HOW TO DEMAND MORE COMMISSIONS

Hey guys, what's up? Matt here from Sales Sniper. And today's video is about why you are probably not worth 20% commission as a sales rep or as someone who's selling for a living. A lot of us try and command really outrageous commissions. And I think it's one of the reasons why the industry has such a short term focus. And so like, what I mean by that is that we come in, we think because we can close, we can get, you know, a $30,000 deal that we should be getting $5,000 a sale. And what I'm going to do for all the salespeople out there is break down exactly why you probably shouldn't be getting paid that much and break down for all the business owners, like sort of peek behind the curtain. And I want to give everyone a chance to kind of come together on this because I think you can charge quite a high commission. I think you can have an exorbitant hourly rate if you're good at what you do. But really what we need to do is sort of come together and work together as a team and not have these situations that arise every single time. So where a closer comes, even if they do a good job, they send the bloody business owner bankrupt. Right. And there's, there's no, there just seems to be not many good compensation plans out there when I speak to business owners. So just for the salespeople who don't really have a business background, a lot of the time a high ticket offer can take like 2 to $3,000 in marketing to get that person on the call. So if you think you're a savage because you're closing at 50%, then you know, you might have spent four to six thousand dollars to get somebody on that call. And then you're signing them into a payment plan at like 2 to $3,000 a month. And then you're expecting to get 20% commissions paid up front. Right, or like a good amount paid up front. But if you do that, let's say that person paid you $2,000 commission for a $30,000 sale, which on a percentage basis is not that great, but it is pretty fair, that means that person is spending between 6 to $8,000 to sign that client up. So they're waiting for month four before they break even. Okay. So a lot of business owners, like, that's what they're up against when it comes to getting a good closer on board. And the closers really don't seem to have an understanding of the process that it takes in order to Kind of get the people to them. And if all you're doing is providing closing, in my opinion, it's just not enough. When somebody signs up with me and this is the reason why I win, pretty much every single tender that I put out for or every single proposal comes back to me is because they're either going to someone who recruits and they're spending like $15,000, which I think is a fair price to recruit a good salesperson. Then that person's coming in wanting 15, 20% and they're not providing any value outside that except for their skills as a closer. Whereas when someone comes to me, they're getting the closers, they're getting multiple closers. More often than not, I redo their entire sales system. Usually I do a full audit on their front end. And I also understand business and cash flow because I've run multiple seven and eight figure businesses myself. So I understand where the person's coming from, the business owner is coming from. So I can go to them and go, listen, this is really where we need to be commission wise. Like how do we bridge the gap between what you want to pay, what I want to get and then how do we make that delivery of that money worthwhile so that you don't end up in a position where you're going broke from paying commissions, Which I know doesn't make any sense, but that's just the way it is and actually can happen quite often. Right. And so there needs to be methods where salespeople can be compensated fairly and by mean fairly make a lot of money for what they're doing in the coaching realm. But also the cash flow of the business owner cannot suffer. They can't go cash flow negative when signing up a client. And if you come in as a closer expecting to take 15, 20% upfront or even over a short period, even over like a slightly extended period of time, that all you're doing in the long term is limiting the amount of calls that you're going to be getting because they can't reinvest back in marketing. So you have to make a decision, do I look at this from a short term view and I want to make as much money as possible in the shortest possible time, or do I want to make this a long term thing where I'm with these accounts for a long period of time and I can make more money over a greater spans? And the way that I look at it is I want to make the most amount of money over the longest possible period of time. So when I come In I usually just add $1,000 to the first month of whatever I'm paying and that becomes part of the commission. So we essentially liquidate our own commissions and then we have cash collection bonuses. And cash collection bonuses are great because I don't contract value, but because in my opinion contract value is relatively worthless as far as a metric because really you can't guarantee how much of that contract that person's going to fulfill. And so what we really need to be doing is focus on cash collected and focus on having a good close rate and focus on having a commission structure that makes sense for the closer and for the business owner. And if you're a business owner who's being crazy stingy and paying 3, 4, 5, 6, 7% commissions, that's not good enough to keep someone good long term. But if you're a closer that's coming in and wanting 15 to 20% straight away and off the contract value. Right. And even the best coaches in the world don't keep their clients for the entire length of the contract. Someone signing a 12 month contract at $3,000 a month, it's a $36,000 contract, that person's on average is probably going to get 20 grand. That. Right. So you're actually not really getting the contract, you know, your percentage of the contract value, you're getting the percentage of, of like what could be. So this is a real disconnect in the industry that I find. I think it's something that's worth talking about because I feel like closers in general are nowhere near worth the amount that they're charging. And business owners are either getting bamboozled into doing it or they're being way too stingy. So it's a conversation I think needs to happen. And I think both sides, one of the biggest problems is that both sides don't really communicate well with each other because a lot of closers have no idea how to run a business. And a lot of business owners have no idea what it takes to actually close them when they think that you're just getting paid a couple thousand dollars for 45 minutes, which is not the case because it's a lot of work to close consistently. I think that it's a hard skill and it's an in demand skill. So people need to be compensated fairly for their time. However, there needs to be that conversation where it's a marrying up of both. And I think the best way to do that and the reason why I'm worth the money is because I bring all that stuff to the table hard skill, and it's an in demand skill. So people need to be compensated fairly for their time. However, there needs to be that conversation where it's a marrying up of both. And I think the best way to do that and the reason why I'm worth the money is because I bring all that stuff to the table. So you gotta really ask yourself as a closer, what are you actually bringing to the table? And if you're just bringing yourself, I hate to break it to you, champ, but you're not worth the money. And if you're charging 15, 20% of contract value, and if you're being a super stingy business owner, like, you know, pay for good people, right, you pay peanuts, you get monkeys. But have a look at what's going on. Have the conversation come in together and make sure that you're actually going to get paid commission on what the person actually ends up paying on average. So that's the kind of data that needs to be known. And that's why data is so important. But that's my two cents on things. Guys, I'm sure this will piss a lot of people off. I really don't care. But that's the reason why I think that most closers are not worth anywhere near the amount of money they're paying or charging commissions and hope to use a useful video. If you want to hear more from me, you can hit the little subscription button. Smash that like button, which is right here. Okay. 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