An inside-sales rep can one of the most cost-effective ways to bring in new leads for your business and qualify those leads to turn them into clients. But you’re going to have to pay them, and here are the 3 options you have to choose from.
Alright so we’re going through this series of hiring an inside sales rep and so you’re at the point your business when you want to jump into the water get yourself an ISA, but you’re just not sure what to do with the commission structure, what you should pay them. So today I want to give you guys what’s out there in the industry right now and I want to talk about these strategies and the pros and cons to each.
So the first that I see all the time is that usually a team or a broker will pay their ISA a flat hourly rate or salary around it could be as low as $15,000, or it could be upwards to $30,000 and then they also pay you a commission to their ISA off of the GCI of the home. That ranges from 5% upwards to even 10% that I’ve seen. So the pros to this strategy is that you are encouraging what you really want, which is deals. You’re encouraging that ISA to seek out and close these deals because if they don’t, guess what? They’re not going to get paid. They’re get better they’re gonna make it by and when you think about your salary just as a tangential thought for you when you think about the salary you want to pay them just enough to so they can pay their bills but not quite enough so they can be fat and happy.
So you want a low base salary and it encourages them to get on that phone and seek out the deals because they want to earn that 5% or that 10% commission.
Here’s the con. The con is in this business of real estate a lot of the deals are long-term transactions it’s a relationship sale you have to nurture the lead follow up with it multiple times. So if you encourage the ISA to only get commission off of the closing of a deal they’re going to be sniffing out and looking for the dollars and they might ignore the follow up calls and it’s critical that your ISA also does the follow ups.
The second strategy that I see out there is that a broker or a team lead they’ll pay their ISA you know that flat hourly rate maybe asalary, but then they pay them per
appointment, that the ISA sets. So this is awesome because it actually rewards the ISA for what they can control. They can’t really control you closing the deal of the home, but they can control the appointment, but here’s the con.
The con is you’re going to end up with a bunch of appointments on your books that aren’t qualified that might not go off. So what I would suggest to you is don’t just pay them on appointments they set pay them on appointments that actually go off what I like to say is qualified appointments that you actually have a chance to close that deal because you get in front of them.
The last strategy that’s becoming popular is a lot of brokers a lot of owners team leads they’re actually not paying any commission any bonus—they’re really just doing a flat hourly rate or a flat salary. Now I actually don’t prefer this one because I believe any good inside sales associate it’s going to be driven by dialing for dollars and if they don’t have that incentive they’re not going to be motivated. But I know a lot of times brokers will do this because they want to encourage nurturing that lead and they want to encourage there ISA to just follow up and treat that client and focus on the client experience if you do this strategy where you’re not paying a bonus or commission.
What I encourage you is that you have to track the KPI’s that is the con is that this is a might get lazy because they’re not driven and are did he just hanot getting rewarded for closing deals and so they might become unefficient they’re not actually going after the dollars so make sure you track the KPIs.
So there you have it guys there are the three strategies on commission structures that I’ve seen out there for ISAs. If you like these strategies make sure you subscribe to our YouTube channel comment below if you guys have ISAs in your business right now comment let me know what you guys are doing, where you find successes, where you find failures. Check us out on Facebook and Instagram but most importantly, take action on this today!