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How much should I make?

Hi group:

For the last year, I have averaged $14,000-$20,000 in weekly sales.

The markup between our laid-in, actual, cost of goods and my selling price is almost 30%.

What % of that $14,000-$20,000 would be a fair commission?

10%? More? Less?

Thanks in advance. - by pacosdad
The compensation you receive for the services you provide is whatever you and your employer agree upon. There is no hard and fast rule. - by Houston
The fair commission rate is what someone else would be willing to accept to provide the same service you do. Market value is a reality in comp plans. They might be packaged a little differently, but there is a pretty similar total compensation plan in most industries.

To answer your question, it depends a lot on how much they pay you in salary. If you're salary is reasonable, anywhere between 5-15% of the net. This has a lot to do with how important you are to the sales process. For example, if the company spends a lot on marketing, or is a brand that sells itself, you are typically going to get a little less in my experience.

I don't know what you sell, but if I were working with 14-20K in weekly sales I would want at least 10% and a reasonable salary.

Hope this helps!

Justyn - by Justyn
The compensation you receive for the services you provide is whatever you and your employer agree upon. There is no hard and fast rule.
I agree with Houston - by Snowboy
The subject of compensation, especially when commissions are involved can be a double-edge sword.

Since I've always preferred to work on straight commission, or some kind of salary plus commission schedule I look at it this way.

I use the same formula a bank uses when I apply for a loan to buy a house.

In this part of the country the bank will allow no more than 33% of your gross wages to be used for shelter. Shelter is the amount of the mortgage plus utilities and taxes. So, if this totals $1000 per month then your gross should equal $3030. per month.

You can extrapolate the numbers from there.

What are the odds of you making this amount on sales? The company should be able to help you out there. If you need to make $3030. per month and the commission rate is 10%, for example, then you'd need to do $30,303. in sales each and every month to make this nut.

And that's how it works for me.

Chuck - by Sales Pro 1000
Hi group:

For the last year, I have averaged $14,000-$20,000 in weekly sales.

The markup between our laid-in, actual, cost of goods and my selling price is almost 30%.

What % of that $14,000-$20,000 would be a fair commission?

10%? More? Less?

Thanks in advance.
Is commissions the only compensation or do you get draws and bonuses or benefit or anything else? Do you generate your own leads or does the company help out? - by Marcus
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