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Silver Member
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!
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