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Whether you're new to the market or well-established in your industry, it pays to have a sales agent. These professional and experienced individuals are well-versed in the field of sales; they know what it takes to pitch your product or service, persuade potential customers that it's exactly what they need, and win you new business.
Specialist Sales Agents in Your Industry
With many sales agents already out there working with a variety of businesses, you're bound to find an expert that's experienced in marketing products and services that are similar to your own. Not only that, they could already have strong relationships within your target audience, so much of the hard work is already done for you.
With the help of a specialist sales agent, you'll cut a lot of the hassle out for your business and you can expect sales to build much more quickly thanks to their pre-established relationships.
Reduced Overheads and Expenses
Sales agents typically work on a commission-based contract, meaning they will only earn money from your business as and when they make a sale. This way of managing business sales is significantly cheaper than hiring new employees to do the same work for you. By assigning a sales agent to bring in the customers, you don't have to worry about extended expenses and overheads that come with hiring a permanent, full-time team member.
Fantastic Return on Investment
There's no greater return on investment for your business, than one that is provided through working with a sales agent. By paying your sales agent based on their performance, you'll only see money going out of the business and to them, when they're bringing money in! Better yet, you can speak to a variety of sales agents to find one that's best for your business based on their commission expectations.
Knowing how much commission to pay to your sales agents can be a difficult decision to make. We find that it's usually a thin line between maximising profitability and being able to attract the best sales talent. That's why we've offered up some top tips on choosing a commission rate, for you to have a better understanding of the basics and what's needed to kickstart your search for the best sales agent for your business.
How Much Commission can you Afford?
The first thing we'd recommend you look at when trying to decide a commission rate is finding out what you can actually afford. To do this you'll need to work out the profit margins of different sales. This would be the absolute maximum you should offer, but remember you still need to make a profit too.
Does Your Commission Provide Enough of an Incentive?
A final factor to consider before posting your commission rate, is whether it will be enough to entice a quality and reliable sales agent towards potentially working for your business. One way to do this is to take a look at what other similar companies are offering. It's important to remember here that you only compare to companies with similar sales processes. If you have a shorter sales cycle then you will be able to get away with lower commission rates and vice versa. Once you've seen what other companies are offering you can then choose to match them, or offer a better commission rate to be even more attractive to sales agents.
Although hiring a sales agent comes with fewer legalities than that of hiring a full-time employee, there are a few considerations you need to make, or be aware of, before jumping head first into taking on a sales agent. By understanding the rights and responsibilities of each party, you'll be protecting your business from any hiccups that could occur.
EC Commercial Agents Regulations
A sales agent does not have the same rights as a full-time employee of your company, however, they are covered for certain mishaps through the EC Commercial Agents Regulations (CAR). The CAR has been put in place to protect and support sales agents, should anything go wrong when they take on work from a company.
In brief, some of the responsibilities that you as a business owner would have include; providing enough information for the sales agent to carry out their role and providing plenty of notice when the workload may be reduced. A detailed and thorough guide to the CAR can be found on gov.uk.
Having an agency agreement in place between yourself and the sales agent, will help to protect the business and the working relationship you have with the sales agent. An agreed upon agency agreement will ensure that both the business and the sales agent comply with the legalities of the working relationship.
In short, an agency agreement should contain; the basis of why you are hiring the sales agent; the responsibilities that the sales agent has during their working relationship with you; any minimum sales targets agreed upon; the commission rate you have agreed upon; what process needs to be followed for the working relationship to end.