Never Agree That Your Commission Rate Will Be Agreed Upon on a Job-By-Job Basis
By Randall J. GillaryMy sales representative client and his principal are beginning a relationship and are having a hard time agreeing on a commission rate for new business.
My clients often ask me for advice regarding a reasonable commission rate. I generally tell them that the commission rate is an economic issue that is part of the bargaining process. I am a firm believer that commission dollars are more important than commission rates. Both parties need to have a good understanding regarding the potential size of the programs that will be quoted. Often the principal will push for language that the parties will … Read the rest