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

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If you have to choose between a sales rep and marketing your product, go with the sales rep until you generate enough money to market your product. However, there are alternate marketing strategies that are free (only costs your time). Create a company blog or join forums that targets your products industry.

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Salisbury, your original post was more than 10 months ago. What has transpired since then?

Paul

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Thanks for your interest, we ended up getting one salesperson, then hired another after 3 months, primarily paying commission and it improved our revenue over 30%!

That's great!

Have you given any additional thought to your marketing structure and program?

Keep up your excellent work!

Paul

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Hi,
This website is tells about marketing and sales .If you appoint a good skilled person as a marketing representative then you can get good response.Otherwise you maintain good quality and at reasonable prices you can earn more profit in a few days.This is my opinion.
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Joel

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