Add me to mailing list    |           |      Search

Sales Make it Happen

by Kit Menkin

Sales Rep' Comensation Survey

This survey was made by the United Association of Equipment Leasing (UAEL) for their May 4-7 Spring Conference in Dana Point, California. Paul Knowlton, CLP, secured permission for Leasing News to utilize it. Mr. Knowlton is chairing the October 5th through the 8th in Albuquerque, New Mexico. Leasing News will reciprocate by helping to promote the fall conference.

The UAEL survey was originally a "power point presentation" with discussion, not designed as "printed" information.

This UAEL survey seems to have responses primarily from smaller companies, 60.5% have from "1 to 5" and 28% from "6 to 15" salesmen. It did not appear to broach if they did business with "outside" salesmen such as brokers or vendors. It did not presume to be "scientific," and again, it was aimed for the purpose of "discussion" at its presentation at the Dana Point Conference.

304 Sent, 86 Received - 28% Response

Southern California Response Rate:

76 Sent, 24 Received- 32% Response

The value is the response from 86 leasing companies. The bent to compare Southern California to the total response appears to give the survey a prejudice, but does emphasize the differences from the rest of the country (the conference was held in Southern California.) For instance, the response to: Residuals were shared by 46.9% of the total with Southern California 78.3%. In the "no" category, it was 53.1% for the total and 21.7% for Southern California.

Q. Can your sales representatives share in future residuals?

In addition, you can see the geographic distance and the competitiveness from this question:

"What is the MINIMUM annual Gross Margin expected of a seasoned sales representative? (>2yrs)"

Here is the breakdown of the responses by geography:

Another value from the UAEL survey are these responses:

Q. If you have a Credit Manager, what are they paid?

Q. If you have a Funding Manager, what are they paid?

Q. Do you share company profits with your operational staff?

Q. Is your operational staff eligible for bonuses?

Here is a short version of the survey:

How would you consider your sales organization model?

How many sales people to you have?

How are salesmen paid?

How much is the base, if paid this way?

Q. What percentage of gross profit do you pay in commission?

Q. How long is it before a new sales person is productive generating a consistent stream of gross margin?

Q. How long before they become profitable?

Here are the full versions of the UAEL Survey with all the questions and responses. One in word format, and the second in the original power point presentation.


Power Point: