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Commission-Only Realities?

by jamesfreddyc
10 replies
I've done a couple of rounds of Craigslist posting and sifted through quite a few good prospects that seemed like a great fit for our commission-only opportunity (offline phone is main sales model).

...I have yet to find a single candidate to follow through.

Anyway, I've now come up with a better filtering process to reduce the noise and no-shows: GoToMeeting sessions. This seems to help weed out the majority of folks who have:

a. Never used, don't have the capability or don't understand how to join a GoToMeeting session.
b. Since our product (a SaaS offering) is best "closed" when we can demo it to prospects and we heavily use GoToMeeting for this effort, they are immediately filtered if they don't show up.

The ad itself clearly states the need to join the meeting or setup a date/time for an interview, so it has helped.

....but still on the search for the right person/people.

Anyone else incorporating this tactic in their recruiting effort and/or product demo?

Take Care!
James
#commissiononly #realities
  • Profile picture of the author Jason Kanigan
    The realities of commission sales teams are:

    * people hire as if they're running a car lot, and the cost of an additional hire is zero

    * they don't have standard processes in place

    * they don't have a training program.

    Consequently, the business owners discover:

    * the reps don't stick around long

    * the reps waste their time with questions that have nothing to do with products or selling

    * the reps don't actually have skill at the things they say they can do, like getting decision makers on the phone.

    There IS a cost to hiring even commission salespeople.

    There IS a price for not having consistency in your sales process--and your reputation in the hands of a handful of mix-and-match untrained reps who have little to no loyalty to you.

    There IS an effect on the business owner of tying up their time with hiring, training and managing--rather than doing the things they should be doing: leading and selling.
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    • Profile picture of the author jamesfreddyc
      Thanks for the input, Jason!

      Just like for the majority of my tech career, the learn-as-I-go is a never ending process. And like many lean startups, this means to get it going I am going to have to be the one to set some appointments initially I think --- probably not a bad thing as this experience will help me to understand much of what you talk about and walk in the shoes of the sales people I need to eventually recruit.

      No question that there is a cost to hiring comm-only sales people! Fortunately the SaaS is mature enough and automated processing affords me the time and opportunity to develop sales technique that I can hopefully use to attract and filter people that are a better fit.

      Originally Posted by Jason Kanigan View Post

      The realities of commission sales teams are:

      * people hire as if they're running a car lot, and the cost of an additional hire is zero

      * they don't have standard processes in place

      * they don't have a training program.

      Consequently, the business owners discover:

      * the reps don't stick around long

      * the reps waste their time with questions that have nothing to do with products or selling

      * the reps don't actually have skill at the things they say they can do, like getting decision makers on the phone.

      There IS a cost to hiring even commission salespeople.

      There IS a price for not having consistency in your sales process--and your reputation in the hands of a handful of mix-and-match untrained reps who have little to no loyalty to you.

      There IS an effect on the business owner of tying up their time with hiring, training and managing--rather than doing the things they should be doing: leading and selling.
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  • Profile picture of the author internetmarketer1
    Jason really hit home for this. I sure do hope that you find the right people that are more professional.
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    • Profile picture of the author jamesfreddyc
      Originally Posted by internetmarketer1 View Post

      Jason really hit home for this. I sure do hope that you find the right people that are more professional.
      Yep. I don't remember exactly which one it is but he has a utube video that list out EXACTLY the same issues I am dealing with. I mean the exact same experiences I have run into and are finding out each day.

      I will say that there is actually a TON of value in many of his videos --- it is truly free content that can really get you started and at minimum a bit of an education. His experience comes thru.
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  • Profile picture of the author iAmNameLess
    I have a commission only sales team. I can tell you that you will be wasting your time with a goto meeting because commission only already comes across as shady. A goto meeting to qualify potential sales people will only make things unnecessarily harder.

    To tell you the truth, the people that end up being the most dependable and end up being the best are the ones that on paper don't seem like they would be the most fit.

    The most important thing when hiring commission only is you need to sell. You have to be extremely good at selling, because you're selling the concept and idea to people that will have to invest THEIR time and energy in order to make money.

    The "right" person "right now" is not going to REALLY be the right person. You will have a lot of learning to get under your belt before you really find the right person.
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    • Profile picture of the author jamesfreddyc
      Originally Posted by iAmNameLess View Post

      I have a commission only sales team. I can tell you that you will be wasting your time with a goto meeting because commission only already comes across as shady. A goto meeting to qualify potential sales people will only make things unnecessarily harder.

      To tell you the truth, the people that end up being the most dependable and end up being the best are the ones that on paper don't seem like they would be the most fit.

      The most important thing when hiring commission only is you need to sell. You have to be extremely good at selling, because you're selling the concept and idea to people that will have to invest THEIR time and energy in order to make money.

      The "right" person "right now" is not going to REALLY be the right person. You will have a lot of learning to get under your belt before you really find the right person.
      I can validate your comments!!! The one sales guy I have is a gentleman that lost his job as sales manager when the small business he worked for was sold. So he is sort of semi-retired and half in/out with me. He hasnt done much but I try to encourage and feed ideas -- my initial thought was that I scored big, but the reality is different performance-wise.

      Even with my commission schedule set extremely high at 75% on the outright sale and 65% on the recurring monthly subscription charges, money alone isnt necessarily the best motivator. You'd think an experienced sales person would see the recuring commissions at 65% for the life of each customer and jump in asap.
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    • Profile picture of the author jamesfreddyc
      Originally Posted by iAmNameLess View Post

      I have a commission only sales team. I can tell you that you will be wasting your time with a goto meeting because commission only already comes across as shady. A goto meeting to qualify potential sales people will only make things unnecessarily
      Also: we rely heavily on GoToMeeting for product demonstrations. So if a candidate cannot display the minimum effort to be able to join in an online meeting then they will likely never be comfortable in our sales model.

      With a SaaS / Web-based software product, it just makes sense to use this medium. I cannot just walk into a prospects business if they are out in California.
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  • Profile picture of the author jamesfreddyc
    I forgot to mention and just to show how difficult it is to attract commission-only people...

    Along with the 65% recurring monthly commissions for the life of the subscriptions, I also offer payout on the initial sales within 24 hrs via paypal.

    I am amazed that ppl, especially experienced marketers, havent jumped at it.
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    • Profile picture of the author KoolFM
      You will have plane loads of those semi retired sales people arriving shortly in FL like the guy you mentioned. I would make the calls and be able to quote great closing stats. That's also the way to start a training plan.

      So, make a hundred calls yourself and when you're closing x out of a hundred, you can include in your ad an expected earnings figure.

      After doing a quick search of a big job board, you are competing for sales staff with some big co's that offer salary plus for SAAS solutions.

      Give them reasons why they should work for a lean start up. 65 or 70% commissions isn't selling them on your job offer. Why?
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  • Profile picture of the author jspmedia
    Either its salary or commission only position..hard to find a good one. But it is possible but hard..
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