AnonymousAugust 11, 2014 at 6:26 PM
Hi VS
Im new in this game as a shipbroker and have been in the business as a broker for 12 month now.
I did my first fixture after 6 month and since I have kept on going and I have accumulated for about 100.000 USD.
I have been offered a new contract where there is a amount of fixed cost, after I have passed that amount I will get commission in different stages.
Example: fixed cost per year 50.000 USD , after that will I get commission at 15% and when I from 100.000 I till get 17% and so on
Is that common, that you have a fixed amount you have to pass before you will get your commission ?
And can you tell me how a contract for a shipbroker normally is salary wise?
Best regards
JE
Im new in this game as a shipbroker and have been in the business as a broker for 12 month now.
I did my first fixture after 6 month and since I have kept on going and I have accumulated for about 100.000 USD.
I have been offered a new contract where there is a amount of fixed cost, after I have passed that amount I will get commission in different stages.
Example: fixed cost per year 50.000 USD , after that will I get commission at 15% and when I from 100.000 I till get 17% and so on
Is that common, that you have a fixed amount you have to pass before you will get your commission ?
And can you tell me how a contract for a shipbroker normally is salary wise?
Best regards
JE
unqte
Hi JE
Many thanks email.
I am a little confiused by your email. Are you saying you do not get paid at all until you cover your fixed costs? How do you eat and live before you crack the usd 50,000?
VS
I'm just giving my thought here, but maybe he means that his base salary is 50k USD and then he will get comission after he has fulfilled 50k USD in accumulation?
ReplyDeleteMy confusion here is; isn't the normal comission in the shipping industry on approx. 2 %? I'm not the wisest guy in the business, so don't take my words for granted. (Not yet at least!)
From what I am reading, his 'target' is usd 50k, which understandably means the employer is covering the basic cost of the employee (salary, rent, admin), and anything earned above that he will get a bonus 15/17% total commission earned - this is fairly common structure. From what I've heard, commissions range from 10-40% (depending how senior you are and how much you're fixing).
ReplyDeleteYes, ship brokers standard commission is 1/1.25/2/2.5% depending on the type of deal (new buildings/secondhand sales/chartering) and segment (bulk/tanker/offshore/containers). But the commission % he is talking about is the percentage of the total commission he has brought in.
I have a friend who is working basis no fixed salary, commission only. In which case he is taking in 50% of the total commission he has brought in for the company. Risky, but more reward (if he fixes) - this was part of a desperate attempt to get into the industry, but he has his foot in the door now.
In short, fixed salaries in theory shouldn't be anything special. So go fix. Make your bonus.