We are a small technology company and we are considering hiring a sales rep rather than having the two founders of the company doing the work. The problem that we are having is whether or not to take those dollars and invest them into marketing versus a sales person - any thoughts? Have you had similar situations?

Pay the sales person on commission only. Give them a draw to float them through the month around the 15th of the month and pay them the commission earned less the draw around the 30th of the month. This way you your paying sales person on only what they produce. Your not losing anything. As long as your product/service is good you shouldn't have a problem finding a sales person that is up to the challange. (You would be suprised how many sales people work this way)
Before starting my own business I was a sales person that made 15% commission off everything I sold. The sales person and the company make a lot of money this way.


Joe

I agree this should work as long as this is what the competition is doing if not you need to re-look at your compensation package, you may have to pay part of the comp on a salary basis