Need Advice For First Sales Job Salary

I have a phone interview for a potentially great sales gig this week. I expect to be asked what I would require for a minimum salary. Being that this is sales, and would be my first year in a new territory and completely different sales environment than I'm in now I'm not sure how I should answer. I would like to say that it's negotiable, but I also feel that a definitive answer is what they want to hear. I know that I want/need to make at least 45k. So how should I answer the question? Should I just talk base and ignore commissions?... Since I need 45k should I say 55k?..more? What say you? The company wants to establish a new territory in my area so I feel the commissions are a complete unknown for the first year.

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Originally Posted by booner

I have a phone interview for a potentially great sales gig this week. I expect to be asked what I would require for a minimum salary. Being that this is sales, and would be my first year in a new territory and completely different sales environment than I'm in now I'm not sure how I should answer. I would like to say that it's negotiable, but I also feel that a definitive answer is what they want to hear. I know that I want/need to make at least 45k. So how should I answer the question? Should I just talk base and ignore commissions?... Since I need 45k should I say 55k?..more? What say you? The company wants to establish a new territory in my area so I feel the commissions are a complete unknown for the first year.

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If you're a damn good salesman and are confident in your abilities negotiate for a hudge commission. Ask for just enough base to cover your absolute essentials.

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You need something to base your numbers off of, have a base number in mind but also make sure you have a good understanding of the commission structure. I work in sales and would be happy to talk to you about it.

Boom! Killed the phone interview. I have a meeting with him in 2 weeks when he comes down to NY from Canukistan. He is putting together a presentation for me on the company, which is ironic because I had planned on owning the interview by doing a PP presentation on the company. I need to do a lot of homework on salaries and commissions now. I sell now, but as a business owner, so I am clueless as to what to ask for. This is a job that I never thought I could get, but I knew the right people and now I'm right there... Just need to close it.

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Is that an alpaca? Where in NY are you? Lady friend's family is from Syracuse area and they own about 7 of them (3 of which are knocked up). Funny animals.

Congrats on the interview.

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Originally Posted by nfaust

Is that an alpaca? Where in NY are you? Lady friend's family is from Syracuse area and they own about 7 of them (3 of which are knocked up). Funny animals.

Congrats on the interview.

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That is an alpaca. I'm in the finger Lakes. I did a job at an alpaca farm for a few weeks and that guy was my buddy. He was in the retard tank (do not breed pen) and we made friends.

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I have several commissioned sales people who work for me.

I pay minimum wage plus commission.

My top earner makes over $100,000 per year, year after year. The others, not so much ($40K-50K avg)

What I have found, is that many people have a dollar amount where their life is comfortable, and they really don't strive much beyond that. Others, like my consistant 100K guy, do not limit themselves.

Do you have an idea of the market potential? Negotiate for a super high commission and take a 6 month draw or guaranteed salary. My guess is that if they are hiring for sales, they want an agressive seller and basing your comp on straight comission says you are willing to work to earn.

I'm in the process of gathering all the info I can on the market. This is a Canadian company that has done VERY well in Canada and is looking to move into the US... specifically upstate ny, because they have already established some good relationships here. I was referred to them by the contact here that they have a great relationship with already and that contact and I are in constant communication concerning this. I actually ran into him tonight at the hs hockey game and he is all in for helping me prep for the meeting. I'm going to get all the market info I can out of him to help me own the interview and help with pay negotiations if I get an offer. My plan is to do my homework on the market and come into the interview with the ability to discuss how I am going to gain contacts and accounts in the local market. Based on the phone interview they have already set up a few solid relationships here and need someone ASAP to manage them.

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Call it a performance based contract. What isn't? Especially a sales job. You must have impressed the guy on the phone. Now sell him in person. A good salesman can pwnerize a company if he makes everyone money.

Demand a $50K base, reviewed and renegotiable every six months. Dude's coming out of nyc? That ain't shit to him. Commissions vary greatly based on the size of a sale and are quite dependent on the pricetag and margin involved. I agree with Conundrum's approach, but given the lack of details, tell him you don't consider $50K jack shit but you got bills to pay just like everybody else. Tell him you're there to earn $250K within two years. Sales managers like greedy fuckers.

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Originally Posted by splat

Call it a performance based contract. What isn't? Especially a sales job. You must have impressed the guy on the phone. Now sell him in person. A good salesman can pwnerize a company if he makes everyone money.

Demand a $50K base, reviewed and renegotiable every six months. Dude's coming out of nyc? That ain't shit to him. Commissions vary greatly based on the size of a sale and are quite dependent on the pricetag and margin involved. I agree with Conundrum's approach, but given the lack of details, tell him you don't consider $50K jack shit but you got bills to pay just like everybody else. Tell him you're there to earn $250K within two years. Sales managers like greedy fuckers.

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This is pretty much what I plan on doing. My dad is a sales stud... 200k+ type. He has given me very similar advice... 50k-60k base with potential to hit 100k with commissions for first year, and relaying to him that I plan on hitting 150k-200k in the near future. I'm dealing directly with the president of the company, and he is out of Toronto... I am in upstate NY. The company is an electromechanical/electronics manufacturer's rep, and a damn good one. Mostly switches, sensors, and power supplies. I know that gaining a new distributor account would be major dolla dolla bills yaawl.

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Depends completely on what your selling, which you finally mentioned in your last post.
You need to figure out what the average sales person in that industry makes.

Not meaning to thread jack. I've always wondered this about commission based jobs. What kind of commissions do the salesmen make? 10%? 20%? 30%? Is that on the total sale or the profit made? Just curious.

Good luck booner, hope it works out.

Have you done the math yet? Your new boss will. Let's say the product have a 25% gross profit margin and you want to make $50,000. Add in beni's, employer taxes, insurance and all the stuff called "burden". This will run 20%. So $50k * 1.2 = $60,000. Then assume another $10,000 in overhead costs for you; desk, phone, whathaveyou. To generate your pay, just a break even proposition for your employer, you need to sell $280,000.

When you sell above $280k (netting 25% of that as gross margin = $70,000), you're a value to your employer. At or below you are a cost and should be replaced. The low base, high commission makes you a safer bet for your employer, allows you the big upside and makes you less costly when it's time to "consolidate territories".

Also, look at the sales cycle. You can sell candy in 10 minutes, copiers in maybe 30 days (on average) and large capital equipment might take a year from into to contract. Then think through your sales pipeline (empty now), how fast you can fill it and how much gross profit will be there at the end of each quarter. That's the economics of a salesman.

I would ask to see the sales path of other top reps to do some quick math and figure out how fast you can get into the good money and how fast you get the newhire target off your back.
I would not be afraid to broach these conversations with your potential employer, they will respect you for your understanding of business.

Best of luck!

PowerPoint presentation? That ought to kill it.

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Originally Posted by BackCountryNC

Not meaning to thread jack. I've always wondered this about commission based jobs. What kind of commissions do the salesmen make? 10%? 20%? 30%? Is that on the total sale or the profit made? Just curious.

Good luck booner, hope it works out.

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There is no set commission for every sales job.

Got the job about 3 weeks ago...start in 2 weeks. Bought a car today and everything(had a pickup). National sales meeting (carnage) 2 weeks after I start. These guys are Canadians so my expectations are high for the 3 days I'll be there for the meeting. Vegas has the odds of me being waaay hammered in a peeler with my new boss at 9-8 right now.

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Originally Posted by BackCountryNC

Not meaning to thread jack. I've always wondered this about commission based jobs. What kind of commissions do the salesmen make? 10%? 20%? 30%? Is that on the total sale or the profit made? Just curious.

Good luck booner, hope it works out.

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Yep. Can't answer that. It varies, % of margin, $ per unit, graduated comp rates, draws...too many variables. In my industry (insurance), most of us are 100% commission after the first year or two. 25-50% of revenue earned for our companies. 25-40% is standard. What's cool is my industry has residual annual revenue so as long as I keep my clients, I earn on that revenue plus new so it builds or if you are lazy like me, you work less as time moves on. Accept you can't lose clients.

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Originally Posted by Conundrum

Yep. Can't answer that. It varies, % of margin, $ per unit, graduated comp rates, draws...too many variables. In my industry (insurance), most of us are 100% commission after the first year or two. 25-50% of revenue earned for our companies. 25-40% is standard. What's cool is my industry has residual annual revenue so as long as I keep my clients, I earn on that revenue plus new so it builds or if you are lazy like me, you work less as time moves on. Accept you can't lose clients.

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I'm in a similar situation with the residual revenue. Sell it once... Earn commissions off the account for years. My commission is 65% of what the factory gives the company, which is 5% of sale... Or 3.25% of gross sales.


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In this job market I would take whatever they offer as long as there is commission potential. Try to get an idea of the min max and avg commission amounts then decide if those plus their offered salary is enough for u to survive.

Our company will flat out disqualify ppl based on an over the top salary req. Particularly if they have little experience.

Just to give you some perspective....I sold energy projects to the govt for one of the largest utilities in the world and had a contract for a 17% commission plus $75K base and bonuses. By the time I sold $500 million, the ceo did away with the commission plan. I sued, was fired, and they said they'd hang it up on appeals for 20 years (my boss was one of the inhouse lawyers who told me this). I took $100K, walked away and flew to Europe to go skiing and put it behind me. It cuts many different ways when you have cutthroat corps in the mix.