I have a customer who does some local sales and marketing for a few unrelated companies, and she proposed the idea of doing some sales for me. I’ve always done my own so I dont know what could commission would be.
For all of you who have salesman how do you pay? Commission on a 1 time sale? Percentage? Percentage everytime you do the job? I’d appreciate some input. Before we have even talked compensation, she has me scheduled to talk to a man in charge of 7 banks, and anothe rone in charge of 10 Huge Grocery Stores. She has alot of good contacts and it could prove lucrative.
I don’t have a salesman, but I’ve wondered about this kind of thing myself.
I think for something like this, I would pay 7 pecent on each invoice that she brought in. The payment wound stop after the client has been yours for a year. After a year, she’s not helping you keep the customer, so she shouldn’t be paid for it. This would keep the incentive to find more customers as well.
For example, if she brought you in a customer who netted 1000.00 a month, you would send her 70.00 a month commission. If the customer netted 20,000 a year, you would send her a 1400.00 check once you were paid.
I think it could be worked out 1000 different ways and work out well, too though.
Why not just comp someone as you go. That’s what I have been doing…if a friend of mine lands me a job, I throw him a bone - one time only. Nothing huge, but enough for someone to mention your name to a prospect.
I like your idea Micah! I am working through a similar deal wight now with a guy that I partnered up with this year to do holiday light installation. He owns a company that does huge animated displays. I am talking $50K and up jobs. But the great part is, he does do the installations. He is a computer geek that likes driving his desk. Me on the other hand, I love hanging the lights and making it all look great. Long story short, he wants to make a deal for leads generated through him for window cleaning. Let me explain more: He is getting leads for the Christmas lighting thing. He pays me a % to install them. I pay him a % if he just passes on the lead and I do the work. Win-Win in my book. We all get paid. BUt here is where it goes astray. He wants a % for any moneys made from the customer (after lighting) on window cleaning or any other services that we do. He wants his % forever, and wants to keep all leads as his property.
I am having the most problem swallowing how he can sell them on a lighting job, we go out and do it, then we up-sell them on window/gutter cleaning job, and he gets a cut from now on? I am ok with a cut for no more than a year, but forever? I don’t think so. Like Micah said (I think it was him) after one year, he hasn’t helped us do anything to keep the customer.
A have a friend who’s wife wants some part-time work. She said she is willing to go door 2 door selling my service. She has had some experience in sales. She has a friendly face and a good attitude.
Was wondering what I should pay her for this? Anyone have any experience in this?
Maybe a Service Magic set up is a good base. I mean pay her so much for “qualified” leads. (you set the standard for qualified) I think SM gets $12(?) per lead. From there you could pay her an additional amount for clients serviced. Just a thought.
Hey Micah, I worked as a full time salesperson for a large window cleaning company. They paid me a commission of one months revenue for storefront accounts. The commission was payed over a three month period, a third each month. That works out to about 8%, so your 7% is in the same ball park. One shot deals like a home or a commercial gig were 10%.