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

This story first appeared in the December 2012 issue of Entrepreneur. To receive the magazine, click here to subscribe.
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
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