?

Are the sales reps commission based only

Please sign up to comment

Yes, the reps primarily work on a commission basis. With that said, reps will typically only work with early-stage brands (brands with little revenue) for a consulting fee or retainer since the commission as a percent of revenue would be inadequate compensation. Hope that helps!

Sales reps sometimes are employees of a distributor or company and in that case are paid differently.
In the specialty food business independent sales reps are paid on commission only and usually without upfront retainer money.

A Sales Representative can be base paid or by commissions. With that being said most sales rep work on commission. I am an independent sales rep and I have large and small companies and I get straight commission from all of them. If one of them hired me to work exclusively with them, I would want a base plus commission. Does this answer your question?

As a self-employed rep, I work strictly on commission, refusing lines which do not appear to offer significant sales volume. However, the principal is obligated to provide me whatever I need in the way of catalogues, literature, samples, and order pads. I have to buy my own car and pay my own expenses, but no one can tell me where to be or when or force me to call on a store-owner who is a so-and-so. I set my own schedule and take days off or vacations whenever I want.

Guess I'm here to through a monkey wrench into the mix. I've been a rep, Manufacturer's, Independent, Manufaturer's direct marketing rep and Special consultant rep. That being said, there are anumber of ways Reps get paid. Number one, straight commission. Two, Draw against commission. Three, Manufacturer's in home paid(salary) Four, Commission w/override. Or any combination of the above. Having said that, my personal choose, is as an independent Rep with set commission but able sell higher above net cost and depending on the contract, anything sold above net price usually with a 70-30 % split. Rep gets 70%, Manufacturer gets 30% but that's nogotiable. When I was a manufacturer's rep, because of big ticket items, long leed and delivery times, we were paid draw agains commission. All Rep programs are ultimately based on products sold, low or high volume products, etc. This is an on going issue between manufacturers and reps and books, articles and in general all forms of discussions. Bottom line, if just starting out, talk to other reps in your or similar industries to help you find your way. Same advice to manufacturers, check with compamies at trade shows, conventions, etc.

Steve Molaf

S. Molaf & Associates

Welcome! We’re helping each other get products to market and sharing our stories.

Join us!