Thread: Commission Based on Industries

What sort of business are you in Forfend? I think it varies quite a bit based on any given industry or what the average sale price is. What's your overhead on this product or service?

Originally Posted by AstonMartin

What sort of business are you in Forfend? I think it varies quite a bit based on any given industry or what the average sale price is. What's your overhead on this product or service?

Not sure how overhead affects this at all. We are looking to increase penetration in newer untapped markets. The current system "works" it's just the salesmen take the easy route by selling in established markets.

I am in commercial real estate, in Chicago brokers representing tenants make a commission of between $1.25-1.50 per sq ft/yr before having to pay splits to the broker company and if they have a partner in the deal, but senior brokers can take up 85% of their commission. Example is, a tenant signs a 4,500 sq ft deal for 7 yrs, the commission would be $39,375 @$1.25 rate, then he would take roughly $33,469 in his paycheck after paying the broker company, but before taxes and whatnot.

Originally Posted by SMW

I am in commercial real estate, in Chicago brokers representing tenants make a commission of between $1.25-1.50 per sq ft/yr before having to pay splits to the broker company and if they have a partner in the deal, but senior brokers can take up 85% of their commission. Example is, a tenant signs a 4,500 sq ft deal for 7 yrs, the commission would be $39,375 @$1.25 rate, then he would take roughly $33,469 in his paycheck after paying the broker company, but before taxes and whatnot.

I run a private real estate fund and all I know is that brokers here in Pittsburgh are getting paid NOTHING near $33K for signing a little ass lease like that. A good broker here signs a little lease like that almost weekly and they are not making $2M for doing it.

Originally Posted by Forfend

Not sure how overhead affects this at all.

Agreed. Plus there is a big difference between overhead and cogs.

Well it has been decided, for each new customer (in the listed fields) a unit is sold to, that salesman will have their commission % bumped up by .5% for 6 months after the last increase up-to 5%. It goes live July 1st...

:crosses fingers:

Its been a wild two months. Cold calling and lead generation is up roughly 200%. One salesman is damn good and sold three units to a new customer, he will have a 2.5% commission check from his most recent sale as opposed ti the standard 1%.

Unfortunately, we have noticed a drop in cold calling, lead generation and QFU for existing markets but we were expecting this. Hopefully in 6 months it balances out.

Commissions for racing sponsorships can range from 10 to 20 percent.

Maybe this topic confused me....

But isn't commission always industry specific???

Justin, the title is kinda misleading. Essentially my problem was trying to motivate salesman to tap into select new markets. We ended up offering commission incentives for doing so. Everyone loves money, even more so when they can get more of it.