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<p class=MsoNormal><span style='font-family:"Arial","sans-serif"'>Shawn:<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-family:"Arial","sans-serif"'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-family:"Arial","sans-serif"'>I believe the
tax code says homeowner receives the tax credit.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-family:"Arial","sans-serif"'><o:p> </o:p></span></p>
<div>
<p class=MsoNormal><b><span style='font-size:11.0pt;font-family:Papyrus;
color:#E36C0A'>Bob Clark<o:p></o:p></span></b></p>
<p class=MsoNormal><b><i><span style='font-size:11.0pt;font-family:Papyrus;
color:#E36C0A'>SolarWind Energy Systems, LLC<o:p></o:p></span></i></b></p>
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<p class=MsoNormal><span style='font-family:"Arial","sans-serif"'><o:p> </o:p></span></p>
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<p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>From:</span></b><span
style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'> re-wrenches-bounces@lists.re-wrenches.org
[mailto:re-wrenches-bounces@lists.re-wrenches.org] <b>On Behalf Of </b>Shawn
Alvandi - - LA Solar Energy<br>
<b>Sent:</b> Thursday, February 11, 2010 2:12 PM<br>
<b>To:</b> re-wrenches@lists.re-wrenches.org<br>
<b>Subject:</b> [RE-wrenches] Question about Tax Credit<o:p></o:p></span></p>
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<p class=MsoNormal><o:p> </o:p></p>
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<p class=MsoNormal style='margin-bottom:12.0pt'><span style='font-size:10.0pt;
font-family:"Verdana","sans-serif"'>I like to know about Tax Credit<br>
if someone install solar for some one else "home owner" can the
person who install the panels<br>
can get the tax credit ? or home owner has to get the tax credit? or tax credit
will go to that person who<br>
fill-out the application?<br>
Shawn<br>
<br>
<o:p></o:p></span></p>
<div>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif"'> <o:p></o:p></span></p>
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<p><em><b><span lang=EN style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:#00BF60'>Shawn A.</span></b></em><b><i><span lang=EN style='font-size:
10.0pt;font-family:"Verdana","sans-serif";color:#00BF60'><br>
<em><span style='font-family:"Verdana","sans-serif"'>Energy Consultant</span></em></span></i></b><b><i><span
lang=EN style='font-size:10.0pt;font-family:"Verdana","sans-serif"'><o:p></o:p></span></i></b></p>
<p><b><i><span lang=EN style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:#00BF60'>LaSolarEnergy </span></i></b><b><i><span lang=EN
style='font-size:7.5pt;font-family:"Verdana","sans-serif";color:#00BF60'>(pro </span></i></b><b><i><span
lang=EN style='font-size:7.5pt;font-family:"Verdana","sans-serif";color:#007F40'>green</span></i></b><b><i><span
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company)</span></i></b><b><i><span lang=EN style='font-size:10.0pt;font-family:
"Verdana","sans-serif"'><o:p></o:p></span></i></b></p>
<p><b><i><span lang=EN style='font-size:10.0pt;font-family:"Verdana","sans-serif"'> <o:p></o:p></span></i></b></p>
<p><b><i><span lang=EN style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:#00BF60'>office: 866-744-3374<br>
Cell: 818-667-6633<br>
fax:818-484-8366</span></i></b><b><i><span lang=EN style='font-size:10.0pt;
font-family:"Verdana","sans-serif"'><o:p></o:p></span></i></b></p>
<p><b><i><span lang=EN style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:#00BF60'><br>
visit : </span></i></b><b><i><span lang=EN style='font-size:10.0pt;
font-family:"Verdana","sans-serif"'><a href="http://www.lasolarenergy.com/"
target="_blank"><span style='color:#00BF60'>www.LaSolarEnergy.com</span></a><o:p></o:p></span></i></b></p>
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<br>
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<p><o:p> </o:p></p>
<p align=center style='text-align:center'><em><span lang=EN style='font-size:
36.0pt;font-family:"Verdana","sans-serif";color:black'>***</span></em><em><span
lang=EN style='font-size:24.0pt;font-family:"Verdana","sans-serif";color:black'>GO</span></em><em><span
lang=EN style='font-size:36.0pt;font-family:"Verdana","sans-serif";color:black'>
</span></em><em><b><span lang=EN style='font-size:36.0pt;font-family:"Verdana","sans-serif";
color:#BFBF00'>SOLAR</span></b></em><em><b><span lang=EN style='font-size:36.0pt;
font-family:"Verdana","sans-serif";color:yellow'> </span></b></em><em><span
lang=EN style='font-size:36.0pt;font-family:"Verdana","sans-serif";color:black'>save
</span></em><em><b><span lang=EN style='font-size:36.0pt;font-family:"Verdana","sans-serif";
color:#007F40'>GREEN</span></b></em><em><span lang=EN style='font-size:36.0pt;
font-family:"Verdana","sans-serif";color:black'>***</span></em><i><span
lang=EN style='font-size:36.0pt;font-family:"Verdana","sans-serif";color:black'><br>
</span></i><strong><i><span lang=EN style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:#00BF60'>C10-#841332 - Insured - Bonded</span></i></strong><b><i><span
lang=EN style='font-size:10.0pt;font-family:"Verdana","sans-serif";color:#00BF60'><br>
<strong><span style='font-family:"Verdana","sans-serif"'>NABCEP # E092409-1</span></strong></span></i></b><b><i><span
lang=EN style='font-size:10.0pt;font-family:"Verdana","sans-serif"'><o:p></o:p></span></i></b></p>
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<p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>From:</span></b><span
style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>
"re-wrenches-request@lists.re-wrenches.org" <re-wrenches-request@lists.re-wrenches.org><br>
<b>To:</b> re-wrenches@lists.re-wrenches.org<br>
<b>Sent:</b> Thu, February 11, 2010 1:12:39 PM<br>
<b>Subject:</b> RE-wrenches Digest, Vol 3, Issue 132<br>
</span><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'><br>
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<br>
Today's Topics:<br>
<br>
1. Re: Absolyte Battery Question (Jeff Oldham)<br>
2. Re: sales commissions (Matt Lafferty)<br>
<br>
<br>
----------------------------------------------------------------------<br>
<br>
Message: 1<br>
Date: Thu, 11 Feb 2010 18:49:40 GMT<br>
From: "Jeff Oldham" <<a href="mailto:starpower4u@juno.com">starpower4u@juno.com</a>><br>
To: <a href="mailto:re-wrenches@lists.re-wrenches.org">re-wrenches@lists.re-wrenches.org</a><br>
Subject: Re: [RE-wrenches] Absolyte Battery Question<br>
Message-ID: <<a href="mailto:20100211.104940.11916.0@webmail23.vgs.untd.com">20100211.104940.11916.0@webmail23.vgs.untd.com</a>><br>
Content-Type: text/plain; charset=ISO-8859-1<br>
<br>
I agree with all the feedback. I've been personally using these batteries for
about 5 years now and up until 2 weeks ago when I doubled my PV array I was
doing quite well with a C/40 - C-50 charge rate. At the same time I've had no
issues w/rates as high as C/16. All of these numbers are for a 100hr rating. As
Brian said if you can replace the daily discharge plus ~20% your array will do
the job. I also think a 2nd FM60 is by far the better option and avoids
potential could edge overdrives, however it likely means a new wire run from
the array.<br>
<br>
good luck,<br>
<br>
-jeff o<br>
<br>
>From the Solar, Wind and Hydro powered office of Jeff Oldham/Regenerative
SOLutions<br>
<br>
____________________________________________________________<br>
Small Business Tools<br>
Click to find the latest solutions to enhance your small business.<br>
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href="http://thirdpartyoffers.juno.com/TGL2131/c?cp=QGIWNC3kivn2HnHJWro8SAAAJz3wjMeYFQQEj9ak8QigdzdLAAYAAAAAAAAAAAAAAAAAAADNAAAAAAAAAAAAAAAAAAARMQAAAAA"
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<br>
------------------------------<br>
<br>
Message: 2<br>
Date: Thu, 11 Feb 2010 13:11:52 -0800<br>
From: Matt Lafferty <<a href="mailto:gilligan06@gmail.com">gilligan06@gmail.com</a>><br>
To: "'RE-wrenches'" <<a
href="mailto:re-wrenches@lists.re-wrenches.org">re-wrenches@lists.re-wrenches.org</a>><br>
Cc: RE Markets List <<a href="mailto:re-markets@lists.re-wrenches.org">re-markets@lists.re-wrenches.org</a>><br>
Subject: Re: [RE-wrenches] sales commissions<br>
Message-ID: <13ED592E2A5C467FA4D7FFA6C92EEE5B@GILLIGONE><br>
Content-Type: text/plain; charset="us-ascii"<br>
<br>
Is it OK to be chicken sh#$ with salespeople who are full of bull sh#$ ? <br>
<br>
I don't know if this qualifies as the "wisdom" you were asking for,
Marco,<br>
but here's my take on the topic:<br>
<br>
I am in favor of being fair and supportive with employees. To a fault.<br>
Outside salespeople are different animals and may need to be treated<br>
differently than other employees. More often than not, in my experience,<br>
outside salespeople with commission-based compensation are the biggest "Me<br>
First" SOBs in the business... Regardless of whatever business or industry<br>
it is. If they are a Pure Salesperson, they came from another industry where<br>
they had the same attitudes and practices. They do whatever it takes to get<br>
their commissions and they snake around in any manner possible to ensure<br>
somebody else deals with all the headaches they cause. A commissioned<br>
salesperson is a hired gun by nature. Quite often they have little to no<br>
loyalty to the employer or the customer. If things get slow or they're not<br>
making the $$$ they thought they would, or they simply get bored, they move<br>
on. But not before they get everything they can from you. If you (the<br>
employer) are paying for their cell phone, 3G wireless, car, laptop, etc.,<br>
they will use all of them in their quest to find their next job. Seen it<br>
happen more than once.<br>
<br>
I can think of precious few individuals who are the exception. That being<br>
said, I still believe in treating them fairly and honestly. After all, these<br>
are the folks who get your company in the door with your customers. They<br>
would tell you that you don't have a business if not for them. Depending on<br>
your business model, this may be true to some extent. It may also be<br>
completely untrue and, if it is, you need to adjust their attitude.<br>
<br>
In answer to Marco's question about commission payments for expansion<br>
projects, I believe several factors come into play... Some of which have<br>
been mentioned by others and some have not. <br>
<br>
For the edification of Mainlanders, I think it is important to understand<br>
that Hawaii's current incentive structure favors expansion of PV systems<br>
over multiple years. Year One plus Year Two systems equal a total project.<br>
Asking the question of how best to deal with commissions in this environment<br>
is fundamentally different from asking it in other regions. Keep that in the<br>
back of your head.<br>
<br>
For the purpose of general evaluation, regardless of the region, I would<br>
first address the question by asking if this is an infrequent situation vs.<br>
one which is common or expected to be common? In the case of the Aloha<br>
state, I would check the "common" box. This creates the need for a
company<br>
policy on the matter vs. dealing with it on a case-by-case basis. In areas<br>
where actual future expansion is rare, I'd say the salesperson's<br>
compensation should be what it always is. If your company did the original<br>
installation, I might even recommend an extra spiff. Times are tight. Going<br>
back and mining your existing customer base is good business.<br>
<br>
So.... Let's make a Company Policy. Since it appears that<br>
commission-based-on-actual-project-profitability is not what we're doing, we<br>
need to address three scenarios: <br>
<br>
Scenario 1: Your company did not do the original install. <br>
Scenario 2: Your company did the original install and this salesperson is<br>
the orginal salesperson.<br>
Scenario 3: Your company did the original install and this salesperson was<br>
not the original salesperson.<br>
<br>
Scenario 1 is easy. They deserve full pop. Pay them like it was a<br>
stand-alone job at whatever kW you're selling. Doesn't matter if they were<br>
the original salesperson or not. If they were the original salesperson, buy<br>
'em a beer, too. Then tell them to get back out there and keep bringing in<br>
their old boss' customers! (Note of caution: In Scenario 1, pay close<br>
attention to the job costs and adjust your prices upward if needed. When<br>
calculating job costs, be sure to include a number that covers warranty and<br>
service reserves. Following others onto a jobsite has potential downsides!)<br>
<br>
The other two scenarios require a look at the actual compensation structure<br>
and what the salesperson actually does for their paycheck. If less than 50%<br>
of their gross compensation is commission-based, I say give them the full<br>
commission in both scenarios. Treat it like two separate jobs and call it a<br>
day. For purposes of calculating gross compensation, include any stipend or<br>
base-salary, as well as any commissions and employer-paid benefits<br>
(Retirement, Health Insurance, Vacation Pay, Performance Bonuses, Etc.). For<br>
the purposes of defining "commission", I include any base
"per-job" and any<br>
"quantity-based" wages. Quantity-based wages include things like $/W
or % of<br>
anything. I would not include performance bonuses on the commission side of<br>
the equation, but you may think otherwise. <br>
<br>
The greater the percentage of gross compensation that is commission-based,<br>
the more I would start weighting what they actually do for their paycheck in<br>
figuring out how to deal with the expansion compensation. How much of the<br>
design work do they do? Project management? QA/QC, permits, incentive<br>
paperwork, final delivery and customer orientation? Do they support the<br>
whole team or skip out when it's time to empty the trash cans and wash the<br>
coffee cups?<br>
<br>
If all they do is get people to sign stuff, and whatever preliminary<br>
"design" they hand off to the design staff is always way off from
what it<br>
really should be, that's one end of the scale. (This is probably the person<br>
you wish you could fire but, for one reason or another, haven't yet... Maybe<br>
they're the only person doing outside sales besides yourself and you don't<br>
think you can afford to lose sales right now, for instance.) If they bring<br>
good survey info and a preliminary design that actually works back to the<br>
office after their first site visit, and they help out all the way thru the<br>
project, and are good with communication, and are good team players overall,<br>
that's the other end of the scale.<br>
<br>
Anybody who is pulling all of their own weight, and maybe more, deserves<br>
full pop in all scenarios. If, for some reason, this "breaks the
bank" on<br>
these expansion projects, your current compensation structure is wrong in<br>
some way, and you need to take a look at it. Any sales compensation<br>
structure that does not generally track the profitability of the jobs is<br>
ill-conceived and needs to be revised. Compared to profitability, sales<br>
compensation might be a little more on some jobs and a little less on<br>
others, but the trendlines should be pretty much parallel. Revising the<br>
compensation structure might include a revision to your pricing strategy,<br>
too.<br>
<br>
For Scenario 2 projects, test your current compensation structure against<br>
treating the aggregate job as a single project. For example, if the project<br>
ends up being Year One @ 3kW plus Year Two @ 3kW for a total of 6kW, how<br>
much would they have gotten if it was a single 6kW? Subtract whatever they<br>
got paid for the first 3kW from that and how much do you have left? Is that<br>
a reasonable amount for the actual work they need to do for the Year Two<br>
phase? Be sure to consider that, had the incentive structure been different,<br>
they likely would have sold the people the full 6kW the first time around.<br>
If the expansion was discussed and accomodated in the design of the original<br>
system, in fact, they did sell the full 6kW in Year One. Year Two, they<br>
really are doing paperwork for the sake of formality. The expectation,<br>
substantial planning, and relationship building all happened Year One. In<br>
these cases, the effort on the part of the salesperson is weighted far more<br>
heavily in Year One. It is certainly reasonable to expect the compensation<br>
trajectory to be similarly weighted. If the "remainder" from the test
case<br>
is not sufficient, how much of a flat-fee would you need to add to account<br>
for the extra time compared to a single project? <br>
<br>
Here's how I'd approach that: Assuming similar margins, a 6kW job in 3kW<br>
pieces over two years is more expensive for everybody than a single 6kW.<br>
Pencil it out. How much more expensive? If it was a single 6kW project under<br>
your current compensation structure, what would your salesperson cost as a<br>
function of % of revenue? Multiply that percentage by the total Two-Phases<br>
price. This is the gross project sales compensation. Subtract Year One<br>
compensation from this number and you have your Year Two compensation. If<br>
they snivel about Year Two being too little, explain that Year One was<br>
obviously too much and all Year Ones from now on are gonna be compensated at<br>
a lower rate to allow for Year Two compensations to be better. Stand your<br>
ground and back it up. (This scenario could very well happen if you<br>
front-load profits in the Year One phase and run lower margins in Year Two<br>
phases. If you are doing this, you should consider that a bunch of Year Two<br>
jobs in a single year without an offsetting amount of Year One jobs just<br>
might bankrupt you! Consistent, increasing margins are your friend!)<br>
<br>
Scenario 3 projects are a little more difficult, but not by much. Where is<br>
the salesperson who sold the job in Year One? If they are still with the<br>
company, why aren't they taking care of their customer? Unless they are on<br>
their way out of the company, they need to get their hind-end out there and<br>
take care of this customer. Then follow Scenario 2 rules. <br>
<br>
Due to the unique nature of an expansion, consider an hourly or flat-fee<br>
arrangement if you have a different Year Two saleperson. This is about the<br>
most qualified lead you could hope for, after all. Not a lot of specialty<br>
"salesmanship" necessary, but they don't have the personal
relationship with<br>
the customer so they have to make that happen. If the job was handled<br>
correctly the first go-round, this is an exercise in paperwork as much as it<br>
is anything. If there were "issues" from the first phase, particularly
if<br>
they were caused by the salesperson, then the new salesperson is gonna have<br>
some extra cleanup to deal with. A decent, professional hourly compensation<br>
in these cases should be fair to both of you.<br>
<br>
Managing a business that has the diversity of tasks associated with<br>
Incentivized Grid Connected PV is a challenge, to be sure. The size and<br>
model of your business matters. If you are running a business that is<br>
basically Sales, Engineering, and Project Management, you have a different<br>
set of challenges to balance from one that does turnkey, in-house<br>
integration. If you have an organization large enough to have very defined<br>
sets of responsibilities for everyone (i.e. Sales, D&E, Procurement, PM,<br>
Construction, Delivery, Admin), you probably have more leverage in keeping<br>
the salesperson in check and keep them focused on the sustainability of the<br>
company. They are more replaceable in this type of organization than others.<br>
In fact, the salesperson is the MOST replaceable, LEAST valuable commodity<br>
in this type of organization. Sales is sales. There's another vinyl-siding<br>
salesperson out there who will be happy to take their job... If you're<br>
running this type of organization, get that point really clear in your head.<br>
I wouldn't club people with it until they deserve it, but I would make sure<br>
they know I know from Day One!<br>
<br>
In an organization where everyone has to wear multiple hats, you need a<br>
cohesive team more than the former organization does. I am for<br>
team-building. Successful teams are built of individuals who pull for the<br>
team. This starts at the top. If everyone is compensated according to their<br>
value to the team, they will work toward the progressive edge and all boats<br>
will rise. I am for structuring a sales compensation package with a modest<br>
base salary and commission based on per-project profitability, with a<br>
profit-sharing spiff at the end of the year. Not every hired gun is gonna<br>
think that's a great idea 'cause they want the money in their hand today.<br>
Lazy-ass wannabe hired guns will slacker themselves and your company into<br>
mediocrity. You don't want either of these on your team. Both of these<br>
personalities are poison. You want the steady straight-shooter who takes a<br>
longer view of things than just their next paycheck. Consider that changing<br>
incentives create a boom-bust cycle. We all have to make hay when the sun<br>
shines, but remember that the rain is gonna come. Be straightforward about<br>
that with everyone. Make sure the company keeps building a warchest to keep<br>
people employed during the down times. Share the wealth, but make sure it's<br>
real wealth and not just a monthly bubble!<br>
<br>
The matter of how best to compensate the salesperson for an expansion<br>
project really depends on your existing compensation and company structures.<br>
One area I didn't specifically address above is a non-employee/contract<br>
salesperson. Frankly, I think they fit under the Scenario 2 & Scenario 3<br>
models. If your pricing and compensation structure is too heavily weighted<br>
on Year One and they aren't chasing down the Year Two projects, you need to<br>
change something. Either raise the price on Year Two to cover, or drop the<br>
Year One compensation and hold something in reserve to carry to Year Two<br>
compensation. I like the latter... It tends to reinforce that this is an<br>
ongoing business and that there's still a carrot out there to go get. It's<br>
too late to get some of the Year One compensation back for use against Year<br>
Two if Year Two is here now! This is where you (the boss) have to lean on<br>
them and impress the point that they already spent the dough and really<br>
don't have that much to do for the Year Two balance. And put a help-wanted<br>
ad on Craigslist. <br>
<br>
There are fat years and there are lean years in every business!<br>
<br>
Some general guidelines and considerations for Salesperson compensation<br>
structures: <br>
<br>
* Don't let a salesperson hold your gonads.<br>
* If you are keeping good books and tracking everything pretty tightly,<br>
sales compensation that is tracked to profitability is the best and fairest<br>
for everybody. (If the salesperson is a shark and you let them price stuff,<br>
the possible exception to this could be the customer.) This model is really<br>
good because it inpsires the salesperson to help reduce costs where they<br>
can. Overall project efficiency drives lower costs more than any other<br>
single factor. Accuracy at every step is the BEST way to increase<br>
efficiency. Encourage accuracy and thoroughness. Discourage actions and<br>
behavior that requires anything to be repeated or re-done on a project.<br>
* If you are giving the salesperson latitude to drop the base price on
jobs<br>
without getting too far into their own pocketbook, your profits will be<br>
lower than they should be. You probably have the ratio of "per job"
base-pay<br>
to "quantity commission" skewed too heavily on the "per
job" side. This<br>
symptom also shows up if they are commonly "missing" stuff on
projects that<br>
should be an adder, but you end up not charging for. This model is bad for<br>
your business and salespeople that take advantage of it are lazy scumbags<br>
that are already looking for greener pastures. Kick 'em to the curb, revise<br>
your pricing & compensation structure, and get new blood.<br>
* Determine what role(s) the salesperson is expected to perform in your<br>
company. Really give this some thought... Do you expect them to know or<br>
learn the ins and outs of solar from a technical perspective? Do you expect<br>
them to do site surveys and hold them accountable when their info is<br>
inaccurate or insufficient for design or construction? Do you expect them to<br>
participate in non-sales team meetings and show up in the office on a<br>
regular basis? Do you plan to provide sales-tech support/engineering? How<br>
much and when in the process? Where do your leads come from? Do you need<br>
somebody that mostly answers phones or someone who is out there beating the<br>
bushes? What is your primary market? Residential, commercial, utility? Do<br>
you need somebody who can walk in the door, hit the ground running, churn<br>
the deals for 6 months then move on? Do you need someone who plans to be<br>
there for the long-haul and build a business with you?<br>
* Do you want/need a Pure Salesperson for your organization? Pure<br>
Salespeople are those ones that can "sell ice to an Eskimo". Pure<br>
Salespeople, by nature, are NOT engineers (if they were engineers, they were<br>
lousy engineers). They can't stand and don't see the importance of technical<br>
details. They don't care about accuracy in anything other than making sure<br>
their paycheck is as big as possible. A Pure Salesperson is self-centered<br>
and has ADD about all things that don't smell like money in their pocket.<br>
This characteristic has upsides and downsides. Depending on the depth,<br>
direction, and maturity of the rest of your organization, the upsides may<br>
outweigh the downsides. In some companies, you might want that shark and<br>
have the back-end to deal with the headaches they cause. Personally, I don't<br>
like these types, but I give them their due. Think about it like this: We<br>
all hate lawyers, but when the sh#$ hits the fan, we want the most ruthless<br>
scumbag possible on our team and we pay for it. Pure Salespeople are that<br>
ruthless scumbag. Do you want that same level of ruthlessness on your team<br>
every day? Do you have the back-end to deal with the fallout?<br>
* There is no "magic number" that salespeople should be paid.
You need to<br>
evaluate their role in your company against your margins and revenues. Be<br>
sure to consider your other marketing... On the whole, your gross "sales<br>
costs" include your "other" marketing costs. The salesperson is
not the only<br>
one selling your company. Your entire company sells your company... <br>
* If the salesperson's compensation is largely commission-based, it is<br>
common for them to push for you to pay for as much marketing as possible.<br>
Set your marketing budget and don't budge it. When they hit you up to<br>
sponsor another Home Show or Trade Show, offer to co-op the cost with them<br>
(including any hourly staff that you have to pay to be there). You can come<br>
up with a spiff program that reimburses them based on profitability of leads<br>
that come from the show. What's good for the goose is good for the gander.<br>
* I am for accountability. Listen to the rest of your team. If a pattern
of<br>
laziness or inaccuracy by the salesperson starts showing up, nip it in the<br>
bud. Be direct. If your design team is constantly having to re-do stuff that<br>
should be done by the salesperson, start docking their pay to compensate for<br>
the extra design costs. Same with admin. Hopefully your design team is<br>
catching stuff before you roll crews with tools and glass. I wouldn't allow<br>
more than one case of stuff not fitting before I start taking away<br>
paychecks. Just 'cause you're getting paid on commission doesn't mean you<br>
get to be a forkup.<br>
* If your sales comp plan isn't directly tied to profitability, start<br>
newbies out cheap. Set the target compensation and ramp their pay based on<br>
performance. The goal is to get them up to speed and effectiveness as soon<br>
as possible. If, for example, they are going to be expected to do survey<br>
work and initial design/configuration, YOU are going to have to provide<br>
training and support necessary to get them to the point where they can<br>
actually achieve that in a manner consistent with your standards. Depending<br>
on too many factors to count, this can take quite a bit of time and<br>
everybody might starve meanwhile. Figure out if it's gonna work or not<br>
earlier rather than later.<br>
* Sometimes the right person might require modifying the position. For<br>
example, you might find that the "right" person has zero technical
ability<br>
but has other qualities that make them the right person. Maybe it's your<br>
wife or girlfriend or out-of-work brother-in-law. This might mean you have<br>
to send a separate survey/design person to every site prior to signing<br>
papers. Under most models, this person would not deserve the same level of<br>
compensation that someone who could do all the survey and preliminary design<br>
work would. Adjust the job description and compensation accordingly.<br>
* Your salesperson has the potential to cost you more money than anyone<br>
else in the company.<br>
* Your salesperson has the potential to make you more money than anyone<br>
else in the company.<br>
* Matt's preferred structure for system sales: Modest base salary + %<br>
project margin + annual bonus based on company performance.<br>
* Matt's preferred structure for PPA sales: Modest base salary + % actual<br>
annual operational margin paid 1x per year for Years 1-5. <br>
<br>
Pray for Sun & Super Salespeople!<br>
<br>
Matt Lafferty<br>
<br>
<br>
<br>
<br>
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End of RE-wrenches Digest, Vol 3, Issue 132<br>
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