Anyone Have Experience In Hiring Sales Staff?

[Ubermensch]

Hello All,

I've been in business for about 5 years now. I have had some ups and downs but over the last year the business feels like it hit a tipping point and I have a good number of clients paying various monthly and referring steady new business to me.

The upshot is, I'm very comfortable financially BUT growth is still very slow because I'm trying to do all sales while also trying to run the business.

The business specialises in Web Design and Adwords for small businesses.

It's time to start removing myself from the sales process so I now embark on the daunting task of finding my first sales person.

I would be delighted to hear your thoughts on the process or recommendations for reading material or training.

Currently I have no office and I kind of like not being tied down in that way. HOWEVER, I realise that having an office might make this process much easier.

I also realise there are other options at least worth considering. I've listed some ideas I'm considering right now below:

- Get an office, hire a salaried sales person
- Get an office, hire a commission sales person
- Do either of the above but have that person work from home

So, over to you, any input appreciated.

All the best

@Thiago Machado
@axiom

Good stuff.

Hiring a "sales rep" could be as simple as getting someone on the phone to sell your services.

Have you considered the compensation plan for the salesman? Salesmen are just like your customers; they have to be SOLD on selling for you.

What's in it for them? A base salary, with room for significant growth, and eventually 100% commission (as an example)?

Will you offer annuities on your commissions? In other words, will your sales rep have the right to get commissions when you sell future products/services to a client he signs up?

How long is the typical sales cycle?

Do you have a sales process already in place, or will your salesman have to "figure it out," and learn how to close deals by relying upon his own creativity?

How fast will a salesman be paid after selling your services?

How, exactly, is a client sold? Can the client sign via docusign, or is a physical contract necessary? Are there purchase orders and invoices? Who will handle the communication and interfacing with the client throughout this process?

After the client has been sold and the deal is "done" (you've begun actually servicing the client), how long until you are able and willing to pay the salesman the commission he earned?

Another thing is to consider a recruiter that specializes in hiring 100% commission salespeople. There are countless recruiters and recruiting agencies in the corporate world, and very few specialize in 100% commission salespeople.

Then the question is how extensively you want the recruiter to recruit: Do you just want a stack of resumes you can call? Do you want pre-qualified candidates? Do you want candidates to be sold on your position - and then trained - everything, from A-Z?

 

[axiom]

Don't you read? Commission only is a pipe dream, quit drinking the cool aid. No one is going to work for you for free no matter how "wonderful" you think your mediocre product is..

Phone sales itself is a dieing art, limited supply and very high demand for the type of person your looking for. They can command whatever the F*ck they want and you should be wise to pay them if you find a good one.

Commission only is not a pipe dream for the right type of person -- the person you want on your team anyways. Self-starters, confident people will eagerly take 100% commission sales positions because commissions are by nature higher. These people are so confident and driven by their ability to succeed, that they welcome the opportunity to decide exactly how much money they make at any given time. They are smart enough to recognize the additional risk is worth the huge reward.

Sales is the purest form of capitalism. Your success is directly related to the amount of effort you put in. A salary just encourages laziness because "hey, I'm making x no matter what, so what's the point in busting my a$$ to reach my goals?"

And I know people like this. People that PREFER 100% sales jobs, because they are confident in their ability to succeed by their own efforts. These are the kind of people I'm looking for (currently working on recruiting and training sales people as well). I don't need people that want to hang out by the water cooler all day talking about sports -- while intermittently making half-as*ed phone calls to appear busy -- I want people that will glue the phone to their ear and sell as if their life depends on it (because it does).

 

[JoeyF]

Hello All,

I've been in business for about 5 years now. I have had some ups and downs but over the last year the business feels like it hit a tipping point and I have a good number of clients paying various monthly and referring steady new business to me.

The upshot is, I'm very comfortable financially BUT growth is still very slow because I'm trying to do all sales while also trying to run the business.

The business specialises in Web Design and Adwords for small businesses.

It's time to start removing myself from the sales process so I now embark on the daunting task of finding my first sales person.

I would be delighted to hear your thoughts on the process or recommendations for reading material or training.

Currently I have no office and I kind of like not being tied down in that way. HOWEVER, I realise that having an office might make this process much easier.

I also realise there are other options at least worth considering. I've listed some ideas I'm considering right now below:

- Get an office, hire a salaried sales person
- Get an office, hire a commission sales person
- Do either of the above but have that person work from home

So, over to you, any input appreciated.

All the best

 

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[Jon L]

I've hired a sales rep who works from home overseas. He's excellent. We sell high-touch custom programming. You wouldn't think that its possible to sell $50K+ projects over the phone, but this guy does.

How does it work so well?
1) We skype on webcam for at least 30 minutes a day
2) He's really good
3) Our personalities and work style work well together.
4) He works the night shift where he lives, which is 9-5 Pacific.

 

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[Krzysztof]

@JoeyF, I highly recommend reading "Ultimate Sales Machine" by Chet Holmes. Hiring sales staff is covered there in depth and Chet's take on this really blew my mind.

 

[458]

I love the internet, always full of do this do that, read this read that from people with zero experience in what there talking about.

Raise your hand if you currently employ on a full time basis, on site(not 50 cents an hour filipinos) 5 or more sales people.

If you can't raise your hand, then please shut the F*ck up.

 

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[Jon L]

Don't you read? Commission only is a pipe dream, quit drinking the cool aid. No one is going to work for you for free no matter how "wonderful" you think your mediocre product is..

Phone sales itself is a dieing art, limited supply and very high demand for the type of person your looking for. They can command whatever the F*ck they want and you should be wise to pay them if you find a good one.

I had to come find this post. I just hired a commission-only sales person. This person has sold more than most of the people in this forum in this person's career. (many 10's of millions of dollars) Its possible to find someone like this...you just have to look.

 

[mammoth_hunter]

My experience was doing a prolonged recruitment process with salesmen: after the initial interview give them a no-base, no-contract week of training/trial on the phone. If they were good, then give them a contract with decent basic AND commission. Lot's of them fell off the wagon of course during the week, and that was good.

I learnt this way bcs I was recruited the same way once. BTW, this is for over-the-phone sales.

 

[458]

You can go ahead and take off hire a commission sales person, your delusional if you think sales people are going to work for you without a base.

 

[Krzysztof]

One more comment regarding Chet Holmes and his approach to hiring sales staff. Apart from the abovementioned book, he laid it out clearly in this training:

 

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[healthstatus]

Just make sure your commission structure encourages the behaviour you want from your salesperson. If you want new business, make sure there is an extra % for new clients, (this prevents sales people from babysitting a couple of good clients and not getting new biz), if you want babysitters, pay extra % for reorders, if your product is recurring, pay a % for the first 6 months, then start rolling that back to 0% at the end of one year so they keep filling up the pipeline and don't get to a spot where they are comfortable and quit pushing as hard.

 

[458]

I had to come find this post. I just hired a commission-only sales person. This person has sold more than most of the people in this forum in this person's career. (many 10's of millions of dollars) Its possible to find someone like this...you just have to look.

Lol, is that what he told you? The problem with good shady sales guys is they'll sell you the dream and you'll eat that shit up. Come back in 6 months and let us know how it went, too early to pat yourself on the back my friend, trust me Ive been there done that.

 

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[Jon L]

Lol, is that what he told you? The problem with good shady sales guys is they'll sell you the dream and you'll eat that shit up. Come back in 6 months and let us know how it went, too early to pat yourself on the back my friend, trust me Ive been there done that.

I've worked with her for years and personally worked with her on a portion of a 20m sale of hers. Whether she will be able to sell my stuff is another story, but ... my point here is that you *can* hire top level talent commission-only.

 

[OldFaithful]

Since you are in ecommerce, you should be able to take this step without an office. Having a B&M footprint for 1 employee seems to me like a lot of overhead. I'll admit that this is not my expertise, but my preference would be to try a commission salesman that could work from home.

 

[cortesfelipe]

Whatever route you choose, do yourself a favor and hire at least 2 reps.

Starting with only one is not a great idea.

 

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[JoeyF]

I've hired a sales rep who works from home overseas. He's excellent. We sell high-touch custom programming. You wouldn't think that its possible to sell $50K+ projects over the phone, but this guy does.

How does it work so well?
1) We skype on webcam for at least 30 minutes a day
2) He's really good
3) Our personalities and work style work well together.
4) He works the night shift where he lives, which is 9-5 Pacific.

Awesome thanks for the input. Do you pay the guy an salary as well as bonus or is he commission?

Good work!

 

[JoeyF]

@Thiago Machado
@axiom

Good stuff.

Hiring a "sales rep" could be as simple as getting someone on the phone to sell your services.

Have you considered the compensation plan for the salesman? Salesmen are just like your customers; they have to be SOLD on selling for you.

What's in it for them? A base salary, with room for significant growth, and eventually 100% commission (as an example)?

Will you offer annuities on your commissions? In other words, will your sales rep have the right to get commissions when you sell future products/services to a client he signs up?

How long is the typical sales cycle?

Do you have a sales process already in place, or will your salesman have to "figure it out," and learn how to close deals by relying upon his own creativity?

How fast will a salesman be paid after selling your services?

How, exactly, is a client sold? Can the client sign via docusign, or is a physical contract necessary? Are there purchase orders and invoices? Who will handle the communication and interfacing with the client throughout this process?

After the client has been sold and the deal is "done" (you've begun actually servicing the client), how long until you are able and willing to pay the salesman the commission he earned?

Another thing is to consider a recruiter that specializes in hiring 100% commission salespeople. There are countless recruiters and recruiting agencies in the corporate world, and very few specialize in 100% commission salespeople.

Then the question is how extensively you want the recruiter to recruit: Do you just want a stack of resumes you can call? Do you want pre-qualified candidates? Do you want candidates to be sold on your position - and then trained - everything, from A-Z?

Thanks for your input man! I a lot of very good questions there.

I believe with the margins of my product I can offer a very nice package for any salesperson who comes on board. I can make it super attractive for any sales person to come on board.

I'm considering having the phone sales person generate the leads which I will personally close, at least for the time being. This would provide a massive boost to the current situation.

Got lots to ponder with the questions you posed.

Thanks!

 

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[458]

Awesome thanks for the input. Do you pay the guy an salary as well as bonus or is he commission?

Good work!

Don't you read? Commission only is a pipe dream, quit drinking the cool aid. No one is going to work for you for free no matter how "wonderful" you think your mediocre product is..

Phone sales itself is a dieing art, limited supply and very high demand for the type of person your looking for. They can command whatever the F*ck they want and you should be wise to pay them if you find a good one.

 

[Jon L]

I had a guy work for 4 months commission-only. He sold nothing, and wasn't a good sales rep. That's not to say that there aren't good reps out there that could work commission only. Frankly, you stand to make a lot more money because commission rates would be higher.

 

[JoeyF]

Found a cool office in the heart of the city. Pretty good price. Taking the weekend to consider it but I think I'm good to go.

I'm absolutely loving The Ultimate Sales machine by Chet Holmes. Great recommendation, thanks @Krzysztof

 

[JRGEKKO]

I'm 90% sure I'm going down the Salary+Commission route with my own office. This has been my favoured option from the start and it'll work out cheaper in the long run. I'm about to crack open the Ultimate Sales Machine as recommended here.

Lot of work and things to think through but I am on the path. Also saw my first office today, not taking that one but the search has begun.

I'm just curious to know what direction your on to now like If you switched business models or did you stick to the same one etc?

 

[JoeyF]

Since you are in ecommerce, you should be able to take this step without an office. Having a B&M footprint for 1 employee seems to me like a lot of overhead. I'll admit that this is not my expertise, but my preference would be to try a commission salesman that could work from home.

That would be an ideal scenario but I'm prepared to do what it takes. All of my other staff work remotely.

 

[mammoth_hunter]

@JoeyF, I highly recommend reading "Ultimate Sales Machine" by Chet Holmes. Hiring sales staff is covered there in depth and Chet's take on this has really blown my mind.

I'll buy this one for sure! Thanks!

 

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[JoeyF]

Since you are in ecommerce, you should be able to take this step without an office. Having a B&M footprint for 1 employee seems to me like a lot of overhead. I'll admit that this is not my expertise, but my preference would be to try a commission salesman that could work from home.

I hear what you are saying there and agree, this has been on my mind.

When I woke up this morning I had the thought that I could rent an office space for a week to run the recruitment process and then again for another week to train my new staff members.

Then after that it's a work from home gig.

That way I can get hands on with them and make sure they get the correct training and experience to give them the best possible chance of success.

 

[JoeyF]

My experience was doing a prolonged recruitment process with salesmen: after the initial interview give them a no-base, no-contract week of training/trial on the phone. If they were good, then give them a contract with decent basic AND commission. Lot's of them fell off the wagon of course during the week, and that was good.

I learnt this way bcs I was recruited the same way once. BTW, this is for over-the-phone sales.

Love this idea, thanks!

 

[JoeyF]

@JoeyF, I highly recommend reading "Ultimate Sales Machine" by Chet Holmes. Hiring sales staff is covered there in depth and Chet's take on this has really blown my mind.

Thanks, I'm definitely going to add this to my list.

Currently eying up this: https://www.amazon.co.uk/Who-Method..._3?ie=UTF8&qid=1461745230&sr=8-3&keywords=who

Anyone read it?

 

[458]

I hear what you are saying there and agree, this has been on my mind.

When I woke up this morning I had the thought that I could rent an office space for a week to run the recruitment process and then again for another week to train my new staff members.

Then after that it's a work from home gig.

That way I can get hands on with them and make sure they get the correct training and experience to give them the best possible chance of success.

Lol good luck with that.. Your chance of success: slim to nil

 

[JoeyF]

One more comment regarding Chet Holmes and his approach to hiring sales staff. Apart from the abovementioned book, he laid it out clearly in this training:

Great share, thanks!

 

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[Thiago Machado]

I've hired a sales rep who works from home overseas. He's excellent. We sell high-touch custom programming. You wouldn't think that its possible to sell $50K+ projects over the phone, but this guy does.

How does it work so well?
1) We skype on webcam for at least 30 minutes a day
2) He's really good
3) Our personalities and work style work well together.
4) He works the night shift where he lives, which is 9-5 Pacific.

This is interesting.

I live abroad as well as was even talking to a friend about this.

If you don't mind sharing, out of curiosity, how did you establish this relationship with your salesman?

 

[GuestUser141]

Don't you read? Commission only is a pipe dream, quit drinking the cool aid. No one is going to work for you for free no matter how "wonderful" you think your mediocre product is..

Phone sales itself is a dieing art, limited supply and very high demand for the type of person your looking for. They can command whatever the F*ck they want and you should be wise to pay them if you find a good one.

Old school thinking ,in a modern age. "commission is a pipe dream

Many moons ago i owned a recruitment agency in the Netherlands,supplying English speaking employees to companies.I pay-rolled and paid the workforce weekly,not performance related.

Mondern day thinking:

I scour around the world using google translate to overcome language barriers and find work hungry freelancers,grateful for the opportunity and work/money hungry.
The key :selection process

End result: If a man/women has the skill he/she will prove themselves,as like this site preaches a commission is a form of thank you,the money will follow later i.e when the employer receives more that what he pays for he will gladly pay more to keep the employee.

Rome is burning: the internet has allowed men and women from poorer regions a start that only the wealthy countries afforded their population.

A commission start to a billion Chinese many years ago has resulted in their country about to surpass the states in wealth.

 

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