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Should I Hire an outside Sales Rep?
- Thread starter HulkSmash
- Start date
BROWNDOG
New Member
this topic seems to come up alot, everyday lately we have someone walk in and want us to pay them. but none of them want to prove thierselves, if he is strictly a salesman, have your lawyer write up a nice contract with the non compete and all. offer him commision only to get started, treat him as a sub contractor and see how well wants to work.
Locals Find!
New Member
I wouldn't pay him a base salary unless his track record proves he is worth giving one too. I mean a salesman with experience in sales in the industry and a proven track record would be worth it. Someone just starting out in the industry definitely not.
Like the previous poster said, pay him commission only if he is just starting out.
Like the previous poster said, pay him commission only if he is just starting out.
jiarby
New Member
having a great outside sales person would be a boon to ANY business...
Finding one that lives up to the resume is a different story. If they are such a great salesman why are they looking for work? And, why do they want to work for salary?
Good salesman want to negotiate sales commission percentages and margins, not base salary.
Make a quota schedule... very lean at low sales volumes, very generous at high sales volumes.
Give him an ad-specialties catalog to sell from! ASI/Sage stuff. Then also add in banners. Avoid low margin products.
Finding one that lives up to the resume is a different story. If they are such a great salesman why are they looking for work? And, why do they want to work for salary?
Good salesman want to negotiate sales commission percentages and margins, not base salary.
Make a quota schedule... very lean at low sales volumes, very generous at high sales volumes.
Give him an ad-specialties catalog to sell from! ASI/Sage stuff. Then also add in banners. Avoid low margin products.
Gino
Premium Subscriber
I know lotsa sales people in the sign business. Most of them today are out of work, because they can't bring the big jobs in anymore. Whether or not the internet has anything to do with.... I'm not sure. The economy certainly has something to do with it, though.
The few good ones I know, knew the business inside out and did great work for their companies. Some of them even threw us a bone once in a while when it wasn't worth it for their shops to do the work. Many would collect the commissions and when doing work for other shops, they just collected a 'Finders Fee'.
I really don't know what happened to the majority of them, but like said already.... if they were worth their salt, they'd be working somewhere for the most part. Guess most of them turned into 'brokers'. :ROFLMAO:
Give the person a chance and tell them you'll pay them $100.00 a week for an honest 30 hours. Commission will take care of the rest immediately if they get you secured jobs.
I'd proceed very cautiously, if I were you.
The few good ones I know, knew the business inside out and did great work for their companies. Some of them even threw us a bone once in a while when it wasn't worth it for their shops to do the work. Many would collect the commissions and when doing work for other shops, they just collected a 'Finders Fee'.
I really don't know what happened to the majority of them, but like said already.... if they were worth their salt, they'd be working somewhere for the most part. Guess most of them turned into 'brokers'. :ROFLMAO:
Give the person a chance and tell them you'll pay them $100.00 a week for an honest 30 hours. Commission will take care of the rest immediately if they get you secured jobs.
I'd proceed very cautiously, if I were you.
I would start him on a guarantee of $500.00 a week, to be phased out after 3-6 months (pending your financial stance and his experience), this would allow him to build his pipeline of sales, after his salary period, put him on 10-15 percent commission, depending on what kind of signs you specialize in..usually the larger ticket item the lower the percentage...
Also the guarantee allows you to pay him commission if there sales exceed the $500.00 guarantee.
Hope this helps you make your opinion
Also the guarantee allows you to pay him commission if there sales exceed the $500.00 guarantee.
Hope this helps you make your opinion
briankb
Premium Subscriber
sorry Sign_Art I wouldn't pay him that at all. We hired a "sales guy" last year and he was put on a decent salary plus small commission. He did nothing! First we thought it was us so we doubled our efforts in providing him sales materials and leads. When the 6 month mark came around I was done and so was he. By then it was far too late and we had wasted a lot of time and money.
If we do it again. I'm going to do exactly as has been suggested already. Low low salary plus a commission to start and, for me, within a month he should be on straight commission. I like the suggested plan of making the commission larger based on overall sales. Just makes good sense.
If we do it again. I'm going to do exactly as has been suggested already. Low low salary plus a commission to start and, for me, within a month he should be on straight commission. I like the suggested plan of making the commission larger based on overall sales. Just makes good sense.
mark galoob
New Member
lots of time and money wasted...
any new sales people that come on board will not get paid any base salary, unless they bring at least that much in that week.
so in other words if i pay 250 wk base, they have to at least bring in 250 worth of business for me to want to pay them...
mark galoob
any new sales people that come on board will not get paid any base salary, unless they bring at least that much in that week.
so in other words if i pay 250 wk base, they have to at least bring in 250 worth of business for me to want to pay them...
mark galoob
Mosh
New Member
I would say they should bring in $2,500 worth of work....
Jon Aston
New Member
If any of you want your next sales hire to be a success, you should consider approaching the problem you're trying to solve from a different perspective.
I would suggest you start by building a marketing system that generates qualified leads for a salesrep (probably you, initially) to close. Be in a position to tell prospective hires that they'll get "this many" leads, per month, with an average value of "X" - and that you expect them to close "this much" in sales monthly. Based on that sales volume, they can expect to earn "Y". Put them on probation. Be prepared to act as a sales manager, to help them hit their numbers. Hire slow and fire fast.
I would suggest you start by building a marketing system that generates qualified leads for a salesrep (probably you, initially) to close. Be in a position to tell prospective hires that they'll get "this many" leads, per month, with an average value of "X" - and that you expect them to close "this much" in sales monthly. Based on that sales volume, they can expect to earn "Y". Put them on probation. Be prepared to act as a sales manager, to help them hit their numbers. Hire slow and fire fast.
W
wetgravy
Guest
Sales reps should be paid commission, at an old shop we had 2 outside sales reps, made 10% commission on whatever they sold. Worked great, and if you give suggestions to as to where they can sell where you can't normally go (mural wraps for office buildings, large format art pieces for hall ways for companies, waiting room adverts for dentists & chiropractors, etc) they can do lots fo good.
Locals Find!
New Member
I really don't know what happened to the majority of them, but like said already.... if they were worth their salt, they'd be working somewhere for the most part. Guess most of them turned into 'brokers'. :ROFLMAO:
Your probably right.
Your probably right.