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Old 3rd June 2011, 08:22 PM   #1
dhmarth
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Join Date: Jun 2011
Posts: 1
Default How Much Commission Should I Ask For?

I have been hired under commission...
We sell graphics cards.
My job is a mix of marketing, customer service, and compatibility modifications.

I have no idea what to ask for commission. Compatibility is a key part of marketing because they are laptop cards and I will have to have some of the cards in my possession to modify them, ensure compatibility and make a successful sale.

Does anyone have a recommendation?
Thanks.

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Old 5th June 2011, 01:23 PM   #2
dhmarth
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Default

In case anyone was wondering, no its not a scam and I still haven't sent a reply.

Their sales volume (estimate) doesn't exceed 4000$ a month.

Some of their cards are not selling at all because of the way they are listed.

How much can I reasonably ask for? 15%? 25% on cards that weren't selling at all and sell for more?

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Old 27th June 2011, 03:15 AM   #3
seo-guy
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While you are evaluating commission rates, be assure to find-out closely how much the merchant is offering you for. Are payments are based on the sales made on your merchant site, including signing-up for newsletter or having a survey? The more your merchant wants visitors to have in order to make a commission, the heftier you will want that commission to be.

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Old 23rd September 2011, 10:13 AM   #4
CodyLoco
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Hi dhmarth-

I just wanted to chime in since it looks like you didn't get much feedback...

How much commission you can charge directly depends on their profit margin. You would have to find that out first before you go ahead and try to negotiate a percentage. Being that it's hardware you are selling, I would expect a relatively low profit margin, so don't expect a high commission rate (they need a profit too). I'm not sure how $4000/mo sales volume would be worth it for a company - even if you were somehow making 25% - that's $1000/mo - and I doubt their own total profit margin isn't even at 25%.

Let me know how it goes - I'm sure you already made a decision by now, just wanted to help if you hadn't.

Cody

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Old 19th December 2011, 11:34 AM   #5
popandu
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Join Date: Dec 2011
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Default what percentage commission should I ask for?

Hi there,

I was wondering how much commission is fair to ask for a business that has been operating for 7 months. Here are a few details:

Manufacturer of a new form of light technology with many applications.
Current Turnover is virtually zero.
There are no leads and everything is to be self generated.
There is little or no budget for marketing.
Gross profit margin to be in the region of 35% - 45%.
There is one other salesman (Director of the company).

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Old 25th December 2011, 10:31 PM   #6
daveb1
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Hi Pop,

Why not shoot for around a 20% commission in the scenario you describe. The thing about commission based sales jobs is that if there is not enough meat on the bone for employees you sales force will completely leave or the turnover / quality will be terrible. Another big part of this equation is if you are making a base salary or if you have access to company resources (office, computers, printer etc.). I am surprised these companies do not already have a commission plan in place even if there only is 1 more sales person. A lot of commission based jobs depends how easy the product is to sell and how much each sale is worth. Without this information it will be hard to answer questions or make judgments. That lighting system / innovation sounds cool pop and more info on it?

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