Compensation plan for drupalers

I would argue there is no way to answer your question from what you have provided. Who estimates the number of hours, how much do you plan to charge the customer. The point is you don't really say what the percentage is of.

Put another way say you charge clients $100/hr. At 25% you would be getting developers cheap (an making good money off other peoples labor). At 50% they would be doing ok, but if they are experienced they can likely do better elsewhere.

And if you pay the sales guys only 25% there goal is to land contracts as quickly as possible but that tends to lead to less accurate estimates which tend to overruns in hours and effectively less pay.

Sales is important but the real effort will be done by the developers not the sales dept.

Developers should be getting about 85% of the haul. Sales: 15% (at best)...

Of course if you think that sales is more difficult then you will think I am off my rocker but I don't think so. Most Drupal developers double as their own sales staff. Can you double as a developer in the case that your estimates were wide of the mark?

Derek

I think the only way this could be made to work is if you negotiate an hourly rate with your developers ahead of time, probably between $50-$100 per hour. If the developer is happy with his rate, then the sales staff can go ahead and sell it for whatever they can, whether it is at a 15% markup or a 50% markup. Note that some developers would take a slight pay cut to avoid having to deal directly with clients.

The sales staff should build their estimates based on the hourly costs for the developers who will be working on a given project. Choose the developers *first*, then create the quote. Don't make an estimate, than go looking for a developer who will fill it.

You would want to run all estimates by the developers that will be doing the job. In their push to make sales, the sales staff might start lowballing quotes, which in turn screws the developer. This isn't necessarily intentional; if the sales guys had the knowledge required to accurately estimate development jobs... then they would probably be a developer. Prior to sending an estimate to a client, have it checked over by the developers who will be working on that project, so they can sign off on it.

P.S. Enable your contact form!

I've been doing full-time contract work since 1998. I can tell you that having sales people out selling development projects without detailed interaction with a knowledgeable developer is a recipe for disaster. I can't give you an estimate without a good scope of work, and a client rarely has a good scope of work, so, guess what, someone needs to write one. I have yet to meet a sales person that can / will do that.

I agree with all those that have chimed in that a negotiated hourly rate with a developer is the best way you can go. But, even then, time and time again I see sales people under price services work, then when the developer sends his time in for payment, he doesn't get paid.

I wish you well in your attempt to do what you are doing, if you make it work, please let me know how you did it. I have had very few fixed-priced jobs of any sized that worked well, either I get screwed and don't make near enough, or the client gets screwed because they are way overcharged to compensate for a poor scope of work.

Hourly work between a client and a developer, where there is a good relationship, is a successful formula.

Wallybay1,

Don't let me kill your dream, but your business model doesn't work in the real world. Having spent a little time on the sales side I can tell you that you'll run into some major problems with the proposed sales commission structure. Your sales guy isn't going to sell $900 projects, which is good because with the type of organizational structure you're talking about that $900 job will cost a couple of thousand to do. It's very nice of you to offer 25% to the sales side that comes out to about $225 per every $900 job. If I plan on making 100k a year - I just need to book 440 of these clients. Let's say that I'm really good at closing (50%) this comes up to about 1,000 proposals, 1,000 estimates I'll be getting from the Development side (at the very least asking them if the agree to my numbers).

On the other hand, I will sell a $100K project and collect my $25,000 and let you find a way to develop the $100K project for $75,000 (on, over, or under budget). At the time of the contract signing you'll feel pretty good because the scope was defined in the sales process, the estimate came from the development side and everyone is starting the project with smiles. However, everything will go south from there as I'm on to my next sale that you don't have capacity for.

It turns out that we don't have a project manager, so the client isn't happy and someone needs to fly out to New York for a couple of days (plane flights, meals, hotel - your $$$ here) and make him feel good so that he pays his bill. Also because we don't have a project manager the scope of the project has changed, no change request forms where ever signed, and at that NY meeting the client will tell you that he spoke to the creative themer who stated the backend changes wouldn't be a problem - and nothing will be documented because your business model looks more like the Odesk, than a professional development firm with supporting staff, CRM/PM software, and loyal fulltime employees with benefits that will not leave mid project.

The above being said, we also need to keep in mind that we have more than one developer and we'll get more than one answer to the "How much do you think cost us to build this question". We'll look at the three different estimates, and being a good commission only sales guy I will have already sold the lowest fixed bid estimate :)

Bring value to your clients, bring value to your employees, and move away for the if I give him 30% and her 30% that leaves me 40% mentality.

After doing web work for an ad agency for 2 years, and now independent contracting for 3-1/2, I'd much rather work directly with clients than answer to commissioned sales people. And I'm an introvert. It makes me more uncomfortable having to take direction from someone that couldn't walk a mile in my shoes. I am sympathetic to the client whether I communicate with them or not, so I might as well get to know them myself.

Wow i am realizing there is a lot to think about. let me ask you this
what if the sales guy mission is just to introduce the client to the organization ?
he cannot discuss price (unless there are specific product /service with specific prices, already negotiate with developers)?

the sales guy mission is to introduce the potential client to the organization and a qualify guy/ tech guy who knows about the requirement to finish the job mission is to close the deal?

guys i saw this company www.salesconx.com and they seems to have got it. it's not a tech company per say. but you have many people there willing to pay for referrals. what If i do something similar . where we say to a sales guy or just anybody really, bring prospect to the organization and if the prospect buy the services you get a commission?
in this case the tech guy is happy because he can freely design a quote for the project.

I am not sure how this is getting so complicated.

All that this is a subcontracting.

You go out there and find a gig, then find a Drupal developer to subcontract the gig to. This has been done by tons of people around the world.

There is no set % for each project, all you do is to figure out the subcontracting price at that time.