3 ms·

True and probably why I was more skeptical than I ought to be. She did mention cold calling so that might be a fallback depending on how well her rolodex pans

• bmelton 13y ago
  Any time. The main concerns you have are what the percentages are, and how much margin you can actually afford, as well as what kind of book-keeping is involved to make sure that commissions are paid out if they're paid on future work. Make sure that giving away x% of something is still profitable (obviously), but more importantly, make sure that you're still making enough to acquire new customers, grow the business, etc. You can always raise your prices for new customers, but if you raise your prices on old customers, that means you're paying a higher commission if the commission included future work. Things like that generally take a little bit of tweaking, and of course, you have to pay electric, server costs, hosting, etc. The sales rep doesn't. Years from now, it might be harder to remember which sales rep sold company_x, and what the terms of the arrangement were. We found that the bookkeeping process was quite a pain in the ass. Expect to have to write something custom for that.