Commission-only sales agents are very different to working with in-house sales employees. It is vital that in order to attract self-employed sales professionals you understand the 10 most important things they look for before agreeing to represent a company.
CommissionCrowd is a revolutionary global platform that allows self-employed sales agents and companies to connect, manage your relationships, and work more efficiently together.
This top 10 list was based solely on a survey they carried out with the commission only sales reps on their database.
3. Industries & Companies that work with self employed sales agents
Example Industries
Business Financial Consumer
Services Services
Goods
Health
Care
Manufacturing
Example Companies
Fact: Over 35% of Fortune 500 companies will utilise at least some outsourced
sales in their businesses between now and 2015.
High
Tech
4. Benefits of working with self-employed sales agents
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Reduced up front costs and risk associated with
taking on new paid employees
Being able to utilise self-employed sales
professionals that have pre-existing contacts
based on years of experience within a particular
industry(s)
Not reliant on local talent. Expanding your search
can lead you to truly great sales people
Enter new markets with the help of agents who
already understand key players, culture, issues,
competitors and opportunities
Professional self employed sales agents usually
share the same business objectives as the
companies they have working relationships with.
Commission-only sales jobs
6. What is a self-employed sales agent
• Entrepreneurs that choose to work
for themselves
• Have vast sales experience and an existing
database of industry specific contacts
A self-employed sales agent is not
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• Looks for product/service lines that
compliment their existing client base
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• Wants to break away from the constraints
of employment
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• Has drive, ambition and focus
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• Aims to build a portfolio of companies they
work with
Someone so desperate for work they
forego a wage
Someone that will represent a
company with poor products/services
Willing to work for low levels of
commission
Looking for short term/get rich quick
partnerships
Is NOT an employee
9. Connecting
There is a lack of
understanding
Fragmented Industry
Expensive and not
targeted enough
Uncertainty around
sales agent/company
track records
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10. Managing
Existing technology is
obsolete or fragmented
Remote working
relationships are
complex
Unsure of pipeline
status. Losing leads
No oversight on
schedule, activity,
training
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11. Collaboration
Company
Information slow to
distribute and share
Difficult to share
learning across all
sales agents
Difficult and timely
to share feedback
from customers
Control over access
permissions and
shared documents
www.commissioncrowd.com
12. INCREASING SALES
Multiple reports in various
formats are time
consuming
Bad first impressions lead
to bad relationships
Slow sales due to endless
reporting and other tasks
that take away from
selling
Poor management stunts
growth
13. Top Sales Agent
Challenges
Knowledge,
Trust &
Communication
Commission
payments slow,
reconciliation
difficult
Need to spend
more time
selling and less
time reporting
Financial risk &
pressure
Managing
multiple
lines/companies
www.commissioncrowd.com
14. Top 10 Factors Sales Agents Consider When Deciding Which
Self-Employed Sales Job Opportunity To Take On
www.commissioncrowd.com
15. CommissionCrowd surveyed a number of professional Self-employed
(commission-only) sales agents on our database and asked them to
rank the factors (excluding product/service type) they consider most
important when deciding whether to work with a company or not.
www.commissioncrowd.com
16. The following 10 points will help you think in the same way
a professional self-employed sales rep thinks, and will help you
to better understand how to structure your company’s opportunity.
Self-employed sales reps
www.commissioncrowd.com
17. Top 10 Factors A Professional Self Employed Sales Agent Considers Before
Deciding If A Company/Opportunity Is Right For Them
1. Honesty & Integrity
2. Communication
3. Management Attitude
4. Reputation
5. Commission Structure & Offering
6. Attitude Towards Sales Reps
7. Marketing & Samples
8. Professionalism
9. Payment
10.Customer Service
www.commissioncrowd.com
18. #1 - Honesty & Integrity
Acting honestly requires us to intend to be truthful, accurate and
straightforward in all communications so that others are not
misled or deceived.
Make sure honesty and integrity is reflected in your opportunity
• Don’t over-sell yourself/company/products/services
• Be truthful and honest about the amount of business you currently have
• Be honest about closing ratios, sales cycle times and earning potential
www.commissioncrowd.com
19. #2 - Communication
The ability to communicate effectively with your sales agents is vital.
It is important to know that you are not only there for sales support,
but when they need to refine their pitch, better understand your products
or are simply having an off day.
Support your sales agents and they will support you. Remember to think
About your support strategy and how you can be there for your team when
they need you. This must come across when discussing your opportunity.
www.commissioncrowd.com
20. #3 Management Attitude
Self-employed sales agents are NOT your employees!
While the terms of your working relationship should always be pre-defined,
It is important to have a strategy in place prior to working together.
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How you approach your relationship with self-employed sales agents Employee vs. Partnership
How you resolve issues
How you set and manage expectations
How you encourage and anticipate their needs
The respect you show them in terms of their value and time
How you understand their challenges and how they like doing business
How you support them and your clients
How you give and receive feedback
How you encourage, train, manage and empower them
www.commissioncrowd.com
21. #4 Reputation
Reputation is EVERYTHING to a good sales agent. It is unlikely that
A company with a poor reputation will attract quality self-employed
Sales agents.
If your company has a great reputation then shout about it and make
Sure when crafting your opportunity that you showcase why:
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Client testimonials
Awards
Reviews
Social Media sentiment
Other successful sales agents
www.commissioncrowd.com
22. #5 – Commission (Earning potential)
Can your sales agents really make money from your opportunity?
No, but really… Can sales agents make money from your opportunity??
We’re not talking about pocket change (Pay peanuts, you get Monkeys):
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The most important thing you must consider is the earning potential for your opportunity.
can an agent actually make a decent living selling your product/service
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Agents love residual commissions *see next slide
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Give us much as you can and still make a profit – be fair & transparent
“what would you prefer, 50% of everything or 50% of nothing?” – Dragon’s Den
www.commissioncrowd.com
23. #5 – Commission (Earning potential)
• Show both conservative and advanced earning potential
• Offer added incentives if targets are met
• Consider compensation for:
• New business
• Existing customer upsells
• Retention / win-back
www.commissioncrowd.com
24. Thinking About Your Commission Structure
Getting your commission structure right is essential! You can have the best product or service in the
world but if you pay peanuts you get monkeys.
In order to attract the best self employed sales agents and stand a chance of growing your business,
you must be willing to compensate your agents adequately.
Residual Commission Structure
Probably the most effective commission structure is the residual commission model. This is when your
sales agents are paid a percentage of any repeat orders that come around due to initial business which
has been closed by your agent. This is also the case if your services are billed to the client monthly.
There are three reasons why this structure works well:
1. Your self employed sales agents will work very hard to close new business and add to their existing
commissions. Their earnings have the potential to grow rapidly and it acts as a guaranteed income
after a while.
2. Your sales agents will be more willing to manage their own accounts as they will want to keep their
commissions coming in for a long time. This frees up more time for managers to concentrate on
other areas of the business.
3. You stay top of mind (so long as they also like to work with you)
www.commissioncrowd.com
25. #6 - Attitude
Attitude is everything when it comes to working successfully with self-employed sales agents
You must recognise that self-employed sales reps are not your employees. They wish to be seen as
partners in a business.
You must be willing to accept the level of information your reps want to share with you
Share the attitude that your sales agents are looking for long term partnerships and not short term
solutions
You can never be tempted to let a sales rep go for being ‘too successful’ and earning very high levels
of commission
Attitude works both ways. If a sales agent has a bad attitude, steer clear!
www.commissioncrowd.com
26. #7 - Samples
Do your self-employed sales agents have the tools they need to sell effectively?
Are your products samples, company literature & website up-to-date?
Are you willing to invest time/money if the answer is no?
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Your sales agents need great samples to show clients
Your Marketing materials need to be up-to date
Are you willing to invest in new materials if needed?
Is your website up-to-date?
What kind of materials will your team need in order to do business?
www.commissioncrowd.com
27. #8 – Be Professional
Be professional – pretty obvious but very important to remember!
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Don’t get into the ‘friend zone’ too quickly.
Keep your word
Give your full effort
Act appropriately
Be knowledgeable
Be generous
Be honest
www.commissioncrowd.com
28. #9 – Paying Commissions
• Not all agents will look for a short sales cycle and short pay periods.
Some agents like a mix of long and short sales cycles in their pipeline.
• Agents understand that there is likely a delay in receiving commissions
as you will need to collect payment from customer. Be open and
transparent and clearly set out pay terms. Then stick to them.
• Communicate any issues or delays immediately!
www.commissioncrowd.com
29. #10 – Customer Service
Poor customer service will not only lose you your clients, you’ll lose
your sales reps too!
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A sales agents main priority is keeping their clients paying and recommending your services so they can earn more.
Lose their business and lose your sales agents with them.
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Agents need to know that you can service your customers in a timely and efficient manner
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They need to know what kind of support is available, how you resolve issues and generally how reliable it is
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Let them know the level of support available to them and to customers and how happy your existing customers are too.
www.commissioncrowd.com
30. CommissionCrowd is a revolutionary global platform that allows self-employed sales agents
& companies to connect, manage your relationships, and work more efficiently together
www.commissioncrowd.com