The million dollar question!!
As an experienced salesman I have had salaries ranging from £6,000 per year to well over £200,000 plus commissions and bonuses - but I do regard myself as one of the best! :D
I was always very careful to ensure the package I was offered was balanced - a salary that is too high just made me complacent and ineffective and a salary that was too low just bred resentment.
The one criteria I always set myself was that by employer had to make money from me - if they were making money and I was then we were both happy.
A "get it while you can" attitude simply equals a short term position. No employer will tolerate you getting paid a huge salary without exceeding all expectations.
When I have been the person footing the bill for salespeople I have always worked to a 1:4 ratio. The salespersons salary should be 1/4 of their On Target Earnings and their OTE should be realistic. I always paid high commissions and big bonuses as I always wanted my salespeople to be chasing the next target. Therefore I was happy to pay a salary of £25k if the OTE was £100k and this would be the minimum acceptable level of performance. Anyone that sat in front of me and wanted a higher basic salary and lower commission would experience a very brief interview.
By sticking to these principles I was fortunate to work with some very successful sales teams who simply did not tolerate the interference of managers who wanted to overhaul the methods of consistent performer. They wanted to be left alone to perform and expected to be well rewarded for doing so whilst always knowing was help available when needed.
I have never had a problem with a salesperson who requests a minimum take home pay for a limited period in order to get established - in fact this filled me with confidence. A salesperson who simply needs to earn big money in order to fund his mortgage and lifestyle will be very driven and will nearly always excel. In every instance where a candidate has requested a minimum level of take home pay I have always requested previous wage slips. If they are requesting a guarantee of £3000 for three months then I need to be shown that they have consistently earned in excess of this figure and that the request is genuine. This of course provides me with additional proof that they have previously performed at a high level.
A good salesperson with a proven track record may well be worth breaking your budgets to win but remember that whilst salespeople are good at selling themselves but there are a myriad of issues that may arise when and if the salesperson starts working for you. I am guilty of following my gut instinct a few times too many and have paid too much to people who did not perform as promised and I have subsequently had to have some difficult conversations. I now work on a very clear principle, I will pay great money when the salesperson has proved themselves and I have no problem with committing to that within the offer of employment I send to them. If they meet the required targets for an agreed period of time they will receive whatever has been promised. I will often award the increases or bonus in stages over twelve months as I have often seen an initial flourish followed by a barren spell in the first year of employment.
The reality is that I cannot tell you what to pay your salespeople but I can tell you to make sure that they earn just enough to live and need to sell to live comfortably and need to sell lots to live well. Do not over-reward underperformance. Remember you only employ a salesperson to make money and/or to increase your value and the majority of salespeople are not as good as they claim!
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