Cold email lead generation on a commission-only basis?

[windows95]

Seems like a no brainer to me but I can't figure out why nobody else seems to be doing it. Especially for SaaS companies that charge a ton of money for whatever they are selling.

I currently run a cold email agency and I have one client (I just started in July) who pays me $1200/mo. I just landed him another $20,000 client last week.

I think I am going to switch to a commission-only model and see if I can get 10% of every sale instead- or at least pitch future clients like that. Thoughts??

 

[Pam Danny]

Makes a lot of sense. But my advice, split your future pitches. Half for old model and half for commission model. At least you are sure your old model will still be paying the bills while you try out the new model for growth.

Sending you an unrelated message.
Good luck

 

[kelturon]

Are you running only btb? Since many people complain b2c cold emailing is not legal.
May I ask where do you take your lists from?

 

[windows95]

Makes a lot of sense. But my advice, split your future pitches. Half for old model and half for commission model. At least you are sure your old model will still be paying the bills while you try out the new model for growth.

Sending you an unrelated message.
Good luck

What I was thinking was charging a rate of $400 to cover the software + virtual assistant I use and go for a rev share % alongside it, so that way at least nothing is coming from my own pocket. Thanks for your reply! Checking your message now!

 

[IM Dude]

Indians don't work on commission basis. They want a job. I think it's same with most of other countries other than USA and some western countries.
Now you know why nobody is doin it.

 

[aditya113]

I run a cold emailing lead generation service too for extracting leads from instagram.

1. How will you monitor the commission basis for the client?
2. How many leads do you provide and how?
3. I charge on the basis of number of leads I provide.

 

[IM Dude]

I run a cold emailing lead generation service too for extracting leads from instagram.

1. How will you monitor the commission basis for the client?
2. How many leads do you provide and how?
3. I charge on the basis of number of leads I provide.

You can't sell here without upgrading to paid member here.

 

[Tribune]

Indians don't work on commission basis. They want a job. I think it's same with most of other countries other than USA and some western countries.
Now you know why nobody is doin it.

This is what I don't get. I see that people want fast results because they need to pay bills and stuff. However, the commission basis could make them so much more money even when they stop working.
I offered some of my partners a commission based program and 90% refused and wanted to be paid directly. By now they would have earned ten times as much.

Seems like a no brainer to me but I can't figure out why nobody else seems to be doing it. Especially for SaaS companies that charge a ton of money for whatever they are selling.

I currently run a cold email agency and I have one client (I just started in July) who pays me $1200/mo. I just landed him another $20,000 client last week.

I think I am going to switch to a commission-only model and see if I can get 10% of every sale instead- or at least pitch future clients like that. Thoughts??

Therefore I think this is a very good idea from a business standpoint.
I think people need to udnerstand that they will never get rich when they trade their time for money because time is not infinitely scalable.

 

[IM Dude]

This is what I don't get. I see that people want fast results because they need to pay bills and stuff. However, the commission basis could make them so much more money even when they stop working.
I offered some of my partners a commission based program and 90% refused and wanted to be paid directly. By now they would have earned ten times as much.

Therefore I think this is a very good idea from a business standpoint.
I think people need to udnerstand that they will never get rich when they trade their time for money because time is not infinitely scalable.

You gotta understand, in America, you gotta pay a fortune to a sales guy compared to what you pay to a salaried employee in asia, so you better have a really good plan and large capital to be successful if you hire a salesman in usa on a commission basis.

 

[windows95]

I run a cold emailing lead generation service too for extracting leads from instagram.

1. How will you monitor the commission basis for the client?
2. How many leads do you provide and how?
3. I charge on the basis of number of leads I provide.

I provide the leads via a lead agency I have partnered with. They charge me $150 for 1100 qualified leads. From there I send the leads to my phillipines-based VA who writes custom one sentence icebreakers to each lead, then I email the leads by using lemlist. I do the exact same for my clients. I'm using cold email to sell cold email lead gen.

As for monitoring closed sales- I'm not sure, but Im hoping through doing a great job they will be honest because if they don't pay me, I can stop the whole process with the click of a button. Not only that, but I plan on having a lawyer write up a clause in the contract that says something along the lines that if they take my converted lead and dont pay me the commission, that I will take legal action. This is just to make it sound scary I guess. Maybe I can put a clause in the contract that gives me the right to follow up with clients to check....

As for charging for each lead- I like this idea. I'll factor that in as well. Thanks for your reply!

 

[Markoni]

Dont be a dick, mate, this client already give you good money and you want to milk it for more?

 

[windows95]

Dont be a dick, mate, this client already give you good money and you want to milk it for more?

Huh? We are in business. My goal is to make as much money as possible. I would not be charging him more money, I would be risking everything by profiting $0 til I am bringing client results. It's safe for them, a risk for me.

 

[Pam Danny]

Huh? We are in business. My goal is to make as much money as possible. I would not be charging him more money, I would be risking everything by profiting $0 til I am bringing client results. It's safe for them, a risk for me.

Perfectly said. You risk 100%.
SO as I said before, cut your plans 50/50

 

[GringoMonkey]

Seems like a no brainer to me but I can't figure out why nobody else seems to be doing it. Especially for SaaS companies that charge a ton of money for whatever they are selling.

I currently run a cold email agency and I have one client (I just started in July) who pays me $1200/mo. I just landed him another $20,000 client last week.

I think I am going to switch to a commission-only model and see if I can get 10% of every sale instead- or at least pitch future clients like that. Thoughts??

I largely charge a % only for direct sales based work.

But some work isn't directly sales based, such as strategic or setup etc, so the only way you can charge for your time for that is fee based.

If your finances allow you to play the long game taking a % is well worth it, but you need to balance it out.

 

[nersande]

Usually agencies want to get paid for the work, not for their success rate. Truth to be told, often that is good because the product they are selling is bad - and no matter how good you are, will not sell.

Second is that many clients are not set up to make this kind of deal and properly track / pay you. In this case the easiest way could be that they have an affiliate system setup with a trusted partner.
But beyond that it might be hard for them to accomodate this system - even if it is good.

Third companies may not like commission only models because there is value in a non buying lead and they still want you to reach out to those clients and qualify them.

Last but not least: people always want to participate on the gains but not on the losses.
The 20K client you landed him internally pays for other things, it is not pure profit.
You could talk to your client and have a conversation of what they want to have more of. If you can deliver that, then talk about a comission model and bonus model.

 

[Djwillster123]

Very hard to track sales. I run a cold email agency and have done this offer in the past. What I recommend is charge per appointment $250+ that shows up and is qualified. I have a client that pays me $10,000 a month right now.

This way you're still being paid on performance and it's very trackable. Once you have your systems dialed in and you know you can get results consistently then offer a 20% recurring fee. Don't do any less as I felt that was a huge time waster when I did it.

 

[GenesisOne]

Indians don't work on commission basis. They want a job. I think it's same with most of other countries other than USA and some western countries.
Now you know why nobody is doin it.

Indians are in the Casino business mate

 

[vaibhav123]

How do you get clients who need cold emails ? Which Industry and Titles need them? Mass emailing method can you share please ? Thanks.