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Thinking about hiring a sales rep

Discussion in 'Business Management' started by tonywhittier, Nov 21, 2012.

  1. tonywhittier

    tonywhittier Member

    Feb 5, 2009
    I've tried searching the forums before i posted something that i know has probably been posted a million times but couldn't really find anything good.

    We are a fairly new shop that is tossing around the idea of hiring a sales rep. What is some advice you might have? what is the going rate? inside or outside? i will be paying them strictly commission and obviously if they are inside they will get draw.

    Is it worth it?
  2. rjssigns

    rjssigns Premium Subscriber

    Jun 4, 2007
    Home Office
    Hire an intern? We may do that next Summer to target a specific area.
  3. It will not be worth it. Try as you might you will have a hard time finding someone to work on a straight commission. Pay a base salary and it will take you months even years to recoup your investment. That is assuming they stick around that long. Your best option here is to hire a counter person or production person who can answer the phone, run your counter, receive payments. Then YOU go do sales. All you need is some nice business cards and some free time. Start with businesses in your area and work your way down and up and street. If you don't or can't bring yourself to press some flesh, you might want to consider a new careeer. Was not my favorite thing to do at first, either, but it WORKS and it's easy.
  4. royster13

    royster13 Very Active Member

    Apr 3, 2009
    Montrose BC
    Years ago I started a sales person / gopher for a small print ship......It did not take me long to figure out that I could broker orders and make 2 to 3 times the commission......I think if a person to good enough to do a good job for you, you will have to give them a larger share that most shops will find comfortable or see them leave as soon as they start to get traction.....
  5. DSC

    DSC Member

    Mar 24, 2010
    I work with a lot of salesman that broker to us for fabrication.. as a trade based company I get a lot of feedback from these salesman about their jobs and their workplace etc.. for no specific reason really, usually just from shooting the breeze, and these are just things I try to remember.

    Through these conversations, this is what I have learned. And we have also toyed with the idea.. to have a "rep" not so much a "sales person", but is would be a similar scenario .

    The guys that are really good and do 500K plus per year have a base of anywhere from 50 to 75K plus anywhere from 3 to 8 percent.. Some have caps, some don't. they need to make their monthly salary in commission before they get paid a commission. Sometimes they have to make at least a percentage of it. This would be a negotiating point for for both parties when hiring and getting the contract together.

    So if you pay someone $500 per week, they need to create $2000 in commission per month to get a commission check. but no matter what, they would get the $2000 per month.. Now some companies that pay higher salaries go as far as to even hold the commission you don't make against the salary for the entire year, then if they do not recoup the salary through the year, they can either forgive the debt created by the salesperson, or get rif of them.. It all depends on the contract and negotiations when hiring.

    That would be lowest I would offer someone as a new hire with NO experience..

    Most of these guys are outside only, and never touch the inside of the shops except for a weekly meeting.. Some work from home, and check in just a couple times a month..

    I see their job is to bring NEW customers in. Retention is another game I think..

    I would not suggest strictly commission, just based on the fact that you get what you pay for.. If they made a bunch of commission the week prior, what is the incentive to sell the next week?

    I would honestly just do a salary against commission on a monthly basis.. a good sales person should be outside, getting you jobs, selling at least 15 per month minimum for a startup.. Offer a 6 month trial..a good salesman makes you money, and should not cost a thing .. you just really have to decide whether or not you want to take the chance and lose 6 months of cash if they sell nothing.. which, if you hire someone with a track record, experience, and connections, should not happen..

    I would not advise hiring someone with no experience, on a commission basis only, and that needs training. that will take you away from your responsibilities, and you end up losing more $$ .. essentially you would become a babysitter for that person.. no good..

    There is absolutely no harm in putting together a plan for a new successful employee and starting to interview.. It's not like you HAVE to hire someone.. put the position together and put the word out.. you just might find a great moneymaker .. !

    BTW - If you can get a salesperson that can do layouts that is HUGE - they can do all the proofing and the prelim design before it has to go to in house design for final and fabrication spec, permit spec etc. ..Saves the house designer a lot of time..

    Good luck! I hope you find someone great!

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