Comparison

Click on image to download this spreadsheet.

NOTES:
Mathematical Model: The above is based on extensive experience building sales teams but is not a guarantee.
Download the Excel doc and enter variables to better reflect your situation.
Tax & Benefits. Payroll tax, benefits, paid time off (vacation, holiday, illness), company events, poor work ethics, 401 contributions.
Recruiting. Job posts, HR labor, government compliance, legal, payroll.
Office. Office space, utilities, maintenance, computers and equipment, online services.
Sales Bounce Fee. Includes all of the above expenses.
Analysis:
1. Commission teams eliminate risk from rep salaries, sales manager pay and overhead.
2. Remote jobs allow recruiting reps nationally instead of locally for a faster ramp.
3. Closers can earn more with a higher commission rate instead of a salary so the best reps are attracted.
4. Executive time is required to direct a salary sales team even with a sales manager. No time with an outsourced team.

Are our fees too high?

Let’s compare our fees against a salaried sales manager. According to Indeed.com it’s $91,157.

This is for somebody off the street that probably has never built a team from scratch let alone one with remote commissions reps. That’s for an “average” sales manager not a top performer. Since it’s a free-money salary job the employer takes on all the risk and may get endless excuses instead of sales. It’s easy to run posts for a free-money salary job and watch them line up. It’s quite another to sell IC reps on your opportunity against thousands of others.

Now add similar salary and costs for the reps. Let’s say 5 reps at $4,000 total each. Now we are looking at $12,600 + $16,000 = $28,600 per month in salaries alone for a team that may well be mediocre or failing. Now you may understand why so many companies are nonviable and failing.

Now add taxes and benefits which can easily add up to 30% of the total compensation. This adds to $28,600 X 30% = $8,580 for the team. The total increases to $28,600 + $8,580 = $37,180 per month.

If working onsite overhead cost for building, maintenance, utilities, equipment and more can easily be another $1,000 per month for a total of $5,000 per month.

Now here is a shocker. The company still has to pay all the recruiting expenses and labor for endless job posts recruiting interviews. Let’s add another $2,000 per month for an eye-watering total of $37,180 + $5,000 + $2,000 = $44,180 per month. And this is before any sales are made.

For salary teams commissions can be 10% for the reps and 2.5% override for the sales manager. If each rep brings in $25,000 in sales the total revenue is $100,000 and commissions total $12,500.

For commission teams commissions can be 20% for the reps and 5% override for the sales manager. If each rep brings in $25,000 in sales the total revenue is $100,000 and commissions total $25,000.

Here is the overall totals:

Salary Team: $44,180 = $12,500 = $56,680 per month.

Outsource Team: $5,000 (fee) + $25,000 commissions = $30,000 per month.

Just because you have a sales manager doesn’t mean you won’t have to be involved. If you wunderkind sales manager turns out to be a dud then his job is now your job. Like you aren’t busy enough. Finding and keeping good reps is hard. Finding a “sales manager” that actually knows how to build teams is near impossible. Especially for commission-only reps.
 

How can Sales Bounce build teams at such a low price?

We have hard-earned expertise (building145 teams since 1987 with over 20,000 reps). Always with remote commission reps. We only accept clients with product that reps want to sell and prospects want to buy. We insist on superior pay plans. Our close ratio on projects is high. We outcompete what clients can do themselves or the many pretenders who claim they can do what we do but have no proof. We have created a sophisticated recruiting and sales process that can be duplicated for any number of clients. We know how and where to post jobs to attract the best reps and how to make sure that they succeed. We have created a huge proprietary library for sales training that is realistic and does not rely on idiotic sloganeering and wishful thinking. We have the technical credentials to smoothy work with technology companies, customers and reps Clients will never find a sales manager off the street that can deliver what we do. They realize this quickly and are eager to sell us to accept them.