A Sales Partnership Agreement is a legal contract where we recruit a sales team for a client and take an ongoing recruitment and consulting fee plus an advance deposit for setting up the foundations for success. It means that you can build a growing long term secure passive income and be paid before you start work.

Selling The Sales Partnership Agremment - SPA
 

The SPA is a sales recruitment product often but not necessarily for Commission Only and Remote teams. Our fees have two elements, the Set-Up Fee and the Override. The Set-Up fee is and advance of £6,000+ VAT with some options. The override is 30% of the Earnings of the sales people we place. for the duration. Full earnings not just the commission. We do not negotiate the 30%. They never negotiate this if they even mention not, point out it makes our recruiters tempted to place that person with another higher paying client. It includes ongoing services in addition to the recruitment.
 

The most important thing is to be a Buyer not a Seller. You are looking for companies where the likelihood of receiving overrides is secure. You will find prospects only negotiate the Set-Up fee never the override. The Set-Up fee is a decoy we are after the override. Do not make the same mistake our prospects make of thinking short term. Long term thinking makes much more money. And part of that is assessing are placed people going to be productive.
 

We asses each company as follows.

You will have to sell this opportunity to candidates . Do you think it an easy sell and people will stick with it?
 

We avoid.

The Set-Up Fee

The standard set up fee is £6,000. This is an advance against the overrides, so it is therefore a fully results reward deal. It is non-refundable.

Option 1:
We can spread this payment to £3,000 now and £3,000 after 1 month. Or even £2,000 now and after 1 month £2K and second month £2K. We never split more than three.

Option 2:
When the sales cycle of the prospective new client is 3-12 months plus, we are not wanting to wait that long for our override fees. We would only take a deal if either a (flexi) basic was ofered to palced candiates or the company had very high earnings. So we charge per month £1,500 minimum (First one immediate) or 30% of earnings of placed people whichever is the greater.  Advances on override fees are eventually deducted. This means we never earn less than £1,500 in a month.

 

Note that for ‘comms only,’ we include low basic, as we see this as a living allowance, and FlexiBasic which is all payments on results. The override is still on the earnings of the salesperson irrespective of remuneration formula.
 

IP Day Event Venues.
We have deals with Sofitel London Gatwick Saturdays at £300. Hilton Woking Weekdays £250. Thornley Park Golf Club Heathrow on £200BBX and food/drink in sterling. These are maximum budgets for other UK locations that should be cheaper. Abroad  local rates are different.
 

SPA Target Clients
They have money, either through organic retained profits or investors. AND want to grow AND need salespeople to do so.

A clear sign of this is that they are advertising sales jobs with basic salaries. This proves they have money and the need. Just looking at ‘Jobs’ on LinkedIn or ‘Finding Jobs’ on Paiger will get you lists of hot prospect leads. There is no shortage of prospects for what we offer.

Those who do not have money look at our ‘comms only offer’ as their only path forward. They always tell us they do not want to pay the set-up fee. This also means they will not do any of the essential foundation work to make it a success. They will even offer an increase in override. NO. Never be tempted to work for free, desperate to convert the lead. Get more leads there are plenty.

The Sales Partnership Agreement

Closing a Sales Partnership Agreement

Process for a Closing a Sales Partnership Agreement

You have presented to the client either face to face or MS Teams. You have got them talking listened to and recorded their needs. Then quoted them back for confirmation. Then and only then do you explain the SPA benefits that match those listed needs and received tentative agreement (test closing). The meeting closed then you would email a formal proposal. You have done that using our templated email and contract. You now must make the closing meeting. Below is the process to follow.
 

Negotiation

The deal has two aspects the set up fee advance and the ongoing percentage override.

Most prosects if they negotiate, focus on the first payment. What they have to pay now. Recruitment override fees are after they have received cash so rarely challenged.
 

Respond by pointing out this is a fraction of what we spend and do up front to prepare thoroughly and professionally to regularly secure quality candidates for them. We do not discount. If they cant afford it we don’t work for them.
 

Be aware those who want to pay nothing are a waste of time. they do not have any money. You should be reticent to offer a SPA to those who do not already have a sales team of at least two people and a support infrastructure in place. Or perhaps a start-up of an experienced Sales Director with venture funding behind them. Those should have been filtered before this stage.
 

The first payment is just that. The important thing is commitment from the client and then cash flow to fund advertising, events, and your time. 

 

The Closing Meeting: Key Points to Agree

Agree advance deposit and fee rate. Also agree process. For example they can send someone to live or online IPDays, have a camera and include via zoom, or just rely on us to make the decisions, or have short list interviews with client at end of event. Then confirm that we will send the contract and invoice.  Never start work until they have paid the deposit. The next stage is to information gather and produce recruitment materials.
 

Next actions.

The following information you need from the client. Follow up this conversation with a list.
 

Anything they have on the company that will help sell it and inform key facts to candidates. Leadership, long term vision, how big sales team now, offices etc. Refer to their website, yet most companies do not often update. This could include details of current projects, brochures, sales manual, key success stories.
 

We need information on expected earnings to produce a 12 month expected earnings. So we need top billers income, plus average income, how long on average before first deal. Size of deal, rate of commissions. Is work all on the phone?
 

We need the USPs of why work for the company corporate culture style its vision, leadership, and future plans.
 

What are the main products for sale, their margins, USPs, commissions,

Special? Beat competition.
 

Do they have someone responsible for onboarding new staff. Do they have an onboarding pack.

Can they help with accommodation, visa, local bank etc.

What do they do to develop staff.

Commissions, Bonuses, Trips, Promotions, Benefits.

Is there a distinct type of person that fits in with your team. Age, background, race. Do you accept conversions from other professions to sales.

Following the Meeting

Rarely will they query anything in the contract. Make sure someone checks any proposal and terms and conditions. 

Do not start work until the invoice is paid. Actually paying the invoice legally signs the contract from our point of view.
 

When Advance Deposit Invoice Paid- (See Operational Processes under Admin section for step by step guides.)