Are We Paying Our Sales Team Too Much?

Enyko

Member
I want some opinions here on what you pay your consultants if you have them. We're paying our entertainment consultant (salesperson) $500 to $800 per week and I started wondering what you guys are paying your salespeople and how. Here is the formula we came up;

Each meeting is 1 hour at a local coffee shop.
We setup all the meetings in their calendar so they just go and do them.
Mileage & meals are figured into the below costs.

$20 per meeting regardless if they book or not
$20 additional per booked event
5% on all services per booked event

This comes out to a minimum of $110 per booked meeting and $20 per non booked meeting. Of course if they add uplights, ceremony service...etc that $110 goes up. Also we book about 95% rate since almost all of our consultations are referrals and not cold leads.

Anyway, since we just came up with these numbers ourselves we have no idea if this is "normal" way to pay. So we thought we'd ask.
 

RhinoRider

Member
Well we don't have a sales team here in Arizona- but if I was salesman I would jump on that!
I think it seems fair- I would also pay them after the event books, incase they don't follow through
 

JazzyJoe

New Member
The way I look at it is, if you are paying them that much then you must be booking 4 to 7 events per week? Things could be much much worse. Look at how well you are doing and be happy for that. Yes you could probably stand to pay a little less but maybe instead of trying to shed a few dollars off what you are paying them and having them be upset, maybe do the "clear channel radio" thing and ask them to just do a little more around the office for the same amount of money? Before you do that, make sure you have a list already in mind of the things you want done for that money and make sure it's realistic. Congratulations on doing so well in these tough times.
 

Bill_Goode

Mobile Beat Moderator
Staff member
I have had a salesperson, on and off, for the last ten years, and want to get serious about it again.

Our arrangement was different, but made both of us a lot of money.

First, they answered the phone. No one talked to me unless they talked to them first.

Their mission was to talk to the client, determine their needs, set appointments, cover the phone, work booths as needed, follow up on all web/email/other leads, attend networking events, visit venues.

I paid mileage, expenses, and commission of around 20% gross of whatever they booked. They had a floor and were free to negotiate as they saw fit. If I had to meet with a person before they decided on services, that was fine. They would still get the full 20% if the event booked.

I had two former brides and my aunt in this position. My aunt passed away four years ago form a heart attack, and the position has been empty ever since, but it is time to look at filling the position again.

On the tax side, I hired their companies, and not them directly. That way, they could take advantage of better retirement savings and tax breaks, and I would just pay their company invoice for services rendered. It was great since they all had their own marketing companies and repped for more than just me, but started out as a client (brides and my aunt came to certain events over the years to see me at work.)

Even if one has no money, there are ways to compile a staff. The cheapest way to get help is to look at answering services. That way, your phone is always answered and you can concentrate on next steps.
 
Top