Discussion
Hello All
We are for the first time considering taking on dedicated sales people. We are thinking of going down the commission only route (unlimited high commission rather then basic plus commission with cap) to try to ensure that we get people that are sales hungry and high acheivers.
Has anyone done this or can offer general advice?!
We are for the first time considering taking on dedicated sales people. We are thinking of going down the commission only route (unlimited high commission rather then basic plus commission with cap) to try to ensure that we get people that are sales hungry and high acheivers.
Has anyone done this or can offer general advice?!
nekrum said:
Hello All
We are for the first time considering taking on dedicated sales people. We are thinking of going down the commission only route (unlimited high commission rather then basic plus commission with cap) to try to ensure that we get people that are sales hungry and high acheivers.
Has anyone done this or can offer general advice?!
i have just been through the process of trying to take on sales people. it's very difficult to find good sales people. commission only is very dodgy... you really get what you pay for, and no credible salesman worth his salt will work on that basis. what are you selling? if you are looking for high activity telesales people my advice would be to get a graduate who has sold advertising space or has worked at yellow pages...
good luck...
>> Edited by Rob_T on Tuesday 29th November 10:58
Commission only is all well and good until they want a mortgage or similar.
Having a salary also gives people more confidence that they'll be with you for a year or more.
Best option is to be flexible and offer any worthy candidates a few options. Ie:
1) Basic + small percentage
2) No basic + large percentage
If they feel they can sell a lot then they'd make more money in 2. But they might want the security of a salary.
Having a salary also gives people more confidence that they'll be with you for a year or more.
Best option is to be flexible and offer any worthy candidates a few options. Ie:
1) Basic + small percentage
2) No basic + large percentage
If they feel they can sell a lot then they'd make more money in 2. But they might want the security of a salary.
As previously said, no sales person worth their salt would work commission only - if they can't sell their own value to you to get a basic out of you, what chance do they stand in front of customers?!
In my experience, any sales person prepared to work comm only is chancing an occasion they may be able to slip in a sale for you before a nice job offer comes along. You'll have them for a few months max, and your sales cycle may be longer than that.
If you dont want to pay a basic offer some form of deal to an agent. Find out who else visits the same type of clients you want to approach and let them take your solution to the market that way. This way they are already earning and visiting the clients, you are an extra opportunity for them to make some money. You don't say what you are selling but this may be an option. Having employed many sales people around the country, any less that £14K basic and you are struggling to find a spark of talent.
There are only around 200 dedicated, successful agents across the entire country. Finding them is challenge number 1, aligning thier sweet spot with yours is number 2 (do they know your market? The right customer spread? Right geographical reach?), motivating them number 3 - there is more to it than just money, as if they can see an otherwise interested punter is waveringa bit at what you do, they'll drop you like a stone.
It is a minefield and if you are serious about sales unless you have a comodity, to be avoided.
If you want to talk it over feel welcome to give me a call - 0871 25 000 52. Or mail me at hendry@entelegen.com.
Hello all - Thanks for the response.
I think as you say commission only just isn't going to work. Our worry is as a small company which is trying to expand (hence salesperson) we can fund a basic but are worried that if we get a none performer (seen it in other companies) it has eaten a large chunk of funding just to start over.
We're a business technology and office supplies company and the lead times of office supplies is instant but sometimes long with the technology stuff.
We are based in the east midlands - does anyone have any view on what a realistic basic package would be for us to get a good salesperson. We would be hoping to get someone with loads of get up and go how if the person is right would stay with the company in the long term and possibly offer them shares etc. The hard but is getting the right person I think?!
I think as you say commission only just isn't going to work. Our worry is as a small company which is trying to expand (hence salesperson) we can fund a basic but are worried that if we get a none performer (seen it in other companies) it has eaten a large chunk of funding just to start over.
We're a business technology and office supplies company and the lead times of office supplies is instant but sometimes long with the technology stuff.
We are based in the east midlands - does anyone have any view on what a realistic basic package would be for us to get a good salesperson. We would be hoping to get someone with loads of get up and go how if the person is right would stay with the company in the long term and possibly offer them shares etc. The hard but is getting the right person I think?!
I've been in sales for quite a few years now... and i can agree with all of the above.
I would never take a job that was commission only, mainly because a majority of 'good' sales roles have a basic salary, incentive package, and performance based bonuses (rather than 'commmission).
You actually find, the commission only jobs, are those dodgy door-to-door sales roles, and while im sure there are some talented people doing those jobs, from my perspective, i would in an industry where there is a lot of overlap - so my integrity and reputation are as important, if not more than, what i am selling...
So, i guess it comes down to what your company does, and what they would be selling - and if you dont want the overhead of a base salary, have you considered using Rep's?
I would never take a job that was commission only, mainly because a majority of 'good' sales roles have a basic salary, incentive package, and performance based bonuses (rather than 'commmission).
You actually find, the commission only jobs, are those dodgy door-to-door sales roles, and while im sure there are some talented people doing those jobs, from my perspective, i would in an industry where there is a lot of overlap - so my integrity and reputation are as important, if not more than, what i am selling...
So, i guess it comes down to what your company does, and what they would be selling - and if you dont want the overhead of a base salary, have you considered using Rep's?
I dont think everyone should be that quick to discount commission-only sales roles. They do need to be structured properly howver to ensure retention of staff. The major flaw is that comm-only guys will go elsewhere the minute a better offer comes along.
Alternaitvely, as has already been mentioned, when it comes to stability, such as mortgages etc the majority of people do not have the bottle or drive to back themselves on an irregular income.
Why not offer loyalty and performance related incentives, such as share ownership in the company?, Performance related ANNUAL bonuses, targets which when hit qualify the sales people for a higher percentage of the commission generated.
All of these will increase loyalty and effectively look to even out the irregularity of comm-only work. As a new company, a sales force on basics with no track history to figure targets on could initially be very costly for your start-up.
Alternaitvely, as has already been mentioned, when it comes to stability, such as mortgages etc the majority of people do not have the bottle or drive to back themselves on an irregular income.
Why not offer loyalty and performance related incentives, such as share ownership in the company?, Performance related ANNUAL bonuses, targets which when hit qualify the sales people for a higher percentage of the commission generated.
All of these will increase loyalty and effectively look to even out the irregularity of comm-only work. As a new company, a sales force on basics with no track history to figure targets on could initially be very costly for your start-up.
Commission only jobs are referred to as "Lemon Squeezers" in my business, an absolute no-no. It implies that the company has no investment in, nor does it really care for its staff.
The best route seems to be "sensible" basic (enough to pay the rent in quiet periods, but not much more), plus "sensible" comission (again, not sky high, but rewarding enough), plus a quarterly performance related bonus (this should be achievable and lucrative).
This seems to be the best way to encourage both performance and sometimes more importantly, loyalty.
All IMHO of course.
Mastiff
edited coz my spooling is carp
>> Edited by mastiff on Wednesday 30th November 13:25
The best route seems to be "sensible" basic (enough to pay the rent in quiet periods, but not much more), plus "sensible" comission (again, not sky high, but rewarding enough), plus a quarterly performance related bonus (this should be achievable and lucrative).
This seems to be the best way to encourage both performance and sometimes more importantly, loyalty.
All IMHO of course.
Mastiff
edited coz my spooling is carp
>> Edited by mastiff on Wednesday 30th November 13:25
softtop said:
- and if you dont want the overhead of a base salary, have you considered using Rep's?
Don't reps want a base salary or do you mean something else?
In my industry there are a lot of rep firms that work on commission only basis - but they do get a percentage of all buisness under their area, and will represent lots of different firms, so your not guaranteed a lot of time and exposure...
But it is a 'cheaper' and quicker way of building up a sales channel.
An agency will charge you about 25% of the basic salary. Put a good quality ad in the local paper that will attract the quality person you want. ie if you were in Manchester it would be the Manchester Evening News, not the free papers that are local. The better the ad the more likely you are to get quality. The sifting should not be hard, dont rule out those who have not sold office products before. A fresh challenge and no 'office' baggage maybe what you need?
A good way to find good sales staff is to approach the people who have impressed you and sold to you in the past. I got my current job by approaching a one of my customers-I sold him our services and was so impressed by his business, two years later asked him for a job when he mentioned he was expanding. He said yes instantly as he knew me and knew I could sell so the interview and CV (which can be both be blagged) were merely a formality.
I know its the not the best thing to go around headhunting other peoples staff, but they may be looking for new opportunities anyway...
I know its the not the best thing to go around headhunting other peoples staff, but they may be looking for new opportunities anyway...
It sounds like you need to invest in a quality sales manager with experience in your business sector. The main role of a sales manager is to build successful sales teams and he should have a directory of quality sales persons that he/she can bring onboard. Independent reps or agents that work on commission only are a great way to grow your sales with relatively low risk. The risk is hiring mediocre agents that will produce less than mediocre results and as they are the face of your company, they can damage the image. Great sales people are attracted to a great product as these are easy to sell...if you have a great product and you believe in it 100%, then so should a quality agent. Passion and belief is crucial in sales, it instills trust to clients and aids repeat business.
Speak to your clients and tell them you want to build a top team of sales people for your company and ask if they can they recommend anyone that they have dealt with in the past. Tell them you are looking for people with integrity and a consultative selling approach that they felt comfortable with. They may be flattered that you are asking their advice and this could also help your relationship.
If you are not convinced by the sales person, then do not hire. You will know when you find quality. A top sales manager will be able to help you with this and will act as your company head hunter. I wouldn't touch agencies for sales people...unless they know your company inside out and know exactly what you are looking for.
Good luck!
Speak to your clients and tell them you want to build a top team of sales people for your company and ask if they can they recommend anyone that they have dealt with in the past. Tell them you are looking for people with integrity and a consultative selling approach that they felt comfortable with. They may be flattered that you are asking their advice and this could also help your relationship.
If you are not convinced by the sales person, then do not hire. You will know when you find quality. A top sales manager will be able to help you with this and will act as your company head hunter. I wouldn't touch agencies for sales people...unless they know your company inside out and know exactly what you are looking for.
Good luck!
Hi,
I used to work in recruitment, Reed allow you to advertise for free (they keep copies of the cv's for their db when people send them in, so thats whats in it for them) and I found a few people for roles that way. So on the downside you may have 200 + non suitable people in you inbox but at least its free.
I think its
www.ukrecruiter.co.uk/jobboards/generic.htm
if that helps your budget
I used to work in recruitment, Reed allow you to advertise for free (they keep copies of the cv's for their db when people send them in, so thats whats in it for them) and I found a few people for roles that way. So on the downside you may have 200 + non suitable people in you inbox but at least its free.
I think its
www.ukrecruiter.co.uk/jobboards/generic.htm
if that helps your budget
Hi,
I used to work in recruitment, Reed allow you to advertise for free (they keep copies of the cv's for their db when people send them in, so thats whats in it for them) and I found a few people for roles that way. So on the downside you may have 200 + non suitable people in you inbox but at least its free.
I think its
www.ukrecruiter.co.uk/jobboards/generic.htm
if that helps your budget
I used to work in recruitment, Reed allow you to advertise for free (they keep copies of the cv's for their db when people send them in, so thats whats in it for them) and I found a few people for roles that way. So on the downside you may have 200 + non suitable people in you inbox but at least its free.
I think its
www.ukrecruiter.co.uk/jobboards/generic.htm
if that helps your budget
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