Commission Based Sales

[homeriscool]

hi everyone. Im new to commission sales and i would like to know if i am generating sales leads or generating customers how much are they worth? would i better selling the leads or taking a percentage of sales?

Im very confident at canvasing and have done it many times. But only for myself, ive never done it for someone else....

i look forward to your responses thanks in advance

 

[AdamStevens]

I'd push for charging for the lead and getting a kickback if they close the deal!

 

[Paul_Rosser]

Depends on what the average deal is worth, the conversion rate and what your percentage would be.

 

[businessfunding]

Depends on what the average deal is worth, the conversion rate and what your percentage would be.

Conversion rate is everything for me - In my sector this relies more on what the customer can have far more than what they want - which is why I have never paid for leads.

 

[Paul_Rosser]

Conversion rate is everything for me - In my sector this relies more on what the customer can have far more than what they want - which is why I have never paid for leads.

Conversion rate is everything to most firms, you can see as many potential clients as you like, until they are converted to a proper paying client then it doesn't increase the firms profits at all, just costs in time.

As my conversion rate is very high (95%-100%) I don't pay for leads it's all done on a percentage of the fees generated from the client.

 

[homeriscool]

Conversion rate is everything to most firms, you can see as many potential clients as you like, until they are converted to a proper paying client then it doesn't increase the firms profits at all, just costs in time.

As my conversion rate is very high (95%-100%) I don't pay for leads it's all done on a percentage of the fees generated from the client.

I think this is the way i would prefer to work, so whats a fair deal on a percentage of fees to the sales person?

The value of the items and service i will be selling vary a lot in price, anything from £15 - over a £1000.

 

[Paul_Rosser]

I think this is the way i would prefer to work, so whats a fair deal on a percentage of fees to the sales person?

The value of the items and service i will be selling vary a lot in price, anything from £15 - over a £1000.

I find it fairer as otherwise you could end up generating lots of leads, being paid for them and none turn into actual sales.

How much you should ask for really depends on the markup of the products and if they are one off purchases, or if the customer orders more stuff in future do you also get a comission from that ?


Personally I give 25% comission, but as it's professional services being provided the costs to the company are quite low.

You could do it on a sliding scale depending on the cost of the item, but best thing to do is sit down and see what they are willing to give and see if the numbers work for you.

 

[InternetMarketingPlatinum]

I wouldn't pay for a lead, no more than a few quid anyway. Now paying for a converted customer - that's another thing entirely.

 

[AdamStevens]

I wouldn't pay for a lead, no more than a few quid anyway. Now paying for a converted customer - that's another thing entirely.

Whatya selling though?

 

[homeriscool]

I wouldn't pay for a lead, no more than a few quid anyway. Now paying for a converted customer - that's another thing entirely.

Whats your opinion about were the converted customers come from? If they were gained on the internet were people were contacting me or whether i knocked on a persons door and made a sale would it matter?

A sale is a sale right?

 

[InternetMarketingPlatinum]

Whats your opinion about were the converted customers come from? If they were gained on the internet were people were contacting me or whether i knocked on a persons door and made a sale would it matter?

A sale is a sale right?

You make your point well.

I tend to look at the lifetime revenue from a client. You can have converting leads that aren't very profitable so this is a factor.

 

[InternetMarketingPlatinum]

Whatya selling though?

I sell a service.

 

[homeriscool]

You make your point well.

I tend to look at the lifetime revenue from a client. You can have converting leads that aren't very profitable so this is a factor.

some more food for thought. This is a factor to be taken into account your right. My ears are all open to any more free advice

 

[S-Marketing]

Buying leads, or indeed converted customers is a waste of money for any small business providing a service with a finite amount of time to do the work.

Commision based sales is only useful for high price product sales, and very scalable service based businesses.

 

[InternetMarketingPlatinum]

some more food for thought. This is a factor to be taken into account your right. My ears are all open to any more free advice

I asked a fellow businessman last Thursday about his experiences of going in a certain local hand-delivered publication (I have nothing against these), I was considering advertising Facebook page design in there. He advised me that he had some low value, unprofitable, non-repeat business out of a stint in there. Basically customers who are more trouble than they're worth. I mostly prefer pull marketing which is the business I'm in.