7 Things to Beware of In a Sales Job Offer
September 19, 2008
In a separate article I mentioned that often it pays off handsomely if you accept a commission-only sales job.
Typically, if youre willing to work hard and accept some risks, the rewards can be outstanding. I illustrate this point by referring to a fellow who earned a million dollar commission from a single sale.
But before you take a job that offers a pay for performance package, beware of seven tricks of the trade that employers use that can make what seemed like a sweetheart deal a bitter experience.
(1) Are the earnings claims justified? Often, theyre bogus. Recently, I checked out a situation where the owner asserted $2,500-5,500 could be earned each week. But no one had ever earned either amount because the job had never been done, except by a mystery rep that was no longer employed.
(2) Beware of hidden ceilings on performance. In the same circumstance, there were only 30 sales that the owner could fulfill each month, given his availability to tender the service, which depended on him. He was offering a $600 commission for each sale made. If you made all 30 sales, you would earn $18,000 per month, but no more was possible. (Remember, the $5500 per week that was quoted? That would amount to about $23,000 monthly. Theres a big difference between 18 and 23.)
(3) Watch out for obvious or subtle sales territory conflicts. The owner was hiring 3 reps, so if each were equally skilled, he would sell 10 of the 30 orders per month. That means, practically speaking, each rep could be expected to earn no more than $6,000 per month, unless some sellers were allocated more slots than their peers.
(4) Be aware of any after-sale cancellations by management. If they retain the right to arbitrarily refuse a deal, theyll do just that.
(5) Evaluate their charge-back policies if customers later cancel or fail to pay. Also, the amount of sales reserve companies keep, typically 10-20% of your commissions against charge backs, is negotiable, as is the timing when withheld monies must be released to you.
(6) Is there an ongoing commission paid to you based on re-orders from the business you originally put on the books? Or, are you being hired merely to produce fronts or first-time buyers, while the house keeps the full value of reorders?
(7) Is this employer honest? You can try to talk to those who are currently selling to see if their pay is timely and accurate. You can also contact Dun & Bradstreet and the Better Business Bureau to determine if the firm pays its bills or elicits complaints. Theyll check your references, so why not check theirs? Until they pay you, in effect youll become one of their creditors.
Tune into these and other clues that you can detect, and youll be more likely to affiliate with the kind of firm that will take its responsibility to reward you as seriously as you do.
Dr. Gary S. Goodman is a top trainer, conference and convention speaker, and sales, customer service, and negotiation consultant. A frequent expert commentator on radio and TV, he is also the best-selling author of 12 books, more than 1,000 articles and several popular audio and video programs. His seminars are sponsored internationally and he is a faculty member at more than 40 universities, including UC Berkeley and UCLA. Gary brings over two decades of sales, management and consulting experience to the table, with impressive academic credentials: A Ph.D. from USC, an MBA from the Peter F. Drucker School of Management, and a J.D. degree from Loyola Law School, his clients include several Fortune 1000 companies..
His web site is: http://www.customersatisfaction.com and he can be seen on CNBC at: http://www.cnbc.com/id/15840232?video=417455932# and reached at: gary@customersatisfaction.com His blogs include: YOUR CUSTOMER SERVICE SUCKS! and ALWAYS COLD CALL! at: http://www.alwayscoldcall.blogspot.com
Telemarketing Sales Lists
Telemarketing sales lists play a vital role in making a business successful and profitable. But the lists must consist of handy leads. You have to make sure that the telemarketing sales lists are updated regularly. In needed, you will have to do away...
How To Make A Winning Sales Page
Being able to write a winning sales page is an essential skill in internet marketing and one that you must learn to do well. The difficulty most people have with writing a good sales page is they try to be too clever. Dont. A sales page isnt about...
The 15 Time Wasters of Inside Sales Departments - #2 - Poor Hiring
TIME WASTER SERIES #2 of 15: Poor HiringMany sales organizations spend a great deal of time and money on systems, leads, and facilities only to forget the most important thing: building a strong sales team.Before you hire your first employee, identif...
Sales Training Tip # 26; Cold Call or Sales Call Interruptions
The sales training professionals need to insure that their sales force can handle interrupted phone calls without losing their train of thought and without being upset or irritated at the prospect. If you are a salesperson obviously you will be inter...
How to Write a Sales Page
How to Write a Sales PageWriting a sales page is very simple. This outline will give you a brief overview of the major points needed to complete an outstanding sales page.1. Make sure the message of the sales page meets the needs of the target audien...
The Top 10 Reasons To Outsource Sales Appointment Setting
There are myriad reasons to outsource your prospecting, cold calling and sales appointment setting duties. Suffice it to say, the sales game has changed and you need the best methods to win the most sales. Outsourcing your sales prospecting makes sen...
Expect a Flood of Foreclosures Over the Next Two Years
A new report by Global Insight says foreclosures could drop U.S. property values by more than one trillion dollars next year. And few cities will be spared. Buyer beware. Mortgage holders beware. All Americans should be concerned.The nation`s major m...
Cold Calling and Charting Progress
If you are in sales cold calling is a great way to get sales appointments and quickly weed thru those who are interested and excited about what you are selling and those who are not interested.Some people believe because cold calling is a percentage ...
Targeted Autoresponders - Making Business Flourish in Just a Nick of Time
Imagine this you have set up a business online and sales are doing well, but you have a problem on responding to queries and requests about your products and services. There are other things that need your attention, but you do not want to compromis...
Cover Letter Salary Requirement - Win the Game
Cover letters are often the most difficult portion of the job application process. While you want to provide a good overview of the details that are pertinent to the position and whether or not you qualify there are times when a certain bit of inform...