Interactions Between Businesses (Business To Business)

[jp]

Hi,
I was laid off from a marketing position and am talking to a company that helps brands do advertising in the mobile space.  I don't know what is a fair way to structure a compensation agreement. They would like to pay me straight commission but I would like a retainer. I'm worried that if they don't have any skin in the game they won't be motivated to support me.  Can you tell me ways consultative sales are often structured.

Thanks,
JP

[Entrepreneur]

Sorry to hear about the layoff. Probably a good opportunity for a new start. There are many ways consultative sales are structured.

We could go in several directions, or we could focus on this particular opportunity. Partly depends on your needs and desires - do you want to brand yourself first or do you want to get this gig under the guidelines the company will offer you. Either way can be a good start. Some factors to consider - your techncial expertise in the domain (mobile), your marketing experience (how broad, how deep, other verticals), your ability to go without pay for a while (ah, you're a businessman/woman now - risk and reward!), etc.

I hope you're in for a discussion - this is consultative all by itself!

• Commision - they're willing to pay for results
• Retainer - we all want a retainer
• Skin in the game - its probably opposite. Unless its a schlock outfit (in which case don't waste your time and brand associating with them), they want you to have skin in the game. IME, salary/retainer is inversely proportional to sales results - probably theirs too.

I find that for producers, we find ways to get them support, come hell or high water.

A couple questions (see, its all consultative) - what is your tolerance for no (regular) paycheck at first? Have you done this same type of sales before? How confident are you that you can do this without the support structure a W2 employee has?

Maybe a middle ground works too - small salary/retainer + reduced fee.

Another question is their motivation - are they cash strapped/ Are they cash conservative? Is their market saturated? Do you bring something a little different/more than their current sales force? Etc.