Sales plan

[keepr]

I have been thinking about offering commisioned sales people 2 months profits.

Here is the basic breakdown: We will use our advanced plan at 19.99/mo

1st month Customer pays only .01

Second Month:customer pays 19.99 and 100% goes to sales person.

Third Month: customer pays 19.99 and 100% goes to sales person.

Forth Month: We own the customer and retain all profits.

What do you guys think? We have been in business for a few years and are basically paying our expenses via from hosting profit right now and making extra money on web design. I don't want to dedicate inhouse resources to sales at this point so I came up with this crazy scheme.

[Naeem|THB]

Hello,
How about a fixed fee for them per sale, That way its over and done with and its not another thing to worry about, Im not sure if commision based work is the way to go could you not work on a fixed monthly/hourly rate?
Regards,

[RiderMayBail]

What happens if the customer leaves in fourth month?

You just hosted a client for 3 months for $0.01

[beley]

Why not try a prorated bonus paid in advance? Sounds complicated, but a lot of companies do this...

When someone signs up for a plan, give the salesperson the full bonus, let's say $40 for starters. They keep the cash, but if the customer cancels before the 3rd month is over they have to give back a certain amount of the bonus (or rather it's just deducted from future bonuses).

This is pretty much how the entire retail world runs. If you are in retail sales (like at a department store) and someone buys something you get credit and comission for the sale. However, if they return it in a month (after you've been paid) they just deduct that comission from your next check.

This works really well because it gives salespeople great incentives to sell - they get the money really quickly. It also discourages them from lying or deceiving the customers, because if the customer cancels they lose their $$.

[consul]

Hi!

I am reading over this and learn a few insights. Thanks.
Let me share to you what we are doing.

We know some web designers locally. Technically, they are competitors, but we don't treat them as such. They design websites and get the sites hosted by us. What we do is give them a 10% commission for the full year of hosting which is done one-time only. We noticed that we ended up hosting more and more websites from their clients because they like the upright commissions.

When the client leaves us, we don't take back the commissions. I mean it is not their fault if the client leaves. The client maybe looking for alternatives and just could not further afford the hosting and other reasons.

Thanks again for sharing.

:)

[asp-hosting.ca]

It might work for you, especially if you are working with local designers...

[HostsWebs]

From web hosting mind-set, I would say that is a no go!

Than again, I might be wrong because I have never done such a thing.

If I were you, I would try to create a fixed percentage per sale. I would not pay the sales person two months of solid pay, unless you have a server that is from the God's. :kitty: