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What's a reasonable payment to a freelancer for finding prospects and closing them?

Discussion in 'General Business' started by Chochiana, Apr 8, 2020.

  1. #1
    Hello,

    I am thinking of paying a freelancer $200 for every closed client for my B2B Digital Marketing Agency.

    The $200 is only a starting payment, but will be doubled after the 50th closed client.

    However, it turns out there are 2 seperate parts which I thought was just 1 part. The first, to find potential leads (prospects) and secondly to close them. In which case $200 are turning out to be way less than what I first thought. Someone even had a go at me about that. They said that $200 for just closing a client is fine but the payment won't cut it for doing both tasks.

    A different person told me that what I am wanting is a business development, where the following is involved: finding prospects and leads, warming them and then closing them.

    What will be a reasonable payment to a freelancer for doing both - finding prospects and closing them? (a permanent position)
    SEMrush
    I am looking forward to your inputs.

    Thank you in advance! :)
     
    Chochiana, Apr 8, 2020 IP
    SEMrush
  2. jrbiz

    jrbiz Acclaimed Member

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    #2
    It really doesn't matter what you call the position. It sounds like a sales position in which the sales rep is in charge of the entire sales process, from prospecting to closing. My advice is to steer clear of a one-size-fits-all commission or bonus (or whatever you want to call the payment.) For example, if you pay $200 per deal, no matter the size, it may turn out to be in the sales rep's financial interest to focus on the small clients who, because they will spend less, will close sooner. Trying to close a large client expecting to bill $100,000 with you is not worth the sale's rep's time and efforts for $200. Of course, you would probably prefer the larger client.

    Since you will not be hiring this person as a fulltime employee with benefits, etc., I suggest that you offer a two-tiered compensation program:

    $X bonus draw for every new qualified prospect that agrees to a sales appointment in which you can qualify that it is a legit opportunity.

    Y% commission on every closed deal.

    Note that all of the bonus draws from the appointment setting income will be deducted from commissions before they are paid on a monthly basis. What numbers your substitute for X and Y really depend on your location, the markets, average sales rep compensation in your space, average sales revenues, etc.

    The intent is that the commission be enough to pay the rep overall, while the bonus draws are simply a way for the rep to make some early, steady income while waiting for the sales to close and earn a real commission. It will require a bit of bookkeeping but is a reasonable way to compensate independent sales reps in your situation.
     
    jrbiz, Apr 8, 2020 IP
  3. Chochiana

    Chochiana Greenhorn

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    #3
    Hello buddy,

    I agree with 100% of everything you have mentioned above.

    Can we find a consensus between us for finding prospects and closing clients for a long term contract for different types of services which will be able to provide a potentially large client base.

    If you wish to learn more about what we do I will send you our website.
     
    Chochiana, Apr 8, 2020 IP
  4. jrbiz

    jrbiz Acclaimed Member

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    #4
    I am not sure exactly what you are asking above?
     
    jrbiz, Apr 8, 2020 IP
  5. Chochiana

    Chochiana Greenhorn

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    #5
    I was trying to offer a possible partnership for finding prospects and closing clients for the long run, meaning a permanent position.
     
    Chochiana, Apr 8, 2020 IP
  6. jrbiz

    jrbiz Acclaimed Member

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    #6
    I was only offering commission/bonus advice. I do not offer such services. Also note that this is not a correct place on DP to seek out business partners. For that, you need to go to the Buy, Sell, Trade section and be an Established Member or a Premium Member to post your interest in partnerships.
     
    jrbiz, Apr 8, 2020 IP
  7. Chris-

    Chris- Greenhorn

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    #7
    For high-ticket closers (you can find them on FaceBook Groups with that in the name) a typical cost is 10% of what's sold.

    They only CLOSE, in my experience they will refuse to find prospects . . . you have to have a separate system for finding prospects.

    They will usually only work with sales of $2k+, and in my experience tend to be very stuck in their one way of doing things (most of them will have learned from Dan Lok's course) so if you suggest a slightly different strategy for a lot more profit, they will not be willing to get involved.

    Chris
     
    Chris-, Apr 11, 2020 IP
    jrbiz likes this.
  8. Gardahn

    Gardahn Greenhorn

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    #8
    IT's a very hard job to be sales for some company and a lot of people thinking it's clearly easy for some reason anyway I do not see why honestly and entirely. I would say something like good percentage rate of upto 15% of project should be;)
     
    Gardahn, Apr 28, 2020 IP