Need Your Input On Creating A Solid Comp Plan

[WealthNet]

Here's an overview of the position/opportunity we are adding in the near future. We are about to start recruiting for several new marketing consultants throughout the US. I will personally train all the consultants who will start at the same time. We plan to recruit and train home-based consultants working in So. CA, No. CA, Midwest, Northeast, Southeast, and Texas. They will be independent contractors or associates of our firm. They will leverage our existing team of developers, designers and consultants and will market to companies with at least $3 million in revenue. Consultants will work with business owners and entrepreneurs selling our internet marketing, website design, CRM and software development, creative/design/copywriting, and business development consulting services. In short, they will help entrepreneurs grow their businesses.

Here's where I would appreciate your input on. What's the ideal revenue share for associates? We want people who think and behave like owners because that's exactly what they will be. They will have their own market to build leveraging our brand, people, and systems. They will build their respective markets and essentially own the relationships with their clients. As these professionals will be independent contractors, we will not pay salaries or reimburse for expenses. Based on our experience the last seven years, a hard working person, meaning someone who will follow up on leads and make their own sales calls, can expect to generate an income in approximately 45-60 days. This is the ramp up time including training.

So, based on what you know about your geographic markets, what kind of revenue share do you think makes the most sense? (The gross margins on our projects vary between 30%-70%) Should we charge for leads or give them away? What do you think most people would want to make for income in their first year and beyond?

I appreciate your thoughts on this.

[ryanpark.me]

Hi Clifford,
From my experience I would say the revenue share would have to be at least 50% for the consultant. Take a look at Clickbank, it's so successful (in my opinion) as the affiliates share the same profit (or more) as the creator**. I suggest a 50% or higher revenue share as the type of employee you are looking for (motivated, creative & self-motivated) probably won't settle for a small chip from the block when they realize that without them you wouldn't have a sale.

If you are fair with profits you will be successful in building long-term consultants as opposed to burning through your cash on training temporary consultants who will jump ship as soon as they build a portfolio of client relationships.

My 2 bits,
Ryan

** I do not promote Clickbank products because I feel the majority are not ethical, I am meerly commenting on their business model.