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How to find commission based sales people for IoT project?

We are a startup in completion phase of an exciting IoT service and ready to launch!

Should we look for sales people who would work on a commission basis, rather than hiring salaried personnel? Is this common practice and are there specific formulas for performance based sales?

I am also interested to learn about other people's experience on how to recognize a potent sales person.

Any input from this group will be much appreciated.


15 Replies

Rob Rusher
3
2
Rob Rusher Advisor
Director, Denver Area
There is a common saying in Sales, "If you do not believe enough in your product to offer a base plus commission, why should I believe in your product."

You will find it difficult to hire even a decent sales person with commission only compensation.
Adam Mastrelli, MBA
1
2
Adam Mastrelli, MBA Entrepreneur
Cognitive Engagement Solutions at IBM
Agree with Rob. Base plus either an absolute plan or based on accelerators are a must. Getting really clear with incentives is key for sellers. We'll follow the $!
Alistair Davidson
1
1
Eclicktick Consulting
My experience has been is that commissioned sales representatives rarely work out. A new product has an uncertain sales cycle, so unless you are very lucky, the commissioned sales representative will lose interest when the sales cycle proves to be longer than anticipated. Perhaps a sales representative selling a complementary product will have more success but such individuals are very hard to find. Alistair Davidson Alistair Davidson Eclicktick Consulting 100 N. Whisman Road, Suite 2213 Mountain View, CA 94043 Business number: +[removed to protect privacy] Mobile: +[removed to protect privacy] Skype: alistairdavidson or +[removed to protect privacy] E-mail: [removed to protect privacy] Blog: alistairdavidson.blogspot.com Twitter: @alistairdavidso Linkedin: http://www.linkedin.com/in/alistairdavidsoneclicktick Amazon.com author page: amazon.com/author/alistairdavidson Latest books: Innovation Zeitgeist, a book on innovation in markets with multiple competitors Contributing Editor, Strategy & Leadership magazine http://www.strategyandleadership.com Certifications: Certified Scrum Master, Scrum Product Owner, Ensighten Certified Professional Manage, Tealium, Facilitation
Chuck Bartok
0
0
Chuck Bartok Entrepreneur
Marketing and Sales Manager at MD Building Systems of Florida, Inc
Interesting input.
For the past 50 years our businesses have grown very well with Commission only Sales professionals.
I would offer a very short term Advance to those who were not organized enough to be financially set for the "lag time"
It seems, recently, the vogue seems to be salary plus.....
But we have not seen any super stars emerge with that approach.
Thank goodness the twilight times are here and I can let other worry about personnel and how to find stars.
Never used resumes to hire and decision were based on instinct.
You can "smell" a real Go-getter
Jim Cantrell
2
1
Jim Cantrell Entrepreneur
Senior Director WW Channels at Exinda Networks
Simonida, you get what you pay for with salespeople and that's how it should be. If you are looking pursue commissioned salespeople, instead I'd suggest building a channel model. In this case complimentary companies will sell your product for commission. Also look for these companies who can bundle your offering with theirs. If you want to look for salespeople who are paid (Salaried), look at their track record, previous deal sizes and ask how they did certain deals. Make sure they align well. You don't want car salespeople selling software for you and so on. And of course, be aware that the salesperson will be trying to sell every time you talk...
Andre Halley
1
0
Andre Halley Advisor
Chairman of the Board at Prevtec microbia inc.
Unless you absolutely need to sell directly to end users, I strongly suggest to use distribution channels specialized in the markets you are targeting.
Andre Halley
1
0
Andre Halley Advisor
Chairman of the Board at Prevtec microbia inc.
Unless you absolutely want to sell directly to end users, I strongly suggest that you use distribution channels



Ryan Mattock
5
1
Ryan Mattock Entrepreneur
Co-Founder of Award Winning CommissionCrowd - The Home Of Independent Sales
It's fairly obvious that some people in this thread fail to realise that there are a huge number of highly experienced self-employed sales professionals globally. I'm not talking about door-to-door toothbrush types or those who are in-between jobs either.

What Rob Rusher (above) fails to recognise are that entrepreneurs operate within many industries. By stating"If you do not believe enough in your product to offer a base plus commission, why should I believe in your product." he is effectively saying that sales professionals can't be entrepreneurial... this is simply not true and demonstrates a lack of understanding on his part.

One of the main benefits of working with independent reps include a quick route to Market by being able to tap into existing networks of contacts that have been built over a number of years.

I've written extensively on this topic and have collaborated with many self-employed sales professionals to put together an article called '10 Things To Understand When Working With Independent Sales Reps' which i'm sure you'll find useful.


Farley C. Duvall
3
0
CEO & Co-Founder - White Bull
As a former "bag carrying sales guy" and now CEO/Chief Sales Guy of my own services firm, I agree with the various forms of "If you pay peanuts, you get monkeys."
Having looked at the Vizlore site, I still don't have enough info to recommend a sales approach for you. However, looking at your Advisory Board, I don't see anyone with a high level/pure sales background (congrats on getting Toby Redshaw, who I am connected with). I would suggest recruiting a seasoned sales exec to your advisory board who can help steer you in the right direction and maybe even assist in recruiting sales people (or a head of sales to build a team) from his/her network.
Best of luck!
Neil Licht - HereWeAre
4
0
Want To find-close Business Online without competition Before They Google Search? We solve this problem 1(508)-481-8567
Manufacturer's reps may be a good avenue for a fast ramp up and long term sales/market development for your new product/service without requiring breaking your bank in upfront costs. They work on commission, have the local respected reputation amongst your natural/ideal target markets and prospects so they can get your products accepted and purchased. Thay also have the right contacts who deeply trust them as a resource that they can leverage toget them and you both product acceptance and sales.

That channel also works because It's their established and respected reputation instead of your own "new kid on the block" reputation that gets the sales and a fast ramp up for actual sales that you need.

Because Manufacturers reps are independent business folks who work on commission only, they are rarely pioneers for new products. Knowing this, You will have to find a way to make the sales partnership a natural and profitable fit for them.

To find the Manufacturer's rep sales group/channel that can and will work well for you even though you may be a "new" product, idea or service: Research a bit

- First look for what other products and services does your product naturally compliment?

- Next, Searchgoogle for manufacturers reps who sell those types of products or services.

- Next, approach them with you being a very natural ad on for what they already sell or a stand alone that fits their targeted markets and customers.

Next, Qualify them re commitment to you, fairly reliable projected results, time to ramp up/sell and if they are right for do this:

- Instead of asking them to be your reps, ask them why you should chose them to be your reps. That conversation yields just how committed they could andwill be, how much they see your product as a great opportunity and how/why they would/could be successful for you.

Based on that, select the rep firm and write a sales contract that is clear in its mutual support,expectations plus lets them have the product as an exclusive in their territoty. Defineexpected results and the time period in which that must happen. That makes the rep firm have a stake in the game and it gives you an out if they font work out.

I've gone to market for years in one of the most competitiveindustries, the physical security industry and it has worked exceedingly well. Good Rep firms can afford the selling time needed. Its a pay for success path so it offers a good affordable sales path but it works v hiring straight commission sales people who can't fund the ramp up time and if sales don'thappen fast will quit.

Please consider this Manufacturer's Rep route as the best way to get the sales side ramped up quickly and successful for both the short term and long term.
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