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4 Replies Last post: Dec 6, 2007 5:05 PM by Lighthouse24

Outside sales personnel

Dec 6, 2007 4:16 PM

Click to view spiderman's profile Start-up spiderman 5 posts since
Dec 6, 2007
My question to this forum is about outside sales personnel: how to interview an interested party; how much commission to pay; what legal documents need to be signed? I am looking to hire five outside commission only sales people for the purpose of raising charitable contributions and I need an answer to what percentage is applicable.
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Click to view Lighthouse24's profile Mogul Lighthouse24 2,396 posts since
Oct 10, 2007
1. Re: Outside sales personnel Dec 6, 2007 4:29 PM
Just to clarify, will these five people be employees of your firm (i.e., a sales force on your payroll working within a sales commission structure)?
Click to view spiderman's profile Start-up spiderman 5 posts since
Dec 6, 2007
2. Re: Outside sales personnel Dec 6, 2007 4:53 PM
in response to: Lighthouse24
No, I would like these to be contract employees with no withholding. I would like to just 1099 them at the end of next year.
Click to view BDS INC's profile Founders BDS INC 131 posts since
Jul 20, 2007
3. Re: Outside sales personnel Dec 6, 2007 5:03 PM
First you are not looking for sales reps if you are trying to get donations, you are looking for independent fundraisers. Their fees can vary depending on the expected amount of each gift. So for instance if you are looking for people to solicit donations for the arts where the average donation would be in the 10's of thousands then the commission would be small 2-5%. However if the average donation is much less, in the hundreds or low thousands, then a fundraisers will look for a greater percentage of each gift.
Click to view Lighthouse24's profile Mogul Lighthouse24 2,396 posts since
Oct 10, 2007
4. Re: Outside sales personnel Dec 6, 2007 5:05 PM
in response to: spiderman

I was thinking that might be the case and didn't want to head off in the wrong direction. "Direct Seller Compensation" might be a better term to use, as "sales commission" implies a number of state and federal statutory requirements that generally apply to an employment arrangement.

You've asked three separate questions:

  • How do I interview and select candidates?

  • How much compensation should I give them?

  • What documentation do I need to prepare and provide?

The answers are all somewhat involved, so may I suggest that you close out this post and open three new ones, one for each question? I sincerely believe that you'll get better information that way. Be sure to click the little box indicating that it's a question when you post it. Members see that icon and are more likely to respond, plus it lets you reward points for the most helpful answers (which improves your chances of getting several very thorough replies).

Welcome aboard! (I'll be watching for those questions to appear.)