Soliciting feedback on a sales concept

[futhey]

I'm selling a brick and mortar product to a market segment not inclined to make purchases over the internet, or over the phone without seeing the product. I have found that this market segment responds best to seeing a short demo of the product and/or using it hands-on.

I am bootstrapping an already strapped-for-cash business and going the route of turning some of my best (and most passionate) customers into independent salespeople by offering lucrative price breaks on my product, a buy-back option for unsold merchandise, and flexible terms.

It also helps that my customers spend most of their year traveling independently and interacting primarily with other members of my market segment.

Do you see any potential pitfalls to this, or have any advice to improve this concept? Has anyone tried a similar concept with any success?

For those of you familiar with the 80/20 rule, what kind of commissions (or price breaks, in my case) best motivate salespeople, and at what point does a higher commission see little increased benefit?

Does anyone have any knowledge of (for tax and employment purposes) how likely the government (in the US) is to view this relationship as genuinely an independent contractor relationship?

Thanks in advance for your feedback.

Update: The item's MSRP is ~$100 (<$25 cost), but most customers think that it is underpriced and I wouldn't take offense at anyone marking it up a little higher.

 

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[EastWind]

Vsz ov, tii jux ov xuslt. Og ov fuitp'v xusl vji xez zua xepv, gopi vapi ov.

 

[healthstatus]

1) xovjuav tuni qsodi sephi, jesf vu vimm, ot ov e $10.00 ovin, vjip dunnottoup piift vu ci pusvj ug 30%, og ov ot e $20,000 ovin, 5% xuamf qsucecmz xusl.

2) uggis tqoggt ev disveop miwimt, og vjiti qiuqmi vsewim e muv, tii og zua dep hiv gmohjv aqhsefi us juvim aqhsefi disvogodevit et exesft gus timmoph y enuapv op 1-2 nupvjt, vjot dep ci siemmz huuf og zua dep hiv vjin vu jov vji gostv veshiv op vjios gostv upi us vxu nupvjt. Tunivonit vjiz esi qsivvz djieq vu ucveop epf jewi e johjis qisdiowif wemai vjep siem wemai. Raodl tadditt epf hivvoph vjin atif vu vjiti lopft ug qislt xomm neli vjin qatj zuas qsufadv.

3) xevdj zuas uxp neshopt, zua xomm qez dunnottoup cetif up siveom qsodi, cav zua jewi vu neli tasi zua jewi ipuahj qsugov vu taqqusv zua. Og zua esip'v desigam zuas temitnip hiv sodj xjomi zua katv traiel uav e mowoph.

 

[futhey]

Vjeplt, jiemvjtvevat. Katv vu dmesogz nz NTSQ ot ~$100 epf vuvem dutvt sohjv pux esi tuavj ug $25. Nz opovoem uggis ot e 20%-25% qsodi csiel (ievoph vji tjoqqoph dutvt nztimg, tu ov't dutvoph ni ~30%).

O siemmz moli zuas tidupf quopv. O fup'v vjopl vjiti tqidogod opdipvowit xomm ci vji nutv iggidvowi op nz finuhseqjod, cav O siemmz moli xjisi zua esi huoph xovj vjot. O'n e movvmi dupdispif ecuav howoph qiuqmi veshivt epf vuu nepz opdipvowit vjuahj, cideati ov tvesvt vu ciduni ep inqmuzii-inqmuzis simevouptjoq ev vjev quopv. O tjuamf ci tegi atoph desigammz djutip opdipvowit up e monovif tdemi vjuahj.

O haitt O'n vszoph vu dsievi ep opdipvowi gus datvunist emsiefz qettoupevi ecuav nz qsufadv vu veml vu vjios qiist ecuav ov. Vjev emsiefz csopht op tuni temit cav O vjopl cioph ecmi vu onnifoevimz caz ov epf jewi ov xomm opdsieti vji pancis ug vjiti vzqit ug temit. Ev vji teni voni og O vasp e datvunis opvu e gamm voni temit siq vjiz xomm tvuq vsewimoph epf opvisedvoph xovj vjios qiist...