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Enterprise -- In Box
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
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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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