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Hiring Outside Sales Reps

by 300SMG
36 replies
What is the best way to attract reputable sales reps for a commissioned position? We are looking to hire about half a dozen reps for a 4 county area..which breaks down to 1 rep for each heavily commercial area.

We propose to offer a 30% commission rate for each deal..many will have recurring revenue. I understand they only get paid based on performance but is there a quota they should be held to..or an average they should meet over 90 days?

Interested in hearing the different thoughts.
#hiring #reps #sales
  • Profile picture of the author Fishing
    Tough, as most really good sales reps are already snatched up or doing their own sales.

    The ones available, you would have to invest some time to get them trained up, or they would walk after the first 30 days (Lack of cash flow on their part).

    A good salesmen knows they are good, and has options.

    Pay a safety net base wage, would be attractive and possibly net you some talent to mold.
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    • Profile picture of the author Marketinc Solutions
      Be more specific...

      Reps to just cold call? Sell services locally? Keep in mind you are hiring people to represent your company in the community. Training will be key.

      What's your current cash flow situation?

      Just because you are paying them 100% commission, doesn't mean there aren't other employee expenses you will have to incur.

      Research how insurance companies and financial companies recruit, train, and retain their advisors/agents. Their strategies can be used across multiple industries. They have also been doing it for over 100 years.
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    • Profile picture of the author mnall01
      Originally Posted by Fishing View Post

      Tough, as most really good sales reps are already snatched up or doing their own sales.

      The ones available, you would have to invest some time to get them trained up, or they would walk after the first 30 days (Lack of cash flow on their part).

      A good salesmen knows they are good, and has options.

      Pay a safety net base wage, would be attractive and possibly net you some talent to mold.
      Fishing has it nailed. My background has been in the very competitive specialty chemical selling space. That's exactly how all of the companies did it. Start with a small draw, $500 per week and keep a close watch on the new employee for the first 3 to 6 months. If they aren't bringing on new accounts, cut bait and bring in the next one. There will be a lot of attrition with this method however.
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  • Profile picture of the author BIG DEALS
    I cannot seem to find any quality sales reps without offering a base. I know they are out there, I just haven't found any good ones! If you figure this out, please do share!
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    • Profile picture of the author misterme
      Originally Posted by BIG DEALS View Post

      I cannot seem to find any quality sales reps without offering a base.
      That strikes me as so strange because someone who knew they were stellar wouldn't insist on a base.
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      • Profile picture of the author bsbear
        Originally Posted by misterme View Post

        That strikes me as so strange because someone who knew they were stellar wouldn't insist on a base.
        He's not talking to anyone stellar then.
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        • Profile picture of the author misterme
          Sorry about the two year delay getting back to your comments about my comment.

          Originally Posted by vladkost View Post

          "The real closers don't need a base" - Not so

          ...I know professional recruiters and medical sales reps that have $40k/ year salaries but with total compensation of an additional $100k-$200k and MORE.
          So I'm right. They don't need a base.

          Great sales people KNOW they can make their $200K.

          So they're not concerned about a lousy $9 hr. guaranteed base.

          They have their eyes on the golden ring prize up above.

          Not on the net below.

          If they're not superstars THEN they get all sweaty about making sure they get their $9 an hour base pay.

          And proper lunch breaks.

          That's how you'd know when they're just talking the talk.

          Originally Posted by bsbear View Post

          He's not talking to anyone stellar then.
          You don't know me.

          You shouldn't make assumptions like that.
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      • Profile picture of the author vladkost
        Originally Posted by bsbear View Post

        He's not talking to anyone stellar then.
        Originally Posted by misterme View Post

        That strikes me as so strange because someone who knew they were stellar wouldn't insist on a base.
        Hiring a stellar sales person in a small unknown business is like getting you guys to do SEO and marketing for that same business on a commission basis.

        Hiring great commission sales people is possible, but you need other factors. You can see my short rant above to see what I'm talking about
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        • Profile picture of the author Gladiator
          I agree vladkost. Why would a real closer work with someone who is selling a simple service or product that can be sold by anyone? Meaning, why not sell it for themselves? If you are not a real business with something established and proven then you are not going to attract any closers.

          A stellar sales person or not You have to close to make any money! Nothing happens unless something is sold! There are not many closers around especially for these small IM things!

          Originally Posted by vladkost View Post

          Hiring a stellar sales person in a small unknown business is like getting you guys to do SEO and marketing for that same business on a commission basis.

          Hiring great commission sales people is possible, but you need other factors. You can see my short rant above to see what I'm talking about
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      • Profile picture of the author winebaer
        Originally Posted by misterme View Post

        That strikes me as so strange because someone who knew they were stellar wouldn't insist on a base.
        This is my theory too. I've been searching for a similar team as described above for the past month, and am only getting people who are a) under-qualified or b) insisting that they must get a base... neither is desirable.

        The fact is that when I hire someone to sell, I want someone who is confident in their ability to do so, not just someone who will be satisfied with the safety net of base or draw.
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  • Profile picture of the author Fishing
    Cant be anything much more competitive than chemical sells.

    Its a commodity, pretty much a set price.

    Tough.

    Have an old buddy not into IM who just got hired as a regional salesman for a Chemlight company, starting at 60G a Year.

    60G = Selling Chemlights

    But I helped turn him into a chem light selling ninja.
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  • Profile picture of the author Rearden
    The only thing you need to do is pick up Chet Holmes "The Ultimate Sales Machine" and read his chapter on hiring top-gun talent.

    He explains everything from writing the for-hire ad, through the interview process, all the way to managing the top-gun's expectations for maximum performance.
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    • Profile picture of the author Rus Sells
      Sounds like you read that chapter, why not just share what you learned?

      My thoughts on it are to qualify them out during the interview process just like I do when finding clients.

      As mentioned earlier the real closers know they don't need a base and aren't interested in having one. Yes many will disagree but to each his own.

      Originally Posted by Rearden View Post

      The only thing you need to do is pick up Chet Holmes "The Ultimate Sales Machine" and read his chapter on hiring top-gun talent.

      He explains everything from writing the for-hire ad, through the interview process, all the way to managing the top-gun's expectations for maximum performance.
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      • Profile picture of the author vladkost
        I don't normally give advice on these boards because there are a lot of people that are much more knowledgeable than myself; however, I was a door to door sales rep for 3 summers so I think I can provide some insight.

        "The real closers don't need a base" - Not so

        The real closer needs to have proof that others are achieving at least what he/she wants to achieve.

        When I sold door to door I was making about $40k/summer. Not much, but I was in college so I was ballin' outta my mind
        When I started I saw plenty of people making 6 figures working 6-9 months/year. The industry I was in created a system that was able to be duplicated by ANYONE. If you just did what your manager told you, you WILL sell. It's been PROVEN year after year by MANY PEOPLE.

        The problem I see with other companies offering a commission only positions is that they lack in structure and social proof. So those "great salespeople" require a base pay more for peace of mind than financial security. I know professional recruiters and medical sales reps that have $40k/ year salaries but with total compensation of an additional $100k-$200k and MORE.

        You can't just hire a salesperson and tell them to "go sell". You need to structure a proven program in which you can place anyone with work ethic into. That's how you MAKE great salespeople. It's a MUCH better investment than going out to hire great sales people. Not being a jerk, just being devil's advocate here but, "why would a 'great' salesperson making at least $80k leave his fairly secure position for your business?" Hope this helps

        PS You want to hire them as a 1099 contractor if you want to minimize costs. If not, grab your ankles and prepare for the ride Uncle Sam is about to take you on.
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        • Profile picture of the author Marketinc Solutions
          Originally Posted by vladkost View Post

          I don't normally give advice on these boards because there are a lot of people that are much more knowledgeable than myself; however, I was a door to door sales rep for 3 summers so I think I can provide some insight.

          "The real closers don't need a base" - Not so

          The real closer needs to have proof that others are achieving at least what he/she wants to achieve.

          When I sold door to door I was making about $40k/summer. Not much, but I was in college so I was ballin' outta my mind
          When I started I saw plenty of people making 6 figures working 6-9 months/year. The industry I was in created a system that was able to be duplicated by ANYONE. If you just did what your manager told you, you WILL sell. It's been PROVEN year after year by MANY PEOPLE.

          The problem I see with other companies offering a commission only positions is that they lack in structure and social proof. So those "great salespeople" require a base pay more for peace of mind than financial security. I know professional recruiters and medical sales reps that have $40k/ year salaries but with total compensation of an additional $100k-$200k and MORE.

          You can't just hire a salesperson and tell them to "go sell". You need to structure a proven program in which you can place anyone with work ethic into. That's how you MAKE great salespeople. It's a MUCH better investment than going out to hire great sales people. Not being a jerk, just being devil's advocate here but, "why would a 'great' salesperson making at least $80k leave his fairly secure position for your business?" Hope this helps

          PS You want to hire them as a 1099 contractor if you want to minimize costs. If not, grab your ankles and prepare for the ride Uncle Sam is about to take you on.
          Making $10,000- $15,000 a month.... Door to door sales in college

          WHY DID YOU EVER STOP!!!!
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          • Profile picture of the author vladkost
            Working 50-72 hours/ week. Living in a different city every summer. No end in site, if I didn't sell I didn't make money. I came into affiliate marketing to build a business that I can make residual income on. You also had no life doing this. You're working until the sun comes down... when the sun's not out long, you're recruiting on college campuses. It might seem like I'm just bitching, but when it's been 12 weeks since you've thought about anything outside of selling you get a bit crazy
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        • Profile picture of the author wagsgraphx
          You can get the Chet Holmes book at your local Library. It must be popular I'm #3 on the wait list. Your local library is a tremendous resource, I've come to love mine. Online research tools, trade journals, directories and just about every sales, marketing and motivational book you can think of and ones you haven't heard of are available.
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      • Profile picture of the author Rearden
        My short 2- or 3-paragraph description won't amount to the detail and experience-base Chet Holmes has.

        Might as well spend $15 at Amazon for a thorough and experienced perspective if you're serious.

        Originally Posted by Rus Sells View Post

        Sounds like you read that chapter, why not just share what you learned?

        My thoughts on it are to qualify them out during the interview process just like I do when finding clients.

        As mentioned earlier the real closers know they don't need a base and aren't interested in having one. Yes many will disagree but to each his own.
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        • Profile picture of the author Rus Sells
          Not for me, for others. I've already learned how to hire superstar sales reps from doing hundreds of interviews. lol

          Originally Posted by Rearden View Post

          My short 2- or 3-paragraph description won't amount to the detail and experience-base Chet Holmes has.

          Might as well spend $15 at Amazon for a thorough and experienced perspective if you're serious.
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  • Profile picture of the author 300SMG
    Outside sales to pre qualified leads for online advertising on a local news website as well as local coupons..to start ..there'd also be cold calling based on a list of potential clients they'd look to secure
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  • Profile picture of the author Aaron Doud
    Are you hiring them as employees or as contractors?
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    Aaron Doud - Sales & Success
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  • Profile picture of the author Aaron Doud
    Contracted salespeople sometimes called 1099 Salespeople are their own business. Think Avon consultants. There are rules but beyond the rules they work how they want and when they want. But they have taxes and expenses that eat into what they make.

    Employees you have more control over but you have other costs like payroll tax, unemployment tax, insurance, and etc that you need to pay. I would say expect an employee to cost at least 110% of what you are paying them directly. If you pla to have more benefits it might even got up to 140% or more.
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    Aaron Doud - Sales & Success
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  • Profile picture of the author 300SMG
    Thank you for the replies and discussion. We're looking at if different hiring practices and are exploring commissioned reps. Not sure what avenue we' ll ultimately take but this has been an informative look at it through others eyes.
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  • Profile picture of the author Aaron Doud
    I actually bought that book based on the reccomendation here. Enjoying it so far.
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  • Profile picture of the author synthetik242
    Time To Hire specializes in commission-only outside salespeople, have you tried them? Hire Commission Based Sales Reps in Two Days Hire Commission Sales Reps in 24 Hours - Time To Hire Corporation
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  • Profile picture of the author bob ross
    A draw instead of a base pay is much better than just paying out a salary. Instead of reducing the commissions in exchange for giving a base pay you can offer a draw of a few hundred bucks against their future commissions to give them some weekly cashflow until the commissions roll in.
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  • Profile picture of the author mattbau43
    The market is FLOODED with commission only positions. Why would a good sales person take a chance on your company for no guaranteed pay? They would have to go weeks without a paycheck in order to get trained and complete a sales cycle.

    As with most things, you get what you pay for. Talent is one of those things
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