. 206-780-2963 | Fax: 206-780-2448 | www.serviceperformance.com

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