Posted by 2016-04-16
Title: hire sales reps
What is the best approach and place to find professional sales reps for a small business? This is the first time hiring and before investing too much time going in the wrong direction, I would greatly appreciate input. thanks.
I'm going to consult our experts and get an answer for you on this subject! Stay tuned.
For a small business, finding a sales rep is very challenging as often, the salary's fixed cost becomes an issue especially during the first 6 months to a year when training takes place and product/service knowledge is gained. Then, the salesperson should be able to provide a profitable return on the salary.
This would mean that you should have 1.5x to 2x the salary in the bank free and encumbered. If not, then the owner(s) need to hit the streets running, knocking on doors and cold calling if needed.
If you do have the cash, and depending upon the product or service offered, the best compensation plan would be a low base salary with a commission rider. Those who are good salespeople will make their money on the commission.
You need to ensure you have sufficient margin on your product and service to allow for healthy commissions on top of covering the marketing and operational expenses.
Also make sure that you take the time to hire the right candidate as it will cost you 2x the salary in opportunity cost to replace the bad hire.
The best place to hire salespeople is by reaching out to your trusted contacts with solid recommendations as these contacts should be forwarding a name who will help you in your success. Next place would be with a quality recruiter as there would some quality control. I mention "quality" as there are some out there who don't spend the time to screen applicants.
The last place would be job boards. But you need to comb the resumes and let your intuition work to find inconsistencies.
Hiring friends and family is often a popular route but a dangerous one especially when the resource does not perform and it becomes "awkward" to give that person some much needed advice or to let that person go.
Thank you so kindly Marayna, I greatly appreciate it!
Thanks greatly Sunil.
Hi Shelley: I am also a small business owner. Because I did not have the resources to hire a sales rep. with an hourly wage, I hired two gentlemen on a contract basis. This did not work out well at all.
We can all learn from each other - don't follow my mistake!
Hiring Reps suggests you are poised for growth. Congrats! I've been working with Reps for over 20 years in a variety of segments. Depending on your product or business segment, I may be able to offer some advice if you are working with consumer goods.
Thanks for the great post on your blog, it really gives me an insight on this topic