Question

Topic: Other

How Much Commission Should I Pay?

Posted by Anonymous on 3/14/2010 at 11:21 AM ET 250 Points
I work with some specialty manufacturers as a rep. I get their products sold through catalogs and by other direct marketers and get paid a commission on average of 15%. Sometimes I need to split this with another rep I work with.

I have a person (also a rep) that will give me a lead about a manufacturer that fits into my criteria, and if I sign them up, and their products sell, he would like part of the action for bringing them in. i.e. a small percentage of all sales.

I'm wondering if anyone has seen any norms in this area, other than; whatever you can negotiate. I'm thinking it would be between 1-5%

Has anyone had similar experience?
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RESPONSES

  • Posted by michael on 3/15/2010 at 11:09 AM Member
    John,
    It depends on how much work you do for it. Do you close and service? If so, not much...$50? Also depends on price point.

    If they sell and service and you just carry the contract then...well, this is what we do....I pay them 80% of the commission.


    Michael
  • Posted on 3/15/2010 at 12:15 PM Author
    Michael,

    I don't think you understood my question. A guy gets me a new manufacturer to rep. I get paid 15% of sales I generate for the manufacturer. What percent of the 15% that I get do I give the guy the got me the manufacturer in the first place?
  • Posted on 3/15/2010 at 4:22 PM Author
    I'll add one more thing. I want this person to continue to work aggressively on my behalf to find me additional manufacturers and distributors for me to rep.
  • Posted on 3/19/2010 at 12:10 AM Author
    I'm closing this question because of no answers.
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