🧾 1099 Sales Rep Commission Calculator
A 1099 sales rep costs you nothing until they produce, but the commission structure decides whether every deal they close is profitable for you. This calculator, straight from Dee's How To Charge workbook, models commission-only sales rep pay four ways: flat commission on placement fees, tiered scaling that rewards volume, gross margin commission on contract work, and contribution-based rates for who sells versus who fills. Run your numbers once free; the $27 one-time unlock keeps every section live forever and includes the Excel workbook.
Two independent commission lines can fire on any deal: a lead sourcing commission (the rep sourced the lead) and a placement commission (the rep closed or filled it). Both can fire together, either alone, or neither if you did both. No base salary, no burden, no benefits: the rep is a 1099 contractor.
A1 · Executive search / direct hire placements
For 1099 sales reps selling permanent placement or retained search. Flat commission on the placement fee. The last three rows are optional: leave them at 0 to skip.
The placement fee you charge the client, as a percent of first-year salary.
What the 1099 rep earns on this placement. 25% to 35% is the common range.
Leave at 0 to skip, exactly like the sheet's blank row.
A2 · Tiered scaling: executive search
As your 1099 rep generates more revenue, they earn a higher commission percentage. Set your own thresholds.
Every tier's verdict checks the company keep % against this target.
B1 · Interim / contract hourly placements
For 1099 sales reps selling interim executive or contract staffing placements paid hourly. Commission is based on GROSS MARGIN (what you keep after paying the worker and burden), not the bill rate. The last three rows are optional: leave them at 0 to skip.
The placed worker's payroll burden. This is the worker's cost, not the rep's; the rep is 1099.
Leave at 0 to skip, exactly like the sheet's blank row.
B2 · Commission on interim placements
Paid on gross margin, never on the bill rate. 15% to 25% is the common range.
B3 · Tiered scaling: interim / contract
Same concept as above. Commission percentage escalates as your 1099 rep generates more gross margin.
C1 · Contribution-based commission rates
What does your 1099 rep actually DO? The more work they handle, the more they earn. If they sell AND fill, they earn full commission. If they sell and hand the order to your team, they earn less.
e.g., 50% means the rep earns half their full desk rate.
C2 · Scenario deals (single and multi-order)
The rep closes a client that needs multiple positions filled. Who fills the orders determines the commission. Model both scenarios side by side.
Estimates for planning, not financial advice or a promise of earnings. Commission ranges are the workbook's guidance; your deals, margins, and contractor agreement decide the real numbers.
Does this resonate?
The comp plan is the easy part. Building the desk it pays for is the real work.
If commission-only reps are how you plan to scale your staffing or recruiting business, the platform can turn it into a real plan: positioning, launch checklist, and the week-by-week path from first client to a rep-powered sales desk.
Build my launch plan free →Good questions about this math
What is a good 1099 sales commission structure?
The workbook models the common ranges: 25 to 35 percent of the placement fee on direct hire and executive search, 15 to 25 percent of GROSS MARGIN (not the bill rate) on contract staffing, and tiered scaling that raises the percentage as the rep's annual production crosses thresholds you set. The right structure is the one where every tier still clears your target company margin; this calculator checks that on every row.
How does commission-only sales rep pay work on a 1099 basis?
A 1099 rep is an independent contractor: no base salary, no employer payroll taxes, no benefits, no guaranteed income. They earn only when a deal closes, and they handle their own self-employment taxes. The calculator's Section E builds the exact offer language, including the tax responsibility line, that you can paste into your contractor agreement.
Should commission be paid on revenue or gross margin?
Direct hire commission is usually paid on the placement fee, because the fee is nearly all margin. Contract and interim staffing commission should be paid on gross margin (bill rate minus pay rate minus worker burden), because paying on the bill rate can hand your rep money you never actually kept. This 1099 sales rep commission calculator models both, side by side.
What if the rep sells the deal but my team fills the orders?
That is the contribution-based structure in Section C: full desk (rep sells AND fills) earns the full rate, sales only (your team fills) earns a reduced rate. Make sure the reduction covers your internal cost of filling, not just your desire to pay less; the multi-order scenario shows both payouts side by side.
Do I get the Excel version?
Yes. The $27 unlock includes the standalone 1099 Sales Comp workbook (the exact sheet from Dee's How To Charge master, with every formula live) plus the START HERE guide tab, yours to download and keep.
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