We offer agile app development as a service and it has longer sales cycles. We need to be constantly concerned with pricing due to the high cost of development. Making a base salary that they must first generate 150% of in a quarter is the initial idea on compensation, but being early and the long sales cycle, I am wondering if there are any thoughts or tips on how to approach this.
Naturally, the best sales people are going to need to be well compensated. Equity is always an option, although startups often want to avoid this. You, as CEO are the 'sales person in chief', so either you're ready to put in the compensation for someone senior, or you could hire an inside sales rep to generate and maintain leads for the CEO to pitch for. Hope this helps. Take a look at my LinkedIn profile for some B2B sales strategy articles I've written. You can start with this one: https://www.techinasia.com/talk/b2b-narrow-focus-risk-no-appeal Good luck! https://www.linkedin.com/in/patriciareed/
Hi Adam, I'm founder of a startup called Sellcrowd (www.sellcrowd.com.au, moving to .com in a week). We're an app / marketplace for hiring top sales talent by the hour. Lead gen into DSR's then a high empathy face to face salesperson is the B2B sales funnel that will work. You could hire per hour on our marketplace for each step in the funnel and it will go a long way to reducing your costs.
ps shout out to any sales guys on this platform, if you want to earn up to $70 per hour doing sales in your spare time, get in touch. lloyd at sellcrowd dotcom.
A mentor of mine used to say - "profit is a privilege earned only when you have revenue" !!
Couple of ideas for you to consider:
- Invest in fewer but more seasoned sales people who will
- value equity
- accept longer sales cycle
- invest in building/closing a pipeline with at least 4 quarter outlook
- be able to do consultative sales selling which is critical for services
- With longer sales cycles typical of services
- 150% of base while by itself not too high a productivity target, will discourage seasoned sales people
- Offer lower base salary plus pro-rated commissions with a 6 month clawback clause if a pre-defined % of deals are not closed after 2 quarters
- While not optimal but you could hire sales reps as contractors on commissions only with a clause to handover the pipeline in 6-9 months when you could bring on full time sales people
Hope this helps
I see a confusion between marketing and sales here. Unlike marketing, the sales department is an ordered systematic work. in Marketing there are more creativity, failure and success. The question is do you have a marketing and sales strategy? if yes you have only to follow instructions, if not you have to build one, start by observing competing companies how do they act, which message do they spread... Good luck