Reply by Cliff De Witt

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Posted on Paying a sales person

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Cliff De Witt

130 posts in 2658 days

#1 posted 08-20-2012 04:59 PM

Do you have a customer base, does he?
If you do will he be working with that base?
If he will be, will he get paid on that base?

If you are both starting from scratch and do not have a steady order flow at the moment, I would go with a Hybrid for a set period say 90 days, after that time if the orders are not there he will not be either. I would expect a weekly review with strong follow up on both sides. So you can both know what to expect.

If he has a base of customers that he can bring to you then I would pretty much follow the same thing, but what is your sales cycle? I have worked like a dog on orders that took 6 months from initial conversation to order. The fact that I was not producing income was not because I was playing golf. If he brings in orders the first week from his old customer base all the better, but again as someone mentioned I would set any commissions on payment of invoice if you offer net terms that automatically means 30 days with no commissions.

Is he calling on consumers or retailers? Do you have a store front? What do you make? Do you custom make every piece or is it pulled from stock? Are there repeat and or multiple sales?

What is your deliver schedule? If he brings in an order today and you can not deliver for three weeks because it takes that long to produce the product, again the Hybrid covers you both.

Not a whole lot of information from the OP.

I would not work for someone that would assume that I will only take the money and not work for it. That just shows a decided prejudice from the start, if the salesperson is a profession he should be respected as one.

-- Trying to find an answer to my son’s question: “…and forming organic cellulose by spinning it on its axis is interesting, why?”

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