We help companies looking to scale their business through 100 Remote Sales Associates. We have reviewed successful companies, and modeled what works. We have established that high basics nor commission only remuneration formulas are not the answer. We do recommend, because we have tested and proved it as the most effective is what we call a RbR formula which we explain below.
Why High Basics rarely works for Blitzscaling.
High, competitive basics will produce a very high risk and fixed costs stopping rapid growth. They also take pressure off sales people and working home alone they already have the pressure greatly off. There is no boss in the same office watching and the competition of other sales people around them. It is a myth, encouraged by recruiters wanting higher fees and easier placements, that the best sales people are attracted by higher basics. The best sales people are attracted by high OTE. But that is just attracting them, making them profitable requires more.
Why Commission Only rarely works for Blitzscaling.
Commission Only requires a considerable support infrastructure and an experienced Sales Leader who has worked with commission only remote sales people. For most companies there is a sales cycle that makes the ‘carrots’ of commission a long way off. Hard to keep positive when ‘Pavlov Conditioning’ has the action and the reward separated. Not unsurprisingly it works in areas like home improvements and some personal financial products where sales people can earn and be paid easily in their first month. Sales Leaders have to be on Commission Only formula and be making deal themselves.
There are two distinct yes of what can be categorised as Commission Only Sales Professionals.
1. Career sales professional who are confident, experienced and know that their company is receiving a much bigger share than them of the deals they close. They also realise that their OTE would be much higher if they were not having to subside all this starters and those producing blow average or not at all.
What does work best for Blitzscaling
The answer is what we call a RbR system which stands for Results before Rewards.
We go into length of this but it can include a low basic, a variable basic, a three month induction period and most importantly payments for stage payments, work in progress. Results have to include clear stageposts towards sales not just sales receipts. All motivation can be defined as carrots and sticks, moving towards or away from something. In both cases the nearer the carrot or stick the much greater effect on motivation. So the company still has some cash flow to fund but it has clear tangible results providing a return on that investment.
Interview Process Days – Securing productive sales people.
|Junior Sales||Senior Sales||Sales Rental Agreement|
|Investment/Price||£20% + VAT per person
on starting salary
|£25% + VAT per person
on starting salary
|£350-£700 per month per person|
|Set Up Fee required
|£3,000+ VAT||£3,000+ VAT||Depends on brief|
|Replacement Guarantee Period||3 Months||3 Months||N/A|
|Average at event||10-30||6- 12||10-30|
|Processing Time||Full Day||Full Day||Full Day|
|Role Play Assessments (Optional)
(Tailored to client)
Leadership Role Play
Closing role play
|Basic Sales Training||Yes||No||Yes|
|Ongoing Direct Support and Consultancy||Yes|
|Client Consultancy on Admin/Marketing and Lead Gen Support||Yes||Yes||Yes|
|Event Venue||4 Star Hotel||4 Star Hotel||4 Star Hotel|
|Full Interviewing Process||Yes||Yes||Yes|
|Eliminations by SM||Yes||Yes||Yes|
|Investment/Price||£3,000+ VAT advance on 20% per person||£3,000+ VAT advance on 25% per person||£350-£700 per month per person. Plus £700 + VAT advance.|
Building a commission only sales team is appropriate when.
1. You have a quick sales cycle.
In this situation the top 10% of sales professionals often negotiate for a commission only deal. The reason is to earn a great deal more.
2. You are ready to scale with good products with a clear market. Commission Only finances you to scale with the sales people who make the deals getting a larger share of results. Or as one client put it. The equity and profits I would have given to shareholders I give to the sales team instead.
3. You want a remote based team.
This gives the advantage monitoring productivity. It also means we are free to recruit from any geographic location and offer much more choice. We can recruit worldwide focusing in places that have a reputation for quality hard working staff with a low cost/high quality of living.
4. You need people in various locations often internationally making sales visits to customers.
Commission Only often helps in securing the top 10% of sales people. They are confident they can deliver the goods and want double pay. Good formula for established products and reaches to market is proven. You will also need evidence of your earning potential.
Remember commission only will mean you are paying out on average a higher percentage of results to the sales people. It is more expensive than a basic and commission formula. That basic allows you to reduce the sales people costs because you are talking more of the risk then they are.
If you would like us to do it for you give me a confidential call me Alex McMillan on 07525916574 explain your current situation and goals and I will outline a practical way forward.