My Company & Personal Background
I have never hired/managed a sales person, but I would like to hire my first. From when I founded the company 3 years ago up until now, I've only received sales via SEM/SEO/WOM.
We manufacture and sell firearms related products.
For our products, the Bureau of Labor Statistics shows salaries for Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific Products (NAICS SOC: 41-4012) to be from 55k to 62k annually.
My company and I are located in Arizona.
I was recently solicited with a proposal by a customer from South Carolina, who is currently a salesman and has been his entire life. He would like to act as a sales rep for my company and represent the "South East Region" of the US, which encompasses 9 states. He plans to physically travel around selling to individuals, resellers and distributors.
For all sales that I generate through personal contact a 25% commission on the gross profit will be earned and 10% on all orders shipped into my region regardless of how they were attained, by Internet, phone, etc..., to include repeat sales.
Sales Salary Compensation Commission
It depends on your market, sales cycle times, volume and value per sale etc. Basically there is no one size fits all answer here but from what you have said:
What about ongoing relationships?
If this salesperson is motivated by the sale only then your customer service and followup is likely to suffer, if he wants an ongoing 10% then he has to give evidence of followup and resales to existing customers (use something like salesforce for them to report into).
Managing the incidental sales: