Hiring a salesperson - need some tips and knowledge
 

Starting to seriously consider hiring a 1099-style salesperson for my property management software company. I've never hired an employee before, so am a bit out of touch. I know I want to go the 1099 route, since the person will work remotely and be in control of their hours, and provide their own computer, phone, etc.

I guess my biggest question involves compensation. I'm willing to pay a small base, say $1,000 per month, and a nice commission package, of course. I think $100 commission per day is doable. So, this would insinuate a monthly range of $3,000 - $5,000. I understand that this won't buy me a hotshot from LA, SF, NY, etc, but do you experienced salespeople think I can find a reliable someone with adequate sales experience for this compensation range?

Also, where would be a good place to find someone. Assuming Craigslist and Indeed.com?

Any help is mucho appreciado :)

Sorry, I don't have time to expand much, but I think you need to structure it as a guarantee (draw against commissions) in at least the $2000-3000 range unless your product is proven in the marketplace.

Even then I don't think you'll get any kind of self-motivated skilled/disciplined salesperson that will work out how you'd hoped in the "maybe-you'll-make" $36,000 to $60,000 total compensation range -- esp when they have to cover all of their costs as a 1099 employee.

Tell us more about your product, how it will be marketed, and what you think they will be doing (or what you're expecting them to do) in their sales process.....

So $12k per month base and a max of $60k in commission? Total compensation potential of $72k.

How many hours are you expecting? Is this outside sales, online sales? Need a little more detail.

FWIW, I am in b2b sales for document shredding, I have another close friend selling for Cleveland Golf and another district sales manager for Polaris.

We are all 24-25, did rotational programs before moving into sales. Maxing out your comp plan would net me less $$ then average performance in my current role. Same with my friends. I'm not sure if the roles are really directly comparable.

If this is more inside, cold call sales, your numbers are more inline with what we are paying.

Key point. As a salesman, I have heard a lot of promises from business owners that didn't materialize as cash in my wallet.

Ian

Thanks for the responses so far. The salesperson would be selling my property management website subscriptions: Pointwide Property Management Website Templates

I've been offering these for 6 1/2 years and have never had a sales effort. I do have a very modest Google Adwords budget, which is my only form of marketing. My client base has grown over the years, so it is a proven product, and the potential market is huge - most property management companies currently have very poor websites.

I would not provide leads, but getting them is very easy. All one has to do is do a few simple google searches, and click on property management websites. 80% of them are junky, home-built sites, so they are prime candidates for a sales approach. The contact info is right there on the website.

It seems like shooting fish in a barrel to me, and honestly, I don't see why someone couldn't sell a couple a day, once the pipeline gets filled up a bit.

Am I missing anything?

I think you meant $1K per month base?

I would expect 35-40 hours a month. 100% inside sales.

Very nice site. I could sell that. Maybe in a couple of years when I finally overload on travel? ;)

$1K + 800 land line + commission.

Ian

This sounds more like a part time job...

I could put in 35-40 a month just while I'm driving to do the job I do now...

Nice site though, and for what you are describing the pay sounds in line if not pretty good...

35-40 hours a week, sorry. Full time job. I'm not a big fan of salespeople repping multiple lines concurrently.

Feedback from people currently in sales is really invaluable! Thanks.

Ok that makes more sense... I was like yikes, whats this person supposed to do with the other 3 weeks a month?

The tough part is: Cold calling sucks. I have done my share over the years but I have to be in the right frame of mind. I would not like a steady diet of it but that IS the nature of your business, obviously. Finding the person that can do it consistently may not be easy.

Ian

we hire many sales people - good ones have one thing in common, all likable.

I must get a dozen of them a week. I normally hear them out unless I'm really busy. What a way to make a living. For myself, I hate selling.
Jim

I employ 1099's in sales posititions and one would think it is easy to find a highly motivated sales type personalities needing work. Wrong! Getting a 1099 to do the job like you would do it might be a tall task. I just interviewed a charasmatic 33 YO who could not complete a SIMPLE math test during our interview. Questions like: What is decimal equivalent of 1/4? What is area of a 4' x 4' square?

Have a list of common sense questions ready or your candidates that pertain to the tasks.

Wow! Two of you?? You should get together for drinks

I would agree except I know too many successful (insert euphemism for: orifice in the posterior) salesmen. But us nice guys have more fun. :D

Ian

You need to find someone who is older. Apparently more desk time than windshield time? Either young, get them cheap, but when they get some time under their belt they are gone. Stay away from middle age married, 2 to 3 young kids, to preoccupied, and you don't pay enough. May want to put an ad on Monster or Flip dog . Been in outside sales since 89.

I've spent my career hiring sales people. Frankly my success rate is about 50%. Sales people are challenging to hire because when you interview, they are selling their favorite product.

The adage "you get what you pay for" is highly correlated with sales people. Good sales folks know their value and can get it. Bad sales folks can get hired anywhere with a good story.

The 1099 route isn't hard if you let them structure their time and have the right kind of agreement. Will you provide leads? How will you structure goals/metrics? I'm nervous about $1K base comp - that's really skinny. "Mom, be quiet, I'm on the telephone selling for PointWide"

Once you do hire, set a clear set of goals for week 1, week 2, etc. and have reviews. Sales is a numbers game, you have to fill the wide part of the funnel and keep it filled. Set a three month trial period where it is up out.

Maybe worth a chat...

Manage the inputs more than the output

If he/she successfully performs the activities that will result in sales, then sales will come

This means more work for you

If you're not able to take that on, you'd better be prepared to pay up and get someone who is self-motivated and self-managing. $46-72K isn't likely to get that done. At least statistically.