FreeLists / webproducers / [webproducers] Re: sales commissions

["m o r r y" <morry@xxxxxxxxxxxxxxxx>]

I sent this thread to a friend who is a VP of BD in the industry and I
thought his reply was worth posting (with permission of course!)

> very interesting morry.  those numbers are really high for a full service
shop, but i guess with "indys", where projects are quite small, maybe they
become more relevant.
>
> i think what people are missing is to understand what the market will
bear- what does it take to find and retain someone who can really sell for
you ,, really uncover opportunities. i have other ideas about breaking out
the salesfunction as well to drive down costs.. like finding someone just to
research names and leads and not actually sell at a much lower rate than a
full salesperson would cost.
>
> there's no discussion in this thread about WHO they get for those rates
and whether it was money well spent. that'd be very interesting.
----- Original Message -----
From: "Laura Allen" <laura@xxxxxxxxxxxxxxxxxxxxxxx>
To: <webproducers@xxxxxxxxxxxxx>
Sent: Wednesday, May 28, 2003 11:33 AM
Subject: [webproducers] Re: sales commissions


> Stuart:
>
> Can you be more specific about what exactly you are selling?  You may have
> mentioned it in an earlier post, but I don't recall. Even though the
economy
> is terrible, I sometimes turn down work from clients who are only
interested
> in getting the cheapest deal. Here's an example. Over two years ago my
> company bid on doing the backend development for a fairly complex website.
> We gave the client a quote of $30,000. and said we would give them back
> $10,000. if it wasn't completely rolled out in one month. (Part of our
> expertise is rolling out fast, so this was low risk to us.)  $30k!!! they
> cried, we got a quote from some guys who know some guys somewhere who can
do
> it for $19,000. We shook hands and wished them luck. We did not lower our
> price because $30,000. was a fair deal for what they were asking for.
>
> It is over two years later and I'd estimate that they've spent over
> $100,000. with no launch date in sight. I've won many contracts by just
> saying to potential clients, "make sure X is in the proposal" or "don't
let
> them charge you extra for Y."  Many times people sign with someone else
only
> to call me a month later and say, "You know what, you were right, we got
> that cheap quote but now they say that we need to pay extra for X, Y, and
Z.
> Would you guys still be interested?" If someone wants to spend $800. on a
> website, they usually get exactly what they pay for. A website that looks
> like it cost about $800.
>
> That's my two cents.
>
> Laura Allen
>
> VP Sales and Marketing
> Unlimited Solutions, Inc.
>
>
>
>
> ----- Original Message -----
> From: "Stuart Hunt" <stuarth@xxxxxxxxxxxxx>
> To: <webproducers@xxxxxxxxxxxxx>
> Sent: Wednesday, May 28, 2003 11:01 AM
> Subject: [webproducers] Re: sales commissions
>
>
> > I've been thinking about this a bit more, and it's becoming apparent
that
> > the 10% might not be enough to keep them interested for smaller
projects,
> > and they'd need to get us more projects than we're geared up for in
order
> to
> > make a decent income -- so I was thinking of making it 20% and adding a
> few
> > client relationship and interface tasks too.  Not quite sure yet.
Thanks
> > for the feedback so far.
> >
> > --Stuart
> >
>
>
>
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