Sales commission advice needed... NEW SUBFORUM SETUP FOR THIS!

[Buck]

Originally Posted by AustinChief

not really, I want to see what is appropriate simply based on the work a salesperson does.. doesn't matter if I make $10 or $50 per sale, I'm not interested in a figure based on anything but what the salesperson's time is worth. Having never worked sales, this is hard to calculate althout I think I have an idea.

If the service costs you $90 a month per client, then you cant pay them any money at all, the cost does matter.

I work in Sales.

It will probably take your guys more than an hour to convince someone to put something in their bar.

$15 for a couple hours is nothing. I wouldn't take that job. Maybe once they reach a certain amount of clients $15 is something, but usually with stuff like that you give them a base pay at first until they reach a certain amount of Sales per month, then get them commission.

[Mr. Flopnuts]

Originally Posted by BuckinKaeding

If the service costs you $90 a month per client, then you cant pay them any money at all, the cost does matter.

I work in Sales.

It will probably take your guys more than an hour to convince someone to put something in their bar.

$15 for a couple hours is nothing. I wouldn't take that job. Maybe once they reach a certain amount of clients $15 is something, but usually with stuff like that you give them a base pay at first until they reach a certain amount of Sales per month, then get them commission.

Remember, it's recurring. So 2 hours of work comes down to $180 a year. Which I would take happily. I would never suggest paying your sales guys anything over about 7%. They'll bitch, they'll whine, and they'll complain they're worth more. But they're really primadonna wannabe athletes and can be replaced by anyone else with a mouth. That said, you get this going in Seattle shoot me a smoke Austin. I have experience in selling bar owners, and am always looking for opportunities to make money.

1 suggestion is if this is a software type operation, throw in a 1 time "user license fee" and give your sales a guy a good portion of it to give him some up front incentive while he's building a long term income base. Seriously, hollar at me if you want to chat about this some more.

[Mile High Mania]

Originally Posted by Mr. Flopnuts

...they're really primadonna wannabe athletes and can be replaced by anyone else with a mouth.

Depends on the product and level of person you're targeting... sales is a relationship business. Much like everything else, you have all sorts of people in sales... you get what you pay for in that regard.

If you want high quality reps that will maintain great relationships - be selective, make it worth their time and easy from the perspective of getting paid.

[Mr. Flopnuts]

Originally Posted by Mile High Mania

Depends on the product and level of person you're targeting... sales is a relationship business. Much like everything else, you have all sorts of people in sales... you get what you pay for in that regard.

If you want high quality reps that will maintain great relationships - be selective, make it worth their time and easy from the perspective of getting paid.

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

[Buck]

Originally Posted by Mr. Flopnuts

Remember, it's recurring. So 2 hours of work comes down to $180 a year. Which I would take happily.

Good point.

I want a little more incentive up front though.

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

[Mr. Flopnuts]

Originally Posted by BuckinKaeding

Good point.

I want a little more incentive up front though.

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

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.

[Buck]

Originally Posted by Mr. Flopnuts

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.

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.

[Mr. Flopnuts]

Originally Posted by BuckinKaeding

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.

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.

[Buck]

Originally Posted by Mr. Flopnuts

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.

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.

[AustinChief]

Originally Posted by Mr. Flopnuts

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.

That is actually the kicker... the owners/managers I have spoken to that GET IT, have ALL agreed that $100/month is way too low to charge... BUT knowing that MOST will not get the value right away... I am setting the price point low enough to make it a no brainer for most.

For people that are genuinely interested... shoot me a PM and I will discuss it in further detail if you want. I am hoping to get this rolling nationwide fairly quickly. Kinda funny that my first expansion market is overseas...

[AustinChief]

Originally Posted by Mr. Flopnuts

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.

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)

[AustinChief]

Originally Posted by BuckinKaeding

It will probably take your guys more than an hour to convince someone to put something in their bar.

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.

[Mile High Mania]

Originally Posted by AustinChief

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.

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

[kstater]

Originally Posted by AustinChief

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.

You want to expand into Arkansas?

[Buck]

Originally Posted by AustinChief

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.

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