FIREFIRE F UNDING PROCESS I NTERPERSONAL RELATIONSHIPS R EVENUE BUILDERS E NTREPRENEUR SUCCESS...

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FUNDING PROCESS INTERPERSONAL RELATIONSHIPS REVENUE BUILDERS ENTREPRENEUR SUCCESS

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Compensation Discussion

Survey Results & Round Table Discussion

United Equipment Leasing Association

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Respondents

Total:• 304 Sent, 86 Received – 28% Response

Southern California Response Rate: • 76 Sent, 24 Received- 32% Response

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Sales Compensation

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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%

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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%

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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%

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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%

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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%

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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%

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Q. Can your sales representatives share in future residuals?

Total Southern Cal

Yes 46.9% 78.3%

No 53.1% 21.7%

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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%

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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%

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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%

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Q. Are your sales people compensated for their expenses?

Total So Cal

Yes 51.2% 56.5%

No 48.8% 43.5%

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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%

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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%

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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%

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Operational Compensation

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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%

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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%

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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%

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# 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%

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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%

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#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%

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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%

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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%

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Q. Do you share company profits with your operational staff?

Total So Cal

Yes 38.2% 27.3%

No 61.8% 72.7%

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Q. Are your operational staff eligible for bonuses?

Total So Cal

Yes 76.5% 81.8%

No 23.5% 18.2%

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Discussion

FIREFIRE F UNDING PROCESS I NTERPERSONAL RELATIONSHIPS R EVENUE BUILDERS E NTREPRENEUR SUCCESS...

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