Forums: Discussions for entrepreneurs and small business.

Hi there,

How much $ per hour would you pay a contract sales rep? I am thinking $8 an hour?

It is a work from home job, they choose how many hours they work per day, and duties will be mainly making calls to potential customers via the phone and may include a couple of face to face meetings every month.

Would you also reimburse the person for telephone calls and travel?

And what percentage of commisson would you give? I am thinking 15%?

Some companys pay no base, so that is good. It depends on what type of business i suppose. What do you sell? I pay even hourly employees for mileage and pay for there mobile phones. My commission based is stricly that, commission. We pay 20% commission. My husband is a Landscape Designer and before he owned his own form he worked for a large corporate company and made 14% with nothing else, no phone, gas etc..it was up to him to deal with come tax time. You have to find a line between what you can afford, what is fair and what will motivate. Sounds like you are on the right track. Are you paying health insurance, if so, you could pay less commission.

Erin

Hello there!

Welcome to the SUN forums!

What type of business is it? What are they selling (avergae ticket?)

Here is a good old standby thatis easy to manage:

Big ticket (car, construction, server, etc.): Draw, 20% off the top for the house (of profit) split the balance

Small ticket: salary $8/per hour is fine, 20% off the top for the house,split the balance

(travel expenses may come from the house`s end if you feel it is necessary to re-imburse)

One of my first employers gave me a piece of advice that stuck (after of course I scoffed at his offer...) if you know you are "THAT GOOD" then you have no problem proving it.  At the end of the day, the more you make the company, the more you make yourself.

Just my 2 cents.

Your thoughts?