Wasn’t really sure who to go to to ask this as I’m the only one of my friends who has a commissioned sales job. The background might take a bit of time but I’ll try to summarize as quickly as I can so no walls of text…
Start in Aug 2006 at a company doing sales (only sales guy - I the only sales guy despite them trying out 3 or 4 different other people that didn’t work out - they didn’t make any sales). That year the company did $100k and I started out just making hourly ($12/hr). Didn’t make a commission that year. The next year we did $1 million (about 85% of that was mine) and they switched me over to 100% commission (10% commission on our first job with a client, 5% thereafter).
In 2008 we did $1.53 (about the same % was mine). In 2009 we did $1.34. 2010 we did $1.68 and last year we did $1.71.
Anyways, at the end of last year they switched me over to a flat 6% commission. So far this year we are down about 8% but my commissions are down 21%.
Part of the problem is there are two owners and the main one is my brother (he isn’t involved in the day to day operations, just an investor but still helps out with most big decisions).
I brought this to the first owners attention and he said let’s wait until the end of the year and we can see what the discrepancy is and maybe, MAYBE do some sort of bonus. I then called my brother (big mistake) just to tell him what we had discussed.
He told me that many times in sales (he has been in sales his whole life) they will cut the compensation package on someone regardless of whether or not the company had there best year ever. I told him I didn’t want to be paid anymore or any less; I just thought that I shouldn’t receive a pay cut on our best year ever. We ended up ending the conversation on OK terms but I really didn’t get anywhere.
I know that business and family do not go together but I am and have been pretty devoted to this company and don’t see myself finding another job (I really don’t want to).
My question is: have any of you sales guys had this happen (pay cut when the company had a really good year)?
Thank you for any assistance you can give!!!