Quote:
Originally Posted by ceri
I'm currently working with a client on sales generation, they are a great company with a great product (software), but they're not salespeople. I am therefore looking to take on self employed telesales/sales people on a commission only basis for them. The salespeople generate leads and pass them on to the company to finalise. The rate is 20% commission payable on all sales closed from the leads that the salespeople generate. An average sale is around £10k giving a commission payment of £2k on an average sale. I would estimate that x1 sale a week is realistic with more than this a real potential for high achieving sales people.
Would you consider this a decent rate, if not any feedback would be appreciated.
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Personally I wouldn't take this on - too many variables that don't rely on my work (if I were a telemarketer, which I'm not!)
- what if the people doing the closing are rubbish? I've generated leads that come to nothing
- what if they can't help the lead I refer, but it's not my fault? I've generated a lead that comes to nothing
- what if the lead cancels the appointment? I've still done the work to generate it, but it comes to nothing
- what if the lead doesn't pay? I've generated a lead. you've closed the sale, but I may get nothing
In my eyes, I'd only take on commission only work if the product or service was measurably better than anything else, no-one else was involved in the chain (ie no other salespeople or anyone who could screw up the sale) and the results were measurable.
Therefore you'd be better off paying a lower rate per lead generated and then say 5% of sales generated, so at least the person generating the leads gets something for their time.
Just my opinion though.