How do I fairly and effectively compensate an independant salesperson?
I recently started a small web design & development that caters to a very specific blue-collar industry niche. One thing I am considering doing is bringing onboard an independant sales rep to drive sales, since like many tech gurus, I’m more comfortable with programming than I am selling. Since the salesperson would be independant, they would be compensated via comission only.
The upfront web design package will be priced at around $3,100, with an additional montly fee of about $300. The monthly fee pays both for hosting, site maintaince, and an Internet marketing and advertising campaign. These are largely cookie-cutter sites designed using highly refined templates. This ought to reduce the sales cycle a bit (and hopefully make them easier to sell?) What percentage of each sale should I offer the sales rep? So I or shouldn’t I offer him/her a percentage of the monthly fees as well? If so, how long do I continue to pay the rep a cut of that monthly fee? Thanks!
I would recommend a flat fee per sale. However, if you want to have an incentive for your seller, you might set target ranges, where if they sell more than X number of pages on a given pay cycle (2 weeks?), then you can pay more per sale. If you weren’t charging so much for the initial package, I’d suggest something like $20.
Alternatively, you could try selling a page yourself to determine how long it takes. Let’s say it takes you 4 hours to sell a page. You would multiply 4 hours times minimum wage.
Internet Marketing guru spoof
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