Find the Ideal Compensation Plan For Your Sales Organization
May 17, 2017 - Must Read, Recruiting
May 17, 2017 - Must Read, Recruiting
by Chad Bronstein, CEO
Are you ready to hire sales reps but aren’t sure about the ideal sales compensation plan? Have you searched the internet looking for an answer? Have you contacted competitors to see if they’ll help you out? If so, you’ve probably realized there is little help available for this monumentally important decision.
Here at Time To Hire, we get at least three or four new potential customers per week who ask us this question: “So… is 20% about what people are paying in sales rep commissions?”
We’ve been mostly unable to answer until now.
Since 2003, we’ve been compiling sales compensation plans and salary info on a variety of industries. In that time, Time to Hire has completed over 30,000 campaigns—that’s a lot of data! We compile data by asking our clients for a general idea of what an average rep and a superstar rep could make as a salesperson for their organization. A very small percentage of those clients will give us more information than we actually need such as their exact sales rep commission percentages or base pay amounts. While only 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 plan is individual to your unique business, we know that examples of what works for others are a great place to start the brainstorming.
To find a sales commission structure for the specific industry 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”).
Note: Each new line below denotes a different sales rep commission model.
Lease commissions ranging from $125-$450.
Up to $200 up front bonus for each account plus up to 75% residual.
For each activation, agents are paid a one-time $200 bonus plus a monthly residual of 30%.
Starting commission rate of 40% with an opportunity for 60% with enough 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 50% residuals.
50% signing bonus plus 15-25% lifetime residuals. Vesting reps can sell residuals for 30x value.
Each closed account nets 4300 up front bonus and 20% commission for lifetime of account.
Lifetime residuals. 25-40% residuals for lifecycle of customer. 30x buyout options twice yearly. 401k after 90 days. Medical, dental, vision after 90 days. Life and AD&D insurance. Includes iPad.
Starting base salary of $32,000 plus 3% commission on total sale.
20% commissions on gross revenue for a period of 2 years, even if not employed with a cap of $20,000 per client. Register 50+ businesses and commission rate grows to 25%
100% commission (duh), and $130-$140 per contract
We pay $180 per contract and average reps sell about 25 per month.
We have two options. $1000/base plus 15% residuals. Or 100% commission, 50% first month up front and 15% residuals.
Average sale pays $162 for AT&T and up to $250 for DirecTV.
100% commission and 4 tiers. Up to 22 sales/mo $137; up to 32 sales, $148; up to 42 sales $160 and up to 52 sales, $171 per contract. $500 sign on bonus after 15 sales first 30 days. Health benefits after 90 days.
10% of the total sale seems to be the standard in the roofing restoration business.
10% of total contract. Incentives and bonuses after $250,000 in sales.
We pay based on sales invoice minus costs for office and materials. Sales rep receives 50% of profit after costs. If invoice is $20k and material and office cost is $14k, remaining profit is $6,000 and rep makes $3,000.
Average commission is $800-$2000 per job and paid 50% upon turn-in. 4 week paid training. Paid housing at storm location along with 75% paid medical and dental.
Paid Housing, $10k per year on average. 7 weeks of paid training at $375/week. Gas allowance, $75/week. Paid cell hot spot, $140/month. Health insurance and we pay 50% of your HSA deductible. Profit sharing. 401k. Vacations.
10% of gross sale. 401k and medical insurance.
10/50/50 Split. 10% off the top and 50% of the profit goes to the roofing sales rep.
7.5% of the total 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 3-10% depending on experience.
10% commission on first $800k in sales. 11% until 1m and 12% over 1m in sales.
7-10% of total job depending on experience for in-home sales reps. Canvassing reps make $20 per inspection.
Our average sale is $14,000 and with 10% commission reps are making between $100-200K. 100% commission.
$400 a week for 4 weeks training. Then 100% Commission – 7% commission on provided leads. 9% commission on leads self generated. Health Insurance and Simple IRA. (Basement Solutions)
25,000 Base Salary + Commissions ranging from 6% – 12% based on a Par selling scale. Benefits after 90 days. (Shower Door Installations)
50% commission for veteran reps / 35% commission for non experience reps with $300 weekly training pay. (Windows, Siding, Gutters)
Base salary of $35,000-54,000 per year plus 2% commission after break-even is met. (Bath Remodeling)
Base salary of $300/week plus commission at 5% of all good sales generated. (Windows, Roofing, Siding, Doors)
8% commission of total of contract sold. Estimator must pay for his/her own gas, and provide their own transportation. (Patios)
Two options. $400 per week base pay plus 7% commission, or 100% commission and 10% commission on job total.
$450 per week for up to 60 days, then 10-12% of the total sale. Average sale is $7,000. (Iron Fencing)
10% for in-house leads, 12% for rep generated leads. 50% paid of profit for all up-sells.
10% of gross sales.
True base salary of $800/week plus 10% commission on job total.
Large window company: $10-$14/hour plus 3% commission on total job.
$40,000 base plus 3% commssion ($3-$4 watt), 4% (4-$4.60) and 5% above $4.60 watt. Team commission is also paid at .05% on sales above $4 watt.
$1000 draw against commission for first 90 days and 100% commission thereafter. $600 gas bonus per 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 manager earns $50,000 base plus $250/sale override on managed rep. Solar sales rep earns $1000 per sale (expected to close 2 sales per week).
True base salary of $30,000 plus 3% commission on gross system cost. 3% of system costs will be paid 25% on Friday after signed and rest (75%) after 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 $12-15 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 sale.
$300 commission per KW sold on self generated deals. Average deal is 5kw or $1,500. 70% of commission paid the following Friday and then remaining 30% when deal is closed.
$500 per Kw minimum commission.
25% commission on all sales.
20% commission until 100 sales closed, then goes up to 25%.
20% commission until reps have proven themselves, then 25%.
One company mentioned paid training at $9/hour for two weeks and a $100/month gas reimbursement.
Start with training salary of $2000/mo for month 1, $1500 for month 2, $1000 for month 3 and $500 for month 4. Rep also receives $500/mo auto allowance. Commissions range from 10-18%.
We pay $500 minimum commission per sale.
5x monthly contracted revenue paid out in 2 installments at signing and at 6 month anniversary. Once successful, converts to 3 month draw against commission of $2,000/month.
We pay 10% commission on profit of each sale.
Commission 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 sale
Experienced reps are guaranteed $650 per sale.
100% commission after the first 8 weeks. First 8 weeks non-recoverable draw of $550/week guaranteed.
7% straight commission.
Average sale is $16,000 with a range of $8,000-$110,000. Commission averages $480 per sale and ranges between $240-$3,300.
25% on personal production, no overrides. At 250,000 kwh = $1,125 per week or $2,250 at 500,000 kwh.
40% commission plus bonuses.
2 week paid training, then 100% commission. W2 with benefits. (Medical, Dental & Vision after 90 days). 401k retirement 6% matching. Typical first year pay is $45-65,000.
120 hours of paid training @ $15/hour, then 100% commission at 20%.
12-month advance 17% commission + vested renewals. Motivated reps can make $150k/year.
New business commissions paid at 50%. Renewal business 25%. $1500-$2000 draw against commissions monthly and a 90 day base is provided while building your pipeline.
We provide a base of $30-$40,000 with medical and dental. Commissions range between 2-10% per sale based on type of product.
40% new business commission and 25% on renewal income. 5% new renewal commission income of agency team and up to 49% ownership of book of business.
Base of $24,000-$40,o00 based on experience, and when a 15% commission exceeds the base, the commission is paid. Similar to a draw, but base is never rescinded.
All commissions are residual and most splits are a 50/50 basis net of expenses.
Base salary of $2000 first month, $1500 second and $1000 month 3. Commission are 5% P&C, 22% L&H and 50% annuities (damn, I am never buying an annuity!)
10% commission and 3-4 year rep can make 100K with residuals.
20% commission on first payment from client (average $960), then 10% of second payment ($480)
Initial commission of 50% then 30% recurring monthly on SEO, PPC and social media management deals.
Two options. W2 with base salary of $2,500/month plus 15% commission. Or 30% straight commission. (Automotive Marketing)
Facebook advertising $250 for each new customer and $75/month residual. If you sell all services you make $450 one time plus $110-175 monthly residual. (and 50% of our clients buy all our services)
25% commission on all signed contracts, 5% of entire contract up front and 20% in monthly increments over the life of the contract. A 10% monthly residual commission is paid up to 5 years when client renews contract.
5% commission on sales up to 30K, 10% on 60K monthly and up to 15% for sales exceeding $60K monthly.
30% of net 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% commission plus ramped bonus system with $3,000/month potential. 5% residual commission after 12 months up to 24 months.
50% first month of contract and 5% residual in perpetuity.
50% initial commission plus 10% trailing lifetime residual.
90 day commission-only probationary period with 15% of total contract and 8% on contracts acquired from existing clients. After 90 days base salary ($14,000-$20,000) plus same commission structure as commission only. (15% and 8%)
10-12% on gross sale (SEO Company)
10% monthly recurring commissions with $50 bonus for each new campaign (SEO Company)
20% gross commission (Local SEO Marketing Company)
15% monthly (SEO Company)
40% residual (rolling commission) (Local SEO)
20% of sales and 5% override of anyone you recruit
$1000 sign up bonus for each new client signed plus 15% commission (recurring) while client is retained.
40% front end and 10% every month for life of client (Lead generation service)
25% on net sales (Public Relations company)
25% commission each month client remains (Digital marketing company)
20% monthly for year 1 and 10% for year 2 residuals. (Digital Marketing)
10% up to 5k in sales, 15% $5-$15k, 20% over $15,000 (Social media sales)
30K base plus 15% commission (Web development)
Note: Average commission for this position is 20%. Some clients offer a base salary with ability to grow to 25% commission.
20% commission for each new advertiser plus 10% of advertiser’s spend for year 1. After year 1 you earn 1% for life on ad spend.
$10/hour for first 6 weeks, then 8.25/hour. Commission rate is 23-25%. (Radio Advertising)
Base salary of $2,750/month with 4-8% commissions on gross. Commissions depend on price per spot. (Full Service Advertising Brokerage)
$25,000 base salary plus 15% uncapped commission rate
25% straight commission plus bonuses
Agents receive an exclusive territory and 25% commission on gross revenue.
30% commission. (Magazine Advertising)
15% commission on all advertisements sold
20% commission for W2 employee (includes telephone, gas and leads) or 30% for 1099 and you generate your own leads.
20% starting commission with ability to move to 25% and a base salary.
20% commission to start and then 25% after 30 days.
$200-$325 weekly base pay plus 20% commission
25-30% straight commission on ad sales
20% straight commission (Magazine Advertising)
20% commission (Luxury Real Estate Magazine)
20% commission plus $10k/year to cover auto expenses, plus bonuses and healthcare after 90 days (Local Circular Newspaper)
20-33% commission range (Magazine Advertising)
We will consider a draw for the right person. Reps get 35% of the garment cover which is $2,100.
25% commission plus residuals
20% for each new advertiser and 10% of the ad spend for that client for 1 year.
20% straight commission
$30,000 base plus 10% commission. (Local Business Coupons Mailed to Residences)
$450/week base plus 8.5% commission (Coupon Advertising)
30-$45,000 base plus 15% commission (Magazine Advertising)
Base salary of $2,000-$3,000/month plus 20% commissions with no cap. (Digital Advertising)
$300/week plus 18.5% commission on all sales. After $5,000 in revenue is reached, commission jumps to 20%. Weekly car allowance of $125. Cell phone allowance (Neighborhood Magazine)
$15-$20/hour plus 20% commission (Magazine Advertising)
20% commission OR $9/hour and 10% commission (Digital Advertising)
$125 base plus 50% commission rate on all sales over $125 (Neighborhood Coupons)
$25,000 base salary plus 30% commission. 50% health insurance coverage after 90 days. (Grocery Store Advertising)
30% on gross receipts (Magazine Advertising)
20% straight commission (Radio Advertising)
20% 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 first 12 months, rep will receive 5% 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 plus 12% gross sales. (Communications Equipment Sales)
20% on all sales and 5% override of recruits (360 Degree Video Production)
20% commission on gross for personal sales or 15% on company generated leads. (SAAS Sales)
Base of $1500/month until $4,000/month in commissions, then becomes 100% commission. 50% commission for first month contract then 15% for next 6 months. (Managed Services)
25% commission on first year of contract. (Mobile App Solutions)
20% commission, no cap (Managed Services)
25% commission on gross sales (Staffing Software)
50% commission for first 12 months then decreases to 15% as long as 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 30% commission (Employee Tracking Software)
5% base commission (Market Data and Analysis Tools)
15% commission on all sales (Web Development B2B)
30% commission plus residuals on all sales. (Web Development B2B)
40% straight commission. (Video Sharing Application)
$500 per week and 35% commission rate
$50,000 per year and 1.5% commission on all collected sales
15% commission with $2,000 monthly draw. 401k, medical, dental, vision, life insurance, long term disability.
20% straight commission
30% commission on NET profit
10% profit for every shipment of about 20% markup at an average of $150/shipment.
15% commission plus daily bonuses and base pay of $9-$10 D.O.E.
100% commission, typical rep makes $600-800/week
$120/day or 15% commission on all sales, whichever is greater. Typical pay is $500 over a weekend.
Base pay $12-$15/hour
Commissions are typically 30% of net margin per project.
$37,500 base plus 5% commission
$4,500 monthly base plus 25% commission on annual contract value. Commission payout does not begin until $3,750/month has been reached.
6% commission off invoice up to $100k per month. Over 100K, goes up to 8% of invoice.
Base salary of $35,000 plus 5% commission (Tool maker)
5% of entire invoice (Makes Medical Pumps & Bearings)
10% straight commission of invoice. (Manufacturer of Gears, Bushings and Structural Components)
10% commission per system (systems are $5000-8000) (Manufactured Fitness Equipment)
5% commission on invoice (Supply Chain Consulting and Manufacturing)
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 up to 2 years subject to renewal to another 2 years.
$14-$16 DOE plus 0.7% commission on total lease value (Commercial Real Estate)
$15 per consultation and 10% on all sales (Commercial Real Estate)
25% of front-end gross. $250 minimum commission. Volume bonus, backend compensation, factory bonus
$350 week plus 20% of gross profit for experienced automobile sales reps. $250/week and 13% gross profit for inexperienced
$1,600/month draw on 15th and 30th of each month. 25% commissions on gross on new and used vehicles including holdback less $375 pack plus any costs added to vehicles on sales 1 through 9. On sale 10-14 commissions will be 30% retroactive to your first sale. On sales 15 and above, this will be 35%. CAC deal pays $200 with no F&I. Commissions on finance deal over $500 reserve $25, $25 for warranty and $15 for gap, maintenance plan or lease protect. Entire car protect $75. Salesman of the month $250. $100K bonus for selling 800+ vehicles in 4 years.
They payout is 80% of first month’s billing plus an ongoing residual (eg., close 5 clients at $1,750/month level equals $7,000/month in commissions)
Our average rep closes 10 deals per month. Average funded amount is $30,000 and commissions are 2.5-5%. (Capital Funding Company)
After the company 7-10% is deducted from the loan amount, you make 25% of the profit. Once you reach $250k in loans, you go up to 30% commission. (Capital Funding)
True base of $30,000-$40,000 per year plus 2% commissions on gross (Pre Settlement Funding Company)
When you’re ready to hire sales reps with us, give us a call at 888-447-3001. Once you sign up, we’ll send you training videos to help you know what to say to candidates to get them interested in your commission-only position.