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katt33

posts: 484

Oct 22, 2007 8:25 PM ET    Quote  Report Abuse
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I have an idea of the commision etc... I wish to give sales reps.  Any feeback would be appreciated.  I am thinking of offering 15% Commission and 5% invested for them in Socially Responsible Mutual Funds and Governement Bonds, as well as s health savings account for full health and disability insurance.  They would still be independent reps and sign independent rep contracts.  Any feedback on this plan would be appreciated.  The products will range from prices of $10.00 to $200 when fashion and other products are added.

angola

posts: 31

Oct 26, 2007 5:35 PM ET    Quote  Report Abuse
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My first thought as a salesperson/entrepreneur is, "Why is this person telling me how to spend my money if I`m truly an independent rep? Why not just give me the money I earn and let me do what I want with it instead of all that other stuff."

If I`m an independent, I may not need an HSA b/c my spouse has a job that covers insurance, for example. I may need that 5% in cash because of a family illness, etc...

It seems that you`ve gone with a complicated scenario there and complicated means that you will spend time selling someone on this plan. I favor simple. b/c people have an easier time understanding simple things.
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WholesaleRep

posts: 29

Oct 27, 2007 11:12 AM ET    Quote  Report Abuse
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As an independent sales rep myself, my 1st reaction was, "That`s great!" as no company I rep offers such additional benefits on top of 15% commission. I really appreciate that you are willling to offer more than just commission to your sales reps.

However, after reading angola`s response, I have to agree that at times I could just use that money, etc. 

On the other hand, I don`t think it`s such a "hard sell" to a rep because you are offering them these benefits in addition to the usual 15%. You aren`t saying you will pay them 10% & the other 5% will go into these other areas. You are offering a type of  `bonus`. Therefore, who am I to argue with a company that wants to do something extra for me which is above & beyond what other companies do? It might even make such a company my favorite line to rep... and let`s hope you start a great trend! 

I also have to say the opportunity to get reasonable health insurance could be a great drawing factor for you, as that is the biggest problem of being an independent rep so far (fortunately, I`m still on COBRA, but it will be running out very soon).

I just thought of one other thing...if you work with small (1 person) reps, your benefits shouldn`t be a problem. However, if you work with larger rep companies, your plan could get very complicated.

 

 

 

 

 

 

 

 

 

katt33

posts: 484

Nov 03, 2007 2:48 PM ET    Quote  Report Abuse
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I am thinking that I could maybe offer options. Option 1 straight
commission and a Option 2 combination commission and insurance. If the
firm can offer it, why not? I am happy to obtain a group insurance plan that
all reps can benefit from.
AlliNew

posts: 2

Nov 08, 2007 10:16 AM ET    Quote  Report Abuse
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Our company sells advertising and we currently have a F/T ad sales representative.
My question to you is this,
 
How long have you been in business? Meaning, are you looking for someone to just open up new business, or will they be also managing and upselling to existing accounts
 
Depending how you answer this.........................
You might consider a different commission structure based on new vs. existing.
 
You will also want to offer bonuses. Example: sell $_______amount and receive $______ for the week. Or month.
Sales people always need goals to strive for. And make them acheivable too. Not unrealistic.
 
I pay my sales rep 30% for new business, and 15% for existing clients.
 
Will you be paying for their gas? Cell phone? You will want to consider this too. Put yourself in your reps shoes. What would you want to make? Have you been selling all along yourself this product? How difficult is it? What will keep a rep motivated to keep going? Will you stil stay selling and just want to expand? My experience is no one is going to do it as well as you. Be mindful of this.
If you would like to email me, my address is
 
Hope this clarifies your process along...........................
 
 
 
katt33

posts: 484

Nov 08, 2007 2:42 PM ET    Quote  Report Abuse
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This is very helpful and gives me good questions to ask myself.  I will email you if I get stuck on any point.

 

Thanks

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