How wholesale distributors use commission to drive B2B sales and reward sales representatives.
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Wholesale distribution is fundamentally commission-based. With US wholesale trade exceeding $7 trillion annually, the industry employs hundreds of thousands of commission-compensated salespeople. From food distribution to industrial components, commission models vary.
| Wholesale Type | Typical Commission |
|---|---|
| Food distribution | 1-3% of revenue |
| Technical wholesale | 3-8% of gross margin |
| Industrial components | 5-15% of gross margin |
Sales Representatives: OTE of $65,000-100,000 with 30-50% variable. Typically handle 50-200 accounts.
Key Account Managers: Focus on major customers. OTE $80,000-130,000 with tiered commission.