if a residual is the only answer.

[gorconjack]

I run a service carpet cleaning co. I have hired a few sales persons on a 18% commission pay per sale. I have one guy going after large prop. companies and making some fine progress. Some of these company's have many apts. If I pay him on his initial sale and first service to this company , which may be only a few apts at a time. while at the same time this sale may lead to much more business. How do I keep this type of sale more attractive and fair to my sale person? if a residual is the only answer then how much? and how do I keep track of all that?

[ronin]

How about 10% commission for the first sale and all subsequent sales from the same lead?

[markwelch]

The hard part is "keeping track." You need to have some kind of customer-tracking and accounting system. You also need to have a very clearly-defined contract with your salespeople, which anticipates a number of different possibilities. The issues are pretty complex.

(1) Suppose your salesperson Joe solicits "ABC Apartments" as a customer, and they use your services. Later, your salesman Bob solicits "XYZ Apartments" and they use your services. Then you get a call from Megalith Enterprises, which owns both complexes, wants to negotiate a rate for multiple properties (including ABC, XYZ, and others). How much do Joe and Bob get?

(2) Suppose Joe recruits "Happy Apt Homes" as a customer, but after the first service they cancel. Later, Bob solicits Happy again, and they become a regular customer. How much do Joe and Bob get? What if the interval is 6 weeks? What if the interval is 6 years?

(3) Suppose Joe contacts Abe, a VP at Megalith Enterprises, and gets a contract for ABC Apartments. Bob gets Fred, another VP at Megalith Enterprises, to sign a contract for XYZ Apartments -- but Fred actually tells you that he made the decision because he knew about the service at ABC Apartments, and he was about to call Joe when he god a call from Bob.

(4) Joe recruits Megalith, and gets a service contract, which Megalith renews every year for 20 years. After the first year, Joe stops working for you because:
(a) Joe dies. Who gets the residuals?
(b) Joe joins the Peace Corps. Does he get residuals?
(c) Joe takes a job selling for your comeptitor. Does he get residuals?

[Essex_boy]

(1) All comm is split as they have both landed the contract

(2) Bob is the only one to get paid, the other sales rep couldnt keep them happy so he lost the business.

(3) Have the pair of them decide on a split of comm, no decision with in a week neither gets a bean

(a) You do, or the rep servicing the contract
(b) Nope he left your employment
(c) No, he gets a bullet in the face, or thats how we deal with it in Essex.

[edited by: Essex_boy at 8:22 pm (utc) on Nov. 19, 2006]