Questions

I am just starting my business, and because of my busy time at work, I can only manage the main aspects of the business, so I decided to hire a business development/sales executive to go and propose clients about our services. Here is the question: Do you recommend hiring this person as a full-time employee (salary based)? Or I should be hiring based on a commission of each sale transaction/client lead? Or a combination of both. Obviously, I don't want to endure too much costs at the beginning but i also want to start right.

Most of us on Clarity love that entrepreneurial spirit. "Been there — Done that" kind of thing.

However, before you hire a sales/growth person, I must ask if you have the marketing right. For me, the first year of business "the right person" (an A player) can and should do both sales and marketing. However, after the message and unique value proposition gain traction, these are two unique roles and you need two people.

Marketing is salary position, and for a startup an equity position as well. Early on the sales role is a small base plus commission (in some cases up to 50%), however, ultimately sales should not be a commission role for most companies aka the 80/20 Rule. Yes, most will disagree, but it took me a year of much searching and gnashing of teeth to see the light.

I am happy to spend 30 or so minutes helping you understand these concepts.


Answered 7 years ago

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