Commission only sales - does it work?

[dmk]

I am considering finding somebody to sell my ICT training services to local companies on a commission only basis offering 15% to 20% for each sale.

What are the forum's views on this type of work?

Thanks all!

 

[maxine]

How much is the 15%-20% worth in real money terms?

If you use the advanced search feature on the forum you will probably find quite a bit on ukbf with different views and opinions, tips etc or you could google "ukbf commission only" and see what pops up

 

[wayney]

Exactly the same question,"How much is the 15%-20% worth in real money terms?"
As what I've read from previous forum posts, good sales people would not agree to a commission basis set-up.But you can still try.

 

[An Oasis]

How much is the 15%-20% worth in real money terms?

OK, I have a project let's take the % out and say there is a fee of £500 per sale with a fee of £200 for any resales regardless of any further input...any interest?

 

[telemax]

OK, I have a project let's take the % out and say there is a fee of £500 per sale with a fee of £200 for any resales regardless of any further input...any interest?

Selling anything is very difficult. I used to work as a commision only sales person, driving all over the country, making lots of cold calls but then my potential payday for a deal was up to from 5-30k plus recurring.

I would say £500 is too small, especially if that involved the salesperson doing all the cold calling. It might be better if you actually had warm or hot leads to pass to them. Then again much depends on what the project is .

From my point of view 50% of something worth more than about £4k per sale plus recurring would do it for me. I think a lot of other people think the same way,

I hope this helps

Jonathan

 

[maxine]

OK, I have a project let's take the % out and say there is a fee of £500 per sale with a fee of £200 for any resales regardless of any further input...any interest?

Maybe.

It's the first question out of the way at least

 

[Kylie]

This is what I have been wondering about today...

I am considering employing a commission-only Sales Manager.

Say, 30-40% (or roughly £1500 to £2000) per contract won.

No set hours or office.

Just need some business in!!

 

[mr magoo]

great idea 50% of nothing etc, et,c etc.

 

[greatwestern]

I work on commission based sales for the affiliate programs and private clients I have and it works, I make a lot of money.

 

[telemax]

This is what I have been wondering about today...

I am considering employing a commission-only Sales Manager.

Say, 30-40% (or roughly £1500 to £2000) per contract won.

No set hours or office.

Just need some business in!!

Here is where another problem lies, often a high value product will take up to 3 months to start bringing in sales due to the nature of the sales cycle, if that is the case then any commision only salesperson will have to live on thin air.

It's also a little worrying if the owner of the business can't bring in customers? As a sales person I would wonder about the actual product and if there was a problem with it.

 

[astutiumRob]

I work on commission based sales for the affiliate programs and private clients I have and it works, I make a lot of money.

Affiliates are different than Salespeople though:
- affiliates bring us "hot leads" - people ready to buy but needing to know who from
- sales executives build relationships with existing and potential clients to match products/services to their requirements

 

[patientlady]

I am considering finding somebody to sell my ICT training services to local companies on a commission only basis offering 15% to 20% for each sale.

What are the forum's views on this type of work?

Thanks all!

From my point of view I would only be prepared to work for someone who is prepared to invest in me!

 

[The Panda]

Ummmm, I worked for a national company on a comission only basis where I only made money if I sold.
I left that to run my own business, where I only make money if I sell goods.
Same thing really.
Any one running their own business is just as much on a comission as a comission only salesman.

 

[MH1]

Ummmm, I worked for a national company on a comission only basis where I only made money if I sold.
I left that to run my own business, where I only make money if I sell goods.
Same thing really.
Any one running their own business is just as much on a comission as a comission only salesman.

I agree, though working for yourself means you determine the quality of the leads you work, and you most definetely do not dump on yourself.

 

[newton8066]

I think the 'commission only' sales question is an interesting one. I am in a similar situation. I am a partner/director of a business and we are currently putting together our team. We all have strong areas which significantly contribute to the business but we are not all sales experts. I wouldn't employ an accountant to fix my washing machine and neither would I employ a doctor to rewire my house. A sales professional is exactly that, as we all are in our fields. A commission only job is a tough one but in a time of recession would perhaps weed out those who should perhaps look for another profession anyway. Someone once told me that a born salesperson can sell in any industry. However targets must be realistic and must be set, as should great incentives. Otherwise where's the motivation? And yes, you should invest in your staff - if the commission only is because you need to bring in capital then make it temporary. You should consider moving your sales staff over to a salaried position perhaps after six months. If your sales people can see a clear plan which is in their interests then they should work hard for you, as they will benefit in the medium/long term. Look after them and they will look after you. Good luck!

 

[Graham001]

I have a lot experience of commission only sales. You have to provide a lot of training, and the drop out rate will be high. I have advised a number of national companies with direct sales forces. They have the resources to support a team. You may only be looking for one person but you will find its takes up a lot of your time. You can contact me if you would like more help

I am considering finding somebody to sell my ICT training services to local companies on a commission only basis offering 15% to 20% for each sale.

What are the forum's views on this type of work?

Thanks all!

 

[Graham001]

Hi i can assure you that great sales people cannot always sell in any industry. There are many types of sales jobs. The skill sets can be very different. I wouldnt advise commission only unless you have significant resources to support such a team. Also the commission element is very big and most product pricing does not support that size of commission.

Hope that is helpful

I think the 'commission only' sales question is an interesting one. I am in a similar situation. I am a partner/director of a business and we are currently putting together our team. We all have strong areas which significantly contribute to the business but we are not all sales experts. I wouldn't employ an accountant to fix my washing machine and neither would I employ a doctor to rewire my house. A sales professional is exactly that, as we all are in our fields. A commission only job is a tough one but in a time of recession would perhaps weed out those who should perhaps look for another profession anyway. Someone once told me that a born salesperson can sell in any industry. However targets must be realistic and must be set, as should great incentives. Otherwise where's the motivation? And yes, you should invest in your staff - if the commission only is because you need to bring in capital then make it temporary. You should consider moving your sales staff over to a salaried position perhaps after six months. If your sales people can see a clear plan which is in their interests then they should work hard for you, as they will benefit in the medium/long term. Look after them and they will look after you. Good luck!

 

[corporate]

Telemax: totally disagree with your comments re: the product and why sales are not already bought in. [/font]

Those that set projects up, and come up with new ideas are not necessarily good sales people, so they may not be able to generate sales themselves - however a person with a sales technique and raw ability to sell is able to bring in the sales. this is why sales people are employed

I can't see why a company/individual who sells them self as a sales person or company promising to deliver sales is not prepared to work on commission.

"Commission only" works... tried and tested. It also takes the risk away for a company to be throwing money away at non perfoming sales people when you find a good sales person - it is then up to you to reward them for their hardwork and keep hold of them....

will be posting a project looking for commission only myself.. Didn't want to hijack the thread.

For good results try - people per hour and post your project, you will get good results.

 

[telemax]

I can’t see why a company/individual who sells them self as a sales person or company promising to deliver sales is not prepared to work on commission.

A: Because it might be a rubbish product

B: Because if a saleperson is that good they will be getting money thrown at them

C: It shows that the owners of the company,who should be the prime ambassador for the said product can't sell it.

D: Because you are putting the risk entirely on the salesperson and not taking any yourself.

E: Because the salesperson would probably have to wait for you to get paid, therefore his or her salary is dependent on your credit control abilities.

F: Because your product may have a very long sales cycle. Many, Many products or services take at least 3 months

No disrepect to yourself but a lot of companies come on here looking for commision only, who have never even tried selling their own product and therefore have no idea how difficult it is. A realistic model in this economic climate is a shared risk approach ie basic and commision, ensuring that both the company and salesman carry the risk..

 

[Easy Credit Mobiles]

A: Because it might be a rubbish product

B: Because if a saleperson is that good they will be getting money thrown at them

C: It shows that the owners of the company,who should be the prime ambassador for the said product can't sell it.

D: Because you are putting the risk entirely on the salesperson and not taking any yourself.

E: Because the salesperson would probably have to wait for you to get paid, therefore his or her salary is dependent on your credit control abilities.

F: Because your product may have a very long sales cycle. Many, Many products or services take at least 3 months

No disrepect to yourself but a lot of companies come on here looking for commision only, who have never even tried selling their own product and therefore have no idea how difficult it is. A realistic model in this economic climate is a shared risk approach ie basic and commision, ensuring that both the company and salesman carry the risk..

A, B, C, D, E & F are all assumptions and not based on one single fact. Every product/company is different so generalising is a big mistake.

However, i do agree that companies offering a product for sale should at least have some sales data to go on. IMO it would be too much to ask for a salesman to sell something that has not been sold previously.

Having said that, alot of sale people can guage a good product and assess their ability to sell it before they even get out on the road.

 

[telemax]

A, B, C, D, E & F are all assumptions and not based on one single fact. Every product/company is different so generalising is a big mistake

Having said that, alot of sale people can guage a good product and assess their ability to sell it before they even get out on the road.

Your right there are no facts, but I wouldn't waste my time on a product until those assumptions had been proven wrong

 

[mr magoo]

I have worked this way most of my life, and to be perfectly truthful whenever Ive taken paid salary there definetly isnt the same excitement or satisfaction compared to commision only, and of course financial rewards.
mr magoo

If the product is good, salary really doesnt matter.

One more thing I have taken long term commision jobs where the company advanced you payment from your pipeline commision when you show your commitment to them.

Anyone with a decent product/proposal please pm.
mr magoo

 

[SalesPractice]

IF the question is "does commission only sales work?" then I would say for many industries and offerings (real estate in the USA for example) the answer is "yes" from the standpoint that it is an accepted model that can pay well if you can get the job done.

 

[gregs2769]

i know alot about the commision only world and it has its ups and downs

There are 100's of companies that only use 100% commision sales men

www.cobragroup.com
www.arcedia.co.uk

they are 2 big players in the uk

so whats the up side, you will have an incredibly drivin and self motivated sales team as people on commision realise that they dont get paid for sitting around in coffee shops and playing minesweeper on the laptop. They will go out and get you results come rain or shine and if you get a good guy he could make you alot of money. also you dont have to worry about other costs as well; marketing, travel, advertising, taxs, PAYE ect as this would be all covered by the sales man.

the down side is getting comitement and longevity from the sales force, you might find you will have a very high turn over of people selling your product and thus you would have to put in a lot of product training in to them and this could take up alot of your time. also because they are working unsupervise you dont know what tactics they might be using. you dont want to have a £5000 contract signed and then have the customer come back to you and say they felt presured and didnt have all the correct information at the time to make a informed discion and so wants to cancel any deal.

i could go on all day about this topic so please PM me for more info on it and ill give you a hand