Professional Salesmen I Need Your Advice.

Grumpy

I am seeking the advice of those whom are or have been employed full time as a professional salesman. For those of you who don't know me I used to be a full time sales rep myself. That's is both a strength and weakness, as I tend to compare people to my past circumstances. I now run my own company and have a very high turn over on sales reps. I'm at the point of exhaustion over this.

So the question is. What is important to you as a sales rep? What is a deal breaker? How do you like to be paid? What about benefits? 1099 or W2?

What I am doing is obviously not working. I wanted to seek the advice from you guys before I begin postig and interviewing again for spring. I am willing to openly answer all questions.

maceycon

Strangely enough my background is sales and contracting. I started off in contracting then took 15 or so year off and was in sales. I ran car dealerships. What I found with salespeople over the years is they will not admit it, but they want coaching and guidance. They act like they know everything, but they are usually a little bit lazy and need someone who will push them and teach them. They also want to make money, but if you coach and guide them they will make the money.

Grumpy

Thanks for that bit of advice. I think I can sometimes over trian to the point of micromanagement, but there is a system I want them to learn. Training is no problem. I am always on the look out for manufactyrer seminars to send them to for the technical knowledge and if they were to bring some sales training seminar to me I'd probably split it with them.

I guess the real question here is what do I need to offer to get a GOOD guy or two?

Dale S.

We are also in sort of the same situation. I have been doing all of the sales work, but in order to expand we believe that we need to bring in a dedicated sales person. I am curious to see the responses to these questions.

dale

maceycon

A salary.

When I said coaching I mean more of staying on top of them making sure they are doing their follow-up and prospecting. Things like that.

A buddy of mine works at a dealer. The salespeople there have a decent pay plan. The sales people have to follow every step with every customer or they will lose their salary for the week if they miss something. I couldn't believe this and how they are treated. In the car business turn over is a very common thing, but they all stay at this dealer even being treated awful. They stay because they make money and are afraid they wont someplace else. They make money because they do their jobs properly. Its funny that they don't think they can do the same thing someplace else. Anyway I don't suggest treating them like dogs. Just an example I know of and wouldn't believe it if I hadn't seen it.

Grumpy

A salary for a construction sales rep? What then would be their incentive to sell? Would that be salary with commission? I've dabbled in the idea of salary combo'ed with commission.

Floorwizard

Spiffs are always a bonus. Extra money for selling specific upgrades on services or specific products.
That's ALWAYS nice.

__________________
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"in 20 years you will regret more what you did not do than what you did"

nlgutters

Have you asked any why are they leaving?


Are they more project managers/salesman or pure salesman?



My buddy sells water wells for a living. He makes good money but puts in a lot of hours for it. I believe he is more of a project manager/salesman. But doesn't get any salary or paid anymore.

His biggest complaint is them holding him back with all the little tasks he must do. And has to find all his own leads the company really dosen't do any advertising.

maceycon

Grumpy, I'm starting back in business after a major injury almost put me completely out. I don't know about you , but I'm constantly spending money on advertising, leads, donations etc. I'm thinking if I had a decent advertising budget. If I was to take that and give it to salespeople as a salary. Would I be better off? I would tell them,"I am giving you the advertising budget as a salary and will not be spending anymore money on advertising and its up to you to bring in the leads. As long as this is working I will continue it this way." Having them work harder to get leads. They will not want to lose that salary or their job. Obviously it would be salary plus commission. I'm not talking 1000 a week, but maybe 400 - 500. They would just have to understand if you are not getting your 400 - 500 worth they will have to hit the road. That's what I am working toward. It will be awhile before I have my business built back up, and I have the budget to do this. When I was in sales in the auto business. I had a job where I was on a draw. Totally counter productive for me, I was always worried about covering my draw. So unintentionally my goal became my draw. My goal or target should have been much higher. Which would have been better for the company and myself. When I was on a salary plus commission. I wanted to do well, because I didn't want my manager to fire me and I wanted my manager to see value in me as an employee.

Again this is just my opinion and don't have much to base it on.

silvertree

This is complicated.
I was a full time salesman. Mostly straight commission, once with salary and commission. My favorite pay was commission with bonus for selling above par.

I had a couple of offers to sell for other people this year, I would want a company with a future, a chance to grow with the company, parking and commission based on the gross sale. If you fall through a skylight, I don't get docked if it was a good sale. What else would a real salesman want?

Too many variables to make this work for everyone, is my opinion.

__________________
Vote for Pedro
Kitchen, bath, St Paul remodeling
Minneapolis Remodel Blog
203K Loan Consultant Minnesota

Dale S.

What is "parking" in relation to compensation?

dale

silvertree

Its nice to have a dedicated parking spot, when at the office. On the stipulation its earned.

__________________
Vote for Pedro
Kitchen, bath, St Paul remodeling
Minneapolis Remodel Blog
203K Loan Consultant Minnesota

hoya

I was in sales for 25 years. Always had a small base to get by. The commission is where the money is. The more I sold the more I made. I was always given a goal to hit. I did my best to always exceed that goal. I felt like it was my own business and I did what ever I had to do.
A true salesman will understand this. As someone stated, let them know what you expect from them and giude them when needed. it takes awhile to build a customer base so give them time. Good Luck

hoya

Dam----I never asked for a parking spot.

MMC73

Hire a woman.
I am not trying to be a smart ass. I work as a rep for two G.C's in town for extra money. The women of the house love it. Find a way for your rep to appeal to her without threatening her significant other and the sale is easy. I have a young child, the extra money is what pays for private school etc. I personally don't think a good productive rep would want a salary. I charge the guys I work for 10% of the contract, 5% up and 5% down, 1099. The thrill of the sale is intoxicating, it is a game. They don't want to give me their money and I want to take it, great game of chess, just with people.

tin man

Its always about the money.Par house is the best 10%of par and split the overage 50-50 bonus if monthly goal reached 3%-6% of gross.Run 90 day contest.

You must have the leads 12 to 15 per week per salesmen.

Pearce Services

I had a sales job years ago for commercial doors, the structure was designed to promote profitablility and included a base pay, here is how it looked:

Base pay $41600/ year ($800/week) sell $150k in profit to break even
for all profits from 150k-180k 35% of the GP
for all profits from 180k-210k 40% of the GP
for all profits from 210k-240k 45% of the GP
everything over $240,000 is 50%/50% split

I liked the structure, I would count sales and profits like a game, I had my own daily, weekly, and monthly goals based on the seasons. and really competed with myself to exceded those numbers.

I think that for me what is important is;

A base pay that I can survive on
An attainable commision structure
My own territory, with No house accounts
But Mostly****A company, and a product that I truely believed in****
Feeling like you work for the best company in your industy worked for me.

__________________
Kevin

www.BadcoDoors.com

modterry

I am switching from new construction to remodeling ( started there 25 years ago ) and am need of a sales person. Have developed a sales system and want to add someone beginning of 2009. What do you all think of a commission plan based upon gross profit ( based on the original budget / contract amount at time of signing) Sales person does not do the pricing , but could add items that have larger gross profit margins ?

I was interested in the comments by both Maceycon and Ms. MMCC about working for GC's.

Any advice greatly appreciated.

Terry

Publisher1

I like the base plus profit sharing model -- this can only work, however, if your employer is totally open and everyone sees the books; otherwise the risk of manipulation, mistrust, and gameplaying is too high (owner takes expensive 'business trips' and 'conferences' to drain the profits, etc). The base shows respect and allows the employee to think longer term while achieving short term goals. Profitability is sometimes a challenge to measure on individual performance -- if it is a group thing, then you have the issue of how to treat everyone in the organization fairly.

You'll find businesses are all over the map in salary/commission models, and you can argue this stuff upside and down, but I'll go for a salary guarantee over a pure commission structure for anyone you wish to work full-time for you; but a pure commission model for true independent agents who may have multiple lines/relationships. (You certainly don't want to be paying a salary to someone outside your 'control' who is working on other jobs -- your salary will be subsidizing the work of others.)

Our hiring structure and evaluation process is stringent enough that the only people we hire probably could succeed in a pure commission envirornment; but the salary offer attracts more and (I think) better candidates. Of course everyone signs a contract which allows for us to end the relationship quickly with little risk or penalty if things don't work out well. Signs of the recession: the number of good candidates passing initial screening is higher than I've seen in a while; we will be building 'bench strength' with qualified people waiting in the wings while we absorb the people we hire.

mark the coach

So the question is. What is important to you as a sales rep? What is a deal breaker? How do you like to be paid? What about benefits? 1099 or W2?

Hello Grumpy

I have been in sales and sales management for over 25 years and have been exposed to several compensation plans. Positions held were door to door cable television, door to door lawn services (sold grass), door to door cutlery to single working girls (Cutco),
Sears Siding (AMRE), Doors and Windows, Remodeling and Roofing.

The best pay plan I preferred was a draw against commission with 50/50 split over par. Benefits included workmen's comp, general liability and a health plan. Position would be W-2. The position preferred is 100% commission, no salary, only a small draw to cover basics. Mileage allowance, phone, laptop.

When starting a new job with long lead time like design/build sales I preferred a 3 month draw sufficient to pay for the basics. For roofing, siding window and doors one month draw was sufficient provided I could be paid for sales made within a few weeks of turning in a clean deal.

Also it was important to know that I worked for a professional company that did great work and serviced their clientèle. I wanted to know that if I did a great job selling the deal that the men in the field would back up what I sold. I would also expect that I would not be penalized for losses associated with production errors or oversights, however if I screwed up, it would come out of my commission. I would want to know that any leads or referrals from the customer I sold would go to me and not some other salesperson, or to the house.

When I was the sales manager I looked for a specific type of individual, either male or female. I would not hire anyone who wanted a salary because that meant they were not hungry enough or confident in their abilities to produce. I looked for the basics from sales 101.

Here are the some items to consider when hiring salespeople.

1. Salesperson will work on commission, with a draw against future commissions.
2. Salesperson will generate some of their own leads to insure that they are in front of enough people to reach the mutual volume goal. They will network, canvass, generate referrals, follow up on referrals quickly.
3. The salesperson has a good bedside manner.
4. The salesperson is coachable.
5. The salesperson is in good shape and looks professional.
6. The salesperson is a team player.
7. The salesperson will agree to a profile assessment to determine their basic and adapted behavioral styles.
8. The salesperson will have a personal growth program. They will read books, listen to tapes and attend recommended training for sales, product knowledge and personal growth.
9. They want to make a lot of money and can prove it based on previous jobs. If a guy is not money driven he won't do what is necessary to earn business.
10. They are willing to work trade shows, work some evenings and some weekends.
11. They have a yearning to learn and educate themselves.
12. They have a great attitude and enthusiasm.
13. They use goals to keep focused.
14. They can handle rejection and don't have a high need for approval.

I recommend that you consider using behavioral profiles before you hire someone. The cost of hiring the wrong salesperson is too great to find out you have the wrong person two to three months down the road. Just think of the costs associated with hiring the wrong person; training time, draw or base salary you won't get back, blown leads at a cost of $$$/lead, and other related expenses like mileage allowance, phone, business cards and so on. I made the mistake of hiring a few people on gut feel because they talked a good game and they appealed to me. To my dismay they couldn't sell squat and it cost us.

Good luck in efforts attracting the right person.

mark the coach