Selling leads vs taking commissions?

by JayBay
6 replies
Hey,

So I'm seeking out some advice that I'm hoping will benefit a ton of others in the same predicament.

I want to find a partner to sell phone/email leads with but I'd rather take commissions from closed deals off the backend instead of selling leads on the front end for $30 a piece.

So as I puzzle this out:

Step 1: Qualify a reputable company to partner with
Step 2: Determine what happens if they don't close on the leads and when
Step 3: Determine commission percentage range
Step 4: Determine how to ensure commissions are being paid
Step 5: Get paid much more than $30

Would anyone have any insight on these steps? Do you think it's possible to sell leads and make a commission or is that too much?

I know some people might not enjoy depending on someone else's ability to close in order to get paid but I feel it's important to examine their sales funnel and help them achieve conversions wherever possible anyway. The whole point is everyone involved in the deal is winning and your the car to take them across the finish line.

And I know I could do a search for a similar business model but I'd rather get the input of people who are experienced and done it before then rely on a random google search.

Thus far here's what I've learned:
--Give the estimates myself, mark up your partners bid and take what's left off the top.

I say if you are well acquainted with that niche and your partner is comfortable with it then that's a seaming less way to make what you want and ensure your getting paid. That doesn't work for me though and probably not for most anyway.

--This works best with a high value per lead niche like construction.

--These guys are way open to doing additional marketing if their first impression of you is making their phone ring. Color it as supplemental leads they could be getting that could result in XXX per month without your commission fee.
#commissions #leads #selling #taking
  • Profile picture of the author Jon Martin
    Why are you looking to sell leads rather than simply outsourcing the work and collecting profit? Wouldn't that make more sense?

    Also re: the commissions idea -- how do you intend on keeping your clientele honest? People are surely going to snub you. You're going to have to keep up with the aforementioned leads to ensure nothing sketchy happens, correct?

    Seems like an extra hurdle to jump through when I'm sure you could make a ton of money simply outsourcing projects to commission-based employees/freelancers.
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    • Profile picture of the author JayBay
      Originally Posted by Jon Martin View Post

      Why are you looking to sell leads rather than simply outsourcing the work and collecting profit? Wouldn't that make more sense?

      Also re: the commissions idea -- how do you intend on keeping your clientele honest? People are surely going to snub you. You're going to have to keep up with the aforementioned leads to ensure nothing sketchy happens, correct?

      Seems like an extra hurdle to jump through when I'm sure you could make a ton of money simply outsourcing projects to commission-based employees/freelancers.
      The niche I'm generating leads for is Home Improvement and I couldn't build a napkin holder let alone a deck. LOL

      The snubbing part is actually what I was looking for insight about as they could conveniently forget to pay and I couldn't do anything about it.
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  • Profile picture of the author jgant
    I earn commissions from local businesses (not leads).

    I set out what I do in this thread http://www.warriorforum.com/main-int...-thoughts.html
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    • Profile picture of the author JayBay
      Originally Posted by jgant View Post

      I earn commissions from local businesses (not leads).

      I set out what I do in this thread http://www.warriorforum.com/main-int...-thoughts.html
      jgant! This is the thread that has me mega interested in going commission style! Thank you for all your valuable insight but the major hang up is still how to track those sales they make on their end? I could get a name, say I take the call and forward it nicely along to the business owner. What do you do from there, call the customer back behind the business owner's back as sort of an audit? I got nothing.

      edit: I noticed you answered this nicely in another thread by responding to me! LOL Can't believe I missed that. People check out this thread for more insight: http://www.warriorforum.com/main-int...-thoughts.html
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  • Profile picture of the author ClayWhite
    This post is kind of confusing... or is it just me?

    Are you wanting to be a broker? someone who hooks up with a wholesale lead company and then resales the leads you purchase?

    Or are you generating the leads yourself and just want someone to sell them for you? (you being the wholesale lead company)
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    • Profile picture of the author JayBay
      Originally Posted by ClayWhite View Post

      This post is kind of confusing... or is it just me?

      Are you wanting to be a broker? someone who hooks up with a wholesale lead company and then resales the leads you purchase?

      Or are you generating the leads yourself and just want someone to sell them for you? (you being the wholesale lead company)
      Sorry, I am a terrible word smith. To clarify - I am generating the leads myself and want to sell them for a commission off the sale instead of per lead. Knowing Step 4 would solve Step 1 and the others are really to help others who would be interested in selling leads the same way.
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