FIRE
FUNDING PROCESS INTERPERSONAL RELATIONSHIPS REVENUE BUILDERS ENTREPRENEUR SUCCESS
BUILDING THE
Compensation Discussion
Survey Results & Round Table Discussion
United Equipment Leasing Association
FIRE
FUNDING PROCESS INTERPERSONAL RELATIONSHIPS REVENUE BUILDERS ENTREPRENEUR SUCCESS
BUILDING THE
Respondents
Total:• 304 Sent, 86 Received – 28% Response
Southern California Response Rate: • 76 Sent, 24 Received- 32% Response
FIRE
FUNDING PROCESS INTERPERSONAL RELATIONSHIPS REVENUE BUILDERS ENTREPRENEUR SUCCESS
BUILDING THE
Sales Compensation
FIRE
FUNDING PROCESS INTERPERSONAL RELATIONSHIPS REVENUE BUILDERS ENTREPRENEUR SUCCESS
BUILDING THE
Q. How would you consider your sales organization model?
Total So Cal
Vendor Driven
40.7% 25.0%
Lessee Driven
23.3% 33.3%
Equal Combination of both
36.0% 41.7%
FIRE
FUNDING PROCESS INTERPERSONAL RELATIONSHIPS REVENUE BUILDERS ENTREPRENEUR SUCCESS
BUILDING THE
Q. Where are you located?
Location Total So Cal
Southern California
28.2% 100%
Northern Cal 8.2%
Northwest 12.9%
Mid-West 12.9%
Southwest 12.9%
Northeast 11.8%
Southeast 12.9%
FIRE
FUNDING PROCESS INTERPERSONAL RELATIONSHIPS REVENUE BUILDERS ENTREPRENEUR SUCCESS
BUILDING THE
Q. How many sales people do you have?
Total So Cal
1-5 60.5% 33.3%
6-15 27.9% 41.7%
16-30 9.3% 16.7%
31 + 2.3% 8.3%
FIRE
FUNDING PROCESS INTERPERSONAL RELATIONSHIPS REVENUE BUILDERS ENTREPRENEUR SUCCESS
BUILDING THE
Q. How are your sales representatives paid?
Total So Cal
Base + commission
25.6% 41.7%
Commission only
66.3% 37.5%
Salary only 1.2% 0.0%
Others 20.8%
FIRE
FUNDING PROCESS INTERPERSONAL RELATIONSHIPS REVENUE BUILDERS ENTREPRENEUR SUCCESS
BUILDING THE
Q. If you answered the previous questions with Base Plus Commission, how much is the base?
Salary Total So Cal
Less than $20K
3.7% 0.0%
$20,000-$25,000
33.3% 33.3%
$25,000- $30,000
22.2% 26.7%
$30,000- $35,000
25.9% 33.3%
$35,000+ 14.8% 6.7%
FIRE
FUNDING PROCESS INTERPERSONAL RELATIONSHIPS REVENUE BUILDERS ENTREPRENEUR SUCCESS
BUILDING THE
Q. What percentage of gross profit do you pay in commission?
% Commission Total So Cal
Less than 15% 8.6% 4.3%
15%-25% 9.9% 21.7%
25-35% 13.6% 13.0%
35-45% 22.2% 21.7%
45-55% 38.3% 34.8%
55-65% 3.7% 0.0%
65-75% 2.5% 4.3%
75% + 1.2% 0.0%
FIRE
FUNDING PROCESS INTERPERSONAL RELATIONSHIPS REVENUE BUILDERS ENTREPRENEUR SUCCESS
BUILDING THE
Q. Can your sales representatives share in future residuals?
Total Southern Cal
Yes 46.9% 78.3%
No 53.1% 21.7%
FIRE
FUNDING PROCESS INTERPERSONAL RELATIONSHIPS REVENUE BUILDERS ENTREPRENEUR SUCCESS
BUILDING THE
Q. What is the MINIMUM annual Gross Margin expected of a seasoned sales representative? (>2yrs)
Gross Margin Total So Cal
<$50K 6.2% 4.3%
$50-$100K 29.6% 13.0%
$100-$150K 27.2% 39.1%
$150-$200K 16.0% 30.4%
$200-$250K 6.2% 4.3%
$250-$300K 6.2% 0.0%
$300-$350K 2.5% 4.3%
$350-$400K 2.5% 0.0%
$500K+ 3.7% 4.3%
FIRE
FUNDING PROCESS INTERPERSONAL RELATIONSHIPS REVENUE BUILDERS ENTREPRENEUR SUCCESS
BUILDING THE
Q. What is the AVERAGE annual Gross Margin expected of a seasoned sales representative? (>2yrs)
Gross Margin Total So Cal
<$50K 3.8% 4.3%
$50-$75K 11.2% 4.3%
$75-$100K 11.2% 8.7%
$100-$125K 13.8% 4.3%
$125-$150K 6.2% 0%
FIRE
FUNDING PROCESS INTERPERSONAL RELATIONSHIPS REVENUE BUILDERS ENTREPRENEUR SUCCESS
BUILDING THE
Q. What is the AVERAGE annual Gross Margin expected of a seasoned sales representative? (>2yrs)
Continued Total So Cal
$150-$175K 11.2% 8.7%
$175-$200K 8.8% 21.7%
$200-$225K 11.2% 26.1%
$225-$250K 7.5% 13%
$250-$275K 5.0% 0.0%
$275-$300K 1.2% 4.3%
$300K+ 8.8% 4.3%
FIRE
FUNDING PROCESS INTERPERSONAL RELATIONSHIPS REVENUE BUILDERS ENTREPRENEUR SUCCESS
BUILDING THE
Q. Are your sales people compensated for their expenses?
Total So Cal
Yes 51.2% 56.5%
No 48.8% 43.5%
FIRE
FUNDING PROCESS INTERPERSONAL RELATIONSHIPS REVENUE BUILDERS ENTREPRENEUR SUCCESS
BUILDING THE
Q. How long is it before a new sales person is productive generating a consistent stream of gross margin?
Total So Cal
0-4 Months 11.5% 8.7%
5-8 Months 44.9% 52.2%
9-12 Months 26.9% 17.4%
13-18 Months 12.8% 21.7%
19-24 Months 3.8% 0%
FIRE
FUNDING PROCESS INTERPERSONAL RELATIONSHIPS REVENUE BUILDERS ENTREPRENEUR SUCCESS
BUILDING THE
Q. How long before they become profitable?
Months Total So Cal
0-4 Months 5.3% 9.1%%
5-8 Months 30.7% 22.7%
9-12 Months 41.3% 36.4%
13-18 Months 13.3% 27.3%
19-24 Months 6.7% 0%
24-36 Months 2.7% 4.5%
FIRE
FUNDING PROCESS INTERPERSONAL RELATIONSHIPS REVENUE BUILDERS ENTREPRENEUR SUCCESS
BUILDING THE
Q. What is your retention rate of new sales hires?
Retention Rate Total So Cal
<15% 14.3% 8.7%
15-25% 11.7% 13.0%
25-35% 9.1% 4.3%
35-45% 11.7% 26.1%
45-55% 14.3% 4.3%
55-65% 10.4% 8.7%
65-75% 10.4% 8.7%
>75% 18.2% 26.1%
FIRE
FUNDING PROCESS INTERPERSONAL RELATIONSHIPS REVENUE BUILDERS ENTREPRENEUR SUCCESS
BUILDING THE
Operational Compensation
FIRE
FUNDING PROCESS INTERPERSONAL RELATIONSHIPS REVENUE BUILDERS ENTREPRENEUR SUCCESS
BUILDING THE
Q. If you have an Operational/Office Manager, what do you pay them?
Salary Total So Cal
<$30K 3% 0%
$30-$35K 13.4% 14.3%
$35-$40K 10.4% 19%
$40-$45K 9% 14.3%
$45-$50K 7.5% 9.5%
$50-$55K 6% 0%
$60-$65K 4.5% 4.8%
$70-$75K 3% 4.8%
>$75K 6% 28.6%
FIRE
FUNDING PROCESS INTERPERSONAL RELATIONSHIPS REVENUE BUILDERS ENTREPRENEUR SUCCESS
BUILDING THE
Q. How many people do they oversee?
# of People
Total So Cal
3 or less 56.9% 44.4%
4-6 29.4% 44.4%
7-10 3.9% 0.0%
10-12 5.9% 0%
>13 3.9% 11.1%
FIRE
FUNDING PROCESS INTERPERSONAL RELATIONSHIPS REVENUE BUILDERS ENTREPRENEUR SUCCESS
BUILDING THE
Q. If you have a Credit Manager, what do you pay them?
Salary Total So Cal
<$30K 1.6% 0%
$30-$35K 6.6% 9.5%
$35-$40K 8.2% 9.5%
$40-$45K 4.9% 4.8%
$45-$50K 4.9% 9.5%
$50-$55K 4.9% 4.8%
$55-$70K 4.9% 9.5%
$70-$75K 3.3% 9.5%
>$75K 6.6% 4.5%
FIRE
FUNDING PROCESS INTERPERSONAL RELATIONSHIPS REVENUE BUILDERS ENTREPRENEUR SUCCESS
BUILDING THE
Q. How many people do they oversee?
# of People
Total So Cal
3 or less 65.6% 71.4%
4-6 28.1% 28.6%
7-10 0% 0%
10-12 6.2% 0%
>13 0% 0%
FIRE
FUNDING PROCESS INTERPERSONAL RELATIONSHIPS REVENUE BUILDERS ENTREPRENEUR SUCCESS
BUILDING THE
Q. If you have a Funding Manager, what do you pay them?
Salary Total So Cal
<$30K 5.2% 5.3%
$30-$35K 1.7% 0%
$35-$40K 3.4% 5.3%
$40-$45K 10.3% 10.5%
$45-$50K 3.4% 10.5%
$50-$55K 6.9% 10.5%
$65-$70K 1.7% 5.3%
>$75K 0% 0%
FIRE
FUNDING PROCESS INTERPERSONAL RELATIONSHIPS REVENUE BUILDERS ENTREPRENEUR SUCCESS
BUILDING THE
Q. How many people do they oversee?
#of People Total So Cal
3 or less 83.3% 83.3%
4-6 8.3% 10.7%
7-10 0% 0%
10-12 8.3% 0%
>13 0% 0%
FIRE
FUNDING PROCESS INTERPERSONAL RELATIONSHIPS REVENUE BUILDERS ENTREPRENEUR SUCCESS
BUILDING THE
Q. What salary does your Credit Analyst get paid?
Salary Total So Cal
<$30K 12.9% 0%
$30-$35K 29% 28.6%
$35-$40K 3.2%
$40-$45K 16.1% 14.3%
$45-$50K 9.7% 7.1%
$50-$55K 3.2% 14.3%
$55-$60K 9.7%
$65-$75K 6.4% 7.1%
>$75K 9.7% 14.3%
FIRE
FUNDING PROCESS INTERPERSONAL RELATIONSHIPS REVENUE BUILDERS ENTREPRENEUR SUCCESS
BUILDING THE
Q. What salary does your Funding Analyst get paid?
Salary Total So Cal
<$30K 19.2% 9.1%
$30-$32K 11.5% 9.1%
$32-$34K 11.5% 9.1%
$34-$36K 11.5% 18.2%
$36-$38K 7.7% 9.1%
$38-$40K 3.8% 0%
$40-$42K 7.7% 9.1%
$42-$44K 19.2% 27.3%
>$44K 7.7% 9.1%
FIRE
FUNDING PROCESS INTERPERSONAL RELATIONSHIPS REVENUE BUILDERS ENTREPRENEUR SUCCESS
BUILDING THE
Q. Do you share company profits with your operational staff?
Total So Cal
Yes 38.2% 27.3%
No 61.8% 72.7%
FIRE
FUNDING PROCESS INTERPERSONAL RELATIONSHIPS REVENUE BUILDERS ENTREPRENEUR SUCCESS
BUILDING THE
Q. Are your operational staff eligible for bonuses?
Total So Cal
Yes 76.5% 81.8%
No 23.5% 18.2%