Commission Structures and Growth Strategies with Sales Ink

Scaling a print shop’s sales operations can be challenging, especially when navigating commission structures, quotas, and team dynamics. In this article, we’ll explore actionable strategies to optimize sales for print shops with annual revenues ranging from $250K to $750K. Featuring insights from Kevin Baumgart of Sales Ink, this guide will help you structure commissions, hire strategically, and grow your revenue with clarity.

1. Why Structuring Sales Matters

Sales processes are the backbone of growth for any print shop. A clear and effective structure allows you to:

• Motivate team members through fair incentives.
• Scale operations efficiently as your shop grows.
• Create predictable revenue streams by aligning team goals with business objectives.

2. Who Should Get Commission?

Not everyone in your shop needs to be on a commission plan. Kevin suggests focusing on these roles:

• Outbound Sales Representatives: For generating new business.
• Account Managers: To finalize quotes and manage inbound orders.

3. How to Structure Commission Plans

Kevin emphasizes simplicity in commission structures. Complicated calculations can demotivate team members. Here’s a starting point:

• Base Pay: Offer a salary or hourly rate to provide stability.
• Commission on Inbound Sales: Typically 2–3% of total revenue for recurring customers.
• Commission on Outbound Sales: A higher percentage (4–6%) to incentivize new customer acquisition.
• Accelerators: Increase commission rates for surpassing quotas to motivate top performers.

4. The Role of Quotas and Bonuses

Quotas set clear expectations for sales teams, while bonuses reward exceptional performance. Tips for implementing quotas:

• Align quotas with seasonality (lower in slower months, higher in busy months).
• Set achievable monthly or quarterly goals.
• Consider bonuses for exceeding annual targets.

5. When to Hire Your First Salesperson or Account Manager

Kevin and the team recommend hiring:

• An Account Manager: Around the $400K–$500K revenue mark to handle order entry and customer support.
• An Outbound Sales Rep: After establishing a strong inbound sales process to focus on growth.

6. Balancing Inbound and Outbound Sales

Shops often blend roles, especially when starting out. However, separating inbound and outbound responsibilities as the team grows prevents burnout and inefficiencies.

• Inbound Sales: Handle existing accounts and incoming inquiries.
• Outbound Sales: Focus exclusively on bringing in new clients.

7. Avoiding Common Mistakes in Sales Management

Common pitfalls include:

• Overcomplicating commission plans.
• Failing to incentivize new business acquisition.
• Neglecting proper training and onboarding for sales hires.
• Ignoring team feedback when revising compensation structures.

8. Why Investing in Sales is Essential for Growth

Many shop owners hesitate to hire salespeople, viewing it as a cost rather than an investment. Kevin explains that sales reps can:

• Free up owners to focus on strategic priorities.
• Drive predictable revenue growth.
• Provide a more professional experience for customers.

9. FAQs About Print Shop Sales Structures

Q: Can a print shop run on 100% commission-based sales reps?
A: It’s possible but rarely effective. Commission-only reps often lack alignment with company values and policies.

Q: How do I know when to hire my first salesperson?
A: Around the $500K mark, when the owner or current staff can no longer manage incoming orders and pursue new clients effectively.

Q: Should sales commissions include gross profit calculations?
A: It’s better to focus on total revenue for simplicity. Complicated calculations can demotivate your team.

Conclusion:

Building a sales team for your print shop takes time, investment, and strategy. By following these guidelines and staying adaptable, you can create a scalable structure that drives growth. Whether you’re hiring your first salesperson or reworking commission plans, remember to prioritize clarity and alignment with your business goals.

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