I'm thinking about going 1099 rep - what is typical commisssion payout

I'm looking at an opportunity with a medical capital equipment distributor. It would be a 1099 status. There is no draw, benefits, allowances.... nothing. The distributor has offered me a commission split. Bascially, any commissions I generate would be split with the distributor. Product commissions are between 10 and 20 percent. So, if I generate 200k in commissions, the distributor gets X amount and I get X amount. I'd like to know what the typical commission structure for 1099 reps in medical cap equipment. Thanks for your honest replies.

 

minimum is 60/40 ! fi your guy in ethical and wants you do do well should ne 70/30 or even 80/20 . Unless he is paying your t reptrax etc

 

Thanks,
The split he is offering is 40/60. I get 40%. I said that was way too low and did not seem right. Plus, I pay all my expenses..... hotels, training, company meetings, etc. I am not taking the position unless the split 60/40. I still think that is low. The example i set for myself is..... if I produce 200k in total commissions......... I would get 80k and his distributorship would get 120k. Plus I pay all my expenses.

 

I would pass on this one...I offer anyone working with me 75%, at least, and let them pay everything on their own, including vendor credentialing. Keep in mind, whoever is trying to hire you to sell within their distributorship needs you focused and producing in order for that dist. to hang onto the line(s). The last time time I had a lucrative line the manufacturer actually required that I pay my sub 22%!

 

Any ethical distributor will pay the rep a majority of the commission if the rep is doing the work. I usually only keep 5-10% depending on the payout. If I get 40 points, I'll keep 10.