You create competitors when you hire commission only sale representatives

 

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The idea of substituting commissioned salespeople for a lead and sales

generating online marketing program just doesn't work. Especially when

you can provide a truly professional website presentation to an unlimited

number of people. Offering a commission is admitting your product or

service doesn't fill a need on a competitive basis.

 

If hiring on a commission basis worked, advertising agencies wouldn't

exist. A company which imagines it can eliminate the necessity for a

good advertising program which generates leads, by paying commissions is

deluding itself.

 

HERE IS WHY

1. There is not a single product or service, such as for example 

web-design services, or anything else you offer, that your salesmen can't 

BUY from someone else for an amount reduced by your profit. 

If your services were Web-page design services, a commissioned sales

representative could place his sales contracts with suppliers  

in India, Russia, Romania and  Ukraine and pay as little as $8 per hour to 

have the work done

 

2. If you pay a commission only, your salesmen will become your 

competitor.

 

3. The "Salesman" whom, in one form or another, provides the advertising

budget that generates the product sale or services work contract, becomes

an employer

 

4. The commission salesman selects the supplier for the sales he has 

made, on the basis of the lowest prices consistent with quality. Any commission, no 

matter how  high, would represent a lower return to the sales representative, than the 

full spread between the supplier's cost and the amount the buyer has agreed to pay.

 

5. The only way the sale will be yours at YOUR PRICE, is if you provide 

an advertising budget that generates the leads.

 

6. If inclined to generate his own leads, a smart sales representative 

would invest his advertising capital in your stock, so you can use the capital to do your 

own  advertising, rather than spend his or her money on what ought to be your 

advertising expenses.

 

7. Commission compensation turns good sales representatives into

independent contractors and multi-company representatives. Leads

make him your representative.

 

8. Business Founders get capital investment with which to meet payroll 

for technical staff and administrative overhead. That practice ought to be

used for obtaining capital for an advertising and marketing budget that

provides sales staff with leads.

 

9. According to The Bureau of Labor Department statistics, the number

of people who claimed sales as a profession has declined by 87% from only

ten years ago.

Why?

 

There are many reasons that the profession of selling is now dead:

 

Salespeople have become spoiled

The economy was so good for so many years that people simply forgot how 

to sell. 95% of salespeople today fall into the "order taker" category.

There are very few salespeople who have learned how to make a sale 

happen. Most just got into the habit of showing up at the customer and 

expecting an order to be placed.

 

The signs of the deterioration of the quality of salespeople were

first noticeable at the retail level. There was a time when you could

walk into a store and be waited on and helped. Even in classy department

stores, the quality of selling diminished. This trend carried through to

the rest of American business in the 1980s and 90s.

 

After a while, you could tell there was really very little selling or

helping going on. This change of attitude from helper to order taker

lessened demand for salespeople. The indifference by sellers to their

customers and clients made them a less than valuable resource. People

started looking elsewhere to get their needs met. The Baby Boomers retired:

 

The previous generation grew up accustomed to dealing with salespeople. 

As the quality of salespeople and service in general diminished, their

loyalty and desire to be sold did as well. The younger generation, their

children, was raised on video games. Using the Internet was second nature

to them. This affected television viewing as well, as this generation's

lives became wrapped around what was on-line. As the Baby Boomer

generation aged, retired, spent less money and did less shopping, the

succeeding ones did more - but not in stores, but on-line instead. Demand 

for salespeople subsequently diminished.

 

Generation X and the Millennial Generation started buying things on-line

that nobody believed could be sold without human involvement: cars, life

insurance, computers. This paved the way for everyone to look at the

Internet as one big shopping mall, thus saving the time, effort, energy

and gas involved in actually going to a mall.

 

Substituting online advertising for salesmen makes a lot more sense than

substituting advertising with salesman.

 

Purchasing agents went to internet buying:

So much of selling has been built around people working a route in person

and/or on the phone visiting purchasing agents who are empowered to buy

stuff for their businesses. "We'll visit Joe today over at ABC Extrusion

and we'll hit Jane at XYZ Intrusion. They'll give us an order!"

Of course, these visits took up the time of said purchasing agents and

often, not to the company's benefit, the one who got the order wasn't the

best company or the best product or at the best price, but the purchasing

agent's buddy.

 

I knew that selling had permanently changed when I saw an article in The

Wall Street Journal in the late 1990s. United Technologies had decided to

do the majority of their buying on-line by putting what they needed out

for bid on a web site. What a great idea! Fewer purchasing agents. No 

more salespeople bothering the company. No more special favors to friends.

United Technologies and now other companies were saying: "Here is what we

need, in the quantity we need it, and if you want this order, bid on it!"

 

Lack of time to deal with salespeople:

An interesting phenomenon hit American Society in the latter half of the

twentieth society: "With all the labor-saving devices invented and

promulgated after World War II, both at home and at work, there was to be

an abundance of free time for adults and parents. What happened was

exactly the opposite: The average family had both parents working and 

they were working harder on their jobs than people in similar positions 

twenty  years earlier. Net result was less time for the family. This is 

but another reason for the demise of salespeople; the American consumer 

simply saw eliminating shopping in physical stores as a way to open up 

time for themselves.

 

Check Palms & Company Lead Generation Experience HERE

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