When you start building your company and selling your product, it’s all new and exciting – explaining what you see as the customer solution, negotiating futures and features, even asking for the order. If you are successful, you will soon look to expand your capacity to sell. Looking to hire the first dedicated sales person is a scary proposition. There are many questions that come up: some are important and immediately addressable like who are your customers, where are they located and how will you pay your sales team. Some will work themselves out over time like where should the resources be located; Near the customers or will they travel?
Figuring out and negotiating the compensation component is something that needs to addressed upfront. Understand that your sales compensation plan will change as your company changes. Your first attempt will not be perfect, however, if you think about it critically and build in some basic elements it can be an effective tool to grow your business.