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20190130 Developer sale v Agency sale

20190130 (Wed)

What is the difference between developer sale and agency sale? From the perspective of developer.

This simply means why developer employs salesperson instead of giving to agency firm to conduct sale?

RM10,000,000 sales => commission 2% => RM200,000.

RM1,000,000 sales => commission 2%  => RM20,000

During good time, developer can easily sell RM10mio per month. Save the RM200,000 commission by employing RM20,000 sales team (6 sales person). Net saving is RM180,000.

During bad time, developer can barely sell RM1mio per month. Save the RM20,000 salary cost by getting rid of the sales team. Then, give to agency firm this in the form of commission. You have 18 agents working for you overnight at zero cost! Only when they sell, you give commission.

Remember, you save on medical, epf, other employee benefits too! WHY NOT!?

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