Question
We're looking to hire our first sales member. It'll be the first full time person outside of the three founders. We've got a solid lead gen system in place (no cold prospecting), an easy system for signing up the client, and a different person to take the client live. We really just need a sales person to do exactly that - Sale. Our price point is $30 per month + a variable charge that usually puts smaller clients in the $200 range, higher clients in the $500+ per month range. Also, any input on how we can support this new position to make sure its a great success!
Answer
Compensation is an important factor when attracting and retaining talent on your sales team. However, sales compensation can be tricky to get right. Essentially, the shorter and simpler a sale is and the less impact a rep has over the customer's behaviour, the smaller the percentage of variable compensation should be. A less aggressive ratio is common when reps are required to teach the prospect because they are most likely selling an extraordinarily complex or technical product. A base salary plus a bonus compensation plan is common when your reps tend to consistently hit their pre-set targets. This approach offers a high level of predictability and still motivates your reps to close sales. But again, this prevents reps from feeling any motivation to over-perform.
You can read more here: https://blog.hubspot.com/sales/sales-compensation
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath
