Getting Commission Going

Bill has a company that does wholesale to manufacturers and wants to start paying commission to employees. He has never done it before and asks Dave how to pull it off after giving his numbers.

QUESTION: Bill in Tennessee has a company that does wholesale to manufacturers and wants to start paying commission to employees. He has never done it before and asks Dave how to pull it off after giving his numbers.

ANSWER: Start your salesman on some percentage of your number, maybe 5% of that. Just tell him that you don’t know how this is going to work, but let’s try it for six months and then you look at it again at the end of the year. We may have to adjust it up or down but let’s try it first.