…the proper entrepreneurial blood to do the job as well as you do.
Remember if he is that good he can work for himself.
Should you be so lucky as to find such a person, I suspect, that he will pretty much be able to set his own terms. I would listen more than I would talk when negotiating with such a person.
If you don’t pay him enough you don’t get him and you don’t get ANY of the profits he could bring you. If you pay him too much, it won’t matter how much he brings in, it will never be enough.
I’d play it by ear rather than to try to do too much advance planning on compensation because you never know what your prospective employee will be worth before you meet him and until you give him a try.
Posted by Paul Stryer on September 03, 2003 at 22:20:42:
Hello Everyone
My partner and I have been doing Lonnie Mobile Home deals for a little over a month now and have a goal of 30 notes and a streach goal of 60 notes by Aug 1st 2004.
One of the biggest issues we have is enough time to work the busssiness. We are still working full time jobs since there is not enough cash flow yet to hire us on full time with our company.
We have been kicking around the idea of bringing on a sales person to help us work the calls since we are getting so many.
The issue we have is how to pay the person.
commission
Salary
Salary + Commission
and how much on each is enough or not enough
My partner and I think that commission would be the way to go since we can not afford to pay someone a salary. But how to structure the deal and how much to give for each deal.
Then if we do commission can we set it up so they person get so much of his commission every month when the person check comes in until the whole commission is paid. For Example lets say that we pay $500 for the sale of a home, we could give the person $100 per month for 5 months. If that person sold 5 homes per month the first month they would get $500 then the 2nd month they would get $1000.00. 3rd month get $1500 - until the 6 month the first 5 would fall off. the only reason we say pay over time is so we don’t have to give most or all of the person deposit to the sales person and some would go back in to buying the next house
There has to be a easier way to structure it, and what percent of a sale price would you give or flat fee per home sold
I guess I am saying that I have no clue how to structure a deal like this and need LOTS of help
Hi, paul, I am not real experienced at Lonnie deals, but experienced in other business areas from several bizzes I have owned.
The only problem I ever had with the type of scenario you describe is that anyone that was good enough to keep on and pay, would learn the biz quickly under mytutelage, and a month or two later I had a new competitor!
this happened several times in several different bizzes. IMO, the biggest hurdle in real estate is just getting the first deal done and talking to people. If you train somebody in your methods, etc. anybody worth their salt will start doing it on their own. Just my .02, Brad