Sales Manager Compensation

The sales manager is compensated in three basic areas, based upon the desired objectives of the company:

• Sales commission split. A broker may want to establish a generous fixed-commission split for the sales manager, acknowledging that the sales manager will have less time available to do his or her own personal sales. A commission split of 80 to 85 percent is not unusual, depending upon the market area and the size of the office.

• Base compensation. Typically, this is a monthly stipend of $1,000 to $2,000, varying with marketplaces. Base compensation is further acknowledgment that the sales manager will spend time doing administrative duties that negatively affect his or her personal sales income but that is essential for company operations.

• Recruiting bonuses. A common way to encourage a sales manager to spend time on recruiting activities is to provide an incentive program for the job. Any incentive program should be based upon the recruited agent's production level prior to coming to the firm, with higher bonuses paid for higher-producing agents (based upon company dollar contributed to the firm, not gross commissions generated by the agent). Bonuses might range from $500 to $5,000.

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