I recently started my rep firm and took on 2 clients. Three months in to the agreement, after not receiving any commission statements or commission payments, as well as only one payment on expenses, I decided to end this agreement due to the other rep group being in Breach of contract which they are and admitted to. I refuse to sign this Separation Agreement, as it is not a part of the original contract, which they are already in Breach of. Today, they reiterated via email that they will not pay my commissions and expenses until I return all samples and sign the agreement.
I have already shipped all samples back to them. This is going down an ugly path, one which I am chalking up to a learning experience. They are trying to be coy about everything in their emails, ignoring my statements that they are in breach, and I will not sign the contract. Honestly I am shocked at their short-sighted approach to this, as its a small industry that we work in and I am pretty well respected as being an honest and up front guy.
They are putting their reputation at stake, however its obvious that their hubris takes precedence. Dumb Move. As a general comment, when people are not ethical in their business and do not conduct their business properly, it cannot lead to providing customers with value. Thus such a business is not destined for success. I suggest you obtain legal representation. Commission levels are usually within a range depending upon industry and volume, and whether goods or services.
Quotas can be backed into via a number of methods, taking into account the following: — how many other lines to the reps have? Oh… was wondering… is there some way that one meets reps from their industry in their area? I have not seen any kind of trade meetings or anything like that advertised. Thanks again.
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Sometimes it is hard to meet with reps, because they view each other as competitors. So if you are in the same business, it might be tough. Jas, Thank for taking the time to answer me. Initially I work from the company office, too. So, I guess I have to figure out how to handle this. I am new to being a rep. I just met with someone in the wholesale lighting business. Wants me to call on suppliers, he will supply the leads. He said this commission is far higher than the industry standard. Well, I know how people like to tell you how they are over paying you so am wondering if he is being honest about this rate being normal for this industry or is it very low?
There are two ways to look at this: 1 typical commissions in your industry; 2 can you make a living. You should try to network with other reps in your area and industry to see which number is more realistic. Can you make a living? Do you have other non-competing lines you can also sell at the same time? Consider those aspects.
Hello Everyone. Ive been in sales for almost 20 years, but am new to being an independent and recently incorporated.
I work with 2 companies currently: One is a skin care line which Ive been with for 2 years, previously on salary but now am independent with. They have always paid me on time. The other group is a distributor who rep multiple lines and I along with another are their first two reps that work for them. My question is, how do I make sure that this distributor pays me, and pays me fairly when customers send POs directly to them and often I dont see the POs or know about them?
Is there a legal right that I have to open audits of their books? Thanks very much. You should keep some kind of notes on any sales that you do find out about, so you can tie them to what you get paid. I could refer you to a lawyer who specializes in representing independent rpes if you would like. I work in California. My company never offered a commission plan. I have asked for one, every week sometimes twice for 4 months. I have closed 6 deals so far and have yet to see a commission report.
Last week my boss buckled and gave me a piece of paper that was called a Commission Structure. Is there anything I can do about my company violating A. Cali labor code re: commission contract needing to compute commission rate. Also needing it to be signed It is not dated. It has no place for a signature. I could type it up in word in 4 minutes. What do I do to ask for commission reports? I closed a deal a month in and asked for the report.
I wanted to see how much I cut into draw and see how my margin was. I was told it was not available. This kept happening. This entire time I kept my own records and roughed my margin. I can enter product into our program and see cost. Labor is a big portion of my tickets but I do not know the margin on that.
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I just closed a deal for k It has 58k of labor in the deal. I love sales. But I am crushed as a person. I have always been your standard retail sales top writer. You know, the furniture guy in the million dollar writing club earning 65k per year.
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Happy, but always aware of the wall. This job was a challenge and in an industry that I love and am passionate about. The product I sale has avg. I am lost. Not sure if you can help. This all happened recently and the client keeps adding more items and services and is a great person. Despite what my company has done, I still need to help him.
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I know I now am upside down in draw, just want to know if anything I can do in the future. Any rep would bolt and not take such behavior as it would amount to theft of the reps services. And I could refer you to a lawyer that works with independent reps. As you are an employee, none of the above applies. It is rather a dispute you are having with an employer. It could also be a situation that you have grounds for breach of contract, and thus legal advice should be sought.
The hard part is that even though there is apparent abuse, you feel stuck because as you say there is such a good upside if you could only resolve these issues. Short of the legal counsel route, this does fall outside of our usual realm. Great info. Your original post states that the commission rate for service-based products tends to be larger than those with a manufacturing expense.
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Based on that answer, how would you advise to compensate for residuals? Thanks for mentioning that you have taken note of the general discussion in this thread. More important though is how much effort the rep has to put in up front to build your business before showing any revenue at all.
lintaumecessri.ga If sales will take off right away, that is one thing. But if it looks like a speculative 6 months or so with no income to the rep, you might have to offer a sweetener, such as a draw or higher rate. I am a retailer who has inadvertently gotten involved with a commission issue between our local rep and the company he represents.
The issue is that while we ordered with our rep initially, we no longer do — he shows at a market I do not regularly attend, and he does not generally contact us to make an out-of-market appointment to view the product line until just before the order deadline. This time around, he called saying he got the samples too late to drive down to show us, and in order to make order deadlines, we need to see the product at a market I am attending out of state. Our local rep is requesting that we view the product line at the market, not order with the rep there, and email him our order instead so he could place it.
I do not think it should fall to me to maneuver my order to give our local rep the full amount, but I am unsure. Is our rep just trying to squeeze out more commission, or are we failing him by ordering with someone else? My impression of the the situation is that the commission arrangements are really up to the relationship that the company and the reps, and that you are not directly involved. In particular, there are contractual relationships that the company maintains with its reps as to how they handle exclusive territories.
Being concerned for the rep, while at the same time questioning the situation does show that you are trying to follow the upper path.
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