As your business grows, you will find that your need for a sales staff grows as well. While it is a good idea to have salespeople on your payroll, you may wish to consider outsourcing your sales. One very effective way to achieve this is by implementing the services of independent contractors.

Independent contractors work for themselves. They set their own hours and have control over their own income. Your role in this relationship is to provide an independent contractor sufficient product knowledge in regards to the service or merchandise your business sells. You will also need to ensure that each independent contractor conducts themselves in a manner that is acceptable in the representation of your business.

For each sale an independent contractor closes, you receive revenue from the sale and the independent contractor receives a commission from the sale. Establishing an effective reimbursement plan is essential in obtaining and retaining quality independent contractors. Independent contractors who have the sales skills and ability to make sales will increase your revenue drastically.

The benefits of using independent contractors in your organization are numerous. One of the biggest benefits is not having extra employees on your payroll. You are not required to withhold taxes on an independent contractor. You are not required to reimburse them for out of pocket expenses incurred during the course of doing business. Insurance, such as Workers Compensation insurance is not necessary, as independent contractors are not considered employees.

Independent contractors who earn over $600 during the course of a year will be required to complete a W-9 from, which can be downloaded directly from the Internal Revenue Service website. A form 1099 must be issued to any independent contractor earning over $600. Your tax liability is less when you implement the services of an independent contractor.

For complete information on this method, you should contact your CPA for advice. This article is in no way meant to offer tax advice or sway you from the advice given to you by your accountant.

Learn more about this author, Angela Russell.
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