Is this amount adequate for commission only sales?

[CSS - Employee Surveys]

Hello

If there is any chance a few of you could point me in the right direction please let me know ASAP.

I have just started a new business, we provide employee satisfaction surveys to business' around the UK. They are simple, effective, essential and a valuable asset to utilise in areas of opportunity

Is £100 - £150 commission per sales adequate? I think its more than enough as Im hoping the right sales person could sell upto 5 surveys per week at least, but im not a sales agent so i thought id ask the pro's.

Thanks for your advice in advance

Robert
Last edited by FreelanceUK; Yesterday at 04:48 PM.

 

[Humphrey]

Most independent sales agents want a minimum fee plus a percentage of the contract value.

What is your pricing structure?
If it is a fixed price then they will probably accept a fixed price commission - 10% or 12%.
If you are charging per employee or per returned questionnaire then they will expect to see a percentage payment per employee or questionnaire plus a fixed 'finders fee'.

You will also have to decide if your finders fee is payable on 'hot leads' or signed contract. Plus decide what level of input you are expecting from your sales agent to achieve the sale. This must be very clearly documented if you are to avoid claims on non payment being brought against you.

 

[CSS - Employee Surveys]

What is your pricing structure?
If it is a fixed price then they will probably accept a fixed price commission - 10% or 12%.
If you are charging per employee or per returned questionnaire then they will expect to see a percentage payment per employee or questionnaire plus a fixed 'finders fee'.

The cost of the survey is £400 flat rate (for 20 employee surveys and full reporting) and I was going to offer £100 - £150 per sale/order that the agent completes.

do you think thats reasonable?

 

[CKG]

Do these mysterious high flying commission only sales people actually exist?

I hear lots of talk about them but no one has ever seen one out in the wild.

With the ammount of 'WANTED - commission only' posts this place get i'm surprised there aren't graphic designer esq swarms of them with their fingers twitching on the PM button.

Genuine question..

 

[Humphrey]

Hi Robbie

Sorry for the delay in responding - I don't spend all of my time here ;-)

I think that £100 to £150 is significant to attract a commission only sales person (there are a few out there CKS usually with a portfolio of services / products) though for this sum I don't think they would be willing to do much more than pass on a 'hot' lead to you and accept your payment should you achieve a sale. To get a commission only sales person to do all of the work up until signature on contract would require a payment more in the region of £500 to £1000. These people have a lot of travel / communication costs and are lucky to get a sale more than once a week.

 

[MH1]

The subject of suitable commission is a hard one to answer, and would depend on how easy it is to find prospects and get conversions in actual sales, value of the order etc.

If your product has mass appeal then a dedicated agent, ie selling just for yourself is preferable IMO to a jack of all trades.

Lots of offers to commission only sales people does not equate always to lots of suitable offers. After all according to Gordon Brown there are 1-2 million jobs available in the UK, most are probably pizza delivery boys or McDonald counter staff, so would many people off the forum apply for any of these jobs either?

If a company is struggling to recruit they need to look at their offer again and decide why it is failing to attract any attention.