Alright! We got some action!

So I got back from the meeting an hour or so ago and it went well.  We started off with my business partner telling him a little about who he was, I gave a little more detail as far as who I was, and the guy we were meeting gave some more background as well.

So we began chatting about the entire situation.  The service that’s being offered, the problems he’s now having with marketing and generating sales, what type of competition is in the market right now, pretty much everything.  One thing both me and my business partner had no idea about was what type of commission split we could ask for.  The reason being is that we are not familiar with the costs associated on the backend, so if we were to ask for 50% of all business being brought in, it might not even work once you break down the numbers.  One thing I told myself was that I was not going to walk out of there without a fucking number so at least I had a gauge on what to go by.  My current business generally gives the larger percentage to the sales department with the smaller going to the backend but this is a completely different business.

So during our conversation he said he tried another marketing guy who wanted 50% and he said he gave it a shot and it just didn’t work out.  The numbers weren’t there and it was impossible to pay that much.  So naturally I was happy to hear that so I had something to go by.

My business partner asks him what he’s paying his sales guys in the field right now and he said 10%.  So I look at my business partner and then I start talking.

Me: “Well, we were most likely going to pay our sales guys around 10% commission, so if you can only pay out that much it really wouldn’t make sense to us because we’d be breaking even every month and there would be nothing left over for us to continue running the business, cover overhead, etc..”

The guy we’re meeting: “Ok well what were you thinking?”

I look at my business partner again then say; “We need 20-25% to make this work.”

Now I wish you could have seen the look on this guy’s face once I said that because he was so damn flustered and I’m just sitting there waiting.  Eventually he says that he really doesn’t know if he can make that work and it’s not a matter of him being greedy it’s just that the money isn’t there.

By the way, we got a really good vibe from this guy from the second we started talking to him, he seemed honest, his company has an A+ rating with the BBB, and he wasn’t a cocky asshole.  So when we started talking numbers I didn’t doubt for a second that he was telling the truth.

As he’s kind of fumbling around and about to say; “I don’t think we can do business.” I stop the guy and say, “Ok, no problem.  I understand what you are saying.  What’s the bottom line?”

He says he thinks he can do 15% but would need a contract and everything else.  Now in the back of my mind I’m thinking, “I can make this work for 15% and I can make a decent buck too,” but I didn’t say that out loud.

So we started talking more about everything else associated with the business and wrapped up the meeting.  We basically said we’d be in touch. 

Now as far as me and my business partner are concerned we are going to try and sign a deal with this guy for 15%.

Prior to the meeting I was asking my business partner what our bottom line was, and he was thinking 10-12% and I told him that’s way too low and we need at least 25%, but I think we are both happy with 15%.

After we left I asked my business partner if he thought I pushed the guy too hard and he said “absolutely not, that was fucking perfect because now we have a number to go off of and I think you pretty much got the most out of him that you could.”  So it all worked out for the best.

Plan for tonight and tomorrow is to get an agreement drafted up, and to send it to this guy tomorrow.  Nothing is set in stone until he signs, but I feel good about everything and it was a great meeting.  Once he signs everything, we are going to be busy as hell so I hope it happens tomorrow so we can get going with this.  This is an opportunity that we need to get involved with NOW.  The market is virtually untouched and it won’t stay that way forever.

I’ll keep you all updated.

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