Hired a Salesperson ?

Considering Hiring a Salesperson for Your Bookkeeping Firm?

Have you ever thought about bringing an external salesperson on board?

As the owner of a Bookkeeping firm, I’ve personally handled all sales so far. However, I’m now contemplating hiring someone to expand my business outreach.

If you’ve been in a similar situation, I’d love to hear your experiences. How did you structure the compensation? Was it based solely on commission, or did you opt for a base salary plus commission plan?
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Hiring an outside salesperson can be a pivotal decision for expanding your Bookkeeping firm, enabling you to focus on other managerial aspects while growing your client base. Below are comprehensive insights and considerations based on experiences from business owners who have ventured down this path:

1. Understanding the Role

Outside Salesperson Role:
– Objective: Their primary task is to generate new business by meeting potential clients in person, cultivating relationships, and closing sales.
– Skills Required: Strong communication, negotiation, understanding of Bookkeeping services, and the ability to adjust sales tactics to fit the business landscape.

2. Compensation Structure

Options for Sales Compensation:

Commission Only:
Pros: Lower financial risk as payout is tied directly to sales performance; motivates salesperson to generate high sales.
Cons: Can deter potential candidates due to income instability; might lead to a high turnover if sales targets are not met.
Base Salary + Commission:
Pros: Provides financial stability for the salesperson, potentially attracting a higher caliber of applicants; good for long-term roles.
Cons: Higher initial investment; requires tracking both base salary expenses and commission payouts.
Draw Against Commission:
Concept: Salesperson receives regular draws (advances) against future commissions. Unpaid draws are “recovered” from future commission earnings.
Pros: Balances both risk and reward; ensures salesperson has steady cash flow.
Cons: Complex to administer; misunderstanding can lead to dissatisfaction if not clearly communicated.

Recommendation: Consider starting with a base salary plus commission structure to attract and retain quality sales talent while incentivizing them to exceed sales targets.

3. Hiring Considerations

Candidate Profile:
– Experience in sales, preferably in professional services.
– Ability to understand and effectively communicate the benefits of Bookkeeping services.
– Network and connections within industries that may require bookkeeping services.

Outsourcing vs. In-house:
– Assess whether you would benefit from hiring a sales agency or building an internal team. An agency might provide seasoned professionals though at potentially higher costs, while an in-house hire allows for better alignment with company values and goals.

4. Onboarding and Training

Provide Comprehensive Training:
– Ensure they understand your firm’s services, client base, and unique selling points.
– Equip them with necessary sales tools and resources such as CRM systems, marketing materials, and

One response

APAdmin

25 February 2025 at 8:01 PM
Hiring an outside salesperson can be a pivotal decision for expanding your Bookkeeping firm, enabling you to focus on other managerial aspects while growing your client base. Below are comprehensive insights and considerations based on experiences from business owners who have ventured down this path:

1. Understanding the Role

Outside Salesperson Role:
– Objective: Their primary task is to generate new business by meeting potential clients in person, cultivating relationships, and closing sales.
– Skills Required: Strong communication, negotiation, understanding of Bookkeeping services, and the ability to adjust sales tactics to fit the business landscape.

2. Compensation Structure

Options for Sales Compensation:
1. Commission Only:
2. Pros: Lower financial risk as payout is tied directly to sales performance; motivates salesperson to generate high sales.
3. Cons: Can deter potential candidates due to income instability; might lead to a high turnover if sales targets are not met.
4. Base Salary + Commission:
5. Pros: Provides financial stability for the salesperson, potentially attracting a higher caliber of applicants; good for long-term roles.
6. Cons: Higher initial investment; requires tracking both base salary expenses and commission payouts.
7. Draw Against Commission:
8. Concept: Salesperson receives regular draws (advances) against future commissions. Unpaid draws are “recovered” from future commission earnings.
9. Pros: Balances both risk and reward; ensures salesperson has steady cash flow.
10. Cons: Complex to administer; misunderstanding can lead to dissatisfaction if not clearly communicated.
Recommendation: Consider starting with a base salary plus commission structure to attract and retain quality sales talent while incentivizing them to exceed sales targets.

3. Hiring Considerations

Candidate Profile:
– Experience in sales, preferably in professional services.
– Ability to understand and effectively communicate the benefits of Bookkeeping services.
– Network and connections within industries that may require bookkeeping services.

Outsourcing vs. In-house:
– Assess whether you would benefit from hiring a sales agency or building an internal team. An agency might provide seasoned professionals though at potentially higher costs, while an in-house hire allows for better alignment with company values and goals.

4. Onboarding and Training

Provide Comprehensive Training:
– Ensure they understand your firm’s services, client base, and unique selling points.
– Equip them with necessary sales tools and resources such as CRM systems, marketing materials, and
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