What is the process for establishing commission rates for Sales Agents?
Setting a commission rate is a much more complex project than just checking out the competition. In fact, if you use competitive numbers alone, you’re off in the wrong direction altogether. Remember that you are not competing with other manufacturers in terms of products, you are competing for the attention your line needs to meet the product competition. A manufacturer with a long and solid history of selling through agents said, “You need to know, first of all, exactly where your product stands in terms of its marketing position. If you’re in a pioneering position, your commission rate is going to have to be higher than if your product is the hands-down leader in its field. If your agents are expected to do allot of after-sale servicing, your rate is going to be different than that paid for little or no follow-up servicing. In general, different rates in different territories should be avoided, but there are times when different rates are appropriate and needed. Make absolutely sure
