Paying cold callers

Hi I am thinking about hiring cold callers and paying them when they generate leads with a sizeable commission so that they get paid for what they produce. Do you have any thoughts on that?
If you are talking about hiring commission only salespeople that you only pay when they sell or produce, I would advise against that. While this will seem like a low cost approach where you will not have to spend or put any money at risk because you will only pay when the salesperson produces, what you will end up putting at risk and could lose is your valuable time.

What I mean by that is that while your labor costs will be low when you are building your team with this approach, you will spend a lot more time interviewing, hiring, and training. The reason for that is that while you may be very happy with the people that you hire, since there is not much skin in the game in terms of money going to the people you hire, you will have much higher turnover and flake rate. This means that you will have to spend much more time hiring and training - because you will end up having to hire more people in order to build the team that you want.

To explain another way, you get what you pay for. And if you try to build a sales team with paying $0, that is what the sales team you build will be worth.

I don't know about you, but I put an extremely high value on my time and try to protect it as much as possible. With that, in order to build a better quality team (you will also be able to recruit higher caliber people) and spend less time on recruiting, hiring, and training, I go about it the opposite way and try to pay as attractive of a wage as I can. For virtual cold callers, I would pay anywhere between $13 to $20 per hour plus bonuses for each lead generated.

Here is a webinar recording where I provide a complete brain dump on all of my lessons learned while hiring virtual cold callers.