The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success
  • Sell-Me Saturday is Now Live!

    Have something to sell? Want to promote your design service or a YouTube channel? SELL-ME SATURDAY is your opportunity to self-promote anything within the sphere of entrepreneurship on one thread... and at no cost. Go There
    Note: Indiscriminate SEO backlinking to questionable material is not allowed.
  • Join 50,000+ entrepreneurs who are earning their freedom and living their dream.

    "Fastlane" is an entrepreneur discussion forum based on The C.E.N.T.S Framework outlined in the two best-selling books by MJ DeMarco (The Millionaire Fastlane and UNSCRIPTED®). From multimillionaires to digital nomads to side hustlers who are grinding a job, the Fastlane Forum features real entrepreneurs creating real businesses with one goal in mind: Freedom— both financial and temporal.

    Download (Unscripted) Download (Millionaire Fastlane) Register
    Registering for the forum removes this block.

Do you eat what you kill?

Danny reds

Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
May 31, 2018
42
31
56
Denver, CO
I've been in business now for 5 years helping business and individuals with tax debt to the IRS and the state.

I've been in the industry for 13 years and i've seen a verity of different comp plans.

I feel the comp plan for my sales department needs to change do to the competitive market.

Do i change my structure to eat what you kill structure or keep the base pay plus commissions, bonus?
 

Don't like ads? Remove them while supporting the forum. Subscribe.

Merging Left

Silver Contributor
Read Millionaire Fastlane
Speedway Pass
Jul 20, 2014
393
700
279
29
How have you structured your commissions schedule? Is it an annual goal, quarterly goal, monthly goal, etc.?

What, specifically, makes you think you need to change it up?

What kind of comp packages for your competitors offer?
 
OP
OP
Danny reds

Danny reds

Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
May 31, 2018
42
31
56
Denver, CO
How have you structured your commissions schedule? Is it an annual goal, quarterly goal, monthly goal, etc.?

What, specifically, makes you think you need to change it up?

What kind of comp packages for your competitors offer?
Our commission schedule is monthly and I don't think i need to change it. I think the issue i'm having is hiring the right people to do the job.

Now that i have been on the forum for a couple of weeks i'm getting a lot of knowledge from other entrepreneurs. I know the areas where i need some fixing. Thats hiring the correct people that fit my culture and system.
 
OP
OP
Danny reds

Danny reds

Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
May 31, 2018
42
31
56
Denver, CO
How many people do you have to have on your sales team right now?
I have 10 right now. All contributing 10 to 15 k a month Per seat.
 

Get Right

Legendary Contributor
EPIC CONTRIBUTOR
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
Jul 16, 2013
1,297
5,722
1,296
Sunny Florida
I have 10 right now. All contributing 10 to 15 k a month Per seat.
Nice. Do you have a sales manager or do you perform that role?
 
OP
OP
Danny reds

Danny reds

Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
May 31, 2018
42
31
56
Denver, CO
Nice. Do you have a sales manager or do you perform that role?
I’m playing that roll right now as well as playing the roll of The main closer. Top producer.
 

Get Right

Legendary Contributor
EPIC CONTRIBUTOR
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
Jul 16, 2013
1,297
5,722
1,296
Sunny Florida
I’m playing that roll right now as well as playing the roll of The main closer. Top producer.
Awesome! So if I were in your shoes, this is how I would reorganize to answer your initial question and the one in your other post.

Name a sales manager. Give him/her a nice base. Make this person responsible for managing the others. Set up a percentage commission based on the employees he manages.

Your position - see if you can get out of the sales cycle and manage your sales manager. Start looking for new hires that have a good work ethic but no experience. Coach them up and put them under the sales manager.

Bonus points - Name 2 sales managers and split the team between them. Make it a competition, because true salesmen will perform better if put into a competitive environment.

If your business works with this setup CONGRATS because TIME/SCALE is now on your side!
 
OP
OP
Danny reds

Danny reds

Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
May 31, 2018
42
31
56
Denver, CO
Awesome! So if I were in your shoes, this is how I would reorganize to answer your initial question and the one in your other post.

Name a sales manager. Give him/her a nice base. Make this person responsible for managing the others. Set up a percentage commission based on the employees he manages.

Your position - see if you can get out of the sales cycle and manage your sales manager. Start looking for new hires that have a good work ethic but no experience. Coach them up and put them under the sales manager.

Bonus points - Name 2 sales managers and split the team between them. Make it a competition, because true salesmen will perform better if put into a competitive environment.

If your business works with this setup CONGRATS because TIME/SCALE is now on your side!
This is all great information and I’m not to far off from the exact formula you had mentioned. When I hire people they are just okay making the 10.20 hr base pay it’s crazy to me. After 2 weeks of not producing or picking up to the training I have to fire them. Wasted money!!!!

We do daily drilling and training, we have the best lead source in the industry, our data is fresh. That’s a big deal because our industry is becoming very competitive and everyone is trying to do it.

Our sales training is the best in the industry. Other firms put you in a with leads and a phone and they say sink or swim. I know i worked for a few of them before launching my business.

Any insight from you is greatly appreciated!
 

Scot

Salad Dressing Empire
EPIC CONTRIBUTOR
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
Jul 10, 2016
2,925
13,466
2,796
Florida
It sounds like you have a very similar set up to @458

I know he offers free Skype mentoring, you should talk to him, see how he set up how call center.
 

CareCPA

Gold Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Speedway Pass
May 2, 2017
730
2,470
550
30
Pennsylvania
we have the best lead source in the industry
How do you know, objectively? Everyone putting up numbers thinks their's is the best.

Our sales training is the best in the industry
Again, how do you objectively know?

Just saying you have the best because it's better than other places you've worked does not make it the best. If you're running into issues with retaining sales people, then either your hiring process or comp plan needs improvement.

You may be right, you may have the best leads and the best training right now. But you should always be challenging and improving those. Someone could come along next week and come up with a better training program, or a new way of scraping leads.

My advice on the comp depends on what kind of sales people you're bringing in. If you are bringing in fresh blood, you need a healthy base, and less commission. People generally won't work for cheap with a future promise of money - it's too much risk. You will lose money on them for the first couple weeks, maybe even months. I don't think two weeks is really long enough to see if they'll produce, especially if this is their first real sales job.
If you're bringing in experienced people, I would weight more heavily towards commission. They should know what they're doing, they just need to learn your product. If you find someone with a decade of sales experience that wants a high base salary, they don't plan on working that hard.
 

Don't like ads? Remove them while supporting the forum. Subscribe.

OP
OP
Danny reds

Danny reds

Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
May 31, 2018
42
31
56
Denver, CO
How do you know, objectively? Everyone putting up numbers thinks their's is the best.


Again, how do you objectively know?

Just saying you have the best because it's better than other places you've worked does not make it the best. If you're running into issues with retaining sales people, then either your hiring process or comp plan needs improvement.

You may be right, you may have the best leads and the best training right now. But you should always be challenging and improving those. Someone could come along next week and come up with a better training program, or a new way of scraping leads.

My advice on the comp depends on what kind of sales people you're bringing in. If you are bringing in fresh blood, you need a healthy base, and less commission. People generally won't work for cheap with a future promise of money - it's too much risk. You will lose money on them for the first couple weeks, maybe even months. I don't think two weeks is really long enough to see if they'll produce, especially if this is their first real sales job.
If you're bringing in experienced people, I would weight more heavily towards commission. They should know what they're doing, they just need to learn your product. If you find someone with a decade of sales experience that wants a high base salary, they don't plan on working that hard.
I 100 % agree there was a big issue with my hiring process. All this information you gave me is really helpful. I greatly appreciate it!!!

Sales is my background and spent a countless hours building our sales training platform. This is what separates us from other tax relief firms. They don't spend time or money in their sales people. I hire people that worked all over in the industry and they always tell me they thought they would never be able to hit the numbers they are hitting. Not only that their work ethic and vision has changed.

I also worked for two of the largest and original tax relief firms and i know for a fact they don't train like we do.
 

Scot

Salad Dressing Empire
EPIC CONTRIBUTOR
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
Jul 10, 2016
2,925
13,466
2,796
Florida
Also, as a commissioned salesman at my day job... I’d never touch a company that paid more than 50% of my pay in commissions. Not because I don’t trust my sales skills, but because I don’t want to pay a 33% luxury tax on my commissions. The amount you pay in taxes for commissions vs normal salary is just absurd.
 

CareCPA

Gold Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Speedway Pass
May 2, 2017
730
2,470
550
30
Pennsylvania
Also, as a commissioned salesman at my day job... I’d never touch a company that paid more than 50% of my pay in commissions. Not because I don’t trust my sales skills, but because I don’t want to pay a 33% luxury tax on my commissions. The amount you pay in taxes for commissions vs normal salary is just absurd.
It's taxed the same as wages. There are different methods of withholding tax for commissions, but it all washes out at the end of the year when you file.
 

Scot

Salad Dressing Empire
EPIC CONTRIBUTOR
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
Jul 10, 2016
2,925
13,466
2,796
Florida
It's taxed the same as wages. There are different methods of withholding tax for commissions, but it all washes out at the end of the year when you file.
Oh really? Sure as hell doesn’t feel like it. Maybe it’s different in Florida. But I know for sure I lose more money to Uncle Sam percent wise every 3 months.

But alas, you’re the CPA, so I’ll take your word for it haha
 

Create an account or login to comment

You must be a member in order to leave a comment

Create account

Create an account on our community. It's easy!

Log in

Already have an account? Log in here.


New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Monthly conference calls with doers
Ideas needing execution, more!

Join Fastlane Insiders.

Sponsored Offers

Lex DeVille's - Advanced Freelance Udemy Courses!
-- HALLOWEEN SPECIAL STARTS TODAY! Get any of my courses at Udemy's current best price through Friday! Use code: HALLOWEEN Use any of the links...
Top Bottom