In follow up to my previous post “International Sales Reps”, I’ve had several people ask whether they should pay their sales rep on commission only or a base + commission structure.

Commission based outsourcing is very prevalent in today’s economy.   Both large and small enterprises use a variety of outsourcing tools to achieve greater profitability and higher production levels than ever before.

Due to the non-existent overhead cost, companies that seek to gain a greater financial advantage continue to use the commission only business model . Commission based outsourcing is a sales process that involves “paying only for performance”.  Essential a company only pays its sales staff when a goal is achieved; such as the opening of a new account, or a viable lead.  This greatly benefits a company by providing high quality leads and new business with virtually no upfront cost.

Commission based outsourcing can be provided in two ways.

• Commission Only

• Commission, plus base.

Although the commission only structure is what most companies desire, it is riddled with risk for the following reasons:

Commissioned only agents  tend to be extremely high performers or entry-level sales agents looking for work.

The highest performing commissioned agents will generally not consider any assignments that provide any less than a 50% commission rate. Although this number seems very high, these agents consistently have very high close rates, making them invaluable to the businesses they work for.

Entry Level commission agents may be more concerned about quantity rather than quality of work and may not be the right fit for your sales team or business. Furthermore, these agents may actually do more harm then good and cause you to lose a potential sale that an otherwise higher qualified agent may have closed.

The commission plus base structure is where the average business should begin to look for sales agents. By providing a sustainable base, these agents can focus on the quality of their work and your potential leads without having to worry whether or not they are going to receive a paycheck for the work and time they have put into your business.

One word of caution:  Whether you choose an outsourced provider or an independent international sales agent, make sure the provider is proficient in their language and communication skills. Realize that some languages are not universal; French spoken in France is not the same as French spoken in Canada.

If you need help in choosing an international sales agent or want some detailed suggestions, send me a comment with your info.

Sales Rep can go a long way in determining how successful your business will be. Multinational companies pay particularly close attention to getting the right people to fill the position of International Sales Representative.

In most large companies, an International Sales Rep is responsible for a specific geographical region or maybe a single country. Smaller organizations may not have the budget to hire more than one or two Reps, so the area they must cover is often much greater.

While it may seem prudent to pay only one person to handle your sales from abroad, it also may limit the growth potential of your business. After all, one person can only do so much. That is why successful, large companies often have a large contingent of International Sales Reps to generate business around the world.

What are some of the characteristics to look for in a good International Sales Rep?

Look for a sales rep that is able communicate fluently in the countries’ native language.

• Keep in mind that being fluent in a language does always mean the individual can correspond properly in a business environment. I.e. – There are many people in the United States who are fluent in English, however how many of those people would you trust to handle your business correspondence?

Familiarity with the culture and customs of the area in which you will be working is another important part of the job.

• Imagine you are an International Sales Rep for a company that makes parts for an automobile. Your territory happens to be South America. Well, you will probably need to speak Spanish and Portuguese (Brazil) in order to communicate effectively with companies in South America. Cultures are different in Brazil from, say, Peru. You must know each countries particular habits. Perhaps it is frowned upon to do business on a certain day. Perhaps business is always done at the home of the executive. Whatever the case, you should be fully aware of the customs. Knowledge of the product is key. You must be able to explain why your product is better and how the company you are trying to sell it to will benefit.

Passion and Dedication is often overlooked and undervalued in sales.

• As part of my consultancy, I always look for bright partners, candidates that can bring more to the table. There are many occasions when I am excited about speaking to a candidate with a great resume only to be disappointed by our initial conversation. Will the candidate go above and beyond the call of duty? When I ask for assignments A and B, will the candidate deliver A, B, C & E without having to ask. This is the level of sales rep every company should strive to hire in their business. The dividends in hiring this type of International Sales Rep are immeasurable.