Commission Salespeople
 

Hi there,

I just wanted to get some opinions on something I was discussing with Thomas Rice earlier..

I currently own and operate a small company whose primary source of income is in website hosting. Our main appeal are our Standard Plans which are basically an unlimited hosting plan, without restriction, for $30AUD per month.

At the moment, I've decided that our primary goal is to sell more of these Standard Plans. They're appealing to the client and to the company, so everybody's happy.

My problem here is exposure. I started my company, Fifth Dimension Computing, in August of 1998, but it's only within the last six to eight months or so that we've been focusingly aggresively on website hosting. As a result, we don't have the product exposure that one requires to generate decent sales.

I'm current a sole trader. I do a lot of outsourcing and have regular contractors to make sure we can always meet demand. But profits are low at the moment and we can't really afford traditional advertising methods. My experience is in computing and sales, not adverising as such. All the methods of advertising I know of require moderate to large upfront costs with a fairly high exposure but no guaranteed return.

So then it hit me. Why not hire independant salespeople to use their own knowledge and resources to generate sales, and pay them solely on commission? This way, the harder they work, the more they get paid, with virtually no income cap whatsoever, and I only need to pay them based on the sales they make. If they make no sales, they make no money, but if they do well, they can make quite a tidy income.

But then this idea left me with two problems:-

1) Like a viscous circle, the advertising factor. Where do I find motivated, sales-oriented people wanting to make some good money?

2) How do I go about setting this up? Would I be better off paying them as independant contractors, or hiring them as employees? What are the legalities involved? Is there anything else I need to know?

I tried finding information on some of this countries larger employment database websites, like www.careerone.com.au and www.monster.com.au.. but these sites required a $110 and $330 fee respectively just to list one employment position on the website! So once again, I'm having to pay upfront for advertising that may or not may generate a result for me.

Does anybody have any suggestions as to what I might be able to do? All I'm looking for is some talented people who would be interested in promoting website packages on a generous commission, and some information and suggestions on how to go about employing them as salespeople.

Alternatively, if anybody knows of some successful advertising methods that I could employ to increase my product awareness, that won't require a huge upfront cost with an uncertain outcome, I'd love to hear your suggestions. I'm confident that our packages would be very appealing to potential clients, I just need to bring them to broader attention.

Thanks for your feedback!

- Shannon L.


Fifth Dimension Computing

Re: Commission Salespeople
 

Hi Shannon,

I can tell you how Thomas Rice went about employing his salespeople....

First, he checked with his accountant, to make sure he knew about all the legal ramifications of employing someone. (Superannuation, taxes, that sort of thing....)

Then, the first person he hired was a friend of his who had some sales experience already. The reason why he first hired a personal friend of his was so he could more easily set up a "system" which worked, to approach small stores in Melbourne (to get them to stock the blank CD-ROMs he's a distributor for). He felt it would be easier to iron out the kinks in the "system" working with a personal friend of his, rather than with someone he didn't really know well yet....

Then, Thomas advertised through a university employment agency.... I don't think there are any fees involved if you approach university employment agencies directly. (It's summer now in Australia and many university students were looking for summer work....)

So that's one way to go about it.

Cheers,

- Dien

Re: Commission Salespeople
 

Hi Dien, thanks for your reply.

I've actually spoken briefly with Thomas about this in the past, and there are a couple of reasons why this approach wouldn't work for me.

1) I don't have any friends, and even if I did, I don't personally believe in mixing business with friendship. Hiring friends only helps you lose friends if and when they need to be fired.

2) When I asked Thomas about the university hiring system, he told me that it's not available to the general public, only within the university itself, and I'm not a university student.

What I'm really after here is some advice on whether or not actually hiring people or setting them as independant contractors [ie, independantly operating and not technically employed by me], and also some information on how I could go about finding interested, suitable people without having to spend large amounts of money first.

Or, alternatively, information on some low-cost, high yield advertising methods that could increase public awareness of my products without my needing to employ salespeople would also be useful.

Thanks anyway. =)

- Shannon L.


Fifth Dimension Computing

Re: Commission Salespeople
 

For some of my advertising programs where I needed "Direct Salespeople" I've done the following;

Call a local Radio Station and ask to speak with a "Ad Sales Person" (or a local newspaper and ask for a "Display Ad Salesperson")

When the salesperson gets on line ask them if they'd be interested in looking at "earning some money ON THE SIDE". The words, "ON THE SIDE" explain that you are lookingfor a "part-time" salesperson.

I meet with them for coffee...show them what I am selling...explain the money they can earn and whalla...I've gotten some of the best salespeople for my projects.

These people are TRAINED direct sales people. They KNOW HOW to walk into a business...present a program and ask for the order. And, they are never paid enough by the Radio Station or Newspaper...this is why I've found many to sell my programs while they're making calls.

Also...as far as selling websites;
Something that has worked for others has been to put a "Sample" website onto a Floppy Disk (using a web compiler) and send it to prospects. The Floppy Pre-Sells your program and many times the sale can be handled via phone.

Don Alm

> Hi Dien, thanks for your reply.

> I've actually spoken briefly with Thomas
> about this in the past, and there are a
> couple of reasons why this approach wouldn't
> work for me.

> 1) I don't have any friends, and even if I
> did, I don't personally believe in mixing
> business with friendship. Hiring friends
> only helps you lose friends if and when they
> need to be fired.

> 2) When I asked Thomas about the university
> hiring system, he told me that it's not
> available to the general public, only within
> the university itself, and I'm not a
> university student.

> What I'm really after here is some advice on
> whether or not actually hiring people or
> setting them as independant contractors [ie,
> independantly operating and not technically
> employed by me], and also some information
> on how I could go about finding interested,
> suitable people without having to spend
> large amounts of money first.

> Or, alternatively, information on some
> low-cost, high yield advertising methods
> that could increase public awareness of my
> products without my needing to employ
> salespeople would also be useful.

> Thanks anyway. =)

> - Shannon L.

One extra little trick I learned....
 

....was to get any salespeople to sign a "Promissory Note" for $2500.

In my area you can sue someone for a max of $2500 in Small Claims Court (without a lawyer)

By having salespeople sign a Promissory Note for $2500 means you can, at any time you decide, initiate the Note and collect $2500.

I used to give salespeople a Presentation Book, Samples...etc. Then, if they found this was not for them, they'd just disappear WITH all my stuff.

The simple procedure of getting them to sign a Promissory Note for $2500 got them to return ALL my stuff IMMEDIATELY!...when they decided this was not for them. I never again had to chase them down for my stuff.

Don Alm

> For some of my advertising programs where I
> needed "Direct Salespeople" I've
> done the following;

> Call a local Radio Station and ask to speak
> with a "Ad Sales Person" (or a
> local newspaper and ask for a "Display
> Ad Salesperson")

> When the salesperson gets on line ask them
> if they'd be interested in looking at
> "earning some money ON THE SIDE".
> The words, "ON THE SIDE" explain
> that you are lookingfor a
> "part-time" salesperson.

> I meet with them for coffee...show them what
> I am selling...explain the money they can
> earn and whalla...I've gotten some of the
> best salespeople for my projects.

> These people are TRAINED direct sales
> people. They KNOW HOW to walk into a
> business...present a program and ask for the
> order. And, they are never paid enough by
> the Radio Station or Newspaper...this is why
> I've found many to sell my programs while
> they're making calls.

> Also...as far as selling websites;
> Something that has worked for others has
> been to put a "Sample" website
> onto a Floppy Disk (using a web compiler)
> and send it to prospects. The Floppy
> Pre-Sells your program and many times the
> sale can be handled via phone.

> Don Alm