Pay by performance telemarketing?

12 replies
I've done a quick search on the WF and found a few threads but nothing of great help to my situation.

I'm just curious if anyone has hired any pay by performance telemarketers? I've tested my script and have been getting plenty of bites and it's about time to start doing the legwork myself while outsourcing lead generation.

Although I know that it is the norm to pay by the hour I'm a bit skeptical to pay someone that I've never met in person to go on the honor system that they will do their best to help grow my business. I'm also not interested in outsourcing out of the U.S. because of language barriers.

I read a post by John Durham where he said that the best telemarketers will want to work on commission because they believe in themselves that they can make more money that way and I have to agree with that.

Anybody have any suggestions?

Thanks as always!
#pay #performance #telemarketing
  • Profile picture of the author RRG
    Originally Posted by B and B View Post

    I've done a quick search on the WF and found a few threads but nothing of great help to my situation.

    I'm just curious if anyone has hired any pay by performance telemarketers? I've tested my script and have been getting plenty of bites and it's about time to start doing the legwork myself while outsourcing lead generation.

    Although I know that it is the norm to pay by the hour I'm a bit skeptical to pay someone that I've never met in person to go on the honor system that they will do their best to help grow my business. I'm also not interested in outsourcing out of the U.S. because of language barriers.

    I read a post by John Durham where he said that the best telemarketers will want to work on commission because they believe in themselves that they can make more money that way and I have to agree with that.

    Anybody have any suggestions?

    Thanks as always!
    There are telemarketers here and elsewhere who will work on a leads-produced basis, rather than hourly. For example, they will provide, say, 10 leads for $300. Qualified leads, of course, based on your criteria.

    John Durham has a WSO report talking about this. I think it's TM Report #3 or something like that.

    The advantage with this method is you are paying for qualified leads instead of hours. If you know your average closing rate on qualified leads, you will know whether this sort of arrangement will work for you.
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  • Profile picture of the author dtaylor
    I have been toying with this also as I want to have a salesman come aboard in a couple of weeks.

    He is a producer so I will need to show him a path to $1,000 per week pretty quickly and how to go way beyond that in the next year or so.

    I will most likely start at about 30% of gross revenues. That can be adjusted up or down as needed but I know I can make plenty from that if he brings in $600 - $800 per day in sales and we scale up from there.

    DTaylor
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  • Profile picture of the author Jay Rhome
    While I certainly agree that good closers (of sales OR appointments) would want to be paid on a commission basis, I found it rarely the case in real life. One thing to remember is they have to know YOUR product is an easy sale for them. It goes both ways.

    If they feel or can test out that selling your services is easy and will make them great money, it can be done. If your business is new, or the pay not that great, don't expect to attract such winners.
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  • Profile picture of the author John Durham
    Well you pay on a per lead basis, but you pay "ahead of time" is the thing, in the form of buying a 5-10-20 lead pack. Otherwise its too one sided for the telemarketer. Alot of people will work on a per lead basis, and even guarantee dead leads to be replaceable, but you have to pay them upfront. No one is going to start a cold calling campaign if you are bargaining on empty pockets. I dont mean to sound harsh, though sometimes it comes across that way, but thats the reality.

    You may at this point think: "But that means I have to take all the risk my self".

    Welcome to owning your own business.

    Again, if you want to pay per lead though, that is a standard practice and it should be easy to find people to help.
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  • Profile picture of the author laurencewins
    I am an ex telemarketing manager. I can tell you from experience that you are better off starting people on an hourly rate as it takes time to get used to any product. Offer a generous commission designed to replace the hourly rate so it incentivises them to work harder.
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    • Profile picture of the author TopGun38
      Originally Posted by laurencewins View Post

      I am an ex telemarketing manager. I can tell you from experience that you are better off starting people on an hourly rate as it takes time to get used to any product. Offer a generous commission designed to replace the hourly rate so it incentivises them to work harder.
      If you have a decent budget then this works fine. But if you have a shoestring budget then it might not work so well. You won't have a second chance if you chose a wrong telemarketer.
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      • Profile picture of the author John Durham
        Originally Posted by TopGun38 View Post

        If you have a decent budget then this works fine. But if you have a shoestring budget then it might not work so well. You won't have a second chance if you chose a wrong telemarketer.
        Then the solution is to make some sales on your own to pay them... One offline sale can make $1000 and thats enough to pay a telemarketer for 20 hours per week for an entire 5 weeks straight... you could test them out $100. a time (10 hours).

        So for a thousand dollars, you could find good help over a couple of weeks time.

        You cant bring a sales group together and care for them like your own children if you arent the alpha and you cant provide for them. It doesnt mean you are out of the game, and others will tell you different, but they are wrong... You have to take care of anyone you bring into your organization and they have to feel secure that you are a strong leader. Pay helps with that. it also puts the law of reciprocity on the right side of the table for your success and harvest.

        Provide a good enough opportunity and WILD HORSES wont drive your TMS away, the problem here is that people are wanting to make one sided agreements with telemarketers, as if they are ignorant, when in fact a good telemarketer is as sharp as a tack! If you are trying to hide your start up status from them, they can read you like a book. They get paid to read people over the phone professionally.

        Does that mean you cant work as a start up? No they will be glad to lend a hand to the cause, but they arent ignorant, they know they are building your business and they want to be paid for their talent with no qualms.

        A telemarketer wants to be invited into your business, he doesnt want the WHOLE THING TO HINGE upon him...If it does, and he senses that you lose, and rightfully so, because its your business not his. Remember, he is a Job seeker, not an "opportunity seeker".

        So whats the solution when you have no money to hire - Go make some. I did it, so I do take my own advice here. You will have to get some capital or earn some.

        EDIT:

        The other way is to target "opportunity seekers", sell your opportunity like a franchise... and charge people to work with you,. that takes a good presentation that shows them a ton of opportunity, but thats not "hiring telemarketers", thats more "Starting an offline affiliate network". Difference in approaches.

        You could also take a shot gun approach and with the same $1000 put 3 major ads in three major cities, and generate HUNDREDS of applications... and if you are dealing with those kinds of numbers then you could find alot of needles in the haystack that would work for free... but if you are just interviewing a person here or there, ten per month... You are going to have to have a solid compensation to offer because it will take FOREVER to find those rare people who will work on commission at a rate of just a few interviews per week.
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  • Profile picture of the author john1818
    Originally Posted by B and B View Post

    I've done a quick search on the WF and found a few threads but nothing of great help to my situation.

    I'm just curious if anyone has hired any pay by performance telemarketers? I've tested my script and have been getting plenty of bites and it's about time to start doing the legwork myself while outsourcing lead generation.

    Although I know that it is the norm to pay by the hour I'm a bit skeptical to pay someone that I've never met in person to go on the honor system that they will do their best to help grow my business. I'm also not interested in outsourcing out of the U.S. because of language barriers.

    I read a post by John Durham where he said that the best telemarketers will want to work on commission because they believe in themselves that they can make more money that way and I have to agree with that.

    Anybody have any suggestions?

    Thanks as always!


    It really depends on the product/services. Well if your selling something that's extremely hard to sell or requires time to sell then no sane telemarketer will agree with "pay per result" . or vice-versa.

    Another thing is, have you considered hiring someone outside your country that has lower wages compared to yours? IF you want you could offer them let's say an option. Let them choose between hourly rates, or pay per results. The catch is you should lower the hourly rate.

    Let say your product cost around $1000 each. offer him something like "5 sales for $450" Let him choose between that or let's say $7 per hour rate? Tell him that it is require to meet quotas. Like 4-5 each week.

    I don't want to sound like an opportunist but in this way you will know how he/she will work. If he/she really is a great worker then i think she/he'll choose the pay per results part.
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    • Profile picture of the author IndieRetailer
      Again, depending on your product or service, it might be worth taking a look at fiverr. I've poked around there for a variety of things and have noticed there are a few that offer telemarketing by the hour. You provide them with a script and possible objections and let'm go. If you get one that produces results, great! If not, you've only risked $5 and you can move on to another.... or tweak your campaign a bit based on their feedback and burn another $5.
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  • Profile picture of the author dericks3
    How I work it with my clients in appointment setting,is I charge hourly and guarantee in writing a certain number of appointments to be set based on the number of hours we are calling.
    This has been working well for both sides.
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  • Profile picture of the author anderson9731
    You can easily find sorts of telemarketers in every telemarketing services, in which they’ve their own proficiency. The telemarketers call back personally their indecisive prospects, and on the phone number of their choice.
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  • Profile picture of the author Jason Kanigan
    A whole range of telemarketing talent is available. I do subcontracted prospecting for a select few clients (there being only so many hours in the day, and I do NOT want to spend them all calling!), but only for technical products & services, and I'm paid a high hourly rate to do it. You won't get me for $20/hr. So be careful of what level of talent you're bringing on board. $8/hr telemarketers charge that low a rate for a reason.

    They should also have a sales coach: if that's not you for whatever reason, then they need someone to talk to at least once a week to debrief what's been happening and how to improve.

    However...if the real reason you want to subcontract the work is because you're uncomfortable making the calls yourself...maybe you should consider biting the bullet and learning how to do it. As the business owner, no one is going to be more convincing and involved than you!
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