Since I debuted my first line about 5 months ago, I've gone through about half my initial stock, converted a lot of it to 3-pack gift boxes and moved those to Amazon where they have been selling well, as well as other venues like Ebay, specialty stores and face to face sales to retail shops and markets keen on local products here in Connecticut.
I have plans for several large state agricultural fairs, as well as some specialty fairs (CT Ren faire, etc), car shows and fruit festivals.
But outside of that, I have had several people express interest in helping me sell my product in areas that I otherwise would not be able to sell in. By that, I mean friends of mine who want to help get my products into restaurants, shops and local markets in places like Michigan, Washington, New Jersey, Pennsylvania, Florida and Texas.
These folks would be more than happy to help me out, and I feel that they would be best repaid by commission, where they log sales and/or refer people through Amazon with the use of custom coupons and I would cut them in at the end of each month.
I'm not a hardcore salesman, but I did do a stint in sales, and understand the commission incentives to move product and get exposure.
My question is: what is a good commission? is 10% of all product sold fair? Should it be more or less?
A case of product sold for $48 to a restaurant would net them $4.80 per case, still well beyond my cost of goods, I still can make money as a business, they can get some extra money and the customer gets their sauce. If no product is sold, then nothing is paid out, and nothing lost from any party.
What's fair in the sales world for people who are essentially contractors for $0 salary and commission only? If you had a friend or someone out there that lands product in the hands of customers, how much would you cut them in?
I have plans for several large state agricultural fairs, as well as some specialty fairs (CT Ren faire, etc), car shows and fruit festivals.
But outside of that, I have had several people express interest in helping me sell my product in areas that I otherwise would not be able to sell in. By that, I mean friends of mine who want to help get my products into restaurants, shops and local markets in places like Michigan, Washington, New Jersey, Pennsylvania, Florida and Texas.
These folks would be more than happy to help me out, and I feel that they would be best repaid by commission, where they log sales and/or refer people through Amazon with the use of custom coupons and I would cut them in at the end of each month.
I'm not a hardcore salesman, but I did do a stint in sales, and understand the commission incentives to move product and get exposure.
My question is: what is a good commission? is 10% of all product sold fair? Should it be more or less?
A case of product sold for $48 to a restaurant would net them $4.80 per case, still well beyond my cost of goods, I still can make money as a business, they can get some extra money and the customer gets their sauce. If no product is sold, then nothing is paid out, and nothing lost from any party.
What's fair in the sales world for people who are essentially contractors for $0 salary and commission only? If you had a friend or someone out there that lands product in the hands of customers, how much would you cut them in?
