For those that have hired a sales person what is the industry standard as far as pay and commision go. Someone who used to work for me as a dispatcher is now a sales rep for a non asset based broker and has a new customer that requires an asset based carrier to handle their freight no brokering at all of their freight. I was trying to figure what I should pay him for this. Just wondering what the industry standard is?
Sales Commision
Discussion in 'Freight Broker Forum' started by cominghomesc, May 21, 2012.
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Depends on the volume/rate. Commission % on 100 thousand a year is far more than say 1 million a year. Usually pay out on 2-3 years decreasing %.
Last edited: May 21, 2012
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That is likely one of the hardest things to figure out with a situation like you are talking about. You can't have a contract because you know he is not able to enter a contract because he is employed with someone else.
So paying him out on a couple years won't work because he could change jobs and be with an asset based carrier.
Personally I would look at a one time finders fee based on what you all think is fair. Pay enough that he brings you all his asset carrier only contracts. -
Most commission sales are not captive,whereas most salary(or salary/commission)are. If he can"sell"you that customer(might take a few % to the brokerage he works for)you can easily make a few year payout.
If you are talking about 100-200 thousand for the year a one time pay should be in the 7-8% range. Over three should be in the 5/3/1 range. -
I'd start off with a quarterly percentage based on the net profit. We would likely do somewhere between 10-20% of net on each load depending on volume.
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