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Thread: Employing a salesman

  1. #1
    Silver Member
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    Sep 2008
    Cape Town
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    Employing a salesman

    I own a couple of sports shops and just about everyone asks “have you contacted the schools”, I have, for the last couple of years, gone, errr, no. Now, I know there is business there, not just in schools, but in prisons, municipalities, sport clubs ect – and am in a perfect situation to make those deals happen. I have, when contacted, supplied municipalities with items in the past, but would now like it to be another side of the business, where I actively search for that business. Problem is, I hate cold calling – not sure what it is, have no problem selling if a person comes into a shop or phoning…maybe I am just a tad shy.

    Anyway, have found a person a little down on his luck, but by all accounts seems like a decent bloke that is quite keen on forming an informal partnership and visiting the schools and other end users. He’s been a salesperson most of his life – and , watching him, he’s a pretty hard worker.

    He has a job offer that might come through – a 9 – 5 job, he’ll be finding out pretty soon. He also has a part-time, nights (bar) job at the moment.

    He’s seems quite happy with a petrol/phone allowance and spending a few hours meeting/greeting/introducing the company to the users. And if he leaves, he leaves. I do not think this is fair – if he makes these contacts, then leaves, surely he should get a small commission in future profits, limited to a year or so?

    At the moment I think he will spend around 15hrs on the job – with a 50/50 split of any business that he brings in – what would be a fair petrol/cell phone allowance be? Do you think it would be better (as he might only be here for a couple of weeks) just pay him straight out for the meet and greet service? Should I be thinking long term (where he could, in all honestly be ripped of), or think short term, use his services, pay weekly and if it works make a new plan?

    And big question – how does the tax work on a person purely on commission, cell and petrol allowance, do I pay UIF, can I claim for petrol, should it more be that he invoices for services rendered?

    All input would be greatly appreciated!

  2. #2
    Diamond Member wynn's Avatar
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    east london
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    keep him on comm, give him a fixed cell figure and fill up his car on mondays.
    Keep giving him comm on all clients he introduces for six months after he finishes up.
    Make sure he gives you discount on any drinks he serves you.
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  3. Thanks given for this post:

    Pap_sak (22-Apr-10)

  4. #3
    Site Caretaker Dave A's Avatar
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    What Wynn said

  5. #4
    Gold Member garthu's Avatar
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    Dont forget dinner... needs to impress you..

    Wynn makes a good point on comm i think

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  6. #5
    Email problem
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    Little Falls
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    A real of thumb in business is do not give your business away, rather pay someone than give shares away. Its a hard lesson to learn and take it from people who have partner and have been screwed over. Other advice, a good sales person is good at selling and equally in buying.... sales people trick the mind and create the need. They are the last people you wont to deal with in regards to trust as they are designed in a way to trick you into thinking you need it, the better sales people do it without knowing it.... trust me, I was and probably am still a really good sales person. Keep your business too yourself until you feel the real need for it and your relationship has developed over years

  7. Thanks given for this post:

    Pap_sak (23-Apr-10)

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