Hiring A sales consultant

6 replies
Hi,

We are a small company operating in the B2B world of business. So far, most of our sales coming through inbound leads via our website, through email marketing efforts and other forms of content marketing. However, we have now grown to a stage, where we feel an urgency to get some external "sales agents" on board working with us on commission basis (As opposed to sales people based in our company).

However, we are in an industry where margins are extremely slim (As low as 3% - 8%) so we are having some difficulty figuring out the best way to structure commissions and create the system. Also, we are looking to create a "partnership" programme wherein other than the sales people, "complementary businesses" can promote our services and get a commission. I was wondering, if there are "consultancy companies" out there or private consultants who can guide us, on how to create the system, how to structure the system, what kind of incentives to provide, what kind of "supporting material" to provide to the sales people, etc. While I know its hard to answer this without knowing the scope of work, it would really help how these consultants normally charge and what kind of fee to expect to pay.

On another note, I also wonder if there are good "sales forums" out there, where I could find someone like this or even a mentor? We cater to the UK Market mainly & I wonder if that makes a difference when choosing a consultant.

Thanks.
#consultant #hiring #sales
  • Profile picture of the author Rus Sells
    3-8 percent margins?

    To be very blunt and transparent.

    Unless your company is selling in into the multiple millions annually and you have a high priced product or service (where 3% could be several thousand dollars) you can't afford to hire "ANY" type of commissioned sales force.

    Sorry but it's the truth and from my experience of being a life long commission only salesman I'd run from your company as fast as possible if you didn't fit the criteria I outlined in the first paragraph. It's way to much risk.

    Originally Posted by bhconsultant View Post

    Hi,

    We are a small company operating in the B2B world of business. So far, most of our sales coming through inbound leads via our website, through email marketing efforts and other forms of content marketing. However, we have now grown to a stage, where we feel an urgency to get some external "sales agents" on board working with us on commission basis (As opposed to sales people based in our company).

    However, we are in an industry where margins are extremely slim (As low as 3% - 8%) so we are having some difficulty figuring out the best way to structure commissions and create the system. Also, we are looking to create a "partnership" programme wherein other than the sales people, "complementary businesses" can promote our services and get a commission. I was wondering, if there are "consultancy companies" out there or private consultants who can guide us, on how to create the system, how to structure the system, what kind of incentives to provide, what kind of "supporting material" to provide to the sales people, etc. While I know its hard to answer this without knowing the scope of work, it would really help how these consultants normally charge and what kind of fee to expect to pay.

    On another note, I also wonder if there are good "sales forums" out there, where I could find someone like this or even a mentor? We cater to the UK Market mainly & I wonder if that makes a difference when choosing a consultant.

    Thanks.
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    • Profile picture of the author bhconsultant
      Originally Posted by Rus Sells View Post

      3-8 percent margins?
      Sorry but it's the truth and from my experience of being a life long commission only salesman I'd run from your company as fast as possible if you didn't fit the criteria I outlined in the first paragraph. It's way to much risk.
      On another note Rus, I would be very keen to get an idea of what sort of other "criteria" do you use to evaluate if a potential company is worth working with?
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      • Profile picture of the author Rus Sells
        Honestly, I'm to lazy to go through the list because I'm no longer in the position of working for some one else. = )

        Originally Posted by bhconsultant View Post

        On another note Rus, I would be very keen to get an idea of what sort of other "criteria" do you use to evaluate if a potential company is worth working with?
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  • Profile picture of the author Aaron Doud
    Rus touched on my thoughts. A lot depends on how much that 3% is. If it is a couple hundred bucks unless the sales are easy you won't get anyone worth a salt interested.

    If you can't pay them more than they make now while making them work less sales people will never come on board. And the smaller your company is the more sure they have to be of those two things. $100k potential isn't going to sell them on it. You have to make it so easy of a choice that they would be stupid not to do it.

    Otherwise they will go to the call centers, car dealerships, insurance companies, and etc where they know they will get paid.
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    • Profile picture of the author bhconsultant
      Thanks for the honest opinion guys.

      Originally Posted by Rus Sells View Post

      3-8 percent margins?

      To be very blunt and transparent.

      Unless your company is selling in into the multiple millions annually and you have a high priced product or service (where 3% could be several thousand dollars) you can't afford to hire "ANY" type of commissioned sales force.

      Sorry but it's the truth and from my experience of being a life long commission only salesman I'd run from your company as fast as possible if you didn't fit the criteria I outlined in the first paragraph. It's way to much risk.
      Hi Rus,

      Appreciate the honest feedback. Our company is in an industry, where a "potential customer" would be expected to spend $300,000 - $1m a year. Only the first sale is where the "sales person's" active role is needed, as future orders in most cases are repeat orders where sales person may not be required to do anything. Clients are actively looking for a service like ours (that has a good reputation in our target market and several client references), however due to the high value of transactions and money being sent to a "moderately risky" foreign country need human contact to build trust.

      We are also in an industry where there is at least some difficulty for the buyer to change suppliers on future orders & hence client retention is good. Finally, once again, closing the sale in our industry does not require much effort and a sales agent (who has contacts in his industry) may only need to leverage his contacts (perhaps a different compensation system is needed for agents who just "refer" us to their existing clients and agents who follow up on leads provided by us?).

      First transaction can be anywhere from $20,000 - $60,000. Of course, to make up for the smaller margins, we are happy to give to pay commissions on "repeat orders". I wonder, what the salesperson's expectations would be in this regard, i.e. how long should the repeat commissions be paid?

      Originally Posted by Aaron Doud View Post

      Rus touched on my thoughts. A lot depends on how much that 3% is. If it is a couple hundred bucks unless the sales are easy you won't get anyone worth a salt interested.

      If you can't pay them more than they make now while making them work less sales people will never come on board. And the smaller your company is the more sure they have to be of those two things. $100k potential isn't going to sell them on it. You have to make it so easy of a choice that they would be stupid not to do it.

      Otherwise they will go to the call centers, car dealerships, insurance companies, and etc where they know they will get paid.
      Thanks Aaron, very useful. Once again, to close the deal, we don't need "top quality" salespeople, but people who have contacts in their industry or can deliver the message sufficiently well. I agree top salespeople who go for "higher returns", but due to our above mentioned advantages, do you believe their is still a decent incentive for commission agents to be interested?

      Competition in our industry is fairly limited which makes closing the sale easier. The challenge we are currently facing is that our lead "follow-up" is too weak, due to lack of resources and cultural barriers. We are based in Asia, while clients are based in Developed english speaking countries, hence local sales-staff cannot effectively close deals.

      Look forward to some ideas.

      Thanks
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  • Profile picture of the author Jason Kanigan
    Criteria: do they have a problem large enough to justify you solving it?

    http://www.warriorforum.com/offline-...uch-again.html

    As far as finding commission salespeople...it's very tough. This past year has been the worst I've seen in two decades for finding good candidates. Even the paid services I and my clients have tried haven't been effective. I think people are more skeptical than they were even a couple years ago. And the competent salespeople are either working for themselves and controlling their own destiny, or employed.

    We've had a few good threads discussing the problems finding commission salespeople...use the Search function to find them in this Offline section.

    Salary or hourly plus bonus is another option. Post ads often, screen heavily.
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