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Sales Compensation Plan
Posted by: AMASignCo (
Date: November 27, 2008 08:54AM

We are developing a Sales staff and would like to obtain information regarding competitive base salary (if given), commission schedules, salary to commission ratio, standard quotas, bonus programs that are commonly used in our industry today. Please respond via

Re: Sales Compensation Plan
Posted by: signmanmatt (
Date: November 29, 2008 02:29PM

What's common is a weekly or bi-weekly draw on commisions. In other words a loan against furure sales commisions. This most certainly always leaves the sign shop owner the loser as a sales rep walks away owing. I have seen pathetic sales reps walk away owing 60k. However, commision only is for the few, the proud, the closers. The only thing that has worked for us is straight commisions. This gets the sales person moving in the right direction. Heck, I'll stop and pay a good salesman their commision the minute they hand me a down payment and a good set of signed drawings and sales orders. Staying organized is the secret. What was agreed on during the estimate. What was the salesmans ability to negotiate on the fly and what did that do to their commision. I always let my salesmen make between 8-12% on any project depending on what it large...margins...time frame from the cradle to the grave...THEN, as an insentive, I let them add "special dollars". This is money they will get..$50, $100, $500...on top of what i needed...I tell em 'watch out! Don't get greedy with "special dollars" or you will loose the deal...or worse...develop a reputation for gouging people...sales are like anything long term...and take time to develop a foundation....quotas are unrealistic expectations used to pressure people...a good salesman can always out sell the group he is representing....e-mail me at and i will send you more ideas from our camp and good luck.

Re: Sales Compensation Plan
Posted by: iCatch (
Date: December 29, 2008 02:15PM


Bravo! Commission is the only real answer to the compensation question in this business. Selling signs is like shooting fish in a barrel and the only excuse for not selling is poor work ethic.
On the quota issue I would like to add my two cents. Instead of a quota of sales... use a quota of sales calls. Use a sheet for your sales reps to log the calls he or she made. Tie that together with Matt's "special dollars" in such a way that the special dollars are awarded according to the number of sales calls made not sales made.
If your salespeople are walking through enough doors the rest will take care of itself!

Eric Stevens
National Sales Manager

Re: Sales Compensation Plan
Posted by: paulg (
Date: January 08, 2009 09:35PM

What rate do you offer? 10% ? What other packages do you offer? Gas and food allowances?

Re: Sales Compensation Plan
Posted by: iCatch (
Date: February 18, 2009 03:14PM

Standard Sales Commission on signage is around 15 to 20% of the gross or you can split the net. There are pluses and minuses to both methods. As far as allowances go if you split the net then the salespersons expenses should be considered as well as yours. If you pay a percentage of the gross then I would focus on a higher percentage of the gross and the expenses are the salespersons. That keeps things simple for you.

Eric Stevens
National Sales Manager
LED Signs by iCatch Displays

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