Question About Getting Salespeople

I'm working on some websites involving getting local advertisers. Can someone advise me on how to structure commissions if I get salespeople, making it appealing to them and to myself?

For example, if the charge to the client is, say, $300 per year, what would be the best way to structure it for commisions? Thanks!

Dear Griff,

Thanks.

As a salesperson I've often been willing to work for ONE %age. But after asking a Question - was able to double or triple that.

What's the question?

"How much do you pay your current salespeople, contractors, telemarketers?"

So.

Thinking backwards from that.

One way to get a PAY ball-park baseline to start from is:

A - Call local companies you may want to hire salespeople away from. Pose as a salesperson. Ask what they pay.

Your REAL Challenge may be figuring out how much you will be Forced to pay to attract salespeople.

That's one way to begin.

There are many others.

You might get a feel for local Radio, TV and Newspaper ad costs too. AND what they pay advertising salespeople - in similar ways.

Call up and pretend to want to buy ad space.

Thanks,

Glenn

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Originally Posted by Griff Owens

I'm working on some websites involving getting local advertisers. Can someone advise me on how to structure commissions if I get salespeople, making it appealing to them and to myself?

For example, if the charge to the client is, say, $300 per year, what would be the best way to structure it for commisions? Thanks!

in my experience, sliding scale works best. eg. 10-100 you get 10%...101-200 you get 20%..etc..

remember to factor the lifetime value of your customer into the equation. If your customers pay $100 a year and stay for 5 years. You could afford to pay far more attractive commissions and delay a bigger payday for yourself.

It never ceases to amaze me that when someone who has "something" to sell, thinks that they can get "salespeople" to sell their "something" for PEANUTS!

They may have spent a lot of time and money creating and developing their "something"....however....when it comes time to sell their "something" they "assume" that "salespeople are a dime a dozen".

They FAIL miserably in their assumptions about "salespeople".

Most, think that salespeople can be had for "peanuts".

They do not know that...."NOTHING MOVES, UNLESS IT'S SOLD!"

So...after they get their product or program ready to sell....they go about the mechanics of "Looking for and Hiring, Salespeople!"

Thus....in my 30+ years of sales I've found there are 2 types of salespeople;

1) Those that can't sell...your product or program
and
2) Those that can sell....your product or program

Those that can sell....if you don't pay them at least 40% (with an incentive to get 50%) of the sale....will find out all they can about your program or product and become a competitor that you've trained.

Those that can't sell....even if you pay them 50% commission....will still...NOT sell! So....you can forget about the NON-Salespeople.

So....spend you time with the "Sales" people because they can make you succeed....AND....you can keep them...as long as you....PAY THEM!

Don Alm...."Sales"man

"For example, if the charge to the client is, say, $300 per year, what would be the best way to structure it for commisions? Thanks!"

First off...."$300 per year" for anything having to do with websites is TOO LOW! You're "giving it away"!

APparently you want "salespeople" to get customers/clients for you.

If that's the case then....CHARGE an amount that will allow you to PAY THEM a figure that will be "Worth Their TIME"!

Selling a "$300" product is NOT worth a salesperson's time! IMHO

Salespeople will spend about the SAME amount of time selling a "$300" program as they will a "$3,000" program!

So...why not boost your price and pay salespeople a decent number for their time?

Otherwise...figure out a way to sell your "$300" program via Postal or Email!

Don Alm

Again....I'm always amazed at how "salespeople" are thought of as "expendable"...or...."a dime a dozen". (Just "run an ad in the Classifieds and hundreds of people will WANT to "sell Your Program")
Yeah! Right!

having been on both sides of that fence I can say that sales is the number one driver o a business income...

sure ...you may have an great idea but dont want to sell ...then you think that you can hire someone to do sales for you and make the company a success for peanuts ?