Retainer + Commission?

[neofox]

I found a client who wants to offer me a retainer (usual) plus commission.

I won't be making sales as the client already has a lead gen and sales team, but they haven't had anyone as the marketing manager for a long time. And in that time because everyone in the team seems to be a 'yes' person and their marketing has suffered. Unfortunately TBH, the previous marketing manager's ideas were actually pretty lousy. I came in and told the client exactly what I thought, we implemented just a few changes, and it has worked - hence this offer to try and incentivize me.

I am wondering what is a typical rate for this as I've never done this before?

The commission is based on the number of sign ups we receive from the marketing efforts.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[MJ DeMarco]

I found a client who wants to offer me a retainer (usual) plus commission.

I won't be making sales as the client already has a lead gen and sales team, but they haven't had anyone as the marketing manager for a long time. And in that time because everyone in the team seems to be a 'yes' person and their marketing has suffered. Unfortunately TBH, the previous marketing manager's ideas were actually pretty lousy. I came in and told the client exactly what I thought, we implemented just a few changes, and it has worked - hence this offer to try and incentivize me.

I am wondering what is a typical rate for this as I've never done this before?

The commission is based on the number of sign ups we receive from the marketing efforts.

I like these pay for performance arrangements as it offers SCALE to your effort. Can you make 5X more than a normal wage with good success for your effort?

 

[neofox]

I like these pay for performance arrangements as it offers SCALE to your effort. Can you make 5X more than a normal wage with good success for your effort?

Yes I believe there is good potential for growth once the ball fully gets moving.

 

[Mikkel]

I doubt there is a set rate. You need to balance out what the value for each sign up is vs giving the marketing team enough of an incentive to want to continue getting more signups.

Run some numbers, you should know how many signs up convert to become paying customers and what the average value od each customer.

From there it should be pretty straight forward how much to pay for commission. Just make sure you leave enough room for profit, of course.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[GuestUser4aMPs1]

I am wondering what is a typical rate for this as I've never done this before?

The question you're asking pertains to "On Target Earnings" (OTE) in pro sales.

Say your OTE is $100k/year.

Most entry level sales are 100% commission, meaning no base.

Once you've got some track record, most people ask ~35-40% of OTE to be base (30/40k in our example) with the expectation that you'll hit 100k if you beat your targets. More seasoned sales people take ~60-70% base.

It takes some time to wrap your head around it if you haven't done sales for other people (I hadn't prior to a few months ago, had no idea wtf any of this was). I'd recommend you search the /r/Sales subreddit for a bit more info.