Professional Salesmen I Need Your Advice.

Originally Posted by Florcraft

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

Originally Posted by 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.

Originally Posted by 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.

Originally Posted by Dale S.

What is "parking" in relation to compensation?

dale

Originally Posted by 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

Originally Posted by 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.

Originally Posted by 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

Originally Posted by 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

Originally Posted by Publisher1

Mark is right about profiling. We use an online sales orientation test, costs about $40 a piece, but is worthwhile in screening. Then everyone who passes the test is put through the paces with a brief (paid) trial assignment. All initial applicants must complete a questinnaire indicating basic competence and confirming that they will not have problems in a reference verification -- which we do.

Originally Posted by mark the coach

Profiles; I use DISC profiles for sales candidates who pass the first interview. I develop a list of interview questions for each candidate. First I speak to them on the phone to determine how they sound and bond. I am looking for sound phone skills, can they speak intelligently and are they pleasant. Then I set up my first interview. If they do well then I will profile them. Then I will have a second interview with the profile in hand. Before the second interview I review the profile results and generate a second round of interview questions that are more poignant.
There are several companies online that sell DISC profiles. Prices vary depending on supplier. I haven't seen one for $40.00 but I think the low cost ones are 60 to 70. I haven't posted this info on former posts.
I use a professional profiler who compares construction sales candidates against hundreds of others in his data base. This process has been very fruitful in finding the right candidates. The cost is significantly higher but the profiler participates in the interview process and insures against making gut feel decisions.

mark the coach

Originally Posted by silvertree

I just think your looking in the wrong places.

Originally Posted by Grumpy

How's this for a spiff? Company truck if you are selling consistantly above 100k a month. Nobody's done it yet. I WANT people to make money working for me, I just can't find the right people.

Originally Posted by RidgeWalker

As for the profiling test I'd like to find out more about that if any one has a link I'd like it as well.

Originally Posted by MMC73

Hi Grumpy,
A couple of questions as a roofing and siding contractor are you doing the typical one call close or a two call close?
Have you considered having folks come to your home , from companies known to have agressive reps, to bid your house, you will be the sales call...no better way to interview a potential rep. It will be easy to ascertin if someone is doing something as simple as connecting with the folks and presumptively closing from the door.
As a suceesful sales rep I always stay in touch with the folks before during and after the project. I believe and I may be wrong that when someone buys a service they are buying the person. It would be irresponsible and damage the credability I have with them to not stay involved. Additionally your rep will have a relationship with them any upcharge is a slam dunk...easy money for the rep and the company. Just my two cents.