If you are interested in starting an import/export business then I highly recommend focusing on and finding the best possible sales representatives for your new business. A great sales representative will determine how financially successful your company will be. Therefore, it is imperative that you take the time to hire the right sales reps to help get your import/export business started right!
So how do you find a good sales rep and how much do you pay them? The following is an outline of some potential ways to find and hire the right sales reps for your import/export business.
Where to Find Sales Reps
The best way to identify and qualify potential hires is through your own professional network. Talk to your colleagues, business associates, suppliers and vendors, and others in your professional circle. They may know someone already familiar with the industry.
Next, approach other sales reps in other fields. If you can afford to hire an experienced professional, do so. Look at sectors with a business model similar to yours - perhaps the medical field or other business-to-business industries.
Also check your local colleges and universities. Ask instructors of international business classes for recommendations - students who are very motivated or have excelled in those classes.
After going through your networks and face-to-face recruiting, you’ll need to start advertising. Craft a compelling ad for your position and post it in/on:
- Your website
- Trade magazines
- Trade organization websites or publications (i.e. The American Association of Exporters and Importers, The Federation of International Trade Associations, The International Chamber of Commerce)
- Local classifieds
- Online job boards (i.e.: Craigslist.com, Monster.com, CareerBuilder.com)
How to Pay Them
There are a number of common payment arrangements for salespeople. Let’s cover the main ones here.
Commission: A straight commission is simply a percentage of the gross sales, usually paid after the transaction has been completed. If their commission is 7% and they sell $10,000, they’ll pocket $700.
While this is a great arrangement for successful sales reps, it’s difficult for newbies or when sales are down due to the economy or a sales cycle.
Draw: Many organizations allow their salespeople to make a draw against future commissions during these down times (like an advance on a paycheck). If the salesperson makes a draw of $500, then a couple of weeks later makes a commission of $700, they’ll pocket the $200 difference.
While this arrangement helps with the sales rep’s personal cashflow, it can become strained if they continually ask you for an advance on the next commission - which may or may not happen.Salary + Commission: This is really the best of both worlds. While a commission gives a great financial incentive for performance, a salary gives the sales rep something to rely on during rough times.
Research the going rate for your industry and position yourself accordingly. You want to be fair to your salesperson and fair to your business, too. Stellar salespeople usually deliver stellar sales, so find a great one and keep them happy.