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Question added to topic MarketingJune 27, 2008

What percentage should an independent representative be paid for selling a product that would retail for $20?

Those rep commissions go all over the map. We've seen contracts as low as 2 percent and as high as 25 percent. You get what you can negotiate.

It depends on various factors: how hard the product is to sell, whether you have other products as well, whether it's something the rep can add on during sales calls he or she would be making anyway, etc.

Tim
Tim Berry is the president of Palo Alto Software Inc., based in Eugene, Ore., which produces business planning software. He is also the author of 3 Weeks to Startup and The Plan-As-You-Go Business Plan, published by Entrepreneur Press.

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