Hiring a Sales Exec - Your thoughts?

[LifeIsABeach]

I am in a position to hire a sales exec in an uncertain economic climate. He/ she will be doing a combination of activities including follow up on hot leads, some cold calling, online and onsite demonstrations, business development and some admin work.

Being a startup I want to mitigate the risks and ensure I can sustain them for at least a year in a worst case scenario. I have a business plan but it can very quickly become a piece of paper if we don't meet our targets.

Other than that what advice do FS members have - who have "been there and done that"? any advice with respect to getting the right person, commission structures, minimum wages, transport costs, issues with working from home, insurance and employing part-time vs full time.

[Khalid Adam]

the right person will not work for minimum wage. what will you be doing and are you willing to share profits? sales has a high turnover and the last thing you want is for your salesperson to leave you for your competition with all your ideas and client/ prospect list.

the wrong salesperson might also promise the world to your clients and then leave you to deal with the mess. these are the ones who will take min wage and make up with the commission.

i suggest you hire a consultant to give you the right advice specific to your circumstance. otherwise, you'll end up chasing your tail.

whatever you do, do not hire on 100% commission or minimum wage. you will regret it.

[AgentMail]

Having worked in sales for many years, if you are looking for good quality, you need to get minimum wage out of your head. A good sales exec would expect a minimum base of $60k (depending on location, but at least in Brisbane - add up to 20% for Melbourne and Sydney). They would usually expect a company car or allowance, phone and laptop. They would expect an OTE of around $120k. Anything less and you are not really competing.

If you are hoping to get someone on retainer/commission only, you will be looking at either lower skilled sales people/no experience at all, or those that are expecting to make $200K plus for their risk of no guaranteed income.

Also, working from home is definitely territory you want to avoid for those that do not have extensive sales experience, as they will just not have the drive to make it work.

Are there any other channels open to you, wholesaling for example, that might provide a lower risk option for you?

[KimC]

Originally Posted by AgentMail

Are there any other channels open to you, wholesaling for example, that might provide a lower risk option for you?

I'm in a similar boat, and I would like to know of examples of this wholesaling channel?

[AgentMail]

Hi Kim,

In your situation, an affiliation or partnership might prove a better option for your photo booth hire. Perhaps you can offer those in the wedding industry (such as wedding planners, party hire companies etc.) a commission of 20% for each rental they put through to you. That is just an example of course