I'm thinking about hiring a couple of sales reps to sale ad space and was wondering what the average percentage is for sales reps I was thinking 10% but I don't want to give to much or not be giving enough.
I'm thinking about hiring a couple of sales reps to sale ad space and was wondering what the average percentage is for sales reps I was thinking 10% but I don't want to give to much or not be giving enough.
Personally, I do not think 10% is enough. If these individuals can keep the ad space on your Website, or in your publication, filled, and provide you with a continuous source of revenue, then they deserve more than just a tenth of the benefit. 25% to 30% seems to be more in line with reality, in this case.
Its going to be dependent on the scalability of your revenue model, if they can generate viral income then the commission rate can be smaller, however if its a more "one and done" model then you may need to increase the rate to between 17.5 and 25%. The guy who writes the blog at Development Styles is very good at stuff like this, drop him a line.
that site is developmentstyles.com
How much ad space are you selling currently? If the answer is zero then hire two people at 50% and let them have at it. If it works then hire two more at 25%.... then you can keep lowering the commission rate as your sales increase (as this means more advertisers are interested).
50% of nothing is.... umm... still nothing
"Business is WAR - Take No Prisoners - Give No Second Chances"
I agree, the rate should be more like 20-30% anywhere in there and you are providing enough revenue and motivation for the agents. much less than that and the deals better be worth a lot more. ..however it all depends on lots of factors, what type of marketing strategy are you going to follow, and what type of business is it for?
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