4 ms·
It's entirely dependent on the product, the price it will sell for, the market, the amount of work needed to complete a sale and the total potential earnings.
by kerryfalk 15y ago
It's entirely dependent on the product, the price it will sell for, the market, the amount of work needed to complete a sale and the total potential earnings.
Any salesperson worth hiring is going to want to know these things and know that they've got a good shot at making lots of money.
Anyone who doesn't ask is either really inexperienced or is just throwing stuff at the wall until something sticks. If there's real potential to make more than $100k in a year then it's probably something an experienced salesperson will look at. Some residual revenue is always appreciated by not necessary in reality. It depends on how much work the things I listed above will be.
If you were to ask me to sell your product I'd want to know these things:
1) Who are your customers? (I want to know if you know who they are or if it's my job to figure it out)
2) What's the competitive advantage of your product? (Basically, what pain point did you choose to solve and why is it different from everything else)
3) What have the objections been from the customers you've talked to? (What are the deficiencies in your product and strategy? How long is it going to take me to overcome those.)
4) Who are your competitors? (I need to know who I'm in the race with. Lame ducks or marathon runners?)
With answers to those three questions it would be easy enough to figure out if it's worth continuing. B2B sales cycles are typically longer so an experienced rep would probably flesh it out pretty fully before committing. 6mo-1year sales cycles are not uncommon. Knowing that it could take that long to make any money they'll probably want to know that there's potential for high earnings and a very large potential market (Can easily fill a funnel of prospects worth more than $1MM).
In my experience it's best to find someone that knows your market really, really well and make it worth their while. There's no specific formula for % commissions (My splits have been all over the map), just make it reasonable for both of you.