Commission Rates

Michael Ludwig

Well-Known Member
20
Not a chance ... finding the freight, contracting it, and handing it over might net you somewhere between 1 to 5% of the gross. Depending on contract size, term, and who you work for. No one is ever going to pay you enormous sums of money just to be a salesman.
With the higher rates where the representative manages the business from cradle to grave, including sourcing and monitoring the carrier(s), and are compensated on percent of profit, the representative sets the profit margin.

To loaders point, in either case a company would be unbelievably irresponsible to not contract either the salesperson or the representative. The difference being in the contract terms, lengths, and penalties, but both would/should definitely include NDA's and Non-compete's.

Good people are not hard to find, you probably deal with them every day, but they are incredibly hard to pry away from their current positions because of things like income streams, perks, and contractual obligations.
 

loaders

Site Supporter
30
Both the system I described and the one Michael likes have their benefits. For me, I want to pay a salesperson good money to bring on good business and do it day after day. The operations side of the work will be performed by equally as proficient dispatchers who will source good carriers and negotiate appropriate profit margins. Not to say that the sales people are like orphans wandering the streets alone. I encourage them, and in fact instruct them, to spend time in the dispatch office and follow one of “their “ shipments as it progresses from pick up to delivery. My point is, let good people do what they do best.
 

TruckDuck

New Member
2
Looking for some feedback on a commission package working strictly sales for a 3pl as an agent.

Responsibility is strictly sales - no operations etc.

Is 30% of the profit fair?
I had commission sales reps for many years. If they worked from home and covered all their own expenses I did a 50/50 split. If they worked from the office I paid 40%. This worked just fine for all.
 

shayne

Active Member
15
Both the system I described and the one Michael likes have their benefits. For me, I want to pay a salesperson good money to bring on good business and do it day after day. The operations side of the work will be performed by equally as proficient dispatchers who will source good carriers and negotiate appropriate profit margins. Not to say that the sales people are like orphans wandering the streets alone. I encourage them, and in fact instruct them, to spend time in the dispatch office and follow one of “their “ shipments as it progresses from pick up to delivery. My point is, let good people do what they do best.
I book my own loads, find my own customer, trace my own load, visit my customers , fight with factoring companies. I'm the only one at my company who can do everything themselves faster and more accurately then a " team"
 

DaveW

New Member
2
Many customers want that type of representation, a little old style but a customer will pay extra to know things are looked after
 

Shakey

Site Supporter
30
anyone scaling commissions to keep them hunting? Some keep hunting no matter what but others get lazy after landing some big fish.................. I've had issues in past with this and paying in perpetuity
 
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