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Old 01-28-2008, 10:50 PM   #1 (permalink)
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Commission Rate?

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.
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Old 01-29-2008, 04:34 PM   #2 (permalink)
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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.
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Old 04-23-2008, 09:01 PM   #3 (permalink)
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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.
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Old 04-23-2008, 09:02 PM   #4 (permalink)
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that site is developmentstyles.com
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Old 04-23-2008, 09:34 PM   #5 (permalink)
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Quote:
Originally Posted by NamesCody View Post
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.
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
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Old 04-23-2008, 10:09 PM   #6 (permalink)
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I agree

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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