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DarrenC
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PostPosted: Thu Aug 12, 2004 2:05 pm    Post subject: Sales Reply with quote

Okay, not sure what people think of this idea, so I'm looking for feedback.

Sales person contacts potential clients via telephone or email for ABC company - client signs up to ABC company - ABC company pays sales person commission per product.

Do any companies offer this type of service to people who have a sales background?

The reason why I ask is that I am looking for someone to increase my clientbase, but it's time consuming and to be honest I have plenty of work to keep me going til midnight, so I was thinking of freelancing this out to a sales person.

What do you think would be the going rate for commission?

The only thing I am concerned about is that I don't want someone ruining my reputation, and atleast if I do the work myself then theres only me to blame - but I suppose you could say that about an employee working for you?

Any thoughts?

Darren Smile
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paul
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PostPosted: Thu Aug 12, 2004 2:12 pm    Post subject: Reply with quote

Hi Darren

I tried something like this a few years back. Like you, I was worried about the reputation bit, so had them work from our office so I could hear the sales pitch that they were giving first hand (at least one half of the conversation). I had him work with one week on a self-employed basis (thus avoiding minimum wage) but on a hefty commission of 50%. It was a win-win situation had he been any good because he had the potential to make really good money. Alas, he wasn't up to the job, spent too much time waffling and trying to be 'pally' rather than getting to the nitty-gritty of whether they were interested in the offering at the onset. In theory, I believe it can work. The problem is finding that one person that has a good understanding of your business and is suitably capable IMO.

Paul
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DarrenC
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PostPosted: Thu Aug 12, 2004 2:21 pm    Post subject: Reply with quote

Good points Paul.

I don't want to be starting to having to set up a payroll and get involved in all of that - but I am really looking for someone who is freelance, this way there self employed, and it's there responsibility to deal with the Income tax and NI etc.

I agree with you about knowing the business, and having a proven experience in sales, with the commission basis though it's up to them if they want to earn money, the better they perform the more money they will make.

The freelancer would be working for themselves rather than me - but as such I had employed them to do that work.

Would that work do you think?

Darren
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paul
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PostPosted: Thu Aug 12, 2004 2:58 pm    Post subject: Reply with quote

If you can find the right person, then 'yes'. But, from my experience, finding that right person wasn't so easy.

Paul
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PostPosted: Tue Aug 17, 2004 6:32 pm    Post subject: Reply with quote

Using a freelancer to make sales for you can certainly work. Obviously it is vital to get the right person. But this is at least equally true when you are employing someone full time.

Use correct recruitment procedures to help you. Eg know the type of person you are looking for before you advertise, prepare for any interviews based on the spec of the person you require, look for references, if possible don't conduct the interview on your own.

Also consider advertising in your local paper or use a local recruitment agency.

You might be able to find an agent who is already selling a complimentary product. He / she may be able to add your product to their portfolio without much difficulty.
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Old Welsh Guy
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PostPosted: Sun Aug 22, 2004 1:15 am    Post subject: Reply with quote

Good salespeople are like gold dust. If you can get a good one working for you, then it will work fine. you need to pitch the commission right from the onset though, I did similar to Paul, but I stepped the commission to targets. I allowed 50% as commission, but paid initially 30%, targeted steps then increased the commission retrospectively. EG if they sold £0 - £999 they got 30% £1000 - £1200 = 40%

so £999 earned them £300 but £1000 earned them £400 I found it a really good incentive to push the salesman ahead and beyond their comfort zone. Most salespeople will have a comfort zone, (The amount they want to earn each week) Mostly no matter how you push them, they will rarely perform above this. By stepping the commission & making it retropective, you can push them so they hit YOUR minimum earnings targt rather than their own.
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PostPosted: Sun Aug 22, 2004 2:07 am    Post subject: Reply with quote

Another important question is where you get the list of potential clients to contact. I would highly advise against cold calling, itís not particularly effective, itís highly annoying and with the Do No Call Registry it may be illegal in the US.

Also what kind of product are you trying to sell? If itís a computer or online service you may be better off considering an affiliate program.

The company I work for hires sales people on a 6 month trial basis, the issue we have found is finding sales people willing to work without a large base salary is very difficult. Those that are willing to do it usually lack experience and donít bring in the kind of results were looking for Ė thus the 6 month trial period.

Steven
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