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Salaries vs Sales

Just wondering if anyone has any knowledge on what percentage in general should salaries be compared to sales. Also wondering what percentage rent/lease should be compared to sales. If anyone has an idea or a common percentage that they go by please email me back. Thank you for your help and input!

Tracy Schafer Baker Associates

According to experts...salaries should never exceed 50% of AGI. Rent should be no more than 10% of gross revenue.

Roxanne Cowan

Creative Business published some standards in Dec 1997 ("Twenty-five Performance Standards for Graphic Design & Creative Services Companies"). They recommend that income per employee should be $8,500 per month or better. (To calculate, divide AGI by number of employees.) I adjusted this upward for inflation at 3% per year and came up with $9,567.Even though the article is old, it has some good guidelines (like suggested AR, markups, liquidity and the like). I think you can order a reprint from their website (www.creativebusiness.com). Hope this helps!

Judy Hector Clients & Profits

I am looking for examples of how companies structure the total compensation package for a sales/new business development person. Do you use a set percentage of new business brought in by the sales person to determine commission? Thank you,

RitaEsposito