My Company & Personal Background
I have never hired/managed a sales person, but I would like to hire my first. From when I founded the company 3 years ago up until now, I've only received sales via SEM/SEO/WOM.
We manufacture and sell firearms related products.
For our products, the Bureau of Labor Statistics shows salaries for Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific Products (NAICS SOC: 41-4012) to be from 55k to 62k annually.
My company and I are located in Arizona.
I was recently solicited with a proposal by a customer from South Carolina, who is currently a salesman and has been his entire life. He would like to act as a sales rep for my company and represent the "South East Region" of the US, which encompasses 9 states. He plans to physically travel around selling to individuals, resellers and distributors.
For all sales that I generate through personal contact a 25% commission on the gross profit will be earned and 10% on all orders shipped into my region regardless of how they were attained, by Internet, phone, etc..., to include repeat sales.
- Are his rates reasonable for a traveling salesman? If not, what would be a reasonable starting point?
- Is it reasonable for him to receive compensation on sales in his "region" that are generated from SEO/SEM/WOM without his efforts?
- Is this just a management nightmare that I should avoid?
- Are there benefits to starting with an inside sales person first?
- What are the foreseeable problems that I may encounter (i.e. financial, logistics, legal, etc.)? How can I protect my company?