# Paying Employees a Percentage for Sales While on the clock?



## admedia (Mar 23, 2015)

I'm the owner of a screen print shop, been at it for only about 6 months and now is the slow season for me, and I'm having my employees (while they dont have any work) to go through the internet and cold call, send emails, etc to find us new clients. 

They get paid regularly 10 dollars an hour, so would you guys give them an extra commission percent for bringing in clients? Since originally there was no commission, and they are working per hour as usual, only difference is they are calling clients and doing sales work.

I'm not sure if this is standard to give your employees a commission for bringing in sales while on the clock.. do you give that to everyone, or just sales people? Also lets say I tell employee X to go out and hand out flyers, then someone actually from the flyer handouts becomes a client.. does that mean that employee should get the commission just for handing out flyers? Where do you draw the line? Also what if a customer enters their information in my websites contact info, and my employee goes through and gets their design specs and order details, he wouldnt generally get a commission for that right, he simply is doing his job and didnt do anything "extra"?

How do you guys handle it? Where to draw the line? I've heard mixed opinions from this and just cant make up my mind how to handle it.


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## splathead (Dec 4, 2005)

I wouldn't pay employees a commission on 'down-time' work. Make it clear to them that this work is being done because it is slow and otherwise you would have to lay folks off. Incentive enough?

If you want to pay them extra for work brought in, then use the commission formula to set up a health plan or profit sharing plan. Your workers would value those plans more even when it got busy again and they went back to their normal duties.


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## GTP30 (Dec 18, 2015)

I wouldn't pay commission if they are on the clock, they are just working to earn their wage as opposed to not having work to do. As Joe said it should be incentive enough if you let them know this is just a way for you to keep them employed. If they bring in some good customers, maybe throw a small Christmas party or something this year.


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## Rankin Textile (Feb 17, 2016)

splathead said:


> I wouldn't pay employees a commission on 'down-time' work. Make it clear to them that this work is being done because it is slow and otherwise you would have to lay folks off. Incentive enough?
> 
> If you want to pay them extra for work brought in, then use the commission formula to set up a health plan or profit sharing plan. Your workers would value those plans more even when it got busy again and they went back to their normal duties.


this...

I think its good for employees to see the other side of the business too.


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## Kenneth59 (Sep 28, 2013)

paying a small commission might help give them more incentive, no sale no commission, so unless they produced some jobs it wouldnt change anything from what youre doing now.


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## TH Apparel (Jul 12, 2013)

I would give them some incentive...They are getting the 10/hr if they do or don't make a sale right? A small % would be nice...Even tossing a $20 bill for each sale above XXX amount...or maybe whoever has the most sales at the end of the month gets 1 paid day off...something extra to work towards.


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## jj72ny (Feb 2, 2013)

Pay a commission you see as a person who has been on both sides of this the difference between commission and not is "hay would you like to buy our product it's great you will love it bla bla bla " to "hay you want to buy this product no ok see ya"
My old boss made us do cold calls through out the winter while the lumber business slowed and most calls went exactly like that till one day he decided to give $100 for the most cold call sales in two weeks had so many people On Phone there wasn't enuf phone lines lol and business got a little better we also had a couple deals to offer made thing better


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## admedia (Mar 23, 2015)

jj72ny said:


> Pay a commission you see as a person who has been on both sides of this the difference between commission and not is "hay would you like to buy our product it's great you will love it bla bla bla " to "hay you want to buy this product no ok see ya"
> My old boss made us do cold calls through out the winter while the lumber business slowed and most calls went exactly like that till one day he decided to give $100 for the most cold call sales in two weeks had so many people On Phone there wasn't enuf phone lines lol and business got a little better we also had a couple deals to offer made thing better


Yea thats what I was thinking too but was wondering if that was the norm or expected. I guess you just have to see how it is, but once you say ok you get commissions you cant really take it away from them. For big orders i give them 15 percent as the incentive, and thats on revenue.


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## tchandler52 (Sep 17, 2012)

I recommend paying regular hourly wage without any commission if still on the clock.



admedia said:


> I'm the owner of a screen print shop, been at it for only about 6 months and now is the slow season for me, and I'm having my employees (while they dont have any work) to go through the internet and cold call, send emails, etc to find us new clients.
> 
> They get paid regularly 10 dollars an hour, so would you guys give them an extra commission percent for bringing in clients? Since originally there was no commission, and they are working per hour as usual, only difference is they are calling clients and doing sales work.
> 
> ...


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## LISportstore (Sep 16, 2013)

It's your business and your the boss. You can make up the rules unless your a Union shop. If you make these rules put them on paper this way no one will think your changing the rules for others. Put down the months you will do this and the terms, this is great idea for your business if you can afford to do it. Good luck let us know what a day how you did.

Dean
L.I. Sport Store 

Sent from my SM-N920V using T-Shirt Forums


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## numbercruncher (Feb 20, 2009)

Like Dean's idea - specifics really help. Would suggest one more step...after you are done writing up your plan - give it to someone(s) you trust and ask them what they don't like about it and can it cost you(the business) more than you budgeted ?


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## customapparelpro (May 2, 2014)

GTP30 said:


> I wouldn't pay commission if they are on the clock, they are just working to earn their wage as opposed to not having work to do. As Joe said it should be incentive enough if you let them know this is just a way for you to keep them employed. If they bring in some good customers, maybe throw a small Christmas party or something this year.


Horrible. You will never find hard working loyal employees like this. You were in their shoes before. It's not always about making the most money...

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## wormil (Jan 7, 2008)

You're going to turn sales over to $10/hr guys who get paid the same whether they bring in work or sit on their butt -- What do you think?


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## customapparelpro (May 2, 2014)

I think people should get rewarded for working hard...you probably the type to send jobs over sees because YOU believe certain jobs don't deserve good pay. 

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## gnizitigid (Jan 23, 2007)

Better to pay because you are getting double job profile from them


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## GTP30 (Dec 18, 2015)

customapparelpro said:


> Horrible. You will never find hard working loyal employees like this. You were in their shoes before. It's not always about making the most money...
> 
> Sent from my SM-N900V using Tapatalk


You're 100% correct in that it's not about making the most money. It's about keeping the doors open and those employees working. I'm not saying not to give deserved bonuses or you should treat them like slaves. I've been to work in the past and there just wasn't anything for us to do so we either went home or worked on the bosses house. Sheetrock, insulation, shingles, concrete work,etc. Around 2010 I done more construction work than I done my real job but it kept me working and paying bills. Give your employees a good wage, treat them with respect, keep a good positive work environment and you will have hard working, loyal employees.


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