Hiring a sales person

Donwand

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Oct 17, 2009
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269
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east coast
Name
Brian
I'm thinking of hiring a sales person since this is something that I have come to realize is not my strong suit. I have someone in mind, but my conundrum now is how do I structure a pay plan for this person. I'm hesitant of giving an hourly rate so I'm considering commission. I will be the one probably closing the deal on the leads that this person would generate. Any input would be appreciated.
Thanks
Brian
 

TomKing

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Sep 18, 2012
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1,125
Location
Indianapolis
Name
Tom
I'm thinking of hiring a sales person since this is something that I have come to realize is not my strong suit. I have someone in mind, but my conundrum now is how do I structure a pay plan for this person. I'm hesitant of giving an hourly rate so I'm considering commission. I will be the one probably closing the deal on the leads that this person would generate. Any input would be appreciated.
Thanks
Brian
If you are the one closing the deal you are the sales person.

What you are looking for is a telemarketer.

Who is your target for Sales?

How big are you? 1 million in sales? already?

A sales person to pay for themselves needs to bring in $800k plus minimum.

Can you scale up for that much work?

Questions you should be asking.

You don't need to answer or defend your self just some questions I would ask myself if I was hiring to grow.

Good luck.
 
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Donwand

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Location
east coast
Name
Brian
The salesperson is my nephew who is eager to put his skills to work. He will be trying to drum up business for me through the local chamber of commerce, business associations and cold calling small to mid size businesses.

I'm trying to come up with a fair commision rate for him, since he will be only generating leads at this point.
 

TomKing

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Joined
Sep 18, 2012
Messages
1,125
Location
Indianapolis
Name
Tom
The salesperson is my nephew who is eager to put his skills to work. He will be trying to drum up business for me through the local chamber of commerce, business associations and cold calling small to mid size businesses.

I'm trying to come up with a fair commision rate for him, since he will be only generating leads at this point.

First you need more than a commission rate. You need a sales plan and written strategy you are going to implement. You need a validated target list.
If you think you can hire someone tell them to drive around and things will work out big mistake.
Great sales people work for 50-60 hours a week. 40 in the field and 20 at nights and weekends planning.

Second the local chamber will not bring you business fast enough to cover a sales person. It won't get 2 leads a month. At least mine wouldn't

Cold calling 7-8 hours a day 5 days a week will be your only chance of covering his costs. Few people love this.

He will need to be able to measure, price, quote and close on site. Can he do that by himself?

If you do not have a office to follow up as we do he will need to be able to schedule right on the spot or follow up to schedule.

Does he have any cleaning experience? How will he know how long it will take? When he should up charge for difficult production rates?

How will he be trained so he can INFORM, SUGGEST & then ASK for the business?

The more you educate your customer from a position of expertise the more you sell in any industry. Being a consultant will be the most effective.

You may be doing more work and not having any profit? All your profit will go to just covering his cost for the first 4-6 months.

It will be the rare individual that can get his sales pipeline going in just 30-60 days.

Does the person your hiring have professional sales training?

What success selling have they had? Do they have solid proof of that success?

I would want to see company print outs with ranking, award Trophy's and sales partners letters of recommendation along with contact information.

This topic is not a new one on this board.

Again no need to answer or defend. Just thoughts to consider.

Good luck
 
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Shane Deubell

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Jun 30, 2011
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Thats not a commission position, I would say hourly with a bonus.
The sales cylce for commercial is 6 months to a year so if you are not prepared for a long term investment then dont bother.

Are you prepared for $15-20k investment?
 
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Shane Deubell

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Jun 30, 2011
Messages
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Big difference between an established commercial division and a start up. An established operation has a database of customers, estimates, qualified leads to work off. Plus has inbound phone calls coming every week.

You first have to make the initial investment and build the infrastructure, THEN you can hire full commission people.

The good news is its such a long term investment carpet cleaners will never do it.
But thats the bad news too!
 
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