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Sales Commission

I am looking to hire a sale person to sell IT services
for me. I am not how I would setup the commission structure for services. Does anyone
have sample structure so I can get a idea of how to use a salesman or woman and pay them
at a good rate on straight commission. Any help would be appreciated. - by bsl19738
I am looking to hire a sale person to sell IT services
for me. I am not how I would setup the commission structure for services. Does anyone
have sample structure so I can get a idea of how to use a salesman or woman and pay them
at a good rate on straight commission. Any help would be appreciated.
There is no such thing as a standard commission rate. Without knowing anything more than they will be selling "IT services" there is know way to guess at what will work.

It is unlikely that you will find a good salesperson to work on straight commission.

I suggest that you try to find a recently retired salesperson with experience in selling services similar to yours. If they are good, they should be able to sell your services for considerably more than you have been charging.

Pay them 2/3 of the increase in your current pricing, to start. After a trial period of six months you can negotiate to somewhere between 15 to 25 percent of the total of your new prices. - by JacquesWerth
There is no such thing as a standard commission rate. Without knowing anything more than they will be selling "IT services" there is know way to guess at what will work.

It is unlikely that you will find a good salesperson to work on straight commission.

I suggest that you try to find a recently retired salesperson with experience in selling services similar to yours. If they are good, they should be able to sell your services for considerably more than you have been charging.

Pay them 2/3 of the increase in your current pricing, to start. After a trial period of six months you can negotiate to somewhere between 15 to 25 percent of the total of your new prices.
Do you know where I could advertise for a salesman that maybe retired? - by bsl19738
Do you know where I could advertise for a salesman that maybe retired?
Word of mouth might be your best bet.

The best to you! - by Skip Anderson
I know the descriptive phrase "word of mouth" as a cliche to describe productive gossip in terms of advertising and marketing something, Skip.

WHen you just advised "word of mouth" would you have any specifics to help this person out with or is it as simple as meeting someone randomly at Panera bakery and getting into a conversation?

Professional organizations, universities, where might this person start to generate "word of mouth" activity.

MitchM - by MitchM
I know the descriptive phrase "word of mouth" as a cliche to describe productive gossip in terms of advertising and marketing something, Skip.

WHen you just advised "word of mouth" would you have any specifics to help this person out with or is it as simple as meeting someone randomly at Panera bakery and getting into a conversation?
MitchM
MitchM, I would suggest that he first contact everyone in his personal and professional networks to let everyone know what type of individual he's looking. I can't remember if he posted where he lives, but maybe someone in this forum might even know someone.

In addition, meeting new people and having friendly conversation is always a good thing.

Craig's list wouldn't hurt, either.

The best to you! - by Skip Anderson
Go to where retired people might be.
What sports do older people enjoy.
Where do they hang out.
Gardening stores . . . . I dunno

Get some business cards made and state very specifically that you are looking only for retired salespeople.

Speak to your target age group. Don't ask 'are you looking for a job' ask 'Who do you know that might be looking to earn some extra money' Engage them.

Get them to pass your cards around. Pin one on the supermarket notice board.

Woorking out a pay scheme?

Look at the annual gross earnings that a good performer would require or the annual gross revenue they should bring in.

Work the pay plan to be say 40% draw and the remainer in commission. Adjust it after a trial period.

Does any of that help? - by helisell
In my experience, small businesses generally are able to prevent a high employee turn over via a mixed compensation model for sales people.

I realize that this is a buyer's market in terms of hiring, but employees are 10 times more productive when they experience a high level of job satisfaction.

In addition, a base plus commission will generally attract the more professional appearing candidates. Given your sector, I would think that an important element to your company image.

Hope this helps,
Wes Herndon - by wesman70
I am looking to hire a sale person to sell IT services
for me. I am not how I would setup the commission structure for services. Does anyone
have sample structure so I can get a idea of how to use a salesman or woman and pay them
at a good rate on straight commission. Any help would be appreciated.
Go to your competition and find out. That should not be too hard. Such inside information would also give you a later advantage regarding employment hiring inducements.

Also there are Employment Recruiting Firms. It is their business to know these things. That should not be too hard to find out either. (If he or she does not know, ask to speak to someone who does or just find another firm.)

Also, call one and place a Job Order. Give them an outline of who you are looking for, ask what would be a good commission rate for your particular industry and actually have an interview with one of their referrals. In that interview you will find if and how the commission rate fluctuates with gross sales in your industry.

The reason for the referral: commission rate can often define the quality of employee against the commission rate that will retain him or her in your employment.

This process is used often because it offers the best source to learn your industry standards in your geographic area. - by John Voris
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