[smurf]

Hello Everyone,

I am wondering what you suggest we do to find decent sales reps in the Brooklyn area. We have had a challenging time finding sales agents. Indeed and craigslist are a waste of time.

Thanks in advance

[FCF Fund]

Hello Everyone,

I am wondering what you suggest we do to find decent sales reps in the Brooklyn area. We have had a challenging time finding sales agents. Indeed and craigslist are a waste of time.

Thanks in advance

Are you offering base + commissions or just commission? In office or remote? Those happen to be the biggest variables correlated with quality candidates applying.

[smurf]

in office, commission only

[ridextreme]

Are you new to sales?

Sales, especially over the phone, has always been and always will be a revolving door.

Some people have it, and some people don't (just like some people can be successful selling irons door to door, and some people won't).

It also depends on their support/management (of which again, some people are good at and some people are not. I got lucky, I'm good at both).

[m1641]

Nobody wants to work in office with no base.

That was fine in 2017 when you could make money.

Everything including commuting is more expensive, and it’s exponentially harder to close a deal.

Why would someone work for free?

[ridextreme]

It's actually illegal to hire people in NYC and not pay them.

If they're working regular hours and they're instructed to report to an office at a specific time, they're considered W2 employees and according to the labor laws they need to be paid a min. wage and follow all HR procedures and regulations.

[Olderguy]

It is only legal to hire someone commission only if they are really contractors and can work anywhere and not in an office.

[mistamca]

It is only legal to hire someone commission only if they are really contractors and can work anywhere and not in an office.

Haven't you said that you were in the mortgage industry? The industry is filled with w2 commission-only people, which is very legal

[Olderguy]

Haven't you said that you were in the mortgage industry? The industry is filled with w2 commission-only people, which is very legal

W-2 isn't 1099. W-2 requires at least minimum wage of a base. Commission only is 1099 no base as a contractor. If you are in an office and call center it is against the law to be paid 1099 commission only.

If you have a base W-2, you have to pay commissions W-2 also, You can't pay a base W-2 and commissions 1099.

In summary, if the person can work anywhere, home, Starbucks, office...they might be considered a contractor and be paid commission only. And can work their own hours. If you demand specific working hours, then they have to be paid W-2.

[Yankeeman07]

W-2 isn't 1099. W-2 requires at least minimum wage of a base. Commission only is 1099 no base as a contractor. If you are in an office and call center it is against the law to be paid 1099 commission only.

If you have a base W-2, you have to pay commissions W-2 also, You can't pay a base W-2 and commissions 1099.

In summary, if the person can work anywhere, home, Starbucks, office...they might be considered a contractor and be paid commission only. And can work their own hours. If you demand specific working hours, then they have to be paid W-2.

You are incorrect - NY Labor Law states that a commission only individual must have a written agreement in place.

https://www.workingnowandthen.com/ne...k-commissions/

An employer would issue a W2 if they are withholding taxes, matching Social Security & Medicare Taxes.

Best Option, is to consult with a Labor Attorney to cover all of the bases.

[Olderguy]

You are incorrect - NY Labor Law states that a commission only individual must have a written agreement in place.

https://www.workingnowandthen.com/ne...k-commissions/

An employer would issue a W2 if they are withholding taxes, matching Social Security & Medicare Taxes.

Best Option, is to consult with a Labor Attorney to cover all of the bases.

Draw against commission will still be W-2 and min wage.

[FCF Fund]

in office, commission only

Offering commission only screams you cant afford it. Why don't you invest in quality candidates and offer a competitive base + commission? You can always fire fast if the fit isnt right.

[Oxforddan]

We offer Salary+Commission+Benefits and still struggle to find good candidates. I can see why you are having a hard time. Try not to penny pinch the people that you want to grow your company.

[ridextreme]

Most good reputable shops offer a draw vs comm to start them off, or a starting salary for the first 30 to 90 days or so.

NY & CA specifically have been cracking down on Independent Contractors. They would have to be a registered business entity, can come and go as they please, and the key is they have to offer their services to more than just one shop so if they're only doing business with one ISO and they have to be in every day at 9am, they're classified as W2 employees.

It also takes only one "employee" to work at a new comm only job, then quit after 2 weeks and their grandmother says to them "what do you mean they didn't pay you for those two weeks!?!?" for her to tip off the dept. of labor. :O

[abcloser]

same here, were offering a salary + commission and are still actively looking for viable candidates in brooklyn

[piffunder]

Anyone have a good labor law attorney that has sued a brokerage for misclassification and won?

[Yankeeman07]

Draw against commission will still be W-2 and min wage.

Draw against commission will still be W-2 and min wage.

You are still incorrect - I can pay commission and offer a "draw" - but make the sales rep responsible for their own taxes.
I would issue a 1099 MISC Income at the end of the year. Think of Real Estate Agents - MFG Rep, the devil is in the details.

If I decide to deduct SS-Medicare Taxes, State Income Tax (If a State has such Tax) that would require a W-2

[Olderguy]

Draw against commission will still be W-2 and min wage.

You are still incorrect - I can pay commission and offer a "draw" - but make the sales rep responsible for their own taxes.
I would issue a 1099 MISC Income at the end of the year. Think of Real Estate Agents - MFG Rep, the devil is in the details.

If I decide to deduct SS-Medicare Taxes, State Income Tax (If a State has such Tax) that would require a W-2

If you do that you can't have them work in an office, they will be a contractor...and the original poster said work in office. If they choose their own hours and work where they want then yes that's true.

[abcloser]

If you do that you can't have them work in an office, they will be a contractor...and the original poster said work in office. If they choose their own hours and work where they want then yes that's true.

What if you "offer" the office as a work space for the contractors to get the task done, in this case cold calling etc

[Olderguy]

What if you "offer" the office as a work space for the contractors to get the task done, in this case cold calling etc

You can do that but they have to be able to work anywhere and choose their own hours to be a true contractor and be paid 1099.

[mistamca]

You can do that but they have to be able to work anywhere and choose their own hours to be a true contractor and be paid 1099.

I didn't know that you were an employment attorney. While I am against 1099 for sales reps for a few reasons, you can 1099 a sales rep and they can be in the office.

Out of curiosity, how many employees do you have? How much have you spent on a legal opinion for your hiring strategy?

[Kevin Henry-Seacoast]

in office, commission only

Smurf,

You stated....
-Used CraigsList to find sales people.
-In Office Commission only.

Some on the forum will scream 1099 is he way to go!!!

If you really want to build a sticky, well trained, reliable, and productive sales team....
-Offer a base salary or draw.
-Offer commissions and/or bonus program.
-Cap cash pay out and offer equity in your company.
-Start a great sales training program. Have a game plan and goals in place.
-Coach producers and non-producers.
-Identify multiple revenue generating products for the team and cross sell.

Hiring great professionals takes an investment not only in compensation, but training and company resources.

[Olderguy]

I didn't know that you were an employment attorney. While I am against 1099 for sales reps for a few reasons, you can 1099 a sales rep and they can be in the office.

Out of curiosity, how many employees do you have? How much have you spent on a legal opinion for your hiring strategy?

You can work in an office and be 1099. You just can't make them work hours designated by you...they can pick when and where they want to work.

[abfunders]

You can work in an office and be 1099. You just can't make them work hours designated by you...they can pick and when and where they want to work.

This is almost accurate Steve. Let me fix it:
You can work in an office and be 1099. You just can't make them work the hours designated by you... they can pick when and how much they want to work.

(Totally legit to have someone be a 1099, but only if they work in your place of business. A painter or a plumber or an electrician can't paint your office unless he's actually in your office!)

California made new laws that further limit the "classic" definition: https://www.sdcba.org/?pg=FTR-May-2018-3
NJ seemed to also agree: https://www.greenbaumlaw.com/insight...-ABC-Test.html
Trump-era DOL rules: https://www.fordharrison.com/federal...ontractor-rule
Biden is trying to change it. Still not in effect: https://www.dol.gov/newsroom/releases/WHD/WHD20221011-0

[ridextreme]

This is almost accurate Steve. Let me fix it:
You can work in an office and be 1099. You just can't make them work the hours designated by you... they can pick when and how much they want to work.

They would also need to be registered and paid as a business entity and also do business with more than one firm to qualify for independent contractor status.

They've been making the qualifications tighter to recoup lost tax revenue. I'm not sure but I think in CA this basically put an end to trucking companies hiring owner operators, they would need to hire them as employees (not sure if that bill passed or not yet).

It takes only one disgruntled employee to tip off the dept. of labor for them to send a surprise visit by an agent to reclassify them and fine the owner.