Skip to comments.Dave Says on Business Commission Only is Rare
Posted on 08/01/2012 1:31:38 PM PDT by Kaslin
I own a small business, and I pay my people on straight commission. Weve started growing a bit, and Im having trouble finding good, new reps who want to work under this kind of compensation structure. Does your team work on commission, and if so, how do you do it?
I love commission plans that rely heavily on incentives. I just plain love the idea of commissions. I mean, Id put my receptionist on straight commission if I could figure out how to make it work.
But honestly, theres hardly anyone on my team that works straight commission. The majority of my folks work on a small salary plus commission, or some kind of draw, until they get rolling.
Now, I dont want them fat and sassy and getting something for nothing. Thats not fair to me. But a broke salesperson smells, looks and acts desperate. They tend to promise the sky and deliver something a whole lot closer to earth.
The key is to find a happy medium. So I usually give my guys enough to get by, but if they want anything better they have to go kill something and drag it home. The base keeps the kids fed and the lights on, but if they want a little fun and some pleasure in life they have to work for it!
Ive been a real estate agent for three years. I was wondering if you think the idea of a business that digs up information about potential deals for real estate investors is a good one.
This is an interesting idea. The first thing I would do is see if theres an investor group in your area. These are the folks who would stand to benefit from something like this.
Chances are if you were to gather good information on tax delinquencies, bankruptcies, foreclosures anything with the potential to pick up a real estate bargain packaged all the information and did the crunch work, you could publish a valuable newsletter to which investors could subscribe.
These days, with everyone gravitating toward technology, it might be even more economical and appealing if you made the service available via e-mail or on the Internet. This way youd have no mailing costs, no paper costs and really streamline the marketing process.
Good luck, Charles!
One of my customers in the restaurant business owes me $9,000 for equipment purchases. I just got a notice in the mail that theyre in the process of filing Chapter 11 bankruptcy. Theres no lien on the equipment I sold them, but they gave me three posted-dated checks that bounced. Cant you go to jail for that kind of thing?
There is a criminal side to this situation, but dont threaten or even contact them. Theyre now under the protection of federal law, and theres an injunction preventing you from trying to collect this debt by any means other than the court system.
In a bankruptcy, the court and attorneys get paid first. After that comes payroll for the employees and then preferred creditors. If you can work your way to the front of this line because of all the bounced checks, youve got a better chance of getting your money.
If they do make it out of Chapter 11, they will submit a plan to the court laying out how they will pay creditors. This plan can propose that unsecured creditors get pennies on the dollar. If the plan is approved by the court, you could get little or nothing and they can emerge from bankruptcy and still be in business.
I have been in Technology Sales for 20 years, and the sales cycles are getting longer, and the bases employers want to pay is getting lower. For these reasons, I am getting out of sales ... I can make more money with less risk and fewer headaches elsewhere.
It's the best way to go.
Dave Ramsey ping!