How much money should I expect my sales person to make?

Dear Aunty B,

We run a small specialised consulting company and until now, my partner and I have always made the sales. But selling and running the business means we have no weekends.

We are about to put our first sales person on for more than we are paying ourselves! We are also offering them a commission structure.

How much money can we expect them to make?

Dion,
NSW

Dear Dion,

A lot. That’s how much. Heaps and heaps! Enough to put on some more staff and stop you running around and burning out. Look, there is a rule of thumb. Sue Barrett our sales guru says that a good salesperson should be making at least two and a half times the total – and that means everything – cost to you. That is the bare minimum where you keep them employed.

“However, in a services business,” says Sue, “I expect them to bring in four or five times the cost.”

Congratulations on putting on the sales person. A lot of start ups leave it too late. In fact, when I was starting out, my first hire – after my bookkeeper – was a top salesperson and I never looked back.

The thing you must do now is make sure they have enough training, and understand your industry and marketplace. And then they must be in love with your products!

Good luck!
Your Aunty B

To read more Aunty B advice, click here.

Email your questions, problems and issues to auntyb@smartcompany.com.au right now!

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