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Hiring sales people on commission only

 
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oliveoyl

posts: 12

May 19, 2009 7:07 PM ET    Quote  Report Abuse
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Hi again,

I have started my new business making flax seed and lavender eye and neck pillows.  I am very pleased with my product and my packaging and have actually sold them to a couple of shops already.  And thank you all, I did finally come up with a name:  "Simply Unwind". 

My problem is I love to make my pillows, but selling is outside my comfort level.  I have placed an ad on Craigslist for a commission only sales person.  What advice do you have to offer about that before I meet with anyone?

Lukring

posts: 26

May 19, 2009 7:49 PM ET    Quote  Report Abuse
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Yeah just focus on your core competency and let others do the selling for you!

That`s the best start, to hire a sales person on a commission basis. Giving him/her a quota would be a big help. Like for example if he/she sells 1-10 pillows @ 5% commission, 10-50 pillows @10%. 
robertj

posts: 1458

May 20, 2009 9:42 AM ET    Quote  Report Abuse
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Olive,

The common misconceptions about commission only sales people is:
 1. They don`t "cost" anything unless they sell something
2.  They will be highly motivated because they need to sell something to make money
 
Although I agree with the concept of  "if it`s not your genius - don`t make it your job"; unless you are prepared to guide and support your sales person(s) -I`m afraid the results will be disappointing.
 
Who are your targeted customers?
What type of skills are essential to successfully engage with them?
What type of sale is this (ie one time or relationship)?
What tools / materials will be necessary for a successful sales effort?
What about pricing?
Etc.
 
I hope this helps. If you want to discuss your specific situation, send me a PM or contact me directly.
 
 
 


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Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
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wtgg

posts: 257

May 20, 2009 1:56 PM ET    Quote  Report Abuse
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Olive; Congrats on your progress.
from personal experience I offer these bits.
as robert said, you must still develop the tools for the salesperson to use,set guidelines, target customers and direct growth, there will be a learning curve for both of you, them to know your products and your personallity, you to understand sales is still your biggest task and even though you are not out on the street knocking on doors, you still have to guide the process, think about this what if your new commision sales person calls their contact at wal-mart? can you supply wal mart? do you have the financing and legal resources at your finger tips? on the other hand what do you do if your sales rep is not moving product? do you just get another or build the team?
I have a commision sales rep, and think it is the right way to go especially like you I would rather be in the shop than going door to door, but it is not instant sales, all your worries are not over, at the end of the day YOU are your companies best sales person.
just 2 cents.
oliveoyl

posts: 12

May 20, 2009 2:51 PM ET    Quote  Report Abuse
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Thanks so much for your feedback!  I will definitely use that when I meet with the person tomorrow.

 

OO

oliveoyl

posts: 12

May 20, 2009 2:52 PM ET    Quote  Report Abuse
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Thanks so much!  This is VERY HELPFUL!!

 

OO

oliveoyl

posts: 12

May 20, 2009 2:53 PM ET    Quote  Report Abuse
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THAnks for your feedback!  I`ll let you know how it goes!

 

OO

byrneof01

posts: 230

May 21, 2009 1:22 PM ET    Quote  Report Abuse
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You should give your sales people a pack that gives them a detailed understanding of your product.
stevens

posts: 54

May 21, 2009 7:41 PM ET    Quote  Report Abuse
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Are you looking for a sales person to sell to individuals or a manufacturers sales rep. If its the latter you should look at sites like http://www.manufacturers-representatives.com 

But like what was said before. Just because you are not paying them a salary does not mean their are not cost involved. You still have to pay for all of the marketing, sales material, promotions, etc.
 


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oliveoyl

posts: 12

May 22, 2009 6:00 PM ET    Quote  Report Abuse
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Thanks!  I`m looking for the latter...I`ll take a look at the site you mentioned.

 

OO

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