Is it possible to get IT - Software sales / marketing people working for equity or on a commission only basis?
Is it possible to get people working for equity or on a commission only basis in IT/Software (sales, marketing, business development, solution sellers, deal closers, business broker)? And where can I find them? Will this model work out for a custom software application development startup firm. What are the pros & cons associated with it?
This is a difficult road but it is possible. You simply need to present the idea well enough to get others excited about the prospect of selling what they thought was so exciting about it. My advice is that simply put.
Most all the answers are right on point. Especially since sales & business development take time, who can work for some time and not get paid. Simply said "You Get What You Pay For"
One company I worked for paid their software sales people a commission that lasted 2/3rds the length of the service contract. If you have recurring contract opportunities, please consider that. It offered great retention and reliable income for the salespeople.
It's probably better to consider commission over equity. Sales people, especially, are familiar with this pay method. Often time - though - you offer to give them a straight (small) salary of some sort the first few months - until they have built their client base. It takes time to make the connections and find the right clients. Then after a few months - good sales people can support themselves on commission.
A good sales person will be working for sure and earning money on regular basis. Your offer needs to compensate for this facts like giving a guaranteed minimun income and very attractive contractual terms and still it will not be easy.
Yes it possible to get But Sales & Marketing people are working on a salary Plus commission basis , I don"t if they work on commision basis only , they won"t give the results you want or you need , because they will not be loyal to you , lots of time is not considered for the company . So its better to give salary Plus commision .
Geographically, the place to look is where immigrants have been received and are flowing into. My country, Malaysia, is a hotbed of immigrant potential and those displaced by immigrants are also up for commission work. Maybe America is feeling it too.
Possible is some cases. The bottom-line is are you doing it on genuine ground or just trying cut down cash out flows. The intention of such action is not out for good fate, the chance of success consider relatively low. The probably more prominent if it is for a startup company as too many things change in short-time.
A sales/ marketing people who also double row as business development, product development, and even leading projects will be very useful to you for equity or commission basis. Why am I say so? This type of people have that quality to lead and adjust to changes + if they also innovative and willing to take responsible to look into other business functions.
Answer is yes and no depend on situation and the kind of people you are getting, more importantly, your true intention affects the whole matter.
For Custom software or for any other government related applications it is imperative to have the onus of responsibility clearly stated. Phil is right a commission based model will not work in this scenario. Please feel free to contact me for specific clarifications.
Dear Sampath, in my opinion, software sales need high skilled and smart people. I wouldn't bet to try to hire people to work only for comission. These professionals need to work with some base salary plus comission . But if you convince someone to work for equity this could be a good way to validate your offer, the value added of your business. If you don't convince anyone to work with you, it could be a could opportunity to review your business. In other words, if you have a good business, an excelent product/service, you will find someone to work for you, on the other hand, nobody will work on a business with no challenge. If you find someone, this could be not a good deal.