AA.Striker

Account Manager

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?

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🛢 Energy & Industrials

20 comments

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poweredbycaffeine

WR Lieutenant

☕️

There is no such thing as standard.

oldcloser

Arsonist

💀

Case being built for a substandard/unfair pay plan, methinks. So much subjective in this.

oldcloser

Arsonist

💀

Check payscale com. You might find something more fair to compare your potentially unfair comp plan to.

CuriousFox

WR Officer

🦊

👀🍿

jefe

Arsonist

🍁

Good suggestion. Wasn't familiar with this one.

GarthVader

Contributor

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

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

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

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

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

Sr. AE

Not sure the right or wrong answer as it all depends. Are you getting any commissions today ?

HVACexpert

Politicker

sales engineer

Hello, are you managing reps or distributors? Or calling on contractors directly?

AA.Striker

Fire Starter

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

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

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

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

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

Tycoon

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

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

Tycoon

Account Executive

Yeah it is low. Not sure how to go about it