Re: Salesman Compensation

[Robert L Bass <sales@xxxxxxxxxxxxxxxxxxxxx>]

I misread your original message.  10-15% should be OK if the tickets are high
enough and you're providing plenty of solid leads.  I assume you will also
include benefits such as health insurance, etc.

We've considered hiring a sales person with commission only or base salary plus
commission.  I hope to have someone (maybe two) working full-time before our
next extended trip (looks like next year it might be Italy).  Margins are
slimmer but volume is significantly higher with an online store than a brick and
mortar dealership.  A talented, experienced sales rep should be able to earn
well over $100K.  If he can't make that much either he's ineffective, his
employer is being unfair or the market is not there for his product at his price
point.

> So if I understand you, you are saying no base and
> 10-15% of total sale is cheap?  What would you
> consider reasonable?

Actually, it was I who misunderstood you.  If you provide three or four solid
leads a day at 15% commission, a competent salesman should deliver one or two
sales a day at $3K (average cost of a comprehensive, hard-wired, residential
system in CT while I was there) each.  That would translate to a decent pay rate
for the salesman and solid revenue for you.

If you were pushing lick-and-stick garbage like Fowler the salesman wouldn't
need much technical skill but he'd have to be expert at high pressure, "one call
closing".  Those guys typically make less money than a skilled sales rep and
they usually flip from one employer to the next.  I used to see the same guys'
names on business cards from different competitors every few months.  Those are
the creeps who tell the customer anything to make a sale, leaving you to clean
up their mess during the installation.

Note: I assume you are *not* the sort of dealer who would pull a Fowler on his
customers.  The above is mentioned only for comparison of different sales
strategies.

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Regards,
Robert L Bass

Bass Burglar Alarms
The Online DIY Store
http://www.BassBurglarAlarms.com

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Never underestimate the power of very stupid people in large groups.