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Has anyone hired a Commercial Sales Rep? If so, how did it work out for you?
I posted a position yesterday on Craigs List; which is an online advertising page in Atlanta, GA (you all may have this search site as well).
Here is what the ad reads:
“Sales Representative for Top Franchise (Fulton County, GA ).”
We are looking for a highly motivated individual to be a part of our sales team. This position involves setting appointments for commercial accounts. Simple! We offer generous compensation and a flexible schedule. Work full-time or part-time- set your own hours!
Location: Fulton County, GA
Compensation: 100% commission
Principals only. Recruiters, please don’t contact this job poster.
Please do not contact job poster about other services, products or commercial interests.Since this post, I have received 4 resumes for people looking to get into a sales career. 2 of the 4 need an entry level position because they want a better position in the future but there is not another company willing to hire them because they do not have any sales experience. I do not worry about this because I feel it is a high turnover position anyway and the ones that do succeed and want to move on, then I’m glad I was able to give them a start.
The job discription includes, prospecting all types of commercial businesses such as; dr’s offices, hotels, restaurants, high rise offices, video stores, fitness facilities etc… The sales reps are to find interested businesses, find out how much they are currently paying, how often the service is received and anything else beneficial. Once the sales rep finds the interested business, it’s up to me to contact the decision maker and close the deal. Once the deal is made, the job is done and the business cuts me the check, I then pay the sales rep 30% of that check on a 1099 basis. It’s a 70/30 split with a chance of increased commission based on sales production.
I would like to move forward in contacting these inquiring resumes; however, I need some feedback from other owners. Please give me the good and the bad so I can make the best decision for my business!
Thank you all in advance and Happy Holidays!
Jesse,
I think your idea has potential. Commission rates vary a lot from industry to industry among sales people.Also, it is quite typical to have a declining commission scale for specific customers. For example, if your sale person lands you a hotel with regular recurring work, you might pay as follows:
Quarters 1 – 2 = 30% (Generous) 20% (Reasonable)
Quarter 3 = 20% (Generous) 15% (Reasonable)
Quarter 4 = 15% (Generous) 12% (Reasonable)
Year 2 and on = 10% (Generous) 8% (Reasonable)The continued commission is not simply because they brought you the business. It is for maintaining your relationship with your customer. By the way, this is commonly referred to as account management.
Now let’s say a sales person quits and you hire a new one. If you turn over your existing accounts to the new sales person, they would pick up at the 10% and be expected to keep that customer happy in order to earn the 10% commission on an ongoing basis.
Let’s say your sales person gets an existing customer to add more to your contract with them and your have been serving that customer for a year. You would probably be paying the 10% at that point, however, you would probably pay the 30% (or 20% or whatever you decide) and ease down from there for the new additional work.
My percentages above are suggestions only, however, I do have some experience working with sales staff in a variety of industries and believe me – 30% up front is quite generous. You mentioned they may have a chance for increased commission. I wouldn’t go any higher. If you were paying a technician to go out and do the work, you wouldn’t have a lot of profit leftover after paying the commission, the tech, and your expenses.
I have seen this concept (commission only – no base pay) work in other industries. I think it would help you if the sales person went with you on a few jobs to get a feel for your process, scheduling etc. That would help them field questions they may receive.
Sales people are paid in many varying ways. I’m sure you can work something out.
Goos luck!
Mike
Are there any of you that are using the comission only sales people? If so how is it working out and how do you have the compensation set up? I am interested in getting this going to try to pick up some new commercial work? Thanks
Eric,
Tyson Beesley is our operator in Rexburg, Idaho and he also owns Jackson Hole, Wyoming. He has been using his outside sales person for almost 6 weeks now. He is setting up a lot of commercial work in Jackson. Some of the work will be done during November thru this coming April. As of Monday he has set up around $21,000.00 worth of work for Tyson. Tyson is paying him a 20% commission but only pays the commission when the job has been completed and Tyson has been paid. We had our Idaho, Montana, Wyoming, and Northern Utah regional seminar on Monday November 1, and we had Mark Jensen, Tyson’s out side sales rep give a little presentation. He gave his view of this program we are doing. Mark is thrilled with the outcome and so is Tyson. Mark is a young married college student who is off track this semister. Not bad income for the amount of time he has put into it. Mark is concentrating on commercial accounts because of the larger ticket amount and the more frequent occurance.Most of our operators are busy and don’t have the time or inclination to go out and promote the way Mark is. Many of our operators are great carpet cleaners, but they hate promoting. These operators need a Mark out promoting for them.
I like the craigs list idea. Let us know how it goes. What all are you going to train them on to be able to sell your product effectively?
I think this is a great idea. We actually started a gal last year to do a very simular thing. She started out by visiting people to do joint ventures with. It was looking like something that may be good for many businesses, however she was offered a job in the insurance industry which was what she had applied for when we hired her and that was her dream so thats where she went and we did not persue the position any further. With the joint ventures, my thought was something similiar to the BNI groups without the costs involved and possibly spliting some advertising costs. I think we may try the Craigslist ad going into 2011 and see what happens. Keep us updated on all your success.
I Have had one for a month now I have done alot of bids but no jobs yet but its looking better all the time, I am hopful.
Booked my first job from my sales guy for next week its a 3500.00 job over the next year. I’m pumped it’s the Best Western hotel.
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