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There's a lot to cover however, read on and we'll give you everything you need for when it comes time to find top quality commission-only sales and Manufacturer's representatives for your company.

By the end of this guide, you'll know exactly what to expect so you're best positioned for long-term success.

The trend of hiring B2B commission-only sales representatives, and Manufacturer's reps is rapidly gaining traction globally as a more economical, cost-effective, and faster approach to securing new business and boosting profit margins.

While you don't want to get left behind by your competitors and it can be tempting to rush in head-first, there are some very important factors to consider first.

Since the inception of CommissionCrowd in 2015, our mission has been clear: to revolutionize the way companies connect and build long-term win / win partnerships with B2B commission-only professionals globally.

Our award-winning platform has not only set a new standard in sales industry innovation but has also empowered thousands of businesses worldwide to assemble top-tier independent, commission-based sales teams quickly and easily.

Hiring commission-only sales representatives can seem overwhelming at first however, that's where we come in. Drawing on our extensive experience working with companies across the globe, we're here to guide you through the process.

Though this article is comprehensive, stick with us. By the end, you'll have a solid grasp of the industry's ins and outs, as well as strategies to sidestep the common pitfalls encountered when hiring commission-only sales reps.

Once you're ready to start hiring commission-only sales representatives CommissionCrowd.com is the place to be. Feel free to stop by and chat with us using the live chat on the website and we'll be more than happy to help.

Companies that utilize independent, self-employed sales representatives to sell their goods and services are referred to as 'Principals'. Company Principals can range from manufacturers and suppliers to providers of various services and encompass any business entity with products or services to offer both online and offline.

Independent sales representatives work with businesses of varying sizes, from small-scale or solo enterprises to large domestic firms and global corporations with a network of local sales agents across multiple countries.

We think it's important to start this guide by first dispelling the common stereotypes and myths that can sometimes surround the commission-only sales rep industry.

This will help you to understand how commission-based sales reps operate and what they expect from the companies they choose to work with. Getting into the right mindset is vital to ensure long term success with your new sales rep partners.

Hiring commission-only sales representatives is quickly becoming the new standard for companies who are looking to expand their presence in existing territories as well as penetrate new regions, and increase overall market share at a faster rate and more cost-effectively than their competitors.

Opting to work with commission-only sales representatives and Manufacturer's reps brings several benefits, including access to a broader pool of sales talent and improved cash-flow management, making it an appealing strategy for businesses looking to scale efficiently.

An increasing number of sales professionals are shifting from traditional salaried positions to embrace the autonomy of working as independent, commission-only sales contractors. What's driving this trend?

Traditionally, companies provide a fixed salary to their sales staff in return for their undivided attention and dedication to selling only the company's products or services. This arrangement requires salespeople to commit exclusively to one company, limiting their ability to represent or sell for others.

However, the allure of potentially higher earnings is enticing sales professionals to go solo. Independent sales representatives have the freedom to curate a diverse portfolio of complementary products and services, enabling them to significantly boost their earning potential beyond what a regular salaried job could offer.

Nowadays, experienced sales professionals and Manufacturer's representatives are increasingly choosing to forge their path as independents or to establish their commission-based sales collectives.

Leveraging their deep industry knowledge and established networks, they can outearn what they previously made on a fixed salary by a substantial margin.

When deciding the best approach to increasing your company's sales, you're faced with a few choices: bring on full-time, in-house sales employees, partner with independent sales professionals who work on a commission basis or use a hybrid of both outsourced commission-based sales agents and an in-house employed sales department.

At CommissionCrowd, we find that a hybrid model works extremely well for companies that are in the growth stages and are looking for the most cost-effective way to gain a significantly larger share of the Market.

Ultimately, the choice between in-house sales employees and independent commission-based reps depends on your business's specific needs, growth strategy, and resources. Each option offers unique benefits and challenges, so consider what aligns best with your long-term objectives and market approach.

While you should now have a better understanding of what commission only, freelance sales reps expect from the companies they work with, let's take a second to look at what they find most attractive in a company.

The key is to always put yourself in the sales rep's shoes and understand that they are highly experienced and have the luxury of choosing which companies they work with. You will be up against other companies who are competing for the attention of the top independent sales talent within your industry.

The following are all important aspects of what makes a commission-only sales job attractive and have come directly from commission-only sales representatives who find companies to work with on CommissionCrowd.

Honesty and integrity was top of the list when we conducted a survey asking commission-only sales reps on CommissionCrowd what the most important attributes they look for before deciding to work with a company are.

It's always incredibly important to be upfront and transparent about the challenges your company is facing and the goals you are striving to achieve. Remembering that sales representatives ultimately wish to be viewed as partners in the businesses they represent, you should avoid sugarcoating the responses to the questions they will have for you.

Effective communication and support are of the utmost importance to reps who work remote-working sales jobs.

There's nothing more frustrating than broken communication channels, especially when the sales rep is not operating from your company offices. Always make sure you or someone within your organisation are reachable when needed.

We've already covered this above however, it's important to stress the attitude that Management within your organisation has towards your commission-based sales reps must be positive or you'll lose your new sales partners as quickly as you found them.

Bearing in mind that self-employed sales reps are generally highly experienced and well connected, independent reps can quickly start to earn commissions that very often exceed the salaries of middle management within an organisation over time.

This can sometimes lead to resentment and poor treatment of reps which is the fastest way to losing great salespeople who are seriously increasing your company's bottom line. Management must be shown the value of working with independent sales reps and understand that they can sometimes command a premium over the commissions that in-house sales employees are paid.

Putting yourself in the shoes of a seasoned sales rep who is deciding between two companies with similar products or services, the reputation of those companies is a factor that could sway your decision. Sales agents will always look into a company's reputation.

How are your online reviews looking? Do you have client case studies and testimonials? Are they appearing on your company's website? If not, then we suggest making sure you reach out to your happy clients for feedback prior to starting your sales recruitment efforts.

And it's not just about gaining the trust of your prospective new sales partners. Reps will want to be able to access great reviews to use in their prospecting efforts while they build their pipeline.

Given that sales agents only generally transition to self-employment after many years of experience and success within the sales industry and can open doors to new business very quickly, they need to know that the companies they choose to work with can effectively service an increased number of clients they bring you.

Again, putting yourself in the shoes of a sales agent, which company would you choose to dedicate your time and resources to? A one-person company that can only effectively work with a handful of clients at the same time, or a well established firm with the resources to handle an increase in new business and the ability to scale quickly?

That's not to say that sales reps won't work with startup companies, but you should have a plan in place of how you'll be able to scale your operation and handle a greatly increased number of clients in a relatively short period of time.

Being competitive with your commission structure is very important if you want to attract top independent, commission-only salespeople to work with you. Remember, self-employed sales agents are not unemployed. They build diverse portfolios of complementary companies to work with and have the luxury of comparing and choosing which companies to represent.

While it's entirely up to you how much you want to offer as a commission remuneration, please always bear in mind that you should be as generous as possible. Commission-based sales representatives enjoy none of the benefits that a company employee does and in addition, they incur their own costs and expenses while prospecting for new business.

Below is only a guide to commission levels and there will always be a negotiation between companies and sales reps before agreeing to work together. So, don't worry about getting it perfect as it's just a starting point to get sales representatives interested in speaking with you.

Typically, we see sales commission levels for physical products, sold by Manufacturer's Representatives, sit somewhere in the region of around 5% - 10% on the total value of the sale. Although each company will vary depending on their margins.

On average, service-based companies tend to be able to pay a more substantial commission due to the cost of delivering their services being much lower. We typically see commissions of anywhere between 10% - 25% (sometimes higher) especially when the service is delivered online in the form of SaaS (Software as a service) for which expenses incurred per sale are significantly lower.

Residual commissions are usually expected by commission-only sales reps. This means that the company pays a commission when the client either places a repeat order or is on a subscription of some kind. While it's up to you for how long you decide to pay a residual commission, it will make your company that much more attractive to sales reps if you offer them.

You can decide to reduce the residual commission percentage after a period of time (say one or two years) however, many companies happily pay residuals for the lifetime of the client as it also means the sales rep is motivated to maintain a relationship with the client and nurture future business.

We want to stress that while paying a sales agent a small retainer can be fairly common within the independent sales industry, we never encourage starting your relationship this way. A retainer is usually agreed upon further down the line if the company and commission-only sales representative have enjoyed a profitable working relationship for a period of time.

If a retainer is being paid, it's usually because the sales rep has been successful selling the company's products or services and have expressed an interest in dedicating a larger portion of their time specifically to a company and even reduce the size of their existing portfolio to do so.

Again, we do not encourage companies to start the relationship this way and a sales rep should have proven themselves over a good period of time prior to this being considered.

It's important to remember that self-employed sales professionals are not your company's Marketing or Social Media department. Their role is to concentrate on generating sales for your business.

Your company should be on top of your Marketing game which in-turn helps sales reps to do their job. They are acutely aware that potential clients not only check out a company's reviews, but on many occasions also their social presence.

It's crucial to acknowledge that commission-only sales reps have the privilege of choosing the companies they wish to represent. This makes it vital to cover some of the key reasons why some organizations fail to attract them.

To start with, one of the most important things to understand is that a sales representative's role isn't to build your business from the ground up. For startup companies, it's essential to have a solid product or service offering, along with evidence of market demand and a good product-market fit.

Reps will typically expect a company to be able to provide case studies and testimonials from happy clients to give them confidence in your ability to properly service the business they bring to you.

Consider the perspective of a sales agent. When entering a saturated market with numerous competitors offering similar products or services, the choice becomes clear. Would a sales agent prefer to partner with an established company that can show evidence of satisfied customers, testimonials, and case studies, or a newcomer lacking these credentials?

Furthermore, they require confidence in your company's ability to service the clients they bring to you. Small businesses or one-man bands that cannot demonstrate the potential for rapid scaling are often passed over in favour of more established entities that are capable of handling increased business volume as a result of their sales and lead generation efforts.

Companies seeking inexpensive or unpaid labour are unlikely to attract successful independent sales representatives, and such strategies are not viable solutions for reviving struggling businesses.

Qualifying and interviewing commission-only sales representatives require a nuanced approach to ensure you're bringing on board individuals who can thrive in a performance-based environment.

It can be tempting to bring anyone who works on a commission-only basis onboard but remember, there will always be an investment in time so it's important to find candidates who are best suited to hit the ground running.

While many seasoned self-employed sales professionals come with years of experience under their belt and a large network of clients they already do business with it's important to note that those newer to self-employment and are only just starting to build their sales portfolio won't be suited to working with every company.

Seasoned independent sales representatives have generally been self-employed for a good period of time and have got over the initial hurdle of supporting themselves while they build their portfolio and sales pipeline. These reps tend to have large networks of business contacts and are invaluable for generating referrals and quickly opening doors.

Then, there are those newer to self-employment, who may excel in environments with shorter sales cycles due to their hunger and adaptability. Recognizing these differences is key to tailoring your interview questions and expectations.

High-ticket closers (a relatively new breed of commission-based sales representatives) are adept at sealing deals with significant value, though they typically prefer to work with companies that provide a steady stream of leads. High Ticket Closers best suited to companies that are in an early growth stage whereby the founders of the business are well versed in lead generation but not closing sales when speaking to prospects.

Finding the right commission-only sales representative involves a careful balance of assessing skills, experience, and fit for your sales strategy.

By focusing on their ability to generate and close leads, adapt to the technical demands of your product, and work within the framework of a commission-only role, you can identify candidates who are motivated to grow alongside your business. Remember, the goal is not just to fill a position but to forge a long lasting partnership that drives mutual success.

If you're ready to hire B2B commission-only sales or Manufacturer's reps for your business simply visit CommissionCrowd to start connecting with the world's best commission-only sales professionals.

Since launching in 2015, we've gone on to become the world's fastest growing, award winning online platform that connects companies and B2B commission-only sales reps and Manufacturer's reps globally and recognised by the likes of Forbes and even winning the top award for Innovation in Sales at the Sales Innovation Expo, the world's largest Sales Expo.

CommissionCrowd empowers you to attract, train, manage and inspire a profitable commission-only sales team all in one place. You’ll be able to network with a global community of professional commission-only agents, view detailed profiles to effortlessly identify ideal candidates and leverage powerful all-in-one functionality to manage your team efficiently.