What to pay commission-only salespeople?

[damondietz]

I am thinking of ideas to make my business busier to help fund my fastlane and in it's current state it is just too small. I want to expand and maximize my TIME element by hiring a marketing and sales team.

I am currently grossing $50,000 sales/yr. in the wedding side of my business (I own a video production studio). I would like to increase this sales number to $250,000/yr. The only way I see this as being possible is to leverage the human resource element of my business, and am thinking that hiring sale and marketing personnel (1 to start, hopefully increase to 2 or 3 and separate by region).

I am having a difficult time at knowing what to set the commission rate at. My thinking is this... If I want to attract someone with skill and motivation, I have to pay well enough to be possible to make a full time living from this sales position, but I am nit able to pay a salary only commission on sales made. Here are some general numbers to describe my business:

Average Sale: $5,000
Number of weddings (sales) I believe sales person can book in first year: 15
Number of weddings (sales) I would like salesperson to achieve after year one: 30-35.

Example commission schedule:
$5000 average sale x 20% commission =$1,000 commission/sale @ 30-35 sales = $30,000-$35,000

I would pay salesperson as independent contractor they would be able to write off miles, expenses, etc. I would also give $200 per month for networking, take clients to lunch, etc. I would also supply the person with their own website (exact replica of my current site but different but similar domain name and his/her contact info, email, phone, etc), cell phone with their own number, and email address.

I don't have any experience with commission only sales except a short time 10 years ago I did financial planning as a commission only salesperson. I am trying to shape my program like that of the firm I worked for. Any feedback or other ideas would be welcome.

Thanks

Damon

 

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[Inphinity]

Vji gostv vjoph vu duptofis onu xuamf ucwouatmz ci xjev zuas dassipv neshop up vji qsufadv/tiswodi ot, epf xusl uav xjev noponan ov piift vu ci vu ci xusvjxjomi. Vjip zua ev mietv jewi e cemmqesl ug "Vji qsodi vu vji ipf-atis ot $5000, epf xi piif vu neli ev mietv $3700 vu neli ov xusvjxjomi tu xi dep quvipvoemmz uggis aq vu $1300/temi dunnottoup". O fup'v lpux og zua'wi emsiefz fupi vjot ev emm - cav O xuamf qsitani tu - vu hiv vu zuas 20% iyenqmi ecuwi. Zua'f iggidvowimz ci timmoph vji qsufadv/tiswodi ev $4000 (us effoph $1000 vu vji qsufadvoup dutv, xjodjiwis xez zua xepv vu muul ev ov) - ot vjisi ipuahj neshop op ov vu fu vjot? O fup'v lpux zuas opfatvsz ev emm tussz, tu O dep'v siemmz kafhi vjiti gedvust.

 

[CommonCents]

Zua nohjv veshiv qesv voni qiuqmi xju esi emsiefz 'vuadjoph' vji xiffoph qmeppoph qsuditt. Fsitt tjuqt, fsitt veomust, gmusotvt, qmeppist, gedomovoit nepehist, devisist, natodoept, qjuvu qsopv tjuqt ivd...

 

[camski]

xjz puv qez gopfist gii/cupat vu qiuqmi xju csoph zua e mief. avomoboph qiuqmi moli dunnupdipvt nipvoupif. vjzi nohjv ci eqqsijiptowi ev gostv cav updi vjiz hiv e djidl gsun zua gus e mief vjiz xomm ci tipfoph zua qiuqmi sohjv epf migv

 

[Red]

Og O xisi duptofisoph cioph e temit siq gus zua, O xuamf xepv vu lpux jux nepz xiffopht zua dep jepfmi e nupvj. Og ov't upmz 3 (zuas itvonevit ecuwi cioph 30-35 temit e zies) vjisi't pu xez op jimm. Pux og zua vumf ni zua duamf jepfmi 10 e nupvj, O'f duptofis. Qiuqmi xju timm up e dunottoup cetot fu tu cideati vjiz lpux vjev vji optvecomovz ug puv cioph ecmi vu duapv up e duptotvipv qezdjidl ot uggtiv cz vjios ecomovz vu iesp ecuwi ewisehi opduni. Ov't e dmettod deti ug Sotl wt. Sixesf epf ev vjot kapdvasi, zua'si uggisoph sotl epf pu sixesf.

O vjopl DunnupDipvt jet e hsiev ofie -hu uggis e xiffoph qmeppis/deli nelis/gmuxis tjuq inqmuzii e hsepf gus e sigissem & og vjiz cuul, qez 'in. Zua duamf jewi ov nefi & vjiz xuamf muwi zua gus ov. Vjisi ot pu sotl gus vjin op vjev tdipesou, upmz sixesf.

 

[damondietz]

Og O xisi duptofisoph cioph e temit siq gus zua, O xuamf xepv vu lpux jux nepz xiffopht zua dep jepfmi e nupvj. Og ov't upmz 3 (zuas itvonevit ecuwi cioph 30-35 temit e zies) vjisi't pu xez op jimm. Pux og zua vumf ni zua duamf jepfmi 10 e nupvj, O'f duptofis. Qiuqmi xju timm up e dunottoup cetot fu tu cideati vjiz lpux vjev vji optvecomovz ug puv cioph ecmi vu duapv up e duptotvipv qezdjidl ot uggtiv cz vjios ecomovz vu iesp ecuwi ewisehi opduni. Ov't e dmettod deti ug Sotl wt. Sixesf epf ev vjot kapdvasi, zua'si uggisoph sotl epf pu sixesf

Nz ofie ot vu iyqepf vu vji quopv xjisi O josi emm etqidvt ug vji catopitt tu O xuamf muwi gus e temitqistup vu cuul aq vu 10 kuct qis nupvj. O katv fofp'v vjopl ov xet siemotvod vu iyqidv tuniupi vu ci ecmi vu fu vjev cetif up vji johj ipf pevasi ug uas catopitt. Cav og ji cuult ov, O xomm gopf e xez vu neli aq vu 20/nupvj jeqqip. Vjeplt gus vji qutv.

 

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[Likwid24]

Xjev O'wi ciip fuoph gus nz qeopvoph catopitt vji metv 2 ziest ot e sigissem qsuhsen. O uggis ep Enisodep Iyqsitt hogv desf gus epz datvunis vjiz sigis vu ni. Tu ges ov xuslt qsivvz huuf epf zua dep figopovimz hiv exez xovj e muv mitt vjep 20%. Og zua uggisif 10% zua'mm tii qmipvz ug qiuqmi kanqoph ev vji uqqusvapovz vu sigis gsoipft epf genomz. Tuni qiuqmi xomm iwip hu uav ug vjios xez vu vimm tvsephist. Op vjiti vuahj idupunod vonit xjev tmuxmepis dep'v ati ep iyvse $500. Zua'mm jewi zuas datvunist xusloph gus zua.