Every day we all read the same headlines:
- Groupon is losing money
- Living Social is catching up
- Both launch X new markets
- A small local deal company was acquired
- How does the market affect Groupon’s IPO?
- When is Living Social going to IPO?
We can all sit on the sidelines speculating, criticizing, and making assumptions.The reality though, is that these guys have deep pockets and they can’t be out-spent or out-marketed.
You can compete though, and here is how:
RECRUIT THEIR SALES TEAM AND PAY THEM WELL
Over the past year, Groupon and Living Social have both changed their outside sales reps compensation plans.They have moved a repeat sale in-house which means the sales reps who built the business are getting shortchanged. It’s the natural course of business for a company to change commission plans when they experience rapid growth, but this also creates turnover.
A 25 year old sales person shouldn’t make $30k a month signing up 10 restaurants to run a Groupon, which is why Groupon and Living Social are reworking their compensation plans. If you can offer these sales reps a better opportunity and maybe some stock options, then your company has an opportunity. It’s all about the dream of helping build a company and seeing it take off, and the early Groupon and Living Social sales reps made a killing. Use this to your advantage, just like a startup tech company does when getting started.
People will work for less when there is a vision and they have purpose. Now is your opportunity to recruit these sales people and bring them on to your team. The key is to pay them well and make them a part of your organization. A great sales person brings experience, training, and most importantly a rolodex. Have them teach you how to compete and if you are lucky, how to beat Groupon and Living Social in your local market.
In closing, here is the ad I would run on Craigslist:
WANTED: Groupon or Living Social Sales Reps
We are a local grown successful daily deal company and we want you to help us build our army to take down the big guys.
We are the David going after Goliath and here is what we can offer:
A better compensation plan
A management title
Stock options in our company
Then include the normal “Responsibilities, About Us, Contact Info”