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Which percentage should I pay sales agents?

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Dominik_M

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Hi!
I developed a SaaS product that I'm launching now.
One sold account results in an average revenue of 3000$ per year.
My product only applies to a nieche market of approx 15000 businesses.
This is why it is very hard reaching them and I'd like selling only via sales agents visiting those companies and showing our product.
I do have a list with 8500 entries including company names and addresses of only those relevant businesses.
I'd like to give those sales agents a percentage of the profit I'm making by the customers they acquired.
How much should I pay them?
In their case it would be a lifetime income as long as those customers stay with our company.
I'm thinking somewhere around 5-20%.
Any suggestions on that?

Thanks.
 

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Kevin88660

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Hi!
I developed a SaaS product that I'm launching now.
One sold account results in an average revenue of 3000$ per year.
My product only applies to a nieche market of approx 15000 businesses.
This is why it is very hard reaching them and I'd like selling only via sales agents visiting those companies and showing our product.
I do have a list with 8500 entries including company names and addresses of only those relevant businesses.
I'd like to give those sales agents a percentage of the profit I'm making by the customers they acquired.
How much should I pay them?
In their case it would be a lifetime income as long as those customers stay with our company.
I'm thinking somewhere around 5-20%.
Any suggestions on that?

Thanks.
Recurring payments will not be attractive to agents because not all are looking to stay in one company till retirement and they are not sure if your company can last forever.

if the sales agents do not have to do servicing, a one time payment would be good, 30-50 percent of the first year revenue.
 

JAJT

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There's a million ways to skin the sales cat, but know this - any inside sales person worth their salt is going to want at least 50-60k per year. Outside sales people expect 80-100k+

If your sales model doesn't factor in paying these people about this amount (or more) for doing a good job, you'll almost certainly have issues.

Salespeople stick around and do a good job when they get paid well for their efforts. If they spin their wheels for peanuts you can expect high turnover.
 

Dominik_M

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Thanks a lot for your replies.
I might have expressed myself wrong here:
Those salespeople are not employees of mine.
They are freelancers and might even have other projects they're working on.
Doesn't this change the situation a bit?
 

Kevin88660

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Thanks a lot for your replies.
I might have expressed myself wrong here:
Those salespeople are not employees of mine.
They are freelancers and might even have other projects they're working on.
Doesn't this change the situation a bit?
Not quite. I already assumed this when you are looking at paying them a significant portion of the revenue.

A high percentage is necessary since they have to fork out the actual cost of running the sales.

You need a good sales manager to lead and motivate them too. Company loves Commission only agents because they have no risk.
 

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