New Business Idea What You Think?

[bsomers]

Hi , I have recently thought off a business idea on which I think would be a great way to start me off . The idea is to sell other companies products/services by online marketing and leaflet advertising (starting local firstly) and taking a percentage off the sales on commission. It looks to be a good idea as there is no risk in the matter as I'm not actually buying anything to sell , I would only make money through commission , but say I have 3 or 4 sales people selling products off other as well it could become profitable right ? depending on what we are selling off course .
Its a win-win situation in my eyes but its just an idea for now.
Does anyone have any experience in this sort off business or know off any tips and where I should go next ?

Thanks for your help guys.

 

[mitch@volume]

this is a 'common' business model for companies/agencies with often self employed sales staff. selling things like energy, solar and other high ticket/profit/value products or services.

It's finding the right product/service to sell that's the tricky bit.

 

[bsomers]

Thanks bud

 

[StaceyPreedy]

So basically you want to make a marketing company (which there are many of and they all drive me insane), and you want to only take money from their sales. I personally think this is extremely risky.

This would cost you a great deal of money to market someone else's products/services with absolutely no money guaranteed in return, what if they then give up running that business? What if you didn't sell anything? What if the product or service is rubbish, how would you explain that you do not market rubbish products? How long would you support their marketing to get how ever much money back. Would you spend one day marketing their services to then take a percentage off all their sales forever etc. I think you would need to have a great deal of thought and good solid contracts in place for either side not to be burnt by this idea.

 

[HBB new business team]

Sounds like affiliate marketing to me? You could set up a website and use that to drive your sales. I've recently drafted a blog about it, if your interested I could PM you?

 

[Gideon104]

Hi,

I completely agree with this being virtually risk free (the only risks are things like cost of your time, petrol, phone and internet usage).

If you have a large network of friends and businesses already and feel confidence selling, this can be a really great way to start off.

I have a suggestion of a service that you might be able to sell and will message you some details!


Kind Regards,
Gideon

 

[bsomers]

What I was thinking off would be to start off maybe selling memberships for local gym's were I'm from the memberships cost between £35 - £50 per month so I was thinking for every membership we sell we take £50 pound and £10 would go to whatever sales agent sold it , and £40 would go into the companies account and that way everyone wins ? This obviously wouldn't be as simple as it sounds but that's the idea.
The sales agents would be commission only contracts but sounds good right and would be selling door-to-door to get the ball rolling. This sounds far too simple so would appreciate if you guys could help me out with what I'm missing .

Thanks for your help guys much appreciated .

 

[Chris Ashdown]

There used to be many commission based salesmen a few years ago when it was an accepted practice

This enabled a sales rep to pick a few companies to work with in different types of goods and just drive around his area selling to all

Companies wanted more control and started to hire their own staff and offered a basic salary plus commission which is far more appealing to people and therefore commission only slowly disapeared from the market in most area's apart from high pressure selling like electricity companies and phone companies

If you are good at selling then 15% commission should be achievable in a lot of companies, but you do need companies with a very wide range of customers to make it pay and long term customers to get repeat sales

Good Luck

 

[bsomers]

Thanks for your help , much appreciated

 

[bsomers]

So basically you want to make a marketing company (which there are many of and they all drive me insane), and you want to only take money from their sales. I personally think this is extremely risky.

This would cost you a great deal of money to market someone else's products/services with absolutely no money guaranteed in return, what if they then give up running that business? What if you didn't sell anything? What if the product or service is rubbish, how would you explain that you do not market rubbish products? How long would you support their marketing to get how ever much money back. Would you spend one day marketing their services to then take a percentage off all their sales forever etc. I think you would need to have a great deal of thought and good solid contracts in place for either side not to be burnt by this idea.

Hi Stacey thanks for the reply.

As I said its just a thought , trying to put everything together in order to start up in January/February time but personally cant see it being a risk a tall all I see is my company selling other companies products and taking percentage off the sales to start off the company would have to be run from my home as wouldn't have enough funds for office space e.c.t and would have door to door sales people on a commission only contract I know its not as straight forward as that obviously but to me its seems like a win-win situation. I assume I'm missing a huge part out but as I say, its just a thought and your comments are welcomed.

Thanks for your time

 

[fisicx]

....and would have door to door sales people on a commission only contract...

When was the last time you brought something from a door-to-door salesman?

People just don't buy like this anymore. They go to google and search for the product or they go to a shop and browse.

So the huge part you are missing is that it's not a viable business proposition. Unless of course you are one getting out and knocking on doros.

 

[Apprentice Guru]

My business works on a model similar to what you're proposing. It can, and does work for me. Mind you, I've been in the work based learning industry for a few years now and have built up a solid base of clients and contacts. If I hadn't, my chances of success would be much less as I'm in what is currently a very competitive marketplace.

My advice would be to choose your products and/ or services wisely and make sure the commission paid is worthy of your time and effort to get the sales in the first place.

 

[Chris Ashdown]

When was the last time you brought something from a door-to-door salesman?

People just don't buy like this anymore. They go to google and search for the product or they go to a shop and browse.

So the huge part you are missing is that it's not a viable business proposition. Unless of course you are one getting out and knocking on doros.

Thats based on a assumption the seller is selling to the general public where as most commission salesmen sell to companies examples are,

Printer replacement inks / toner
Uniforms
Stationary
Advertising
Broadband
Training Courses

and so on

To house holds

Conservatories
Double Glazing
Home Oil
Gardening
Mobility equipment

and so on

If you look in the local papers you can normally find one or two, if you can sell then great prospecs if not lean times, also very lonely times

Does not have to be door knocking all sales means are open to them

 

[bsomers]

When was the last time you brought something from a door-to-door salesman?

People just don't buy like this anymore. They go to google and search for the product or they go to a shop and browse.

So the huge part you are missing is that it's not a viable business proposition. Unless of course you are one getting out and knocking on doros.

I suppose your right, thanks for the advice.

 

[bsomers]

Thanks for the advice guys , keep it coming

 

[Vectis]

What I was thinking off would be to start off maybe selling memberships for local gym's were I'm from the memberships cost between £35 - £50 per month so I was thinking for every membership we sell we take £50 pound and £10 would go to whatever sales agent sold it , and £40 would go into the companies account and that way everyone wins ? This obviously wouldn't be as simple as it sounds but that's the idea.
The sales agents would be commission only contracts but sounds good right and would be selling door-to-door to get the ball rolling. This sounds far too simple so would appreciate if you guys could help me out with what I'm missing .

Thanks for your help guys much appreciated .

I'm probably missing something obvious here, but if you have a salesperson selling gym membership at £50 and splitting that sum between the salesman (£10) and the gym (£40), where's your profit?

I must have misunderstood something along the way....

 

[bsomers]

Well the memberships are say £50 per month yeah ? we would take the £50 for our sales and £10 would go to whatever person sold the membership to the customer as commission and £40 goes to my company? This way , the gym have an additional member paying £50 per month a and they are also in profit ?

It seems to easy to me to be honest but obviously I must also be missing something.

What you think ?