Commissioned Sales (lender, insurance, profit, organization)

[PalmGuy]

Ok, so we launched a company in SW Florida and is doing well locally. 2 of us have been responsible for the growth so far. Question is how do we grow now beyond our current area. We do not have budget yet for a sales payroll. Do commissioned only sales pros exist ? Could be lucrative monthly residual payments with unlimited growth. Our endgame is the national. Any helpful comments appreciated...

[MrRational]

Originally Posted by PalmGuy

Ok, so we launched a company in SW Florida and is doing well locally.
2 of us have been responsible for the growth so far.

Question is how do we grow now beyond our current area.

Training. Grow your own sales team then leapfrog territories.

Put the newbies in to cover the current customers/area...
then send the 'old pros' you have out to break new ground.

We do not have budget yet for a sales payroll.

Then go back to the ownership and the board and the lenders. You can't NOT have a sales force.
If it's a real deal product (or even a service) you can get draw:commission people.

Do commissioned only sales pros exist ?
Could be lucrative monthly residual payments with unlimited growth.
Our endgame is the national.

Are you manufacturing something?
Independent Mfr Reps could do... LINK but they aren't a short term commitment.

[PalmGuy]

No manufacturing. It's a limited membership site. And sales would ideally be long term. Grow and nurture/retain clients.

[High Altitude]

You have to invest money to make money or take on a new partner with an equity share who is an expert in sales and developing a sales force who knows people, and convinces them, to work 100% commission for you.

[concept_fusion]

Originally Posted by PalmGuy

No manufacturing. It's a limited membership site. And sales would ideally be long term. Grow and nurture/retain clients.

Sounds like since it's an online site, your best bet might be affiliate marketing or co-registration campaigns. I'd recommend reading any book by Matthew Paulson on online business.

[MinivanDriver]

Originally Posted by PalmGuy

Ok, so we launched a company in SW Florida and is doing well locally. 2 of us have been responsible for the growth so far. Question is how do we grow now beyond our current area. We do not have budget yet for a sales payroll. Do commissioned only sales pros exist ? Could be lucrative monthly residual payments with unlimited growth. Our endgame is the national. Any helpful comments appreciated...

Yes. Don't do it until you have a solid local organization. Then only enter a new geographic market when you can do it correctly.

Because if you're asking someone to work remotely on the come, you likely won't get anyone worth a damn.

[calnbs]

Yes, commission only exsist and thriving but there must be great incentives for someone to come on board with your company. The commission only pay must be greater than any offer you can give to a person with based pay+commission.

My past experience is in Insurance industry, so I'll give you an example of the difference between a commission only vs based pay+commission.

For example, if I own an Auto & Home Insurance Agency

Based Pay+Commissions: $13-$15 an hour+20% commission new business. No Renewals, no residual pay even if the client renew.

Commission Only: No hourly pay. 75% Commission for new business. 60% Renewal Commission when client renew.

[Listener2307]

Originally Posted by PalmGuy

Ok, so we launched a company in SW Florida and is doing well locally. 2 of us have been responsible for the growth so far. Question is how do we grow now beyond our current area. We do not have budget yet for a sales payroll. Do commissioned only sales pros exist ? Could be lucrative monthly residual payments with unlimited growth. Our endgame is the national. Any helpful comments appreciated...

Yes.
You are looking for a Manufacturer's Representative firm.

My wife and I were reps. We represented many manufacturers and importers in our field until we retired.

The way it works is, the rep firm arranges the sale, which is direct between you (the manufacturer) and your customer. Then you send the rep firm a commission check. So the rep firm never buys anything.

You will also need to learn about factoring. Factor firms "buy" the paper between you and your customer and pay you on the spot. Then they collect from the customer. It simplifies things so that your cash flow is almost uninterrupted.

You can find rep firms by attending trade shows or maybe advertising in trade type magazines.. You will need to set up a booth at a trade show and in the process of selling your product, various individuals will come around and ask if you are looking for reps.

You have a lot to learn and I hope it will be profitable for you!
We absolutely LOVED our years as independent reps.