Ask Entrepreneur - Marketing

We have a small business selling windows, awnings, etc. What is a fair percentage of the gross sales to pay a sales manager?

answered December 17, 2008|
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In terms of a sales manager, think in terms of basing something on margins and not necessarily overall sales, because as a manager he will (or should) be responsible for maintaining healthy margins.

That said, a good overall rule of thumb is 10 percent of revenues, and that may or may not include any overrides he may get from leading a sales team or from those sales people's commissions.
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Brad Sugars is the founder and chairman of ActionCOACH. As an entrepreneur, author and business coach, he has owned and operated more than two dozen companies including his main company, ActionCOACH, which has more than 1,000 offices in 34 countries.

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