How can I recruit fully commission based sale reps for an iPad based Point of Sale system?
We are a start up company with a finished product for restaurants/fast food industry. We have iPad based Point of Sale solution that includes a register, mobile server app & kitchen display system (KDS). We are planning to run an aggressive sales operation which will require personal visit to restaurants, working on already provided leads and creating new leads. A full commission based model would be great. Some transportation costs can be paid. Our website is www.cubepos.com
Commission only is a Slippery Slope. I would only recommend it if you have a Product that is that "Hot" that will really change the game. If you cannot articulate why your product is very different, you will have a very hard time getting people. It is better if you Focus on a Combination of Short Term and Long Term rewards. Short Term to sell, long term, via Equity or something else, to get them thinking longer than the next Commission Check
You could try to find manufacturer reps that are already calling on the restaurant trade and who are selling non competitive products. They are quite used to working on straight commission. It is not a market I have worked in but I would assume there are reps in that field.
To find some reps I would suggest checking out the Manufacturers Agents National Association. I believe the web site is www.manaonline.com If I am wrong just do an internet search. The last time I checked they had about 20,000 reps in many different fields and help manufacturers find reps and visa versa. A long time ago I was a member for a number of years.
I can suggest 3 possibilities:
1. Look for commissioned Sales Reps in the field that understand the food business and the uniqueness of your POS Product.
2. If you really want to commit to excellence in sales, find a "big game hunter" type sales person.... Give him or her a starting salary plus commission and plus a potential stake in your start up company.... Commissioned sales people generally "chase the sale at times" you want the correct type of client. A mix might work of reps and 1 or 2 in house organizers and outside in thinkers
3. If you do not have a business plan work with a Score counselor to help you achieve that objective....
Great question. There are 3 things to consider when hiring commission only sales reps. It is possible but can definitely be a challenge to find qualified reps.
1) The first thing you need to look at is the income potential. Real Estate Agents work on commission only (they actually end up paying fees), but their commission checks could be anywhere from $2500 a deal to $250k a deal or more depending on the market they work in. If your reps can make a six figure income for example, reasonably, then you have some legs.
2) Recruit like crazy! You will need to see a lot of potential candidates. So your recruiting and marketing for individuals needs to be spot on. Insurance companies that have commission only hold interviews in a group setting. That interview is more like a sales pitch to bring people on board. You need to engage and enroll your team to want to be a part of your organization. Recurring revenue in a compensation plan helps.
3) Set them up for success! Give them extraordinary value. Training, coaching, invest in leads, etc. They need to feel confident that they will succeed in your company and in the market. When they see the support from you and that you will not let them fail, then you will have better results. You can also offer a low salary for the first 3 months until they get comfortable with your sales process and then set them up for commission only.
I hope this helps. For more information or business coaching, reach out to me at david at david brownlee dot com or call me at eight five eight, three six seven, zero two eight nine.
Coach David Brownlee
Unless you can flood them with qualified leads, don't waste your or their time.
I work with many startups to help them craft their initial sales team, compensation plans and performance goals. I often hear this question -- and (don't be offended) - it makes me cringe.
Let me ask YOU the following questions:
1. Are other employees working on a pure performance basis? I am not speaking of owners/founders with an equity stake - but other emplyees. If not, why do you expect that a sales professional should shoulder all the risk? And what would motivate a strong professional to take that risk, when there are many opportunities paying a salary PLUS commission?
2. Do you have any sales now, and if so, who closed these? Do you know the optimal sales process, have sales-ready messaging? Understand the sales cycle -- have you YOURSELF dug out leads and closed these sales?
3. If you are unwilling to invest (a salary) in sales talent, what company loyalty and committment will you motivate? Do you want to take that risk with your customer-facing emplyees?