So, I need some advice from some of the guys that have hired a Territory Manager/Salesman for their business.
My company is doing about $600k a year. We have 5 FT Techs and an Operations Manager, and myself (owner).
We would like to hire a Salesman to generate new work, but I don’t know how to compensate him/her.
Could those of you who have gone through this before, give me some advice? Did you do pure commission? Part commission, part hourly?
What about his job duties? Did you include things like putting up yard signs, doing estimates, etc? Or did you have him only do door to door residential and in person commercial?
Any help you could give me would be very appreciated! Thanks and God bless.
Congratulation on your success. I was in sales and sales management all my professional life until starting my own small power washing company. You’re going to need to pay him/her some kind of a base or they won’t survive long enough to be successful for you or themselves. I found a declining base that rewards new business growth is a compromise that rewards both parties but focuses on the business owners main concern, growing the business. Whatever you decide their duties /responsibilities to be you must clearly communicate what you want. In the beginning, if you are concerned with them “paying for themselves” maybe give them some other duties, not specifically sales activities that would enhance their knowledge base or allow other employees to their job better. Since this is a new position to you and them regular conversation and feedback is essential. Last, don’t hire anyone you won’t fire. If you clearly lay out your expectation and they don’t do the work or follow the agreed upon plan you have to let them go. Good luck and hire well, you may be interviewing your next co owner.
Congrats, @masters, Sounds like you are doing something right!
And I agree with @Machit on the base salary. Having been on both sides- doing sales and hiring sales reps, a base salary has always been a necessity. It gives that mental comfort, especially when starting a new job, and guarantees at least some income. You obviously don’t want to give too much cushion- they still need that incentive to go out and get business.
Calculate percentages before settling on a commission rate. You don’t want to make too small and have it feel like an insult, and sometimes a nice number like 20% may see high on paper, but when you calculate the profit, etc, you and your employee still make a decent cut at the end of the day.
As far as lawn signs and estimates, I say absolutely have them do it. Those all fall into the sales game, and it can only help. Plus, it gives more responsibility, rather then just having to knock on doors or make phone calls. Give them quotas for estimates, have them research local marketing publications, etc.
Your company sounds like it is growing, and you need someone who wants to grow with you. Best of luck!!!
