Questions to ask before agreeing to Summer Sales

This article was posted on the BYU Newspaper's website. It maybe stuff that's just common sense to some people. However, when faced with decisions it can be easy to forget or over look important aspects. Take a quick look it may prove useful in looking for a job doing summer sales.

Questions to Ask Before Agreeing to Summer Sales
By Scott Hathaway - 4 Mar 2008

What is the company's track record?
Find out how many years the company has been in business. Several start-up companies are willing to offer more money, but reps may sell less because of the new organization. Ask people to recommend companies they have worked for in the past. Visit the Better Business Bureau's Web site at www.bbb.org, to see the company's record.

What are the management and team like?
One of the greatest contributors to your success will be your team. Make sure the manager or team leader is eager and capable of giving quality training. Be careful the team is not too big for just one leader. Be sure your team follows your ethical values and is dedicated to working the entire summer.

When do I get paid?
Most summer sales companies offer reps some type of bi-weekly compensation during the summer to cover expenses, but the majority of the money comes at the end of the summer. The money may also be broken up into payments received at different times. Know when you will receive your checks.

What happens if I don't finish the summer?
Most companies require reps to work a certain number of days and even determine how many hours need to be worked daily. If reps don't complete the summer or don't work enough days, it is likely they will not receive their final payments.

How many sales reps are returning from the previous year?
If the company is successful and treats their reps well, many will want to return for another year.

What were your team's average sales per rep?
Some recruiters may show you their pay scale based on averages that are too high. Ask to see a list of everyone that started the summer, and find out how many sales each rep made.

What percentage of reps finished the entire summer?
Some companies' average sales are skewed because they don't account for people that left during the summer. The number of people that quit before the summer is done can be an indication of the program's quality.

How much money am I going to make?
Companies have pay scales that describe how much money you'll receive per sale. This is normally described as a percentage on each sale, but get higher percentages you have to reach certain benchmarks. Make sure you understand the different pay scale brackets. These pay scales are typically based on final sales after cancellations.

What bonuses am I going to receive for travel, housing, gas, education or other expenses? How many sales do I have to make to get these bonuses?
Many companies offer reps reimbursements for certain expenses, but the reimbursements are normally conditional on reaching a certain number of sales.

How will I lose money on my sales?
The "small print" on contracts should describe how you lose money on sales. Read it carefully. Frequently, when reps don't make non-credit cards sales they get lower percentages. When customers cancel accounts, reps lose revenue all the way until their last payment. Also, many companies have deductions that reps pay when they give customers extra products that may be necessary for an adequate service.

What was the average cancellation rate last year?
Some companies have high cancellation rates, which means you will get a lot less money at the end of the summer. Ask to see the numbers in writing.

What will be my tax designation?
Many companies classify sales reps as "independent contractors." Under this designation reps could end up paying more federal taxes and having to withhold taxes themselves. You need to know whether you are an independent contractor or not. Visit irs.gov and search for "independent contractor" to find out your tax designation.

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