UBIweb Funds Sales Commissions With a Two-Month Client Security Deposit
Dan DiLoreto · UBIweb Makes $1.7m/year Helping Plumbers Launch Websites · Oct 17, 2020 · at 14:56
Dan DiLoreto is the co-founder of UBI Web, a website service for local trade contractors. He explains how UBI Web finances upfront outbound sales commissions to Nathan Latka.
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“So our secret sauce, I guess, for a commission is we take a two month security deposit when we sign an agreement. And that's the last two months of your last year with us. So that we use that, that is straight up used to pay the sales reps commissions. It basically is the equivalent of their commission.”
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More from Dan DiLoreto
DiLoreto: High-Spending Ad Clients Are More Easily Poached by Competitors
“And the more they spend, the higher, they become a, they become more poachable. We're a very competitive industry. So we don't like the big spenders. I know that's interesting, but the least you spend, the harder it is to poach that person.”
DiLoreto: Dollar-Based Commissions Incentivize Reps to Oversell Unneeded Packages
“If we remunerate them too much based on dollars sold, then they're going to force packages that clients don't need.”
DiLoreto: UBI Web Relies Entirely on Outbound Leads
“All of our leads are outbound.
There's no inbound leads here.”
DiLoreto: UBI Web Pays Flat Annual Residuals on Client Renewals
“We do a residual, we offer a residual program. So every unit that you bring in the next year that they renew, you get a flat commission per year.”