A few days back my friend Mahesh asked for some help for his recruitment efforts. He has  website design business and wanted to hire sales people, and form the sales people he expected to make a small village enterprise, an enterprise that does not takes up a lot of time to build but keep on producing a small constant income.

Here is what I told him.

Hire 6 sales inside telesales people @ Rs. 15,000 per month

Each sales person has a target of Rs.150,000 per month that is 10 times of their salary.

Since this is a sales job there is definitely an incentive part to the salary which goes as follows.

  1. Sales Rs.0 to Rs. 75,000 (50% of the monthly sales quota for each sales person) –> Incentive = 1% of the sales, but the sales person does not get the incentives if the total sales is less than 50% of the monthly sales quota.
  2. Sales Rs.75,001 to Rs.150,000 (100% of the monthly sales quota for each sales person) –> Incentive = 2.5% of the sales.
  3. Sales Rs.150,001 + (Above 100% of the monthly sales quota for each sales person) –> Incentive = 5% of the sales.

Now you have 6 sales people producing 150,000 per month, that is equal to Rs.150,000 x 6 = Rs.900,000 per month! At Rs.833,333 per month your company will hit Rs.1 crore turnover. This is very good for a sweet simple small village.

Listening to this my friends eyes and mouth were both wide open for a few seconds and he said “This is the holy grail for making small villages!”

Well I don’t know if it is really a holy grail for Rs.1 crore company, but I know it is possible, doable and really actionable. I have done this several times successfully.

Not the questions are different form here on. Like

“What if the sales people are not able to make the sales?”

“How and where to get these sales people?”

Well if you have the same question, do let me know. I will write a blog on it.

Question of the day?

Do you think that the above scenario is applicable to your business also? Can you do it? What are the problems that you will encounter?