Sep 25, 2008

Selling Your Professional Service when You are an Independent contractors

I was thinking this morning that I have too much work on the pipeline, so I have to stay focused in order not to get off-track.

So how to optimize my productivity while being a freelance expert, an independent contractor and:
-being based in France but working on international project development mainly in the Middle East and North Africa region within the EU funded programs (EUROMED);
-setting up institutional partnership between clusters, trade organizations, etc;
-promoting inward and outward investments;
-raising capital for all these projects; and
-keep networking -without siddling up-, staying informed, tracking market trends, unvealing niches, attending conferences and meetings...

On the other hand, I naturally like being helpful (have to sort it out with my psy), unfortunately I am not careful enough in business deals even when I do my due diligence. So many different people from so many different business culture, who are sometimes more cynical than I do, or more focused on the petty details and less on the goals I am trying to achieve.

The issue is do I have to:
-start hiring people and definitely learn how to delegate. In this case, I will need investors for myself; or
-find the right organization which would be interested in such a portfolio and at the same time give me the independence I need to keep growing. Already tried that last year, found only one answer: overqualified for our company;
-give up all projects and stay focused on only a main one. So which one is worth it?

I was reading Glenn Porter's recommendation on "how to sell your professional service". The questions were the answers but Porter's recommendations are also interesting even though he is acting locally.

Question: What is the key to selling professional services? For example, how do you differentiate yourself from other boutique bankers?

Answer: You can never forget people sell to people. It is all about reputation and relationships.

We are coming into a time when the economy will continually fracture and subdivide. This means we will become a society of independent contractors.

Selling yourself as a service provider means you have to be constantly on the hunt for new business. The market is very competitive. You will need to be active in your trade association. I have gotten clients because I was active in the local little league and in my church group.

To differentiate, self-brand. Pick a niche and do something very well. Gain a reputation. Also, focus on a specific geography. Look for business within a day's drive of your home. For an independent contractor, travel is a time-killer and expensive.

Question: What is the most effective incentive structure for top salespeople?

Answer: There are two approaches to this; it varies on the industry.

When selling products and services that have a long sales cycle, there is a base salary plus a commission, usually a half-and-half split. If the base is $80,000 then the total compensation with commission should be $160,000 if the full quota is attained. (Add a kicker for exceeding quota.)

The next approach is straight commission. Typically, 6% of gross revenue is the model I like, much like what is charged in the real estate brokerage business.
To make it work the sales person should have a well-developed funnel.

Whatever the incentive plan, make sure the sales team is fired up--don't cap potential earnings and they will be.

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