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Paid advertising vs Sale Rep commissions

by overtonis
9 replies
Hello Everyone,
We recently hired our first Social Media Administrator. Now we are focusing on Sales Reps and Advertising (both offline & Online).

Looking to hear from others of their experiences of using advertising such as google & bing, vs offline sales/marketing such as paying commissions to sales reps locally. We ultimately will try both ways but wanted some feedback to what we should expect over next 12 months. We want to hire sales rep locally (maybe thru Craigslist) and thru parties we host. also, we want to hire affiliates online who receive commissions on sales thru their site.

Thanks in advance
C
#advertising #commissions #paid #rep #sale
  • Profile picture of the author serryjw
    What are you selling?
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    • Profile picture of the author mmichuda
      Unless this is a fortune 500 company. This entire plan sounds like a train wreck.

      I like that you are testing a few avenues against each other. But, 12 months? The test should be 1 month MAX to find your greatest ROI that can scale. Focus ALL effort on that one area.

      I think that will help you dramatically. Big question is why are these the areas that are being pursued? It sounds like these area are the buzz words that you know aka "social media marketing" and you decided you need them.

      Marketing is a very complex Art + Science.
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  • Profile picture of the author Aaron Doud
    I just want to shake my head at the idea that it is either/or. Both is what the plan needs to be as you scale bigger.

    You will advertise to get people into the funnel that will lead them to your sales reps. You will also have them actively prospecting as well. Your ultimate goal would be to get Sales Reps that provide all their own leads allowing you to send the leads you bring in to new Sales Reps to get them started. And it becomes a cycle.

    But honestly only a few top performers will ever get to the point where they provide all their own leads. Your question will be are those average people you provide leads to closing enough business to justify keeping them vs. hiring better people.
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    Aaron Doud - Sales & Success
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  • Profile picture of the author bizgrower
    Is it for Guuky? (Name seems too much like gucky, which is not something you want to relate with cosmetics. Sorry to say.)

    If so, will your sale reps be getting you in retailers or B to C?

    If you are talking about Guuky, home party plans might work to get to consumers and build your affiliate marketing plan.

    So, to scale and if you are talking about the cosmetics, I'd agree with Aaron and do retail, sales, and advertising. Also, free/low cost publicity such as interviews on local radio and TV and sponsor charity events such as giveaway bags at golf tournaments...

    Comparison testing applies to campaigns within each marketing activity. Also, and you can measure the ROI and profitability of each marketing avenue and compare that way.
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    "If you think you're the smartest person in the room, then you're probably in the wrong room."

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  • Profile picture of the author Aaron Doud
    Also guuk sounds too much like a certain racial slur when I say it. Just an FYI you might want to think about.
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    Aaron Doud - Sales & Success
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  • Profile picture of the author aduttonater
    I am currently doing both paid advertisement and sales reps. Sales Reps come out on top each time because they are on commission, so the more they sell the more they make.
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    http://newinnovativeenterprises.weebly.com
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    • Profile picture of the author MichaelWinicki
      Before I hired anyone I would personally test all your marketing materials, your marketing plans (lead generation and above) and your overall approach to marketing your products and services before I hired anyone.

      Personally I would have put the importance of the "Social Media Administrator" further down the list, but that's just me.

      You basically have to work the "bugs" out of all your processes and information before you hire someone to do the sales rep thing. The last thing they want to deal with is an untested system, because they aren't going to make any money and they'll lose interest very quickly.
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      http://www.BigNoiseMarketing.com
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  • Profile picture of the author Cobaki
    You can also offer some deal with salons and shops your targeted market often goes and ask them to display your products. Make a deal with them like they'll get a percentage for every sale they make.
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  • Profile picture of the author PanteraIM
    Don't confuse marketing with sales, ideally you should have both. Marketing generates leads, buzz and makes your sales team more effective. If you have a shoestring budget I would look for hunter salespeople and offer them a good package to come on board and stay with you, the return on investment is much higher especially if they can self-gen their own leads.
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    you cant hold no groove if you ain't got no pocket.

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