AA.Striker profile picture
AA.Striker profile picture

AA.Striker

Account Manager

Fire Starter

Standard/Fair commissions pay?

Hello all, new here and appreciate all of the great info provided. I wanted run something by the community and get some feedback on what would be a fair/standard commission compensation for the book of business I manage. I currently work for a National Construction/Safety supplies dealer and so far this year I've done $33mil in sales, with $9.5mil in profit. what would be a standard/fair commission rate on that?
🍾 Commission
💰 Compensation
🛢 Energy & Industrials
9

20 comments

Sort by:
poweredbycaffeine
WR Lieutenant
6
☕️
There is no such thing as standard.
oldcloser
Arsonist
4
💀
Case being built for a substandard/unfair pay plan, methinks. So much subjective in this.
oldcloser
Arsonist
5
💀
Check payscale com. You might find something more fair to compare your potentially unfair comp plan to.
CuriousFox
WR Officer
2
🦊
👀🍿
jefe
Arsonist
0
🍁
Good suggestion. Wasn't familiar with this one.
GarthVader
Contributor
4
Assistant to the Regional Manager
It depends on whether you’re managing an existing book of business or this is based off of closing net new logos for the business.
AA.Striker
Fire Starter
1
Account Manager
It’s a mixture of both. Some accounts I was given when I started, and some I’ve brought in as new clients. I would say the split is 60% given and 40% new clients. Although I have grown the existing clients by 60%-80% since taking them on.
GarthVader
Contributor
3
Assistant to the Regional Manager
This will vary from industry to industry but as a whole the ranges will likely be similar. Typically for an existing book of business at a well established brand and a product or service with strong product market fit, commission rates will be between 4%-10% and net new logo deals will be between 10%-18%. Remember, this is for well established brands. The more you get into the space of startup the more that moves to 10%-15% for existing and 20%-30% for net new.

What are your current percentages and what are you most concerned about?
AA.Striker
Fire Starter
0
Account Manager
Well, right now I’m at $160k base plus commissions/bonuses. Last couple of years I’ve hit $350k-$400k. The pay, in my opinion, is on the low end compared to what I’m bringing in yearly.
GarthVader
Contributor
2
Assistant to the Regional Manager
Your base is low for sure. Your base should easily be $200k-$250k based on profit. To put it in perspective, I would expect you to be making closer to $500k
Diablo
Politicker
2
Sr. AE
Not sure the right or wrong answer as it all depends. Are you getting any commissions today ?
HVACexpert
Politicker
2
sales engineer
Hello, are you managing reps or distributors? Or calling on contractors directly?
AA.Striker
Fire Starter
1
Account Manager
I deal directly with the contractors. It’s a total of 250+ contractors with a handful of small distributors. I’m the main point of contact, and I have 2 assistants that help with data entry, order tracking, clerical, etc.
HVACexpert
Politicker
1
sales engineer
250+ is a lot! Is your product customized/engineered or is it more something off the shelf or stocked?
AA.Striker
Fire Starter
1
Account Manager
Yes, I live on the phone! We are a large distributor for brands such as 3M, Milwaukee, Dewalt, Bosch, Honeywell, etc. All items are stocked.
HVACexpert
Politicker
1
sales engineer
This could be what’s hurting you. Although you are managing a large amount of business, a product like that is treated as a commodity, bought when needed , or can even be an impulse buy. You’re moving a lot of SKUs but not a lot of effort put in for each individual sales.
AA.Striker
Fire Starter
1
Account Manager
These are specialized clients that I also provide with tons of consumable products, such as plastic sheeting, tapes, adhesives, masking products, respiratory protection, PPE, etc. these transactions are carried out multiple times a week, and to various jobsites. There’s definitely competitors in the space, and I’m constantly going out to sites, visiting clients, wining&dining, etc to keep and grow the business.
Justatitle
Big Shot
0
Account Executive
What’s your current commission along with base, is this order taking or are you going out to make the sales?
A good number is 20% of sales for SAAS industry, in construction supply I’m not sure the standard.
AA.Striker
Fire Starter
0
Account Manager
Well, right now I’m at $160k base plus commissions/bonuses. Last couple of years I’ve hit $350k-$400k. The pay, in my opinion, is on the low end compared to what I’m bringing in yearly.
Justatitle
Big Shot
1
Account Executive
Yeah it is low. Not sure how to go about it

Related posts

14
Members only

Base pay plus commission.

Discussion
💰
👥
🧢
33
6

Standard Clawbacks

Question
💰 Compensation
21
Bravado is a community of trusted sales professionals endorsed by their customers.
Apple Store logo
Products
The War Room Jobs Salary Guide Tech Sales U
Company
About Us How It Works Blog Bug Bounty
Contact
Press Careers
© 2024 Bravado Inc. All rights reserved.
Privacy Policy Legal and Privacy Center Sales Jobs
If you are hired as a contract sales rep by a Bravado customer, we may ask you to prove access to the employee email account provided to you by that customer. This data will be shared with customers to track your sales productivity; customers can use this data to confirm you meet the minimum activity requirements to pay out your ramp stipend and commission.