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The Berkman Letter Practical analysis and commentary for business, law, and more.
Head of sales says that our sales compensation plans are not competitive.
According to RepHunter, manufacturer sales rep commissions typically range between 7% and 15% of sales.
The best way to figure out commissions is to account for all costs, then look at what can be paid. Then find out what the market can bare. If you can only pay $20,000 a year in commission you won't get a great sales person. If you can pay $50,000 a year in commissions you will get a decent sales person. If you can pay $250,000+ a year in commission you will get a great sales person.