How do I find commission only sales reps?

We have a high-priced product (starts at $250k), years of experience, past success and multiple target markets. We're starting again with a few things different this time, one is we're outsourcing more functions. I'm looking for advice on how to attract and motivate commission-only sales reps. The product is bomb shelters. The markets much larger than you'd think, and none of it is "preppers." Our shelters are the only "rated" shelters in the world, meaning we scientifically determine the radiation exposure risk and protection. They are used for protection from nuclear, biological, chemical attacks; from EMP (electromagnetic pulse) event that would down the power grid; from any natural disaster (flood, fire, wind to 350 mph); as commercial tornado shelters; as emergency operations centers; as business and government continuity centers; and more. Please see more at noradshelters.com. Please ask any questions you might have. We'd like to hire commission sales reps. We haven't done this before so we're looking for advice on what is required. Thanks in advance!

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6

Your product is in a very unique niche. I am sure it is something that would take a pretty serious investment of time to sell. To me your best option would be independent sales reps who handle other lines that will keep them eating while they are working on sales of your product. I would think you would need to pay around a 10% sales commission,

I would suggest contacting the Manufacturers Agents National Association,. They are an association of independent sales reps in many diverse fields and their guys are used to working on straight commission, Their web site is www,manaonline,com

Very helpful, will investigate right away. Thank you so much.

4

This sounds like a slow turn, complex sales process. Like a realtor you will have to wait to get paid and then get paid well. I don't think you can in todays rules of the DOL have commission only sales reps as you are stuck under minimum wage rules and you have nothing to classify them as exempt.

So as the suggestion for attracting people like the Manufactors agent association, you are looking for a contractor (you are hiring a business not a person - technicality) and someone used to big tickets.

You also can look to sell this as a business opportunity but make sure you pay attention to various states blue sky laws.

So a company cannot hire a commission only freelancer because they're an "employee" and therefore the commission structure breaks the tax rules?

Laws can change over time. My first job ages ago was as an employee but with the pay being straight commission and I paid my own expenses. I do not believe it is illegal. You should look at the IRS guidelines covering the differences between an independent contractor and an employee as well however. Real estate agents work on straight commission and don't fall under minimum wage as well.

3

To hire a quality sales team of people in the caliber of a $250k income, trust a quality executive recruiter to evaluate, interview, and background check candidates. As a former Executive Recruiter I can't tell you how many people applied for positions over $100k who were not qualified. We were able to discern who was who through the telephone and face to face interview processes. Best of luck!

But are those 250k sales people going to be looking for a straight commission, pay your own expenses job which is what the OP is looking for?

Penny we'd be happy to engage a good firm but we're a startup, hence the need for commission only. We expect sales to average $450k yielding a $27k commission. We're looking for good people who find that to be an incentive.

3

I run an outsourcing company and were into sales. I have a US based client and they pay me per sale/signups, so basically my sales rep are commision based pay earners however these agents are sales performers thats why they end up having 2-3 average signups per day. But i think it depends on the products that you are selling. I suggest give them a daily pay but they are required first to hit a certain quota before they get their commisions.

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