Employing a sales person
Discussion
I'm going to need someone to do sales/marketing, planning to get this in place by the end of the year.
As I'm a relatively small start up I'm thinking commission only for a start and then moving (the hopefully successful) person to salary / commission. Anyone experience if this can work?
I'm a bit loathe to use agencies due to the fees, not getting very far from word of mouth, other route suggestions?
As I'm a relatively small start up I'm thinking commission only for a start and then moving (the hopefully successful) person to salary / commission. Anyone experience if this can work?
I'm a bit loathe to use agencies due to the fees, not getting very far from word of mouth, other route suggestions?
Commission only.....unless your product offers huge earning potential with VERY high quality leads you wont get anyone who is any good...I do know someone who works this way, he chooses to as it increases his commission rate and he earns £200k pa +.
As already said, I would get someone efficient and part time to start with but pay them properly.
Good salesperson is a key part of any company, but it they dont earn it will be a continuous merry go round of people
dfen5 said:
I'm going to need someone to do sales/marketing, planning to get this in place by the end of the year.
As I'm a relatively small start up I'm thinking commission only for a start and then moving (the hopefully successful) person to salary / commission. Anyone experience if this can work?
I'm a bit loathe to use agencies due to the fees, not getting very far from word of mouth, other route suggestions?
I have a suggestion, try thinking about paying the going rate for the skills and abilities that you require in your salesman instead of being a cheap skate, it takes money to make money.As I'm a relatively small start up I'm thinking commission only for a start and then moving (the hopefully successful) person to salary / commission. Anyone experience if this can work?
I'm a bit loathe to use agencies due to the fees, not getting very far from word of mouth, other route suggestions?
Commission only posts can work well but only generally in certain market sectors. eg guy x visits and sells to his employers customers whilst working in his/her day job. Those customers could also use your product/s (which do not compete with guy x's employers products). He is in front of the buyer and takes an extra 15 mins or so to "sell" your non competing products. You pay his commission on sales of your products.
Not entirely ethical but there are people that would and do do it. If they choose to tell their employer is their affair.
Tax implications is another whole minefield.
Not entirely ethical but there are people that would and do do it. If they choose to tell their employer is their affair.
Tax implications is another whole minefield.
From what I can see, purely from your online presence, you are offering very little lead generation support, so you are looking for a person to set up your marketing activity, generate their own leads and then close the sale. All without paying them.
You need to look at your business model if you want to grow the company. We provide B2B lead generation services for companies and get contacted by lots of start ups who want us to take all of the risks, do all of the work and they only pay if they make a sale.
I'm sure there will be sales agents who could include your products in their portfolio but they will expect high commissions.
The best sales person, certainly in the early days, is you, you have the knowledge, enthusiasm, expertise etc. to overcome any weaknesses in sales skills.
Concentrate on understanding your target market and engaging with them to generate leads for yourself. Once you have these systems in place and understand how the sales process work you will find it much easier to recruit the right sales people and support them for your next stage of growth.
You need to look at your business model if you want to grow the company. We provide B2B lead generation services for companies and get contacted by lots of start ups who want us to take all of the risks, do all of the work and they only pay if they make a sale.
I'm sure there will be sales agents who could include your products in their portfolio but they will expect high commissions.
The best sales person, certainly in the early days, is you, you have the knowledge, enthusiasm, expertise etc. to overcome any weaknesses in sales skills.
Concentrate on understanding your target market and engaging with them to generate leads for yourself. Once you have these systems in place and understand how the sales process work you will find it much easier to recruit the right sales people and support them for your next stage of growth.
3200gt said:
Commission only posts can work well but only generally in certain market sectors. eg guy x visits and sells to his employers customers whilst working in his/her day job. Those customers could also use your product/s (which do not compete with guy x's employers products). He is in front of the buyer and takes an extra 15 mins or so to "sell" your non competing products. You pay his commission on sales of your products.
Not entirely ethical but there are people that would and do do it. If they choose to tell their employer is their affair.
Tax implications is another whole minefield.
We have one of them. Not entirely ethical but there are people that would and do do it. If they choose to tell their employer is their affair.
Tax implications is another whole minefield.
He and his wife set up a limited company to invoice us as he couldn't have the extra earnings showing on his P60. She takes it out as dividends as I understand it but that's none of our concern.
Commission only says to me 'I dont know if this'll work and I'm not going to take any risk, it's your problem if it doesnt work out'
You need to shoulder some of the risk, put together a spend plan on how you're going to warm the market up so that a sales person can come in and do their thing. The days of cold calling lists are long since passed, people dont just call up for an appointment and walk out with an order anymore (not in most industries I've worked in anyway)
Whatever you were thinking of spending on marketing, triple it. Because BizDev is a Marketing role, not a sales role. Then look again at whether you need a sales person
You need to shoulder some of the risk, put together a spend plan on how you're going to warm the market up so that a sales person can come in and do their thing. The days of cold calling lists are long since passed, people dont just call up for an appointment and walk out with an order anymore (not in most industries I've worked in anyway)
Whatever you were thinking of spending on marketing, triple it. Because BizDev is a Marketing role, not a sales role. Then look again at whether you need a sales person
Without some background as to what the business is and where it wants to go, it's hard to give informed advice.
Very broadly speaking, think of the skill sets required to get the business off the ground and then keep it building. Look at what will motivate those people to perform and how they fit (including what they bring to the table).
If you have little or no sales or marketing experience, for example, you might want to bring these skills into the business in a more structured way, possibly by sharing some equity with the right person, if appropriate.
For example, our business was formed between 3 business partners, combining someone great at sales and strategy, someone skilled in operations and man management and someone funding the operation and themselves a client. We made the mistake of outsourcing our product manufacture and will instead be bringing this in house and probably, for the right individual prepared to invest, allow them into the 'inner circle'.
This way the cornerstones of the business are all represented at ownership and management level and everyone is motivated to perform. When presenting to potential clients and investors, they see we're not top heavy or too light in major areas of the business, in this early phase.
Fishing in a pond of commission only, potentially low-level sales people might bring you some sales, however it is not necessarily going to build strong relationships with clients (concept of product dependent), bring forward sales and marketing expertise into the business or deliver stability. Commission only guys will go where the money is, hence they can disappear as quickly as they came. Do you have the time and resources to start from scratch with a new person every 3 months?
Very broadly speaking, think of the skill sets required to get the business off the ground and then keep it building. Look at what will motivate those people to perform and how they fit (including what they bring to the table).
If you have little or no sales or marketing experience, for example, you might want to bring these skills into the business in a more structured way, possibly by sharing some equity with the right person, if appropriate.
For example, our business was formed between 3 business partners, combining someone great at sales and strategy, someone skilled in operations and man management and someone funding the operation and themselves a client. We made the mistake of outsourcing our product manufacture and will instead be bringing this in house and probably, for the right individual prepared to invest, allow them into the 'inner circle'.
This way the cornerstones of the business are all represented at ownership and management level and everyone is motivated to perform. When presenting to potential clients and investors, they see we're not top heavy or too light in major areas of the business, in this early phase.
Fishing in a pond of commission only, potentially low-level sales people might bring you some sales, however it is not necessarily going to build strong relationships with clients (concept of product dependent), bring forward sales and marketing expertise into the business or deliver stability. Commission only guys will go where the money is, hence they can disappear as quickly as they came. Do you have the time and resources to start from scratch with a new person every 3 months?
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