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Post Info TOPIC: Pay for a salesperson?


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Pay for a salesperson?
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Okay, so I am seriously thinking of hiring a salesperson to acquire commercial business, but I'm unsure of what a fair pay is for them?

My thoughts:

- Commission only

- Part Time and they can make their own hours / I can schedule appointments for times that meet their needs.

- 20% of first cleaning and then 10% residual income that the contract brings in.

For Example: If we are cleaning the inside of a building at $500 per month, they would get $100 for closing the sale and then $50 per month without even trying every month until the contract either ends, or they leave the company.

This would be a great job for a student who is going to school for marketing and wants to earn extra income while in school.

Any thoughts or advice for bringing on a part time salesperson?

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Those are some good thoughts Phil. I'm not sure as to what you will be compensating your salesperson for, will he/she be cold calling and generating leads, doing estimates ? What will their scope of responsabilities be?

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guest

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The salesperson can work to acquire new business by any means, but I will be providing pre-qualified appointments for them, as well. Ideally, they will be acquiring new business while I am working in the field. Currently, I work a full time day job at a High School, but I'd like to run my business full time once I can get some solid contracts to cover my current salary. I expect this to happen by next season.

Thanks for chiming in.

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Great Idea find a college marketing major or business student looking to make money on the side work your own hours hell ya

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I think 10-20% commision is a good rate of compensation for new business that your sales person brings in on their own. Adding numbers to your bottom line that you would not have seen unless Sammy/Susy Salesperson hunted the sale or contract down is of great value, for this a reason a heathy commission is in order. For the pre-qualified appts. you should pay out a smaller commission of 2-5% as you have done the hard work, which is finding the qualified lead and setting the appt with said persons.

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Guest

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Oh, and I wouldn't pay out any residual comissions either.

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guest

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SqueakyClean, thanks for the reply. I was thinking a residual income would be a good incentive to sell more. It would be tough to make any kind of living selling services for me since we'd get maxed out pretty quickly and the sales person wouldn't have squat! However, if I hired them as a sales person / technician, that could work.. I've got some work to do on this, but I appreciation the feedback.

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Phil Rogers
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Roof Cleaning and Pressure Washing in Anne Arundel County, and Howard County, Maryland


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If they get maxed out, you'll be adding a second rig.

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Phil, great thinking. If you hire anyone, let us know how it works out.

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Write a program that works for youself before you hire anyone, test this program and make sure it works.

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Thanks guys.

Art, I think I fear growth, so maybe I always thought a 2nd rig would never be feasible. Your post has opened my eyes and made me realize that I need to stop roadblocking myself.

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Do a little research on "Independent Sales Rep" This might be the route you want to take.

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Phil I fear nothing more than my wife. (That is because I am a smartass and when I'm asleep there are two exceptionally lethal weapons within her grasp.) I also don't have a lot of money & I understand that growing too fast has killed a lot of otherwise healthy businesses, but I believe that as long as you can pay cash as you go you shouldn't fear growth. My first salesman got locked up for not paying his child support because he was too lazy to sell. He was stupid, because if he had sold the jobs that I did in that time period (he could easily outsell me) he would have made enough to pay his bills. I told him when I hired him that his income was truly unlimited because I was debt free and if he sold too much for one rig, I would add a second. I pondered paying residuals and decided against it. It would be tough to keep up with and if you're paying 10-15% a good salesman will earn good money from you and stay motivated.

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Yeah but if you have someone else meeting with clients and basically sealing the deal they would have to be well educated in the process of the work your pursuing which could take a lot of time to learn.

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Roof Cleaning Severna Park MD wrote:

Okay, so I am seriously thinking of hiring a salesperson to acquire commercial business, but I'm unsure of what a fair pay is for them?

My thoughts:

- Commission only

- Part Time and they can make their own hours / I can schedule appointments for times that meet their needs.

- 20% of first cleaning and then 10% residual income that the contract brings in.

For Example: If we are cleaning the inside of a building at $500 per month, they would get $100 for closing the sale and then $50 per month without even trying every month until the contract either ends, or they leave the company.

This would be a great job for a student who is going to school for marketing and wants to earn extra income while in school.

Any thoughts or advice for bringing on a part time salesperson?


 I know this is an old thread. Phil there is more value in that thread on wcr than there are in 20 or 50 threads here.



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Chris, after reading that thread, I realize that I need a fool proof sales system and I need to provide leads for my sales people. I now realize that a sales person will not be able to make it all happen on their own, but it was wishful thinking haha.

Would you mind if I called you with a few questions sometime this afternoon?

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Extreme Cleaning Solutions (410) 980-1053
Phil Rogers
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Roof Cleaning and Pressure Washing in Anne Arundel County, and Howard County, Maryland


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No I don't mind.

We are working on implementing a program right now. It is definitely a learning experience.



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* if I pulling up dead threads you got to let me know.
How is the program coming along? I'm also looking to create a program, but if you already got one, well that makes life easier.

I don't know how to clean a roof to save my life, ( I'm learning) but i can sell snow to an Eskimo.

If you want to re a sales rep this is how you do it.

1. Start them as your ground man.
2. Teach them the roof cleaning process (now they gain knowledge and confidence)
3. Give them the program you would like them to use for selling
4. Provide incentives for example if you close 20 deals in 1 week, you get 8% close 30 deals you get 10% etc. Basically dont set a limit on your rep and make him want more. Some college kids are happy to close 3 deals make $250 and not work the rest of the week. By setting goals every 5-10 houses. He might say well I got 3 already, I should shoot for five. Heck I have 5 let's go for 10 and so on.
5. Make sure he sticks around the residual income is a good idea.keeps him around if at the end of every month you hand him an extra $100.

I haven't started my biz yet, but this is how every sales position is.


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none

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We paid residential reps 15% straight commission and commercial 10%. Avoid giving them a salary or draw if at all possible.

AC

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Non compete clause 5 years

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