“We would pay them out early prior to all of the revenue stream coming in… we’re going to pay X up front in order for these sales reps to come work for us.”

Rich Habits Podcast · 192: Are Boring Businesses The BEST Way To Get Rich?

Play from 15:29
15:29

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What was described

Paid sales reps commissions up-front, before the long-term revenue stream materialized

Said nearby on the same subject

“Looking at the revenue or let's say bookings minus the commissions that were paid to generate that revenue is a very insightful number”
♫
Said on FP&A Today
Why it worked Share this moment
“The trail commission structured usually it's between 0.15 to 0.175 um and then the upfronts are anywhere between sort of 65 to 75 points up front as well so like it's decent and but because everything pays trail like every million bucks you draw down like it's straight on to your straight onto your recurring revenue book”
MO
Matthew Olofanga
KAN Podcast ·
Pricing 0.15-0.175 trail; 65-75 upfront points Share this moment
“And eventually, that led me to starting a door-to-door sales company. And we grew that to 400 sales reps.”
♫
Said on The Marketing Millennials
Business model 400 sales reps Share this moment
“Take $36,000 divided by the 200 commission you get per sale and you'll arrive at 180 sales in order to earn that much money”
VA
Victor Antonio
Sales Influence Podcast ·
Why it worked $36,000 car price; $1,000 average sale; $200 commission per sale; 180 … Share this moment

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