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Am I Paying My Salesperson Too Much?

Bigg Challenge
Max is a business owner. He hired a salesman about a year ago. Max put him on the same compensation plan that his other sales people were on (a small base salary with an incentive).

The guy has done a phenomenal job. Max’s company is showing record sales and profits, largely due to this sales person. But here’s the problem: this salesman is now making more money than Max.

Max wants to know if he should adjust his salesperson’s compensation.

Bigg Advice
What should you do about this, Max? Here’s what we think …

Nothing!

Here’s why …

Is it costing too much?
It is possible to over-compensate your people. You can’t design a system where a small number of top performers win bigg while the company loses money.

But that’s not the case here. You’re also making more money, Max. So if it ain’t broke, don’t fix it!

Handle with care
We’ve heard of great sales people who were let go when a situation like this occurred. It does happen. But remember the nursery rhyme about the goose that laid the golden egg?

This sales person is the goose. Handle him with care. Like the old Proverb says,

“Kill not the goose that lays the golden eggs.”

Your bigg payoff
Don’t miss the bigg picture. The bigg payoff for owning a business often isn’t what you make each year. It’s what you make when you sell it.

You’re building an asset whose value is based on the income of the business, sometimes called owner’s cash flow. As your bottom line increases, so does the value of your asset. That’s your bigg payoff.

How you can get paid more
You’re making record sales and profits so you can probably afford to add another salesperson. Before you do, look at your infrastructure and capacity to make sure you can support an additional salesperson.

If you can, then go for it!

There’s a good chance, if you do that, you’ll be the highest paid employee of the company again!

Model this employee
We would suggest cloning, but okay … we won’t go there! 

So try to find someone with traits and characteristics similar to this salesperson. To do that, think about what you know about him.

What industry did he come from, if he came from outside your industry?

What experience did he have?

What education?

Are there any other clues you can get from his background?

If you did a personality assessment as part of your hiring process, what did his look like?

And ask your sales person if he knows anybody who might work out well. Bigg goal-getters know bigg goal-getters.

Thanks Max for sending us your bigg challenge. We wish you bigg success!

 

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Your Wheel Of Fortune

By Bigg Success Staff
02-22-08

Life Changes

hub_and_spoke 

The hub-and-spoke model has been used for some time in the distribution business. Its scope has been expanded to management of knowledge workers, network technologies, and beyond. Now it’s becoming the accepted way to look at internet businesses in the Web 2.0 world.

You can apply this model individually as well. What is your primary source of income? That is the hub of your wheel of fortune. Use it to create multiple streams of cash flow.

If you primarily derive your income from your own business, it is easier to do this. If that’s not the case, does your job allow you the flexibility to build something on the side?

If the answer is “yes”, then go for it! If “no”, you still have options.

  • Negotiate with your current employer.
  • Find a job that gives you the flexibility you need.
  • Partner with someone who has the time.

So no matter what your situation is, you have options to begin spinning your wheel of fortune today. We’ll share five ways to do that today:

Become an expert
Do you have unique knowledge that you’d like to share with the world? There are more and more opportunities today for people to disseminate what they know. There is a lot of content out there already, but high-quality information is always in demand.

One way to do this is to start blogging about your subject of interest. Find your voice and build a community of followers. There are many other paths, but this one if probably the least expensive.

Start a business
You can start a business part-time, work from home, and use resources you probably already have. The cost to do this is negligible these days. Do you know someone who needs to turn a project over to someone they trust? That could be your start!

You may have an idea for a full-fledged business. Do you know someone who could run it for you? Make them your partner and get going!

Buy real estate
You probably own your own home. So you’ve already bought real estate. Now you want to make money from it. We won’t kid you – there is a difference. But at least you have some experience. That experience makes this is a great place to start.

Real estate investing is one of the least time-consuming businesses you can start. However, if you just don’t have any time to spare, find a partner who you can work with to build your real estate empire.

Buy a franchise
Pair up with a company that is offering franchises for sale in your desired territory. They are building their brand with a tested concept. They have other successful businesses already practicing it.

You can buy the rights to use their concept in your market. All you have to do is bring the money to the table and learn their system. If it requires full-time involvement, find a partner to run the day-to-day operations.

Buy a business
An existing business already has customers, employees, and vendors in place. They have established systems that have been tested and proven to work. They have built up an infrastructure to support the business.

People sell businesses for many reasons. Ideally, you find a great business with an owner who wants to retire. Or the seller may just be bored and ready for a new challenge. Ideally, management is already in place. You just step into ownership!

So start with your hub. Use it to leverage yourself into other opportunities. Keep building those opportunities and look for more. That’s your wheel of fortune!

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