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Southeast was generally paid a 30-percent sales commission
by Revels on each sale made at an RV show. The sales commission
was paid on the gross profit from each sale.5
Salesmen were generally paid a sales commission of 20-
percent of the gross profit on each of their sales, or two-thirds
of the commission paid by Revels to Southeast. However, if a
sale resulted in a loss; i.e., the cost of the recreational
vehicle was greater than the sales price, the salesman was paid a
“flat fee” sales commission. Prior to each RV show, Revels
provided Southeast with the cost of each recreational vehicle.
Southeast, in turn, provided each salesman with the cost of each
recreational vehicle. Based on the information provided by
Revels and the sales contract, Mr. Osburn determined the amount
of sales commission earned by a salesman on each recreational
vehicle sold. Sales commissions were paid by Southeast to the
salesmen in cash after Southeast delivered the sales contracts to
Revels and received its 30 percent commission.
In addition to the sales commissions, Southeast paid each
salesman a $25 per diem payment for each day a salesman was at an
RV show. The salesman was provided the per diem payment up front
in cash, on either a daily basis or for the entire duration of an
RV show. The salesman was not required to account for his
5 The gross profit was generally the selling price of the
recreational vehicle less its cost.
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Last modified: May 25, 2011