Can we find a decent sales person if we’re paying 100% commission?
deeze asked:
I am starting an IT consulting business and as with most startups, money is tight.
I am starting an IT consulting business and as with most startups, money is tight.
Do you think we can get a good salesperson if we offer no base but good commissions with recurring income? We will be offering 30% of the margin on each sale and since the contract is monthly the salesperson will be getting recurring commission each month the customer renews.
While we have no real data to base it on, we feel the commission potential for a good sales guy should be in the $100k+ range.
Is that attractive enough to hire a talented salesperson?
Thank you for the answers so far.
Just to clarify we would be covering the salesperson’s traveling expenses.
October 8th, 2009 at 8:34 pm
That would be good enough for a start. You have convince your salesman that he could get that much commission. Because they need to spend every transportation expenses, need a descent outfit and other personal needs to be more attractive to clients. So you have to give him fixed allowances to keep him moving. What if can’t have sales during his first months.
October 9th, 2009 at 10:26 am
A good experienced salesman should have a proven track record were he has the money to start work on straight commission. I have worked on straight commission for yrs usually under a brokers contract, so I can deduct my expenses, or as IRS classifies as a statutory employee. He is then sent a 1099 form each yr on earnings from your company ,you can deduct.
October 12th, 2009 at 7:14 pm
Most of the better sales jobs are commission. Some offer a draw of about $250/week to help the salesman cover basic expenses until his commissions come in. You will need to find an experienced salesman for this type of position. One with little or no experience may find it difficult to make it on commission only. Consulting can be rather broad based. Unless the salesman can start generating income very quickly he will likely not want to stay with you. If the sale involves getting an upfront payment or one that will be coming in within a short time then it could work for you. Most people may find it difficult to work for 1-3 months before receiving a paycheck. You need to decide whether you will pay a salesman when the sale is made or when the payment for services is received. Not all salesmen are comfortable working strictly on commission. Some are as long as they feel the payout is worth it. From your standpoint it is a matter of finding the right salesman. I would also not hire someone just because they are willing to work on commission. You need to make certain that they are qualified.