Commission v Salary

LegacyUser

I have been offered a job with a reputable nationwide business as a sales rep.

Unfortunately salary negotiations have stalled me from accepting.

I have been offered €10,000 plus OTE of €14,000 + company car.

I'm not new to this sector and the targets set out are very achievable,What i'm unsure about is the basic,I think €10,000 does not reflect my value regardless of sales targets,Plus does minimum wage etc. not restrict this?

I have raised this and i have been told a re-negotiation can take place after the first quarter.


Has anyone any experience in salary negotiation when dealing with commission?

frag420

jon h ryan wrote: »

I have been offered a job with a reputable nationwide business as a sales rep.

Unfortunately salary negotiations have stalled me from accepting.

I have been offered €10,000 plus OTE of €14,000 + company car.

I'm not new to this sector and the targets set out are very achievable,What i'm unsure about is the basic,I think €10,000 does not reflect my value regardless of sales targets,Plus does minimum wage etc. not restrict this?

I have raised this and i have been told a re-negotiation can take place after the first quarter.


Has anyone any experience in salary negotiation when dealing with commission?

Is that per month or annual? If its annual then don't waste your time, thats slave wages! Is it insurance you're going to be selling?

LegacyUser

No it's for a SME,That's annual wages..Now 24k a year NET id be happy enough with but i feel it's being stacked too high in terms of commission.

I feel i should be payed for my time first and sales after,No?

drunkmonkey

SME sales can take longer to close, I'd guess it'll be month 5 or 6 before your pipeline is strong enough to go back for wage negotions unless it's an easy and quick sale. I'd be surprised if you come in on 100% of target in the first quarter with them.
Are you paying BIK on the car?
Car is probably worth 10k, basic 14k and OTE of 10k, you'll also probably get tax free expenses for food and extra for ovenights.
If it's you first sales gig it might not be bad starting off, If you can blow your target out of the water you'll probably earn way more than the OTE.

PayrollM

Watch for the BIK on the Car, there will be a charge depending on the original market value (how much the car was worth when new) and also how much mileage/KM you travel.

You should talk to the company about the BIK charge (how much this will cost you per month)

It can be anything from 6% to 30% (per year) of the OMV, eg cost of the car (when new) €20000, BIK based on 6% = €1200 / 30% = €6000. The average tax/usc/PRSI is about 15-30% of income (depending on total income/tax allowances etc); assuming a 20% tax cost, the charge you will have to pay is between €240 to €1800 per year.

In relation to the minimum wage, the make up of the salary and commission is included, BIK/Cars/Expenses are NOT included. You should receive a minimum value of €9.15 per hour worked. In order to work out your hourly rate, tally the wages and comm (€10K+€24 / 52 wks / X No of working hours per week).

LegacyUser

I guess if i hit the targets it will be fine until i am in a position to re-negotiate,It's not my first sales role,I was just unsure it seemed small for my experience( 10 years sales) and track record in a similar environment

drunkmonkey

Hold on, you've 10 years sales experience, working to targets?

LegacyUser

Well would not all sales people be working to targets and commission? ,That's always been the case in previous employment,I was a bit wary of the small basic but i think if i will smash the targets of the first quarter which should leave me in a strong position to re-negotiate