08/ 11/ 2004
by Vicki Gerson
Looking to make a sales team, but not sure how to do it? It’s important to weigh out all of your options before you make your choice. You can build an in-house sales force, but with that team comes all of the responsibilities of adding a few more full-time employees. Another option is to use independent agents, but then you are subjected to their schedule and their preferences.
Whichever way you go, it’s important to look at the choices from all angles.
Reasons to Hire In-House Sales Staff:
- When you hire full-time, in-house sales people, you know there is always someone around to do the job. These sales people are responsible for taking care of business while you’re involved in other matters. Part-time employees can lower cost.
- In-house sales people are willing to provide service. They also strive to build a relationship with the customer. In-house sales people start to learn the likes and dislikes of your customers. They know how to please them.
- An in-house sales person can recognize and analyze each customer’s problems and articulate solutions.
- A good in-house sales person won’t “write off” the customer. Even if the presentation didn’t work six months ago, the sales person will stay in contact with the potential customer.
The Cons:
- There are a number of ancillary costs associated with having in-house employees. Other than the payroll, which has to be paid on time, there are tax and compliance issues as well.
- It is time consuming to keep hiring in-house sales people. Even when you think you have the right person, the individual may never take the job or quit after a short period of time.
- You need to do a security check (background check) on all people you hire to be sure that they are who they say they are.
- In-house employees can be expensive. There are certain benefits they expect such as health insurance and retirement plans.
Reasons for Hiring Independent Agents:
- These individuals work away from your property. However, they do have the option to work at your location as well.
- Many of them have years of experience and a long selling career. Many want to work part-time and truly know how to sell.
- Independent agents are willing to work a specific territory. They prefer the fact they aren’t competing with others at the company.
- Most likely, they have established numerous contacts through the years.
- You are not subject to payroll taxes.
- They are paid based upon results. There is no weekly salary. Most are paid a commission on net sales.
- These people are easy to find at trade shows or from other business owners.
The Cons:
- You have little or no control over their schedule.
- They may not be willing to sell your entire line. They pick and choose what they want to sell.
- Many times, they will only sell the products that make them the most money.
- There is no loyalty to your company. They may even be selling competing products.
- Service is not a high priority. In fact, they aren’t interested in providing service; they only want to make a sale.
Hiring a sales force for your small business is an important decision. Weigh your options, talk to your business friends and do what you feel is best for your business.
