If you own a small business no doubt you have either thought of or been approached by someone offering to do sales for you. Generally these folks will work for commission and expenses and sometimes land your company some big deals. Of course you know that they will be representing your company and they need a little bit of knowledge about how it all works, what your services can or cannot do and the limitations and uses for your products and any warranties you offer.
Next comes the tricky part, settling on a price or commission and terms. This of course is all about negotiation and chances are the salesman has better negotiation skills than you, but remember he has no costs and you have all the burden when he makes a sale. So, the commission split needs to consider this as you will be giving away some of what would be your normal profit to him.
Additionally, the best bet is to have a commission graduation scale, the more he sells the more percentage he gets in the future, think of it as golden handcuffs so he is also on the line for future sales and can make good on all these referrals. Also you might consider a future commission strategy half now and half at the end, this way you are not paying commissions before your receivables. So when negotiated with outside salespeople for your company, please consider all this in 2006.
"Lance Winslow" - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; http://www.WorldThinkTank.net/wttbbs/ |
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