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Should I Pay My Salespeople and Production Manager Commission/Bonus?

Name: Should I Pay My Salespeople and Production Manager Commission/Bonus?
Uploaded: 2023-06-15T15:52:05+00:00
Duration: 44 s
Channel: Daniel Honan
Description: In this advice video, the speaker recommends that painting businesses compensate their sales staff primarily through commission—either pure commission or…

15 Jun 2023 · 1 min

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In this advice video, the speaker recommends that painting businesses compensate their sales staff primarily through commission—either pure commission or mostly commission with a modest base salary (around $20,000). For production managers, the speaker advises a salary‑based model, potentially supplemented by performance bonuses tied to completing jobs under the projected gross profit, allowing the manager to share in the cost‑saving. The overall message is that the most successful painting firms use commission for salespeople and salary + bonus for production managers.

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I think for the salespeople, you should definitely do commission-based. From what I've seen, the most successful painting businesses, pretty much their salespeople are like commission, either straight commission or like mostly commission. For the production manager, not as much. So that's more of like a math problem. You'll have to just, I mean, you could, you could pay them off of commission, but, um, you know, that might be more of like a salary. I've seen that be more of a salary, you know, uh, type job, maybe with bonuses in there. I've seen folks do bonuses if they get under you know, produce the job under gross profit, then they get a portion of the savings. But I would say generally from what I've seen, the most successful painting businesses do, they pay the production manager mostly salary, maybe with the bonuses for getting stuff under gross profit. And then the salesperson is mostly commission, maybe with a small base salary of like, you know, $20,000 or something.