My proposal: proof of concept of few months
I propose your company to try the exselling® method for a few months, to achieve two objectives:
- To identify sales opportunities in several markets chosen as targets
- To close sales in qualified prospects in those targeted markets
If after the proof of concept you are satisfied with the results, we will go to the next phase of the program: to penetrate initially developed markets, and to develop new markets.
Fixed fee and sales commission
To perform the 6 tasks that I describe in the «exselling» section, I charge a monthly fee of USD 1,500 (one thousand five hundred US Dollars).
The purpose of this fixed monthly fee is to cover (in part) my costs - which are also fixed - of time and other resources needed to carry out these tasks.
However, this fixed monthly fee is soon eliminated through a mechanism that I explain later in this section, which I call Commissions Accumulation Balance.
In addition to said monthly fee, I charge your company a percentage of commission on closed (and collected) sales. This percentage is mutually agreed upon between your company and I, and it depends on the price-margin-cost structure of your products or services.
I apply the monthly rate always and without exceptions
I don't work solely on a «success basis» (as some call it a scheme where one is working for free, and only receiving a retribution when sales are closed and their corresponding commissions are collected).
I have tried in the past this «work now, get paid later» scheme, and it doesn't work ... neither for me nor for the company that hires my services. At the end of the day the results have always been disappointing for both parties.
There are two compelling reasons to charge a monthly fee at the start of a sales program like the one I deploy with exselling®.
The first is that the 6 tasks - especially continuous prospecting - I do perform to generate sales for your company take a lot of time and other resources, and these resources cost money, which must be covered especially at the initial phase of the program.
Otherwise, I will have to cover those costs by prioritizing my work for other supplier companies that do pay me the monthly fee, and/or for companies whose products or services are already bringing to me sales commission incomes, and therefore I would postpone my sales job related to your company (provided I agreed to work for you on a «success basis») for when I had enough time to do it ... that is: never.
On this subject of my remuneration for the commercial services that I provide to providers like you, it is very true an axiom that is very popular among economists: «(in the economy) there is no such thing as free lunch», which means that no benefit can be obtained without incurring any cost. The key is that the benefit is higher than the cost, and for that there are the sales methods, such as the one I apply from exselling®.
And the second reason has to do with what is known as the «Reciprocity Principle», which says that for an agreement between two (or more) parties to work well, if one party demands something from the other(s), the demanding party must be willing to contribute to the agreement the same or similar aspect, so that there is always a fair and balanced relationship between the parties.
In other words, if you ask me to work on a «success basis» I could ask you to work on a «success basis» too. That you work on a «success basis» would imply that you would give me full support from your staff, your time and other resources to assist me in my sales efforts (in demos, presentations, etc.), and that you would give me all this support without you harging for it. That means that instead of collecting from a customer the price you established for your product or service, you would give away it to the customer for free when closing the sale.
How and when would you receive some money from customers under this «success basis» scheme?
You would receive money from a given customer to whom I sold your product or service if and only that cusomer succeeds while using your product or service, defining their success as the situation in which they achieve two objectives: (a) a full R.O.I. (return on the investment) they incurred to acquire and learn to use your product or service, and (b) a gain over that R.O.I. point, as a result of using your product or service, which should at least be equal to the price you intend to charge the customer for your product or service.
It is obvious that neither you nor any vendor would accept to work under this «success basis» modality with customers, because their own success does not necessarily depend on the quality of the product or service of the vendot that provides it, but on factors that are often inherent to customers temselves... and, in addition, every vendor needs to cover its operating costs in order to stay in business.
By following the same logic, I also need to cover my operating costs, especially since they relate directly to selling your product or service.
Commissions Accumulator Balance
The Commissions Accumulation Balance (hereinafter «SAC») is a financial mechanism that I apply in each sales program, and that makes the monthly fee I charge at the beginning of the plan to get removed altogether in the short term.
It works similar to a savings bank account in a bank.
When the first sales are closed, I register the amount corresponding to my commissions in this account that I call SAC, but I do not charge you for these commissions.
As more sales are getting closed, the balance of SAC increases, and when this balance equals the amount of my fixed monthly fee, from that moment onwards I stop billing such fee, and thereafter my income will come only from commissions for future sales.
It is a simple and effective mechanism, and it is based on plain common sense:
At the beginning of the sales plan there are no customers yet. The «wheel is standing still» ... and it's quite hard to have it spinning.
But shortly after the first sales get closed, we have already some customers that can act as referrals for new customers, thus making it easier for the «wheel to start spinning» faster and easier.
Likewise, having reached this point of the sales program, further sales will - presumably - come in more easily and also faster than at the beginning of the program. And so the financial support of the monthly fee will no longer be necessary.
To learn more about hiring terms for exselling® commercial services, click here.