You
create competitors when you hire commission only sale representatives
Know With Whom You Are
Doing Business |
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
How does Palms & Company do on its own website? Ask us for the URL
Awards Microsoft, AT&T, IBM London Financial Times Etc.
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