Starting to sell products with commissioned reps

Discussion in 'Retail Business Advice and start ups' started by T D Sales, Mar 9, 2013.

  1. T D Sales

    T D Sales Banned Member

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    So ive got probably 40-50 products i currently sell from £5-£500 and i had this idea, wouldnt it be great if i could have people (avon style) to sell my products and give away a small % in return.
    So i advertised it, and had 20+ people wanting to do it, in under 3 hours. I cant believe the response.

    This really could be the next step.
  2. Pete

    Pete

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    I've been preaching commissioned reps / party plan since I first got here, but you're the first to admit to it. I don't know about the "small %" part, though. Those deals are usually for low cost, high resale items with the sellers getting 25 to 40%.

    Hope you can get it working.
    Vimal Vyas likes this.
  3. Tyler-Day

    Tyler-Day

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    T D, I am very interested in what you have done, it sounds brilliant, may i ask where you advertised it? Facebook, forums, local papers or websites? Its ok if you dont want to say, but i dont know WHAT you are selling so shouldnt be any competition :) And well done! It sounds great so far! X x
  4. T D Sales

    T D Sales Banned Member

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    Hi Tyler, id rather not say tbh, i reckon quite a few might do this yet prefer not to say, i don't know why. But this really could increase sales 20 fold or more if done right. Im excited hehe
  5. MSFB

    MSFB

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    sounds exciting. can you tell us more about the % you are offering and so on?
  6. T D Sales

    T D Sales Banned Member

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    Well this is where some of the details need ironing out, I was thinking a flat rate but then thought ok, but if i did that on x y and z product id make not a lot, So then i thought how about a tier system, sort of £x- to £x 5% then £y - £y 10% and £z -£z 15% that sort of thing, Still running some numbers but looks my best bet, Now have over 40 people want to do this, which is mad, and possibly more than i can handle in one go, Might have to start with say 10, hmmmmm decisions decisions
  7. toysandgifts

    toysandgifts Banned Member

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    So your going to interview these 20 people for th positions?
  8. T D Sales

    T D Sales Banned Member

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    Essentially yeah i guess ill have to, Although they won't be employed as such, they will earn a % commission based on the value of what they sell.
  9. toysandgifts

    toysandgifts Banned Member

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    Make sure you tell them that it will be on a self employed basis
  10. T D Sales

    T D Sales Banned Member

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    Yeah, already have, already explained its paid on a % of commission, Only had 1 person message me saying 'Hi saw your add, interested, whats the salary' i mean... come on, You want a job yet you can't even read the add properly.
    liamhawes, Tyler-Day and toysandgifts like this.
  11. toysandgifts

    toysandgifts Banned Member

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    Make sure you get contracts drawn up and signed.
  12. toysandgifts

    toysandgifts Banned Member

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    You sell branded toys? right?
  13. T D Sales

    T D Sales Banned Member

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    Why do i need a official contract, they are not employees.

    And no ive moved on from that, i sell a wide range of things now ;)
  14. UKbuyer1

    UKbuyer1

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    Sounds good, good luck with this!
    T D Sales likes this.
  15. T D Sales

    T D Sales Banned Member

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    Thanks, its actually a little scary, as i could potentially go from 10-100 sales a day, almost overnight, Lots of hard work ahead now.
  16. Pete

    Pete

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    I can only speak for the US, but would imagine it's similar in the UK. You need a contract to make it clear for tax purposes, if nothing else, that these are not your employees. Liability should also be considered. One of them gets arrested for breaking and entering with your sales material, for instance. Not a huge chance, but you need to legally CYA.

    You also need to consider the relationship in other ways. Who is going to put the money for the final sale in the bank? If they make the sale, bank the money and then buy from you, you are simply a supplier. If for lack of a better term "the checks are made out to you" and you then pay them back their commission by cash or check, then they are truly commissioned sales people.

    Few things in business are as simple as they first appear.
  17. T D Sales

    T D Sales Banned Member

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    Yeah ok, i see ur point and need, Ill delve a little further into the un-known and find out lol. Still exciting times ahead.
  18. eAuction

    eAuction

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    Yep. Definitely get a contract. Outlining terms, fees and even things likes liabilities and product warranties.
  19. Gary

    Gary

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    As above, definitely use contracts outlining all the ins and outs, how things work, etc. but yeah, this can be agreat way to boost sales if done right, all the best to you!
  20. Dave Casuals

    Dave Casuals

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    How is this like Avon...ie do you have a catalogue and are you restricting sellers to sell in certain areas? Do you have regular selling items such as cosmetics that the same individual will buy on a regular basis? My misses actually started Avon 2 years ago and within 2 'months became top seller in her area before it all went Peter tong and she actually started loosing money by paying upfront for her so called regular customers when payments had to be made to keep orders that she gave up because her customers didnt pay up. Avon used to be good but since going online is not what it used to be. Good luck with the venture but there's a lot of work that has to go into that type of business to make anything...
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