Builders: Here’s How You Can Grow a Professional Sales Team #3 - Relegate Retainers

One of the questions builders often ask about hiring salespeople to sell remodelling jobs is, “How do you pay them what they expect?” Margins can be tight in the renovation construction market so you wonder if you can afford to pay them much at all. Especially if they don’t sell well.

But you know that the best salespeople do expect to earn a pretty hefty salary. So how do you ensure that they will “earn their keep?”

In this article I will outline how you go about preparing your business to remunerate a high performing professional salesperson.

The best salespeople know they can deliver the goods, and do not work for wages. They expect to get paid in proportion to the amount of business they deliver. So here are some important tips when deciding on a remuneration package.

1 Make Retainers Small

If you do need to provide a retainer (maybe because the sales process is long) then ensure that it is NOT sufficient to live on. Maybe cover basic business expenses, but be very careful about covering living costs as well. Do not provide a safety net. Doing so will only attract less capable salespeople who give themselves permission to fail, since your retainer provides them with a safety net.  The thing is... highly performing salespeople don’t consider failure a possibility

2 Reward Promptly

Pay sales commissions when the client pays the deposit, not on completion of the project. You don’t hire a salesperson to get distracted into managing the build, so don’t encourage them to stay involved with the client. Of course, it’s fine for them to make the occasional courtesy call, but keep them away from handling client calls regarding the build. Teach them to position clients to expect to be handed over to your project management team.

3 Provide Real Incentives

Design your remuneration package to increase with sales volume. This rewards high achievers. You might think that you can’t afford to pay them more, but if your business is working properly, it’s possible. Your fixed expenses should not grow at the same rate as your revenue. In a typical building business, should a salesperson’s efforts double your revenue then, assuming that your margins stay the same, your fixed expenses may only increase by 10%, but your profit may increase by well over 300%.Creating a great remuneration package is the best way to indicate that you are only looking for highly skilled salespeople..

In a business I worked with a lesser salesperson was taken on, but he managed to negotiate a very good retainer. Needless to say, he did not reach targets, as there was no incentive.

Talk Back

So, what remuneration package have you used?I’d love to hear of your comments.Post your comments below.

Read more in the "How To Grow a Professional Sales Team" series:

• Builders: Here’s How You Can Grow a Professional Sales Team #1 – Create Saleable Products

• Builders: Here’s How You Can Grow a Professional Sales Team #2 – Make Your Production Scale-Able

• Builders: Here’s How You Can Grow a Professional Sales Team #3 – Relegate Retainers

• Builders: Here’s How You Can Grow a Professional Sales Team #4 – Expect Discomfort

• Builders: Here’s How You Can Grow a Professional Sales Team #5 – Step up to Lead

• Builders: Here’s How You Can Grow a Professional Sales Team #6 – Rewrite the Rule Book

Graeme

P.S. Whenever you’re ready….here are 4 ways I can help you grow your building business:

1. Grab a copy of my free book

It’s a road map of a successful 15 minute sales call that’s guaranteed to increase your conversion rate. http://thesuccessfulbuilder.com/book-15-min-sales-call/

2. Join Trade Mates and connect with builders who are scaling too.

It's our new Facebook community where smart builders learn to get more income, time and freedom. View our free business resources for builders. Ask questions of like minded business owners and business coaches. Give your knowledge and expertise to help others. - https://www.facebook.com/groups/TradeMates/

3. Join My New  Group

I’m starting a new group called “OnRamp” to kick start sales and marketing in your business. If this sounds like you, message me with the words, “OnRamp”, and I’ll get you all the information.

4.  Join Loft Members

If you’d like help to get off the tools, make more money and get your life back...just  message me at graeme@thesuccessfulbuilder.com and put “LOFT MEMBERS” in the subject...tell me a little about your business and I’ll get you all the details.