Salesconx Weblog

The Advantage of Using 1099 Independent Sales Reps

salesconx — Fri, 17 Jun 2011 20:25:08 +0000

Companies, both big and small must always focus on increasing sales if they want to stay in business. Competition is fierce among competitors and only those that stay on top of their game survive. The key to a successful business always comes down to sales. You can have the greatest product ever invented, but, if you have no sales, you will quickly go out of business. So, the question comes up as to the best strategy for promoting your product or service.

There are many large companies that rely on an in-house sales staff to drum up business. Maintaining a strong in-house sales force can be expensive because you have to pay salaries, insurance and other benefits as you would with any other employee. You incur high costs before you may see any positive results. An alternative to having an employee-based sales team is to have outsourced sales driven by independent sales reps.

In today’s economy, many businesses do not have the means to support a full-time sales staff. They certainly want to do all they can to attract new business, but they must be a little more creative. Setting up an independent sales force that will accomplish the same goal of increasing sales and bringing in new customers is not as simple as it may sound.

Depending on the type of company or business you are running, an outsourced sales force may or may not be appropriate. For instance, if you have a very specialized product where technical knowledge is essential and your sales people must be very fluent in all of the latest technology; it can be very difficult to find qualified independent sales reps that can handle the job. A company may need to hire and thoroughly train a sales force so they can effectively present the company’s products before potential clients.

On the other hand, field sales can easily be handled by well rounded independent salesmen that have experience in a number of different areas of sales. If you can sell TVs, mattresses or payroll services, you probably can sell air-conditioners, tires or cell phone services.

An independent sales rep is almost always paid on commission. When he or she brings in business, they are paid an agreed upon commission. Instead of receiving a W-2 form showing their taxable income, an independent sales rep receives a 1099-MISC form and is considered an independent contractor who is responsible for paying their own Social Security and Medicare taxes. In return for giving up control over the sales rep, a company is not forced to pay taxes, insurance, healthcare or other benefits, all of which can add up to a substantial sum of money.

Another advantage of hiring independent sales reps to drive company sales is that they often cover territories that do not get covered by an in-house staff. Some independent salesmen may have 5 or 10 different product lines they represent and run in very different circles than would normally be associated with your business. Their contacts can be invaluable for generating new business. As long as you find a competent professional, both big and small businesses can benefit by engaging the service of an independent sales representative.

Work Market is a platform for the management of labor and human resource services. Work Market gives businesses access to an on-demand scalable work force along with tools to manage three categories of labor: employees, contractors and third parties. The software is modular, flexible and highly customizable for use by sole proprietors all the way through multi-billion dollar global organizations. To register for your free Work Market account go to http://bit.ly/mjFKNH

Salesconx Webinar – Do-it-for-me-Websites

salesconx — Wed, 09 Mar 2011 18:26:51 +0000

Our client has a unique platform to deliver high quality customized web sites without all the hassle of Do-it-Yourself (most DIY websites fail as the user is unable to actually launch their website). Our client provides a dedicated webmaster who captures all the required information and delivers within 2 weeks exceptional websites complete with a content management system. They combine module web development technology with an army of web developers. This is how websites will be done for the masses.

We already have 0ver 100 sites deployed using this technology platform and the customer satisfaction is very high.

Check out http://bit.ly/gOphAZ for samples and more information or join us this Friday at 10:00am EST for a webinar https://www1.gotomeeting.com/register/128788009.

Evan

Salesconx Update – December 2010

salesconx — Tue, 21 Dec 2010 14:22:13 +0000

Whoever said it gets quiet at the end of the year doesn’t work at Salesconx!

This past month we launched 4 new exciting sales teams and issued more performance fees to sales team members in the past two weeks than we did in the past 2 months. We also have over 450 positions listed on our new job board (www.Salesconx.com/jobs). Did you reach your revenue goal in 2010? If you are looking for more – why not give us a call or email info@salesconx.com.

New Client – Do-It-For-Me Websites
Our client has a unique platform to deliver high quality customized web sites without all the hassle of DIY. They provide a dedicated webmaster
who captures all the required information and delivers within 2 weeks exceptional websites complete with a content management system (social
networking links and even eCommerce). email opps@salesconx.com for more info

New Client – Call Center Simulation SaaS
Our client has incredible training software that simulates the operator experience including customer interactions complete with speech recognition and real-time coaching. This provides immediate scoring & reporting for all training programs. The ROI and success compared to live trainers is very measurable and even more impressive. We are building their nationwide sales team. Email opps@salesconx.com for more info.

High Growth Area – Energy
The Energy industry at various levels is a hotbed for sales activity. At Salesconx we have client opportunities across the spectrum including car charging stations, wholesales energy providers and even door-to-door residential gas and electric sales. In fact, nearly 60% of our sales commissions in November went to our energy sales team members.

New Service – SalesPro Recruiting
Salesconx Jobs is a full service job board listing both Salesconx On Demand Sales positions plus full time sales positions from over 200 recruiters (and growing). Salesconx Jobs fits into our objective of being a destination site to drive sales. Use Promo Code “Beta11″ for unlimited postings through the end of the year. www.Salesconx.com/jobs

Did you know that you could use Salesconx to source internal sales professionals for your organization. Our platform provides the most rapid,
efficient and effective way to recruit sales professionals. Call 212-453-9880 to learn more.

Salesconx leverages a network in excess of 75,000 sales and business professionals to build and drive sales for companies across the United States.

We welcome the opportunity to discuss helping you achieve your sales goals and objectives for 2011.

Evan

Salesconx Introduces Salesconx Masters

salesconx — Thu, 16 Sep 2010 19:49:04 +0000

Salesconx, Inc, the leading expert network of sales and business professionals is introducing a new service called “Salesconx Masters”. Salesconx Masters is an exclusive network of high level sales and business development executives from the technology industry. Salesconx Masters provides businesses access to senior executives without the overhead of a permanent employee. These seasoned professionals have over 20 years experience in sales, marketing, operations and technology and are now available for engagements through the Salesconx platform.

Companies of all shapes and sizes, from Fortune 500 firms to emerging organizations, are finding that the overhead and budgets associated with adding experienced executives to fit every role in multiple locations on a full time basis is no longer feasible. Seasoned executives, many who no longer seek full time employment are seeking more flexible engagements that better suit their lifestyles while still earning compensation reflective of their efforts and expertise, will be a valuable addition to Salesconx clients.

Engagements are typically 30-90 days although some may run longer and could include;

Key Client Access - Gain unique access to contacts that can open doors within a specific geographic region, market or even company. Since Salesconx Masters have experience in senior sales and marketing roles specifically within your industry, you can leverage years of networking to meet your business objectives. Receive top-notch coverage and leverage a seasoned professional with an impressive contact list to supplement your corporate or field needs.

Executive Sales Development - Executive sales development is a preferred vehicle for growth for emerging companies in the new economy. Avoid fixed headcount and benefit burdens by utilizing a Salesconx Master for targeted assignments without a long-term commitment. Firms can jump-start sales for new offerings or new markets through a Salesconx Master with specific skill sets instead of ramping up an existing team member or a less experienced full time hire. It’s the smart way to minimize the HR investment while maximizing results.

Go to Market Strategy - An engagement to evaluate the sales organization’s program for achieving their desired results. Salesconx Masters conducts an audit to determine a benchmark of current sales effectiveness. Salesconx Masters makes recommendations for the use of specific technologies and processes both for the company as an organization and the individuals within the sales organization.

Salesconx Masters is led by Evan Sohn, CEO of Salesconx and Peter Kestenbaum and Jerry Marcus, two Fortune 500 executives with more than 50 years of selling and business development experience between them. Peter and Jerry anticipated this need for variable experienced executives and created a service that provides companies with senior-level, on-demand executive in sales, marketing and business development. This exclusive and invitation only network of experts delivers immediate access to executive knowledge, experience, and resources.

Salesconx Masters Fast Facts:

Average years of experience: 25
Titles held: Interim CEO, CMO, VP Sales, Head of Sales, Head of Business Development
Companies represented: Sun, IBM, Oracle, NCR, DEC, AT&T, Lucent, AMD
Average engagement: 2 months
Most common engagement: Key Client Access

Anyone interested in engaging a Salesconx Master should contact Evan Sohn 212-453-9882 or email masters@salesconx.com.

A Jump in Hiring—But Only Part-Time (re-print from BusinessWeek)

salesconx — Mon, 16 Aug 2010 12:15:45 +0000

More temp workers are being hired, but companies don’t trust the recovery—hence they’re not making full-time offers

As orders for locomotive engines picked up this spring, the GE Transportation factory near Erie, Pa., started hiring to fill positions, which had fallen to 4,000 from 5,500 last year. At 18-employee Pilla Performance Eyewear in Ridgefield, Conn., business ramped up enough that it expanded its staff by eight. And at medical device maker Theragenics (TGX), based in Buford, Ga., an unexpected spike in first-quarter orders led the company to add a few dozen workers to its roughly 500-person head count. Finally, U.S. companies are staffing up.

The problem is, many of the positions have been filled with temporary workers. That’s common in the early stages of an economic recovery; companies, uncertain whether increased demand will last, add workers who are more easily hired and fired. This time, though, the growth in temporary positions hasn’t been followed by significant hiring for permanent jobs six months later or so, the typical pattern in the U.S. “Temporary workers are just substituting permanent hires, not preceding them, because companies still don’t trust the strength or viability of the recovery,” says Harm Bandholz, chief U.S. economist at UniCredit in New York. “Recovery is much more fragile when it’s based on temporary jobs instead of permanent jobs.”

Hiring of temp workers had been rising each month since October 2009, until they dipped in July by 5,600, according to the Bureau of Labor Statistics. From October to January, employees at staffing agencies like Manpower (MAN) and Robert Half International (RHI) grew at the fastest pace on record—an annualized rate of 51.5 percent, says Bandholz. Private payroll expansion, meanwhile, averaged about 100,000 a month during 2010′s first half, “a pace insufficient to reduce the unemployment rate materially,” Federal Reserve Chairman Ben Bernanke told lawmakers in July.

Given the depth of the recession and concerns about a double-dip, companies are seeking more proof of customer demand before doing much permanent hiring. In a robust economy, the acceleration in orders at GE Transportation could have led to hiring full-time workers, says Stephan Koller, the company’s spokesman. Proof of sustained demand hasn’t yet appeared. “The economic recovery has been volatile, and continues to be volatile,” says Koller. “If and when that changes, we will respond on the workforce front. You can’t bring someone on staff full-time if you don’t know that the demand will be there.”

Frank Tarallo, chief financial officer of Theragenics, a $40 million company that makes products for the surgical and prostate cancer treatment markets, says that for heavily regulated industries like his, questions about health-care reform and other legislation are layered on to concerns about the economy. “Until there’s more certainty about the rules of the game, it’s very difficult to plan,” he says. “A few years ago we used a few temps, and today we have a significant number. We see a fickleness in the macro economy creating an awful lot of uncertainty for our customers, and it’s very difficult to predict their behavior. It makes us very discerning when it comes to adding to full-time head count.”

The rise in temp workers could be part of the “new normal” that the recession has produced. Once the economy recovers, American companies may start mimicking European counterparts and use a larger percentage of temporary workers permanently, says Jonas Prising, president for the Americas at Manpower. The recession may have taught them the benefit of being able to quickly hire and fire people to more closely match demand, he adds.

“The economy shifts quicker now,” says Daniel Herrick, chief operating officer of Pilla Performance Eyewear, which makes sunglass lenses and frames for athletes. “You need the flexibility in your manpower costs, since sales can fluctuate more.” Another aspect of the change, says Theragenics’ Tarallo, “is that everyone expects to live in the gray zone much more than they used to have to. It will be a normal part of life for us to have these uncertainties as part of our strategic planning process.”

It’s likely to be a long slog to lower unemployment. The jobless rate won’t budge from 9.6 percent this year, according to a Bloomberg survey of economists. While growth in gross domestic product of about 3 percent is widely expected for 2010, Oppenheimer Funds corporate economist Brian Levitt says it would take at least 4 percent to make a dent in the unemployment rate.

20,000 Reasons Not to Hire Someone

salesconx — Wed, 21 Jul 2010 15:06:51 +0000

Here is a great article that further points to an on demand sales team as the new norm for today’s businesses.

Evan

By JAY GOLTZ

After my last post, some readers suggested that I was exaggerating the potential cost of paying unemployment insurance when you hire the wrong person. Fred from Florida wrote, “Payroll tax rates that fund unemployment insurance are affected by the company’s history, but it’s not a dollar for dollar payout.” Actually, in Illinois, it’s even worse.

The unemployment insurance tax may be the most confusing and misunderstood tax there is. It is run by the states, and the rules can vary as much as the weather from one state to another.

Here’s how it works in Illinois. The important point for business owners to know is that when the state pays out claims to a company’s former employees, that company’s unemployment tax rate goes up. For each business, the state calculates how many dollars have been paid in compensation over the previous three years and adds on about 48 percent through various calculations. The result is that in Illinois, you end up paying for incremental compensation claims at a rate of $1.48 for every dollar that a former employee collects.

If you lay off or fire someone without “cause,” that person is eligible for unemployment compensation. “Cause” means that the employee violated a company policy, like coming in late or threatening a co-worker. “Cause” does not include doing a bad job, being very slow, or having a bad attitude. The formula used to calculate the unemployment benefits is still a mystery to me, but the payouts go from a minimum of $51 per week to a maximum of $531, depending on income level, the number of dependents and whether a spouse is working.

It used to be that a former employee would collect unemployment for 13 weeks. Now, it has been expanded to 26.

I understand and agree with the concept of unemployment insurance. It can be a lifeline for people who have lost their jobs. It is the cost of doing business and of being responsible, especially to people who have held a job for years. I do question, however, the eligibility rules, at least in Illinois. In some states, an employee has to work 90 days to be eligible. In Illinois, it is 30 working days.

That makes it entirely possible that a business can be taxed more than $20,000 — $531 multiplied by 26 weeks multiplied by 1.48 — for someone who is employed by the business for as few as 30 days. But what if it were “only” $10,000? Does even that make sense for 30 days of employment? And, more important, how much incentive does this provide for businesses to risk hiring new people who may or may not work out?

One of the reasons this expense goes unnoticed by most business owners is that instead of getting a bill for $20,000, which would surely raise awareness, they might get a subtle half percent increase in their unemployment tax rate six to 18 months after the fact. It will stick for three years. The state will get its $20,000, albeit slowly.

I have recently learned that you can be charged with a claim even if you’ve employed someone for less than 30 days. We fired someone after three weeks because she was text-messaging her friends all day. After we told her twice that she had to work during the day and stop texting, she put her phone away. We then noticed she was leaving her desk drawer open and looking into it a lot. She was now texting out of the drawer.

We fired her, and we assumed that we had no exposure to having to pay unemployment. She filed anyway, and much to my surprise we had to have a hearing. We were told that because she had been eligible to collect unemployment when she accepted a job from us, she might again be eligible despite having worked for us only 21 days. Fortunately for us, we were deemed not responsible for paying the unemployment — but only because we had clear documentation and she did not dispute our facts. She was fired for cause.

As Congress, the Obama administration and the states consider ways to encourage hiring, they should look at incentives, but they should also consider the disincentives. I’m thinking about hiring an outside salesperson. There are many people looking for jobs who might be great at selling art and framing in the commercial interior market. But it takes at least two or three months to determine whether someone has the contacts and ability to be effective. That person will have just finished training after 30 days.

In today’s economy, I have to consider the cost of a potentially expensive unemployment tax increase if I hire someone and it doesn’t work out. If I knew I could get a chance to try out the person for, say, three months without “buying the farm,” it would be a lot more tempting to make the hire. And extending the eligibility period wouldn’t cost the government a cent.

As it is, someone who wants a chance to prove himself might not get it because I am hesitant to expose the company to another expensive claim.

Do you know what the eligibility period is in your state and how the rate is calculated? From my experience, most business owners don’t know. It is good to know.

Jay Goltz owns five small businesses in Chicago.

Driving sales for your business while limiting your risk and exposure

salesconx — Fri, 09 Jul 2010 18:58:18 +0000

Traditional hiring methods aren’t best for salespeople – both full time and independent sales professionals. Studies show over half of salespeople are poorly matched to their work environment.

Job Boards are both ineffective and insufficient tools of sales recruiting, as the best candidates usually aren’t looking for new positions—they are too busy driving sales. These desirable “passive” candidates are often open to new opportunities…if they can be found.

We will take your opportunity to our network to recruit sales professionals interested in working for your company on a pay for performance basis. This is a 90 day program. During this time Salesconx will help build you a team and limit the risk and your time spent recruiting. We will get the team on our CRM to track their pipeline and progress. After 90 days you have an up and running sales team complete with pipeline. You then decide whether to (a) keep going with the virtual sales team or (b) retain (FT or Independent) those sales team members that are actually performing.

We believe that by partnering with organizations that are quickly securing new customers, gaining market share and disrupting competitors, we can provide clients and candidates the matches they need to achieve their goals. The best sales professionals (and those interested in commission only) usually aren’t looking for new positions, but these candidates are often open to new opportunities. However, these people need to be found. This is where Salesconx comes in with a rapidly growing network we find you the best in the industry. Our objective is to find top notch sales professionals with experience and an impressive rolodex. These are the people who are going to get you into your target companies and help drive revenue for your business.

Best Practices working with virtual sales teams

salesconx — Wed, 23 Jun 2010 15:19:14 +0000

Salesconx has been delivering outsourced virtual sales team since January of 2009. We have seen first hand what works and what does not work when it comes to managing an independent sales team. We have spoken at length with the companies who are succeeding with Salesconx and here is a quick guide to working with virtual independent sales team.

“The reps joined the team to earn money ‐ make sure they see the light at the end of the tunnel”.
The process for the reps to join the team included attending multiple conferences, 1‐on‐1 calls with the recruiting manager and the account manager, a review of the supporting sales and marketing materials, execution of the sales agreement and an on boarding session. Clearly, they are making an investment (and taking a risk) in allocating their time to your project for the opportunity to earn significant revenues. Make sure that you remember that they need to consistently believe in your product/service.

“Treat them like they are your sales team because they are”.
View the Salesconx sales team as if they were your direct employees. How do you manage your in house sales team? Conduct weekly teams calls on a
predetermined time, schedule weekly 1‐on‐1 calls with the sales reps. Get to know them on a personal level. The most you invest in your team the more than were deliver or better said, if you invest nothing in your team why should you expect them to deliver any results.

“Allocate resources to managing the team”
Sales reps running around without effective leadership is never ideal and certainly not with a virtual sales team. Why not promote an in‐house sales reps to manage the virtual sales team. Make sure there is a strong manager at the helm of the independent sales team. While these are professionals with significant experience they also need a leader to keep them focused on delivering the results we are all seeking.

“Remember they are independent so a soft touch works”.
There is a balance between establishing metrics, objectives and demands along with the needs of an independent sales rep. So establish objectives, but keep
in mind that these folks are working for you to earn commissions and not because you are paying them a salary.

“Rest assured if they aren’t making money through you they are likely making money for someone else.”

The average experience of a sales team member is 8 years ‐ these are not entry level sales representatives but professionals. These folks are used to earning in excess of $125k, have families, homes, cars and all the toys that sales people have. What this means is that if they aren’t generating revenues for you in all likelihood they are selling products or services for an alternative company and in fact generating commissions from those sales.

“The 80/20 rules apply to virtual sales team too”

In a typical sales team in any given month 80% of the revenue is being generated by 20% of the sales team. The next month the 80% is often generated by a different 20% (of course with overlap). Manage the virtual sales team the same way keeping in mind that non‐performing sales rep in one month is your hero in the next.

“Maybe it’s you and not them”

Most in house sales people are working to protect their base salary and they view commissions as upside. Independent sales people earn their keep solely by driving sales. If you have had 10 independent sales pros building you pipeline and no deals are closing look first to your product/service or process before blaming the sales rep.

“A virtual sales team magnifies a sales process it doesn’t create it”

A sales program is different if you are looking for your first 10 clients or your next 50. Getting your first 10 requires a fluid sales program and is consistently adjusting to match the market conditions. Simply deploying sales professionals doesn’t solve your sales process but is a key component to your program. Make sure that you have a strong go to market strategy in place.

For existing sales programs; if your in house sales team is succeeding and your virtual sales team is not succeeding then ask yourself what are you differently with your in house team.

New Opportunities in Local Online Marketing

salesconx — Thu, 13 May 2010 22:39:07 +0000

$17 Billion is spent on local online advertising and this number is growing to $30b by 2013. Most companies still don’t know and understand how to capitalize on the internet. The reason is that most businesses are too busy to tackle the internet, their social media networks and even their own website. Many companies are operating with a website that was created years ago with no dynamic information, no live data and certainly no “deals”.

Businesses can leverage the power of today’s most advanced, effective marketing methods including instant deal distribution, Social Media marketing and even text message marketing. The results are the ability to distribute deals immediately and easily, with very little investment and time.

Come join this webinar and learn how about an online platform that enables businesses to reach an enormous numbers of customers and prospects with virtually unlimited number of specials, offers and promotions.

Mon, May 17, 2010 3:00 PM – 3:45 PM EDT
https://www2.gotomeeting.com/register/678996754

Tues, May 18, 2010 4:00 PM – 4:45 PM EDT
https://www2.gotomeeting.com/register/430636306

Fri, May 21, 2010 11:00 AM – 11:45 AM EDT
https://www2.gotomeeting.com/register/661141579

or email me.

Video eCommerce – next generation in online video advertising

salesconx — Thu, 13 May 2010 13:23:41 +0000

Online video advertising has been limited to only branding or directing a prospective customer to another site. What if those customers could make a purchase by interacting with the video without ever having to leave the page they are on?

Come learn about a new video commerce solution that allows companies to monetize their video assets across multiple distribution channels. Retailers can transform their videos from pure branding segments into a full e-commerce experience that drives sales.

If you are interested please register for a session now by clicking a date below:

Fri, May 14, 2010 11:00 AM – 12:00 PM EDT
( https://www2.gotomeeting.com/register/901948475 )

or call Brian at 212-453-9884 (email:brian@salesconx.com)