Hiring Door Hanger Distributors On Commission

Discussion in 'Employment' started by SydneyLawnCare, Jan 23, 2013.

  1. SydneyLawnCare

    SydneyLawnCare LawnSite Member
    Messages: 69

    Hi guys, I am launching my start up and I am going to distribute to 50,000 homes with door hangers. I am hiring distributors who will distribute to these homes and get paid on commission for each door hanger that makes a sale that they had distributed. The client will go to the site, make an enquiry, we will send them a quote. Done. So how can I give evidence to the distributor in the free lance contract that we will give them proof that they should be paid for each sale they make off the door hanger they distribute?

    We currently have 15 people and need 10 more to sign up. It's been a tough sell of trying to sell this job so any other ways I can find 10 more people?

    Thank you.
  2. CL&T

    CL&T LawnSite Senior Member
    Messages: 493

    I'm assuming this is a straight commission deal? No wonder you have so few takers. Try paying per hour and skip the commission BS. I also think 50,000 addresses is a bit over the top. How big is your operation? How about concentrating on a certain area that you know you can handle first then expand as you grow.

    DLONGLANDSCAPING LawnSite Bronze Member
    Messages: 1,418

    i am suprized to found15 people to do this type of work. Do they know that they are working with less than a percent of sale for each flier they hand out. Lets say they hand out 2,000 fliers each(25 people x 2,000= 50,000 fliers) Thats less than 10 "potential" sales they could have. How much are you going to pay them for a sale? 10% of contract?

    This is a bad way of starting up, id get your ass in gear and start knocking door to door yourself. Meet people and get the neighbors to know you.
  4. SydneyLawnCare

    SydneyLawnCare LawnSite Member
    Messages: 69

    The reason I am using commission rather then by the hour is because of limited start up money. I have leveraged this technique into my start-up's favour so we don't have to spend large amounts on start up marketing. I am spending next to nothing on getting this distribution project set up to be honest. It is a much better deal on a money side of things and on a number of homes side of things when being compared to hiring a distribution company or paying people by the hour. This is basically the same as hiring door to door salesmen on commission except these are just distributors.

    How could this be a bad way of starting up when I :
    1. Target more homes in my demographic.
    2. Extremely Cost Efficient.

    Plus we already have 15 people ready to go and yes they do know the amount they are getting paid.

    Our door hanger's are great with design, copy, call to action, risk free, etc. The same goes for the website. It is all designed for this demographic and all I am doing is targeting a large amount of homes with this leverage technique.

    I'm just wondering any multiple ways of getting more people rather then job sites? Thanks!
  5. CL&T

    CL&T LawnSite Senior Member
    Messages: 493

    No, really? I never would have guessed. No matter how you dance around it, you don't want to spend any money.

    So what was your original question? Oh yeah- "how can you prove to the suckers you talked into doing this that you didn't get one sale from any of the fliers that they passed out". Answer is you can't to anybody's satisfaction. All it's going to do is create ill will and possibly even legal issues which is a hell of a way to kick off a business.

    I just love entrepreneurs who think they know all about business and decide to be lawn care moguls. I guess house flipping has lost it's charm.
  6. SydneyLawnCare

    SydneyLawnCare LawnSite Member
    Messages: 69

    What's wrong with not wanting to spend money? Think about it this way. If I had went the conventional route and hired a distribution company, this would cost me 50,000 dollars all together with paying the company, printing the door hangers, design, copy writer, etc.

    Without the distribution company and doing it in a way that I am leveraging money? 10,000 dollars. 20% of what I would of paid if I went the route your talking about. Isn't the key to work smart and not hard?

    Your acting as if this is some sort of Ponzi scheme. If they don't get paid, I don't get paid. And vice versa. Simple as that. Legal issues? They'll be signing a contract with all of the terms and conditions inside in which they can read as many times as they'd like. They already know that if they get no sales they would have no payment, I'm not lying or cheating in anyway.

    Call it what you want, I call it spending less for more.

  7. CL&T

    CL&T LawnSite Senior Member
    Messages: 493

    Ok. Read me the part that describes the process for how they will be kept appraised of the number of flyers that they distributed which resulted in a sale and your accounting showing how much you are making on each one so they can know what their commission will be.

    What I'm saying is without that your contract is BS.
    What it is is your word against theirs and I wouldn't trust you as far as I could throw you.
  8. SydneyLawnCare

    SydneyLawnCare LawnSite Member
    Messages: 69

    The contract is going to begin being written soon. They are going to sign within 2 weeks when we meet to give them their door hangers. My contract isn't BS sir, your attitude is.

    My word against theirs? I don't understand you really. I'm giving them a COMMISSION for each sale that the door hanger that they distribute MAKES. I guess the same goes for any commission paying job in your eyes.

    Of course you don't trust me. You hate fancy dancy entrepreneurs who come into the lawn industry thinking they can become billionaires. You hate creativity so your attacking my technique of spending less for more. You hate entrepreneurs who work smart and not hard because I am focusing on marketing and the business end of things rather then committing to do the actual labour work. You hated my guts the moment you saw my response and thread.

    So of COURSE you don't trust me sir.
  9. CL&T

    CL&T LawnSite Senior Member
    Messages: 493

    The difference between what you are doing and door to door sales is that the sales person sells to the customer and signs them up. So right then and there they know they have made a sale. With your system they have to take your word for it.

    But I see another problem.

    I read your other topics and I see that you are only 17. Legal age is at least 18. You can't enter into any contract until you are either 18 or 21 depending. So you couldnt even buy a car without mommy or daddy. More to the point, what will your affluent customers think when they hear there is a little wizzard behind the curtain in charge of everything that they couldn't even sue when things go wrong?

    Damn right I hate BS artists that con people into making them money. If you want to get into this business buy some equipment and get your ass out there and do the work yourself. THATS how you run a business dude.
  10. SydneyLawnCare

    SydneyLawnCare LawnSite Member
    Messages: 69

    Actually I turn 18 in 3 weeks but thanks for the heads up anyways!

    Anyways, I am not holding a damn gun to their heads and telling them to take the job. I am laying out EVERYTHING in front of them and making this company as transparent as possible. That's why I posted this thread to install maximum trust within them and the company. Oh and by the way, we have 20 people now. Just 5 more to go and we start in 2-3 weeks :)

    Regarding my age and customers, since when will my affluent customers care about my age? Their attitude towards property maintenance services is to get the job done with pure quality. They will care about their SERVICEMEN and not the damn owner. Do you care that the gas/oil you buy is flipped or sold by some arabian prince in some distant land? Nah. SUEING me? Already your assuming that? I am focusing on hiring the most qualified people for the job and installing insurance into the company. (Hence, I am turning 18 in 3 weeks)

    Regarding your take on how to run a business

    "You don't have to be an expert in the airline industry to be successful in the airline industry." - Richard Branson, Multi-Billionaire and Owner of Over 400 Companies.

    Your telling me that its not possible to set up a business, launch a great marketing campaign, get a lot of customers... BUT WAIT. I have to do the work myself? Okay, why don't you go and tell that to the most successful companies out there or all the multi millionaires/billionaires?

    I GUESS in your logic, we should all be sole proprietors and forgetting about EVER growing our businesses to the point that we hire out and create a better lifestyle for ourselves with MONEY. Not that i have anything against people who are okay with being sole proprietors.. we are all different and have different goals. I happen to want to have a more luxurious and entreprenurial lifestyle for myself rather then doing the labour work. Like I said before.. work smart, NOT hard is my motto. Looks like yours is the complete opposite of that.

    Nothing wrong with that at all.. just your opinion and I respect that. Just don't ever try to commit one of the biggest sins in the world, and that is: Trying to PUSH your beliefs on others.

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