Do I have to pay the same level of sales commission to new salespersons?
I'm recruiting a new salesperson as a replacement of a previous one who has retired. We're dealing in a furniture-manufacturing business that have many networks of furniture traders as our clients. We've already established good relationships with our clients, thanks to the previous salesperson that had been working with us for many years before. Now, I'm a little confused with the issue of whether I should be giving the same level of commission as our previous senior salesperson, or less. Considering since this new salesperson only has to maintain a good sales performance toward our already established list of clients, and doesn't need to work as hard to find some new clients.
Asked By: hartonson - 6/21/2007
Best Answer - Chosen by Asker
I think it's the right thing to pay new reps the same amount of money. However, most people in other professions don't make as much on day one as the veterans do. They have earned their higher pay over time... More
Answered By: Boo Too - 6/21/2007
Additional Answers (2)
you'd be dumb not too. green peas can be the best salesman in the company. they know nothing and try harder. they havn't picked up bad habits yet. what happens if you land a star and they find out your not paying them the same. bye bye star.. I'm a auto wholesaler and was that star back when I was 18 selling cars. if... More
Answered By: Job E - 6/21/2007
You absolutely want to pay him the same but give him more incentive to build on that customer base. Sometimes maintaining a base after a key employee leaves is the hardest part. If you tend to pay less, you will get less of an employee..............
Answered By: BobbyK - 6/21/2007
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