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For those of you in sales……what percent are y’all getting in commission?

Posted on 10/5/23 at 1:26 pm
Posted by UFownstSECsince1950
Member since Dec 2009
32813 posts
Posted on 10/5/23 at 1:26 pm
I realize this is vague, and every job/product is different. I know very little about sales, but got offered a position with a company kind of randomly, so I’m weighing my options (figured I’d come on here and ask around since there’s a lot of experience in various backgrounds on this forum)


So for those comfortable enough to divulge:

I’m just curious what % in commission those of you in sales get, and if that’s strictly commission, or if you’re salaried also.

Any tips/pointers/advice/links/etc are all welcomed
Posted by Tifway419
Member since Sep 2022
1798 posts
Posted on 10/5/23 at 1:36 pm to
50% of my comp plan is base, so it’s up to me to make the other 50% in sales / commissions.

I sell 2 main product types I’d guess you could say:
Type A is high volume/low cost and I get 5%.
Type B is low volume/high cost and it is laddered. Starts at 12% and increases as my sales increase. I’m at 17% now, close plan so I’ll probably finish at 20%.
Posted by masoncj
Atlanta
Member since Jun 2023
602 posts
Posted on 10/5/23 at 1:45 pm to
I’ve been in corporate b2b sales my entire career and it varies so much your not gonna get anything conclusive from the 20 different post replies you’re likely to get.

Maybe a better questions to ask is what do you think a reasonable quota would be for the job and what you’re being asked to sell.

If you don’t know the answer to that I wouldn’t take the job or would certainly ask to speak with no less than 2 to 3 of your future/potential peers and get their take before accepting
This post was edited on 10/5/23 at 1:46 pm
Posted by masoncj
Atlanta
Member since Jun 2023
602 posts
Posted on 10/5/23 at 1:49 pm to
I doubt that will help him much. I just did the calculation on my comp earnings ytd and mine is proabably about 1% but I work for a fortune company and my at risk at 100% is substantial.

My point is every company is different

They key to success in sales comp is having an attainable quota based on being at 100% of plan with on target bonus that meets your expectations financially
Posted by Tifway419
Member since Sep 2022
1798 posts
Posted on 10/5/23 at 1:58 pm to
quote:

They key to success in sales comp is having an attainable quota based on being at 100% of plan with on target bonus that meets your expectations financially

This. Your quota should be attainable if you work hard in any given year. Do some calculations to see how much you’re compensated if you reach your quota. If you’re good with that dollar amount, go for it. If not, then try to negotiate a higher base salary.

In all likelihood, from my experience, you won’t be able to negotiate the commissions as they’re set across the board for all sales people. The base salary is the “hidden” part that differs from person to person. I said mine is 50/50, but it’s really 46% base, 54% commissions based.
Posted by meansonny
ATL
Member since Sep 2012
26044 posts
Posted on 10/5/23 at 2:02 pm to
Roughly 10% with a bonus structure that bumps to about 15%.
I get a residual comp about 1.5%.

I do get about $8/hr (works to a base salary over $16k).
I claim overtime (maybe $1k/month).
Company pays 75% of health insurance premium.
Company pays 5% of gross earnings into cash pension fund (I'm grandfathered on defined benefit pension plan, but I only got about 6 years in before the employer made the switch).
Company matches 50% of my 401k input up to 8% of my total pay.
Company pays $1500 per year into my HSA.

There are other perks that don't get defined on any tax form.

I get 1.5 months paid time off... but that is at the $8/hr. I've never not worked on a vacation.
Posted by RockyMtnTigerWDE
War Damn Eagle Dad!
Member since Oct 2010
108183 posts
Posted on 10/5/23 at 2:21 pm to
Generally among Cat heavy equipment dealers if you do both sales and rentals should be close to the following.

2-3% of gross rentals but can vary

Now machine commission is either based off of gross profit, or gross revenue.

There will be a higher percentage commission anywhere from 4-13% on gross profit.

If it's based on total gross sales revenue you will be looking at 1-4% and may vary

Plus a small base, but a 6-12 mo guarantee to start.

Usually comes with a vehicle, gas, benefits with 401K and some sort of profit sharing.

There were some anomalies in the dealer network. I knew of one dealership that paid all their salesman around 80K and then they split total commissions earned equally in that year or quarterly. Their theory was this insures you will always make some commission even if a certain industry was down in a year in one part of the state, but another is up somewhere else.

I personally would not work for that dealer. I want to earn commission based on my efforts and not based on someone else's.

If you go just rental house your base is a little higher.

This is just general info without dialing down too much.


Posted by LSUShock
Kansas
Member since Jun 2014
5576 posts
Posted on 10/5/23 at 3:00 pm to
I'm paid 10% of GP for the first 12 months of the new account and a 8.5% for the duration after.

Go work for a small company. A million times better than any corporate sales gig.

Unless you are 28 or younger. In that case go work corporate, live below your means, travel on their dime, build your network and learn how to sell, then go take all that and work for a small company or start your own.

Also, build real relationships with people with a long game intent. You never know where people will be in 5-10 years, or where you will be either, and how that can be beneficial to both parties.
This post was edited on 10/5/23 at 3:06 pm
Posted by TigerTatorTots
The Safeshore
Member since Jul 2009
82057 posts
Posted on 10/5/23 at 3:20 pm to
Entirely depends on industry - responses will be across the map. For example, you have some software sales and medical guys making 20+% off a sale whereas I used to make less than 0.1% off signings in industrial sales. Different bases, different contract values, different profit levels.
Posted by BamaCoaster
God's Gulf
Member since Apr 2016
6637 posts
Posted on 10/5/23 at 4:24 pm to
I work in insurance.
10-13% on new biz.
8-11% on renewals.
After three years of hustle, you can coast on renewals.
This post was edited on 10/6/23 at 6:00 am
Posted by CHiPs25
Member since Apr 2014
3068 posts
Posted on 10/5/23 at 4:32 pm to
At my company, I pay my sales team a base salary of $50k. This gives them cashflow in the months that they may not have a strong commission base. For all sales, they get 6% of revenue and are expected to sell approximately $2m in business each year, which at the $2m, they are taking home $170k per year. I have had sales reps sell $3.5m in a year before and then they also get a 1% bonus if the company makes our number. The 1% is based upon their sales number but only if they hit their quota.
Posted by Rize
Spring Texas
Member since Sep 2011
18734 posts
Posted on 10/5/23 at 5:12 pm to
About 70% comes from commission and Quarterly bonus checks. I have a base salary and a car allowance.
This post was edited on 10/5/23 at 5:14 pm
Posted by Vols&Shaft83
Throbbing Member
Member since Dec 2012
70096 posts
Posted on 10/5/23 at 6:49 pm to
Bout tree fiddy


Actually 5% ARR / 2% NRR

OTE is double my base salary not including bonuses.
Posted by Fat Bastard
2024 NFL pick'em champion
Member since Mar 2009
89297 posts
Posted on 10/5/23 at 7:09 pm to
Posted by UncleLogger
Freetown
Member since Jan 2008
3126 posts
Posted on 10/6/23 at 8:40 am to
1.5% for most of our product line. 1% for some of the legacy lower margin stuff. This is upstream oil and gas.
Posted by SeeeeK
some where
Member since Sep 2012
30678 posts
Posted on 10/6/23 at 8:40 am to
10%
Posted by UFownstSECsince1950
Member since Dec 2009
32813 posts
Posted on 10/6/23 at 11:42 am to
I appreciate all the replies. Pretty cool seeing these various structures, regardless of what field/industry y’all are in.

quote:

CHiPs25

Hey Chip, I’ll become a Falcons fan, do the dirty-bird, and sell anything you got for half that, lol.
I’ll sell Biden as tGOAT president all-time for opportunities like those
Posted by wasteland
City of peace
Member since Apr 2011
5915 posts
Posted on 10/6/23 at 12:50 pm to
Bout 350%
Posted by BayouBengalRubicon
Baton Rouge
Member since Dec 2019
527 posts
Posted on 10/7/23 at 10:05 am to
In Industrial Sales:

$100K base and get 55% of salary in commission if I achieve quota. If you over drive then you can easily double your salary.
Posted by Thundercles
Mars
Member since Sep 2010
6133 posts
Posted on 10/7/23 at 10:21 am to
I work in software sales. Majority of companies are using a 50/50 split on base/commission. Those range from 55/55 all the way up to 180/180 (and probably some higher I'm not familiar with) not including stock grants which can be 5-50k a year and sometimes a lot higher depending on your position and the stage the company is at.

The general structure is that your commission will be about 10% of your attainment. So you hit a million dollar quota, you get around 100k variable commission but that can fluctuate a bit either direction.
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