What do I need to know about asking a friend to sell my websites?
August 4, 2011 8:40 AM   Subscribe

I design websites for a living, as a freelancer. I have a really good friend who I'm thinking of asking to partner up with me and do sales. What do I need to know? How much commission is common for selling website packages?

This friend lives in an area (pretty far from me) that I'd like to operate in, as there are many really interesting clients there. He's very good with people and has a job in IT that seems pretty amenable to him doing a bit of sales on his days off.

I'm interested in knowing: What to pay him, how to approach the subject, what to avoid, pitfall-y kind of stuff, etc., and how this could hurt our friendship -- I really don't want to pull him in and have it go bad.

I'll also be talking with a business coach about it, but thought I'd get some community feedback too. Thanks!
posted by circular to Work & Money (4 answers total) 3 users marked this as a favorite
Best answer: Pay him a commission, usually between 5 and 10% plus a bonus for on-target earnings (OTE) for anything above a preset goal you decide (I would take your last year's earnings and divide by half).
posted by parmanparman at 8:43 AM on August 4, 2011

Best answer: Rule #1: Don't work with friends.

(it will go bad at some point, and you'll lose both a salesperson and a friend)
posted by chrisfromthelc at 8:51 AM on August 4, 2011

Best answer: I am in sales. I have sold websites for a living on several occasions, but not currently.

Where are the leads coming from? If he is going to be cold calling, going out to networking events, etc. on your behalf you need to pay him either a salary or as a consultant, or the commission percentage needs to be large enough to compensate him for all that time, most of which will be fruitless.

If he is simply following up on leads that come into your website a much lower rate is appropriate.

In the first case, $20 to $40 an hour is not unreasonable, along with 10% on sales. If it's straight commission, 33% of the deal is about the right neighborhood. In the 2nd case, 10% of the deal is about right.
posted by COD at 8:52 AM on August 4, 2011 [1 favorite]

Response by poster: Thanks everybody, those are helpful answers.
posted by circular at 10:07 AM on August 5, 2011

« Older Can I use Febreze on fiberglass chairs?   |   Help me find this old game. Newer »
This thread is closed to new comments.