How should I pay my sales people?

8 replies
I've been reading a thread by John Durham about selling websites offline.

Thread here: https://www.warriorforum.com/offline...knowledge.html

I'm not very good at sales over the phone so I'm thinking of outsourcing the sales part.

Should I pay the salesperson commission or by the hour?

For instance, if I charge $299 for a basic 5 page website, $200 goes the salesperson and $100 goes to me (for website creation). Does that sound good?
#pay #people #sales
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  • Profile picture of the author DABK
    Does that sound good to you? How long does it take you to make one such site? Is $100 worth you spending that time making one website?


    In my case, the answer is no.


    How much you pay, determines to a large extent who's going to agree to sell for you, the more you pay, the more options you have. On the other hand, you need to make sure you're covering you.


    What are your expenses? How much do you think you should earn for an hour of work? How much do you want your profit to be?


    (Consider that some of the people will want you to make changes or will call you to ask questions, complain... and that's work too.)


    As just mathematics, I think you getting one third only is no good... Should be the other way around, in my opinion....



    Originally Posted by BluesPlayer View Post

    I've been reading a thread by John Durham about selling websites offline.

    Thread here: https://www.warriorforum.com/offline...knowledge.html

    I'm not very good at sales over the phone so I'm thinking of outsourcing the sales part.

    Should I pay the salesperson commission or by the hour?

    For instance, if I charge $299 for a basic 5 page website, $200 goes the salesperson and $100 goes to me (for website creation). Does that sound good?
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  • Profile picture of the author Jason Kanigan
    Originally Posted by BluesPlayer View Post

    I've been reading a thread by John Durham about selling websites offline.

    Thread here: https://www.warriorforum.com/offline...knowledge.html

    I'm not very good at sales over the phone so I'm thinking of outsourcing the sales part.

    Should I pay the salesperson commission or by the hour?

    For instance, if I charge $299 for a basic 5 page website, $200 goes the salesperson and $100 goes to me (for website creation). Does that sound good?
    Why are you lowballing?

    Would Walmart buy a $299 website?

    Give yourself some more room to work with, for gosh sake.

    Of course Walmart isn't going to hire a freelancer designer. But consider a decent family-owned company, or even a strip mall mattress store. Do you think they want the
    "cheapest" outcome... or the "best" or "most effective" outcome?

    I know who I'd rather work with.

    Now as to the salesperson.

    It seems so easy, the idea of "I'll just hire a salesperson". Well good luck.

    The good salespeople are working. They're out there making money, because they know how to sell.

    The people you're likely to attract with a CL ad or whatever are the rejected parts.

    Never make your business out of rejected parts.

    No matter what direction you go in, you're going to need the following three systems (and I've been talking about this here on the forum since 2011):

    1. Lead generation
    2. Qualification
    3. Closing.

    You're thinking of #3 only, I'll bet. But number one question of that salesperson you want to hire is going to be: "Where are the leads coming from, and how good are they?"

    I'll share something with you: closers do not like to prospect.

    Two different skill sets.

    So you'd better have all that figured out and in place before you go looking for a salesperson.

    The Truth is that it is very, very challenging to find and keep commission-based salespeople. Especially at this low level.

    Someone who has the confidence, the skill, and the ability to go say 6 weeks before seeing any income as they learn the business is rare. Ask other people in this subforum. They know.

    Over the years I have literally given away my sales training, including my personal time, to people I found here who came to me and said they wanted to work on commission. I gave them the tools. But within a couple weeks, as soon as another opportunity opened up, even to make minimum wage, they jumped back into the certainty of a paycheck.

    It has been 5 years at least since I did this, but I'll bet if I tried again the same result would happen today.

    Every so often I get messaged by someone who says, "Hey Jason, you're great at sales...and I have a great product. We should team up!" No, I'm not interested. I have my own focus, my own dreams, and yours will always be a distant tenth or twelfth.

    Maybe you can luck out and find someone who can stick the grind out and work for for nothing for awhile. I doubt it. I haven't seen success stories about it here or elsewhere in 10 years.

    Pay them by the hour and you'll attract freeloaders who you might be afraid to fire because of having to go through the crap of rehiring and starting over from scratch. Until you have a proven consistent sales process I would not do this.

    As DABK said, if you must do this make sure your math makes sense first. Do you think your salesperson is going to sell five a day? One a day? Not likely. Certainly not at first. That's a lot of dialing. And remember, closers don't like to dial.

    IMO you should go to work for a successful agency, maybe one that's not too big, say six or seven people, and see what they did and do to be where they're at. Get paid to learn instead of getting punched in the face.
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    • Profile picture of the author Monica8297
      I think you are talking absolutely right for this matter.
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  • Profile picture of the author Matthew North
    When I worked in an outbound call centre I sold listings in no-named directories for more than $299. People would happily pull out their credit cards on the spot if you made it sound good. Point is, to a business with actual revenue this amount of money is trivial, and it might be helpful to have the same outlook.

    Think what one client paying you $2,000 a month would do for you.
    Signature

    you cant hold no groove if you ain't got no pocket.

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  • Profile picture of the author Claude Whitacre
    Originally Posted by BluesPlayer View Post

    I've been reading a thread by John Durham about selling websites offline.

    Thread here: https://www.warriorforum.com/offline...knowledge.html

    I'm not very good at sales over the phone so I'm thinking of outsourcing the sales part.

    Should I pay the salesperson commission or by the hour?

    For instance, if I charge $299 for a basic 5 page website, $200 goes the salesperson and $100 goes to me (for website creation). Does that sound good?
    Or you could just skip all the selling part, and build your own 5 page website...selling 5 page websites for $99.

    Don't hire a salesperson. How would you be able to train them? Paying a salary would be like throwing money down a black hole. And why would someone want to sell your website services? Where would they get the leads? Who will close the sales? Who will prospect?

    Why not practice what you preach. If you know anything about building a website that actually sells something, build a string of websites selling your service to different types of businesses.

    Buy PPC ads or create Youtube videos that talk about how a website can sell their offers.



    An alternative is to simply contract with others that sell similar services, and be their website builder. Or just advertise on Fiverr or related sites. Here's a link to a list.
    https://www.websitehostingrating.com...-alternatives/
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  • Profile picture of the author 1Bryan
    Do the sales yourself. Lots of web designers do, especially in the beginning. Learning to sell is a great life skill to have. It follows you, even if you stop doing websites.

    It bleeds into other parts of your life.

    My grandfather had 40 years in sales. Old school. When I was about 12, I wanted to make $$$.

    So I went knocking on doors. Without a lawn mower. Asking people if I could mow their lawn. And if they said yes, I then had to ask if I could use their mower too. Haha.

    And made like $ 100 to $ 200 a week.

    And my grandfather would ask, how much did you make this week? And I'd say something like $ 140.

    And he'd light up. Because he knew. I was learning.

    I had no sales experience and no lawn mower. And still made good $$$ in 1993 for a 12 yr old kid ... by mowing lawns.

    Life experience is the best sales training system there is. The No's are better than the Yes's.

    Go get a bunch of No's. That's what makes you learn.

    P.S. My grandfather taught me both nothing and everything about sales. If he had sat me down and got me to create a script? I wouldn't have learned. I would have memorized his script.

    Instead, he let me go knock on doors with no knowledge of how to sell. And that's how I learned to sell. Some doors? No answer. Some doors? No thank you. Some doors? Get outta here! Some doors? $$$

    That's a life metaphor that most don't learn. Like deep in their bones. 12 yr old me learned that and sometimes I forget.

    But then I remember -- okay, next door please.

    Go knock on some doors. Make some phone calls. Get that learning. It's more valuable than someone handing you their script, their box, their paradigm.

    If you believe you need a salesperson?

    Then you will need a salesperson. Meaning, your whole business will rely on them. Rely on yourself first. Go sell.
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    • Profile picture of the author GordonJ
      Serendipity...which is a chance event which leads to good fortune. Mine took place at 10, and the whole story is in my signature, a 36 minute audio...but here was my take AWAY from knocking on doors selling stuff.

      I learned people are PREOCCUPIED and the knock may get their brief attention, but their instinctive, knee jerk reaction is to say NO, to whatever it is you are selling. Or as Elmer Leterman put it, "the sale begins when the customer says no".

      So how would YOU use this info?

      NO one is sitting around waiting for the BLUES PLAYER to call, knock on their door, or to get an email, letter or see an ad by him. YOUR potential clients don't think about you at all...

      UNTIL

      YOU interrupt their day. See, most salespeople (including new copywriters) don't get this. No matter how good your product, service, no matter how great the benefit is for them, no matter how good it will be for them...

      your initial contact is AN INTERRUPTION, and their first reaction is going to be a NO. It is just human nature.

      So, if you accept this, then you want to ask how and where the interruption takes place. And this is what scares most people, they can't handle that first rejection, that first WHAT THE HELL DO YOU WANT which so many people will give to a sales interruption.

      It is the real reason you want to hire somone, not about the time, but about not knowing what to do and not being able to handle all the rejection.

      But, if you take the time to figure out the WHO (these days called your avatar, or ideal prospect) and then

      WHERE you will intersect with them, it gives you a starting point on what to say and how to say it...you KNOW you are interrupting them, and after the first blush, you better be all about THEM and what they get and why your interruption was a good thing, or you will be gone from their minds for good. Or until you interrupt them again, again and again.

      Hopefully, this is a different tack on the idea of selling your services. Most people don't take the time to figure out WHERE the intersection (the interruption) takes place and how to control it to your benefit and THEIRS.

      GordonJ

      PS Thanks 1Bryan for the reminder about knocking on doors, I have never heard of anyone dying from doing it.



      Originally Posted by 1Bryan View Post

      Do the sales yourself. Lots of web designers do, especially in the beginning. Learning to sell is a greachancet life skill to have. It follows you, even if you stop doing websites.

      It bleeds into other parts of your life.

      My grandfather had 40 years in sales. Old school. When I was about 12, I wanted to make $$$.

      So I went knocking on doors. Without a lawn mower. Asking people if I could mow their lawn. And if they said yes, I then had to ask if I could use their mower too. Haha.

      And made like $ 100 to $ 200 a week.

      And my grandfather would ask, how much did you make this week? And I'd say something like $ 140.

      And he'd light up. Because he knew. I was learning.

      I had no sales experience and no lawn mower. And still made good $$$ in 1993 for a 12 yr old kid ... by mowing lawns.

      Life experience is the best sales training system there is. The No's are better than the Yes's.

      Go get a bunch of No's. That's what makes you learn.

      P.S. My grandfather taught me both nothing and everything about sales. If he had sat me down and got me to create a script? I wouldn't have learned. I would have memorized his script.

      Instead, he let me go knock on doors with no knowledge of how to sell. And that's how I learned to sell. Some doors? No answer. Some doors? No thank you. Some doors? Get outta here! Some doors? $$$

      That's a life metaphor that most don't learn. Like deep in their bones. 12 yr old me learned that and sometimes I forget.

      But then I remember -- okay, next door please.

      Go knock on some doors. Make some phone calls. Get that learning. It's more valuable than someone handing you their script, their box, their paradigm.

      If you believe you need a salesperson?

      Then you will need a salesperson. Meaning, your whole business will rely on them. Rely on yourself first. Go sell.
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      • Profile picture of the author 1Bryan
        Originally Posted by GordonJ View Post

        your initial contact is AN INTERRUPTION, and their first reaction is going to be a NO. It is just human nature.
        Lol, yup. Knocking on a door when they're having lunch or dinner or whatever. Or an argument. Or afternoon nookie haha.

        A single afternoon knocking on doors would give an array of experiences.

        It also taught me this. So back then, not nearly as many people used landscaping companies where I lived. It was still the "man" thing to mow the lawn. And hardly any of them wanted to.

        And for most, it was a weekend thing to do.

        But they'd rather do other things. So weekends were the "luckiest" time to knock on doors for lawn mowing.

        Because you'd get those guys that were putting off mowing the lawn. And they'd be like --

        "You know what? Sure, you can mow the lawn."

        And they'd put the Yankee game on. And toss back a beer. Which is what they really wanted to be doing.

        So you learn, oh, you can create "luck". And you learn they wanted relief and relaxation.

        So you think -- how can I create luck? How can I give them relief and relaxation?

        And it becomes part of how you sell.
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