How to Hire a Sales Person for Your Freelance Business

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freelance-salespersonFor many freelancers out there, one of the hardest parts about staying business for yourself is actually finding business. Some of us are lucky enough to have a fairly steady stream of clients, but for many, the freelance path tends to be famine or feast. If this has ever happened to you, you know exactly what I mean. You either have more jobs than you can handle, or can’t get a job to save your life.

Wouldn’t it be nice if you could have a part time sales person working the internet and local business trying to drum up business for you? I know what you are thinking; that sounds great, but there is no way I could afford something like that.

Don’t be such a negative Nancy! How much thought have you actually put into what it would take to hire a sales person? I am actually in the process of doing this myself, so I thought I would share with you my experiences.

How can I afford this?

There are probably a number of ways that you can make this work financially, but I am going to talk mostly about the two options I have been brain storming. These two options include a commission based sales person and a hourly paid sales person. Obviously there are pros and cons to each, which I will go over later in this post. I want to stress that they hourly position shouldn’t be overlooked, as it might not be as expensive as you think.

Commission Based Sales Person

For obvious reasons, the commission based sales person would be many freelancers first choice if they were to hire someone. And why wouldn’t it be? This is a low risk option with the potential for high gains. Before we dive into the details of this, lets first cover some of the cons to commission based sales people.

One of the major drawbacks to commission based sales is that you run the risk of your sales person being too pushy. Because thier paycheck depends on how many sales they bring in, they may become overbearing to would be clients when they are having a bad week. This is a personality trait you’ll have to keep in mind when hiring a sales person. One way that you can overcome this problem is to hire a sales person who already has a decent paying job and get them to only work three days a week. This will help reduce the stress of having to make extra sales to make ends meet.

Another important factor that can be negative in commission based sales and shouldn’t be overlooked is the bad client. Because your sales person should be paid at the end of a completed project, what happens if your sales person get you a client who leaves half way through the job or decides not to pay? While this isn’t exactly a negative to hiring a sales person, it is something that needs to be addressed for this type of sales person.

On the plus side, because a commission sales person earns money per sale, they can be a lot more driven to acquire sales. If all of the factors are in place; good commission, great sales person, and quality marketing materials, a sales person can do wonder for increasing your business.

If you are going to go this route, my advice would be to first hire a commission based sales person on a three month, three day a week, trial period. This way, if they aren’t working out for you, you have an easy out. The three day work week can vary depending on how you do business and what sort of work you are trying to drum up. You can have them do cold calling from the office, find jobs online for you, email past inquiries, or go door to door around town. I think it would also be beneficial to let the sales person know that if they wanted to work on their own on their off days that that would be acceptable, but not required.

Hourly Based Sales Person

Hiring an hourly sales person can seem like a daunting task to a mere freelancer. Just the thought of having to pay someone else pay check from your own sales is enough to make one throw out the idea immediately. Think about it this way though, if your sales person works out well, they should be able to pay for themselves in just a few sales each week. Therefore, the end result is higher profits with only a slightly higher cost involved in getting them.

While there are a number of cons associated with hiring a hourly sales person, I just want to talk about the one I find the most important. The one important thing to keeping mind when hiring an hourly sales person is that you are obligated to pay them regardless of how well sales are doing. Just because you had a bad week and didn’t get many sales, doesn’t mean you can decide to not pay your sales person. You will be responsible for someones meal ticket now, be sure you can handle that responsibility.

One suggestion that I have for hiring a hourly sales person is to first save up three months worth of pay before you actually hire them. This way, during your three month trial period you can see if the sales person will actually be able to pay for them self and make you money. If they end up bringing in a god bit of extra sales, then you will know you can afford them and then worry about all of the other legalities that go along with hiring a staff member.

Your Thoughts

Have any of you ever hired a sales person? If so, where did you find them? Was it a friend or family member, or someone you hired online? How did this work out for you?

Let us know about your experiences so we can learn from them. Leave a comment below.

About the Author

Danny is one of the raddest creatives this side of the Mason Dixon line. He has freelanced from all over the world, but most recently lived in Costa Rica. He has a somewhat unhealthy obsession with toys, LOST, and sharpie markers.

19 Comments

  1. Rob Edwards says: May 26, 2009

    Really good advice. You’ll need to source client lists (or they might already have them, bonus) and I’d suggest getting a CRM set up for them, something like Sugar. That way if they’re rubbish the next can easily pick up where they left off.

    I’ve had a mixed bag with sales staff - still not really sure what the best method is.

  2. Ben Sky says: May 26, 2009

    Hiring staff is dangerous business! One element that you’ve negated to mention is training. If the sales person has no clue or interest about the products being sold they are going to get nowhere. So i believe it would be beneficial to source someone who has previous experience in selling the type of services that you offer. Alternatively spend your time and your sales persons time trying to educate them.. which for the likes of web design, could take some time. Someone possibly already doing sales of this nature for another buiness as you stated!

    1. Danny Outlaw says: May 26, 2009

      Yeah, I did forget to mention training. I guess because I was already planning on hiring someone withe xperience. You make a good pint that should also not be over looked.

  3. Nick says: May 26, 2009

    This sounds like it could be a good idea for a website:

    salesguysforfreelancers.com (or something)

    1. Kaazunut says: May 28, 2009

      exactly… very cool idea..!!
      A lot of startups/new freelancers would love to have something like it other than bidding sites.

  4. Steve says: May 26, 2009

    The only issue with a commission only position is that it’s not very motivating… it doesn’t emote a ton of confidence in the person you’re about to hire. Sure, they’re motivated to get a commission check from you, but a sales cycle can be 6 months before they close a deal. Who’s paying their rent or feeding their kids in that time? So paying someone to act as a sales person, even when they haven’t made a sale yet, is the most motivating way to go, albeit a huge financial risk. Also, not really mentioned is the dedication that is needed. A good year is needed for a salesperson to get in the groove, become the face of a company at networking events and organizations, etc. before they are signing deals based on relationships. Any decent sized contract isn’t coming from a cold call ( in most cases).

    1. Danny Outlaw says: May 26, 2009

      You make some good points. Because of the way design contracts work, maybe you could do a percentage of the commission at the time of the deposit and the other when the project is finished?

  5. Retail Minded says: May 26, 2009

    Great post! Here is another great article about what kinds of sales reps to hire - http://retailminded.com/blog/2009/05/denim-eating-disorders/ Looking forward to future posts. Thanks for sharing.

  6. Anonymous says: May 26, 2009

    You should probably spell/grammar check your articles before publishing. I’ve noticed it in past articles, but I can’t let it slide anymore. Any potential clients that come across your blog as well are going to think twice about your quality if you have a hard time spelling correctly - trust me I know, I was one of them.

  7. Philip Hastings says: May 26, 2009

    Great article.

    And no matter how desperate they are - never hire friends.

  8. Matt Morse says: May 27, 2009

    Ahh - the sales rep. When I went freelance the first time around this was the route I went and funnily enough, most of the comments above I can relate too.
    I took on 4 in the space of a year - one of which was a friend, one was hourly paid and the other 2 commission only. I’m sad to say that none of them worked out for many of the reasons stated above: Too costly to pay hourly, ie. lots of sales research and leads but no actual sales; no motivation due to commission only etc etc.

    Its definately a tricky one. My advice would be tread cautiously and be sure to have enough paying work already booked up so you’re not solely relying on your new sales rep to pull in the bacon.

  9. Greg Gill says: May 28, 2009

    Thanks for writing the article. I never thought of hiring a commission-based sales person…it’s something to think about. A question I had when reading your article was, is this sales person considered an employee? I know that their are legal things (taxes, insurance, etc.) that have to be considered when adding an employee to a business.

    1. Matt Morse says: May 28, 2009

      Hey Greg - the quick answer to your question is no. If the sales rep is freelance then they are self employed and responsible for all their own Tax/insurance etc themselves. The commission you pay them will go through your accounts the same as any other outgoing.

  10. Stan Jez says: May 30, 2009

    Interesting article. There is an old saying “Bulls make money, Bears make money, Pigs get slaughtered.” Too many times I see graphic designers try to pay a commission 25% on the first sale for a client and then 0% after that because only the designer deals with that client. That will not feed your sales rep’s children. Think your strategy through, otherwise you’ll waste your time and you’ll waste the time of this “commissioned” sales rep.

  11. Dainis Graveris says: May 30, 2009

    Great, pretty actual for me too, glad to get this article just in time!

  12. UB says: Jun 3, 2009

    What does everything think about employing sales people to sell design expertise. Is this organic? The design industry isn’t suit and ties.
    I’ve thought about doing it on a commission only basis.

  13. adam says: Jun 3, 2009

    loved the topic of this entry! i run a podcast for designers and had one of my listeners send me the link. if anyone is interested in one (other) man’s opinion on the subject, the podcast can be found at: http://www.rookiedesigner.com/rookie/?p=91. Thanks for the inspiration!

  14. Hire Web Developers says: Jun 10, 2009

    I work full time as freelance creative consultant.
    if you are interested i have experience for ten years !

    1. Philip Hastings says: Jun 10, 2009

      http://jobsearch.monster.com/Search.aspx?brd=1&q=consultants&cy=us&lid=316&re=130

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About Danny Outlaw

Danny Outlaw

I'm Danny Outlaw and am the mastermind behind Outlaw Design Blog. I work full time as freelance creative consultant.

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