Commission-based Salary - need input

**cookie** · 02-06-2009 01:46 PM

I am forming a partnership with a 15-year company. The owners no longer want to do the day to day management of clients and feel that they have not full-achieved its full potential since they have lost interest in sales side.
The back end works seemlessly. They have a proven supply-chain success.

I am experienced in my field and have been doing business development for 12 years.

The match seems right and I would take over a reputable mfg's product and successful business model.

What my question is what are thoughts on the % commission rates?

The offer currently stands at 1% for any existing business with existing clients and 3% for new business with existing clients. That's basically managing what is already working for them.

Then for any new clients 3% or a function of the margin (IMU) I am able to achieve with product price negotiations.

I have worked on commissions before with a small base salary. This seems low to me? It would be about 75K just based on last fiscal year just purely based on existing business. So with maintaining current clients, I would earn 75k.

The retail sector is hurting, I don't think the business will be as big as last fiscal year. It could be as low as 30% less. Ouch.

Any thoughts would be appreciated.

**rogercbryan** · 02-06-2009 02:56 PM

% commission rates are fairly common. Are you asking because you want to hire a new sales rep? I'm still a little lost as to what you are asking. Are you going to be the sales rep? I don't see the partnership aspect of this deal... sorry I'm totally lost here...

**cookie** · 02-12-2009 01:34 PM

I would be acting as independent contractor for this company. All expenses including travel and marketing are my own. The business model and logistics is established. I just need to build a pipeline for new customers to increase my commission sales.
I want to negotiate taking an equity position because I am in this for the long haul.
I have never worked on strictly sales commission and need some advice on how to professionally structure this partnership.

Thanks for any thoughts.