In our book Profitable Sales; A Contractor’s Guide I talk about employing a salesperson. I’ve been asked questions about hiring salespeople for years and those questions, in part, prompted me to write the book back in 2007. In the past I’ve worked for some of the best remodeling firms in the country. Much of what I learned about sales and employing salespeople is based on that experience.
I’m a firm believer in straight commission sales. Everyone needs incentives, and commission sales provides an incentive to get out and do the hard work of sales. I’m also a firm believer in treating salespeople well. When they’re treated well, they’ll sell. When they sell, you win.
I received a note from a contractor early last summer that shows what can happen when you treat a salesperson right:
Hey Michael, been a loooong time. I just wanted to send you a quick note to once again thank you for helping me successfully hire and setup our first salesperson with great success. Last we spoke was July of 2017 as I was preparing to hire Bob. I used all of the guidelines in your Profitable Sales book and you coached me on how to transition him over a 4-5 month period from a small salary to full commission. Bob is an absolute Rockstar! So that is a huge ingredient, but with your principles and help our company has changed for the better.
We did 1mil in 2017, 1.65mil in 2018, and are approaching 2.2 million currently with a projection of 2.5 by year end 2019. Huge, scary, and appropriately unhealthy growth, but also a long time coming. Plus, Bob has never been respected and treated so well…so fairly, as he should be. You really helped shape my belief that the salesperson is the lifeblood of the company, that if we have a disagreement over a nickel, give them a dollar. I have complete transparency with Bob and he is earning a solid 8%+ on all gross sales. I don’t even sell anymore.
So thank you for everything you do. Thank you for the work both you and Devon do to make this industry better and more professional.
Our thanks to this contractor for sharing his good news with us. He’s running his business as he should and reaping the results.
(Did you know that Profitable Sales is now available as an audiobook? You can find it at Google Play or almost anywhere audiobooks are sold.)
The knowledge and experience Michael Stone gained in his 60+ years in construction has helped thousands of contractors improve their businesses and their lives. He is the author of the books Markup & Profit Revisited, Profitable Sales, and Estimating Construction Profitably, and is available for one-on-one consultations as needed.
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