Sell More and Grow Faster – Really? Discover The Truth About Commission Sales
It sounds too good to be true… You can outsource sales function to eager commissions only sale reps. You can find lots of them. They will sell your product far and wide. You stay at the shop and fill the orders, paying only a commission on what is sold. These are the benefits you get when you outsource sales function or involved in commissions sale.
Who wouldn’t want that?
- No management headaches.
- No worries about underachievers.
- No fixed overhead.
- No expense reports or bonuses to pay.
- Just lots and lots of orders.
So if that’s such a great plan, why doesn’t everybody outsource sales and work strictly with commission only independent sales reps?
There are a couple of really important reason why working with independent sales reps tends to be binary; either it works like a charm or it doesn’t work at all.
#1 It is hard (And I mean seriously hard) to find the right sales rep to represent your business.
If you haven’t spent time at our site, www.repright.com, please come by. We can help. But even then, it’s still hard. Be prepared for some real work to find and keep the reps who can make your business grow.
#2 Most businesses that outsource sales function or are involved in commissions sale aren’t used to thinking of the sales rep as a partner instead of an employee.
If you are going to work with true commission sales professionals, they will demand to be treated as partners, not employees. The harsh reality is that there are far more products to be represented than there are great independent sales reps. The good ones are hard to find and keep. You have to work at it; treat them as your partners. If you’re not up for that type of relationship, it’s just not going to work.
#3 It’s not really ‘commission only’.
You’ll need to put money and time and effort into things like:
- Developing high quality sales literature
- Defining a sales point of contact to help your new sales team with questions
- Create custom training for your new sales team
- If yours is a long sales cycle product, then you may need to offer some up-front incentives
- Assigning someone in your organization to be responsible for sourcing new reps and managing territory assignments
#4 It’s not ‘management free’
Great independent sales rep still need to have help. They start out not knowing your product. They make mistakes. They chase leads that don’t pay off. That’s just part of the life of any sales rep. The more you can do to help your reps get out there with a good message and good support from you, the more likely they will be to be successful. A quiet phone is not your friend. If you aren’t hearing from your reps, call them!
To outsource sales and commissions sale is harder than you think it will be. It often takes longer and costs more than you want, and turnover can be high But pay-for-performance sales outsourcing, when done right, is still only a fraction of the hiring full time sales employees. And then you have the most highly motivated, involved, successful sales team in the world.