How many companies here employ Commission only sales people? What are your feelings on it? For those that do it, what type of commission do you offer?
We are looking at doing it with our “DSL” priced offerings ($79 - $129/mo) with a 100% commission (you sell a $129/month account, you get $129)… The sales cycle for that level of a product is relatively short, which as I understand it works better with a commission only model…
Thoughts?
It’s the only way we do it, 100% as well.
Services are:
99.00
179.00
259.00
399.00
Commission only program does two things:
1. Weeds out the whimps who want an easy salaried position and can’t produce
2. Motivates the studs that want to get paid for hustling
we paid a full time employee 45k a year to do sales.
was performing @ ~30 installs a month.
this person is no longer with the company and we have given 3 other employees (including myself) the option of getting a $100 commission per sale.
our sales went from ~30 a month, with the best month in 3 years being a high of 37 installs to our first month of commissioned installs closing out @ 46.
his low was 12 installs.
salary should only benifit the company, not the employee.
we have 4 full timers…
basic + OTE bonus… the basic is barely enough to survive but not enough to have a life with… so if they cut it… they naturally leave…
By the way, we give the commission to anyone, and everyone including customers and installers.
I don’t care who makes the sale as long as people sign up.
can a new customer sign themselves up ?
Which came first, the customer of the commission…
They need to be a customer to be able to get the commission.
When do you pay the commission? The moment the contract is signed, when the install is completed, or when the customer pays? Do you invoice the customers, or set them up on an automatic payment, like we currently do (via an automatic draft out of otheir checking account, or off of a credit card)?
When do you pay the commission? The moment the contract is signed, when the install is completed, or when the customer pays? Do you invoice the customers, or set them up on an automatic payment, like we currently do (via an automatic draft out of otheir checking account, or off of a credit card)?
when it’s a customer referring another custoer we credit the existing customer’s account once the install is done, the new customer is happy, and the bill is paid. We do very very little invoicing. All billing is done online via Credit Card.
For sales people, computer stores, etc. they get paid once a month.
what credit card stuff are you using?
seems like everyone out here wants way more money then we have to spare.
how much does it cost you per transaction?
I don’t do the cards so I don’t know the actual amount. 3% I think.
Credit cards are 2.5% I believe… We don’t like using them, but, its SO much better/cheaper than invoicing, as we don’t have to worry about people not paying on time, etc.
We don’t like to use them, as we prefer check drafts, which are 2 cents per transaction, no matter the amount. It works out really well, especially as we have a custom software solution that we integrated into our billing system. I would say 70% of our customers we do check drafts with… Its all about how you ask them.