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What Price Salespeople?


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WHAT PRICE SALESPEOPLE?

How well is your sales force paid? Too well? Not well enough? For a comparison, check out a just released report from Dartnell Corp. on sales-force compensation at companies with under $5 million in revenues. Senior reps make an average of $45,900 on $396,000 in sales, and a growing number of small companies use profitability (not just volume) to figure commissions. The 250-page report includes a host of stats, with breakouts by industry, and an excellent 100-page section on designing a compensation plan. $39.95 (800 621-5463)EDITED BY EDITH HILL UPDIKEReturn to top

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ONLINE ORIGINAL TABLE: How Much Is the Other Guy Making?

It's an age old question. Chris Heide, in his Dartnell Corp. report "What

America's Small Companies Pay Their Sales Forces" surveyed hundreds of

salespeople to find the answer. Below are a selected set of tables detailing

average salary, benefits, and other expenses for small-company sales reps.

OVERALL PROFILE:

SALES PROFESSIONALS IN COMPANIES WITH UNDER $5 MILLION IN REVENUES

76.3% Percentage who are male

23.7% Percentage who are female

53.5% Percentage who have a college degree

3.1 Sales calls per day

3.8 Number of calls to close the sale

$12,016 Field expenses annually

$4,023 Value of benefits

$461,300 Annual sales volume (senior rep)

$5,291 Cost to train (new hire)

SPENDS ON AVERAGE 46.9 HOURS PER WEEK AS FOLLOWS:

TASK PERCENT OF WEEKLY TIME

-------------------------------------------------

Selling over the phone 28.8% (13.1 hours)

Selling face-to-face 28.4 (12.9 hours)

Waiting/Traveling 16.1 (7.3 hours)

Administrative tasks 14.7 (6.7 hours)

Service calls 12.0 (5.4 hours)

COST PER EXPERIENCED SALESPERSON:

FIELD EXPENSES AND BENEFITS (AVERAGE OF MEDIAN RANGE)

COMPANY SIZE FIELD EXPENSES BENEFITS

Under $5 million $12,016 $4,023

TYPE OF BUYER

Consumers 8,524 3,745

Distributors 12,549 4,710

Industry 12,268 4,159

Retailers 9,942 4,374

INDUSTRY

Amusement & recereation services 22,333 0

Business services 11,375 3,562

Electronics 16,400 2,220

Health sciences 35,000 2,250

Holding & other investment offices 22,500 3,500

Hotels & other lodging places 11,000 4,000

Instruments 24,000 5,500

Insurance 7,375 3,750

Machinery 7,500 5,200

Manufacturing 9,000 8,333

Office equipment 12,180 2,850

Pharmaceuticals 23,333 10,500

Printing & publishing 5,200 6,250

Retail 4,356 3,250

Wholesale (consumer goods) 12,120 3,288

Wholesale (industrial goods) 20,269 4,770

PERCENTAGE OF COMPANIES WITH UNDER $5 MILLION IN ANNUAL REVENUES PAYING

100% OF THE FOLLOWING EXPENSES

CATEGORY 1990 1992 1994 1996

Auto -- company-owned 29% 37% 14% 35%

Auto -- company-leased 30 3 12 26

Mileage allowance 52 58 35 58

Other travel reimbursement 84 79 61 72

Lodging 88 88 66 79

Telephone 92 85 71 81

Entertainment 70 71 48 78

Product samples 95 87 52 86

Local promotions 83 82 57 66

Office and/or clerical 85 83 68 78

Home photocopier 19 18 10 30

Home fax machine 22 32 11 39

Car phone 39 44 26 43

Laptop PC 25 23 18 43

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