That always makes sense, but starting off with little to offer, choose wisely.

Good point.

I want a little more incentive up front though.

Maybe $25 the month you land them, $20 from there on out.

It is what it is... $25 (my vote) per deal per month that you close. You're not an 'employee', you're an independent contractor and your geography is your territory. You're responsible for all expenses, you get no benefits... bust your ass and get 150 happy clients to pay their $100 a month.

$100 service X 150 clients X 12 months = $180,000 in revenue
The sales guy would receive $25 X 150 X 12 = $45,000 annually.

Do it right and this is a nice side gig.

Or better yet, a 1 time "user license fee" of $195 in which you get half and proceed to collect your $20 a month. That is a great solution for start up software companies hiring I-9 salesmen.

So far this isn't the case... so far the process is working like this...

Go in possible client's place, try to talk to relevent person, if no go then leave literature, otherwise explain service (takes 10-15 mins max.) and leave with sale (or 2nd meeting which has always lead to sale) or again if not interested yet then leave literature.

So, the process is VERY easy and VERY quick.

Sure, but your main selling point is that its only $100 a month and its a great service, and then you mention right before you are about to close the $195 license fee and you lose the client. Not always, but that would happen.

Depending on the type of service, I could probably do this in my spare time... there's a ton of bar activity in Dallas. :p

You want to expand into Arkansas?

Sounds pretty interesting. If you need someone for the SD area let me know, I might like to give it a try.

Depends on how valuable the service is. If you're willing to invest $1200 a year into a software program that is greatly going to help your business, $195 up front is nothing. And honestly, when I was doing poker in bars the first thing bar owners asked me was the up front licensing fee. They expected it. It was a lot easier to sell when I told them there wasn't one, but I could've got them on one if I'd pushed it.

Oh and I know my brother could be a great option for you in Central Arkansas.. he's very well connected to the bar scene. He's a firefighter and always looking for a side gig. Shoot me a PM when you get details and look to expand.

Better yet, just tell them that they only have to pay the fee when they break the relationship, and then they'll never want to leave...

Just kidding.

LOL Definitely throw in a 30 day written cancellation notice into the contract.

Question - are you charging fees for people signing up as reps? Are you charging them for the literature they leave behind?

I think this is more the route i am going... sortof. Currently the structure is this...

1 time SETUP fee of $100 and $100/month
OR if they sign a 6 month deal we waive the setup fee
OR if they sign 1 year we waive the setup and charge $1000 for the year.

Now for a salesperson I could see

...a 50/50 split on the setup fee +20% ($50+20%=$290/year) ~24%

OR on a 6 month deal they get $125 ($125+$125=$250/year) ~21%

OR on a 12 month deal they get $225 ($225/year) 22.5% (although it is only ~19% of the undiscounted rate)