Archive for the ‘ Sales Compensation Plan ’ Category

I: Salesman

I, SalesmanI cite Five Fears that prevent most people from even considering a career in Sales in my 2004 book, The Greatest Job You Never Thought Of.

For many, the most fearsome of these is:
The Stigma of Being Called A Salesman.

For the general public the word “Salesman” conjures up images of a sweaty guy in yellow pants, plaid sportcoat, loud tie and white shoes slapping you on the back as he greets you at the used car lot. That image may never die.

Few of those people exist today and fewer still prosper. Today’s buyers are much too sophisticated and well informed to buy from someone like that and the Information Age offers too many purchasing options and buyer communities to support that approach.

Nonetheless, I believe that one of the reasons we as salespeople are paid so well is our willingness to accept that label, carry that burden. On an in-home sales call I once made, the homeowner said to me, “Well, I hate to call you a salesman but I guess that’s what you are.” I guess he was right.

Recently I came across a web site that not only accepts that mantel but celebrates it. iSalesman.com is a community exclusively of, by and for salespeople. I spoke to one of the co-founders, George Kanuck, on the phone today and he’s agreed to do an audio interview with me to post on this site. Look for that very soon. Continue reading

Explaining The Sales Cycle

Albert Einstein Explains The Sales Cycle

Does It Take A Genius?

Many companies are less than forthright when discussing the length and makeup of their sales cycle with current and prospective salespeople.

They fear that if their salespeople clearly understand just how long it will take before the first commission check hits their bank account – and how many hurdles will have to be jumped along the way –  the team will beat a hasty exit while the getting is good.

This approach is a mistake. Explain the Sales Cycle.

As I described in my article on Recruiting Top Producing Salespeople, and will explain in detail in my upcoming article on Corporate Transparency, my belief is that in all aspects of running a sales team, honesty is the best policy.

Better to repel people who can’t deal with a long sales cycle right at the start than have them hanging around, becoming increasingly disillusioned and poisoning the rest of the group with their frustration. And better to arm those who can accept the slow cycle with all the information they need to engage with and accelerate the process.

Salespeople can – and are incentivized to – speed up the sales cycle. Give them a clear picture of the whole process and help them to help you speed it up.

In this article I’ll cover:

  1. The Definition of The Sales Cycle
  2. Setting and Managing Realistic Expectations
  3. The Impact of the Sales Cycle on Your Comp Plan
  4. Balancing the Pipeline and the Sales Cycle
  5. How to Shorten The Sales Cycle

Continue reading

Is Sales The World’s Most Valuable Profession?

Are you a Sales MVP?

Are You A Sales MVP?

How is it that successful salespeople can earn more than doctors or lawyers, or sometimes even more than the owner of the company they work for? Economists agree: it’s because they practice the world’s most valuable profession.

How valuable is it? Here’s a short quote from my 2004 book, The Greatest Job You Never Thought Of: How Anyone Can Find Career Satisfaction and Financial Independence in Sales:

I know a mortgage loan officer who makes over $1 million per year A friend of mine in the printing industry pulls down almost 8% of the $10 million book of business he has built over the past twenty years as a salesperson. (In case you’re wondering that’s almost $800,000 per year and yes, I have seen his pay stubs.) Top automobile salespeople earn more than $150,000 annually. Insurance sales can generate six-figure residual income streams in 2-3 years. Successful radio ad salespeople often make more than $250,000. I could go on and on with examples from pharmaceutical sales, software, farm equipment, you name it.

Why is that the case? Why are top-producing salespeople so highly prized in the marketplace? Because of the value they generate.

Continue reading

Recruiting Top Producing Salespeople

Recruiting Top Producing Salespeople

How to Hire Winners

Good help is hard to find. Never is that phrase more true – or important – than when it comes to finding, developing and keeping good salespeople.

Sales team member development will be covered in my articles on training. Retaining good salespeople is generally a question of properly setting and managing expectations which will be primarily covered in my articles on company ethics and compensation plan structuring.

In this article I’m going to describe the steps required to find productive salespeople in the first place.

In many ways it’s like a sales funnel, you start with a large pool of targeted prospects and winnow them down until you find your needle in a haystack.

This system involves nine steps:

Target Marketing

Advertising Your Opportunity

Vetting The Initial Responses / Creating Your Short List

Identifying Your Final Four

Telephone Interviewing

Checking References

In-Person Interviewing

Making Your Final Selection

Administering An Initial Test of Salesmanship

Continue reading

The World’s Greatest Sales Team

Frank Is Pissed!

This site was born out of frustration.

Like most salespeople, over the years I’ve been frustrated with different aspects of every organization I’ve been associated with. Whether as an employee, independent contractor or consultant, it seems that invariably I find multiple, critical aspects of the sales process either ignored or poorly handled.

Some of these shortcomings are common at almost every organization. Things like inconsistent or non-existent follow-up and lack of communication between the sales, marketing, production and customer service departments seem to be the order of the day no matter where you go.

Other factors are present in some companies while absent in others. And it often seems that sales organizations that are really strong at certain aspects, like qualified lead flow, completely fall down on the job in other areas, like maintaining a consistent comp plan. Not that those two specific elements bear any relationship to each other. It’s just that strength in one important area of the sales process seems to ensure weakness in another.

I have been involved with sales teams in over 20 different industries, from mortgage lending to home improvement, graphic design and multimedia production to newsletter subscription sales, radio advertising to live event promotion, structured settlement financing to web site development for funeral homes, investment opportunities to lotions, potions, powders and pills – and everything in-between.

I have done inside sales, outside sales, telephone sales, virtual sales, multi-level marketing, over-the-counter sales and in-home sales. I’ve sold to consumers, homeowners, small business owners, medical professionals, venture capitalists and corporate executives. I’ve done thousands of sales presentations in venues from kitchen tables to board room conference tables. You name it, I’ve pitched it.

Hell, I’ve even written a book about sales.

But, have I ever been overwhelmingly impressed by every aspect of any company I’ve been associated with? No.

In recent years I have become increasingly vocal about my disillusionment. All I’m trying to do is make a living, not make trouble for the companies I work with. But their inability to get out of their own way – and mine – is costing me time and money. Worse yet, it’s costing them time and money! But they either refuse to see it, don’t believe what I’m telling them or think my ideas would be too difficult or expensive to implement. Whatever the case, they’re not listening.

Recently a thought occurred to me: What would happen if a company analyzed their entire sales process from beginning-to-end, figured out everything they needed to provide their sales team in order to support their success – and then gave it to them? What would be the result?

The World’s Greatest Sales Team

It sounds like a fairly tale I know, but what the hell? A guy can dream can’t he?

You see, the site you are currently visiting isn’t real. It’s merely a dream. A place where I am Imagining A Firm That Gives It’s Salespeople Every Opportunity To Succeed.

Please, don’t pinch me. I don’t want to wake up.

In addition to dreaming, I’ve been thinking. Thinking about all the different companies, industries, target markets, product offerings, sales venues, comp plans, sales training, collateral material – you name it – that I’ve come into contact with over the past 25+ years.  I’ve conjured up every bit of it in my mind. The Good, The Bad and The Ugly.

The result is the list below; 15 elements I believe should be present in order to maximize the opportunity for any sales team to succeed. Tens of thousands of sales teams across the country are achieving varying levels of success without the benefit of every one. Imagine the production of the first one that gets all 15 ducks lined up in a row.

I will be posting articles, audios and videos on each of these topics to this site over time. I encourage you to register with the site (click the “Sign Me Up!” button in the right-hand column) so you will receive each of these postings by email as they go up. If you’re sufficiently tech savvy, you can also subscribe to the RSS feed.

However you access these thoughts, please feel free to post your take (click the “Comment” button at the bottom of each article) on my opinions.

ELEMENTS OF A SUCCESSFUL SALES TEAM

A Well-Honed Customer Design (Laser-Sharp Target Marketing)

Separate Marketing Function Including:
Lead Generation System
Print Collateral
Web-Based Information
SEO
Text
Audio
Video / Slideshow
Testimonials and Case Studies
Market Research and Company Stats
Qualifying Questions
Lead Distribution System

Clear Picture of Sales Cycle:
The Shorter and Sweeter the Better
All The Necessary Steps Laid Out In Order
How Long Until The Rep Sees A Check?

Systematic Recruiting Process:
Target Marketing
Advertising Your Opportunity
Vetting The Initial Responses / Creating Your Short List
Identifying Your Final Four
Telephone Interviewing
Checking References
In-Person Interviewing
Making Your Final Selection
Administering An Initial Test of Salesmanship

Workable Compensation Plan:
Clear, Simple, Achievable, Uncapped and UNCHANGING
Bonuses and Contests
Recognition

Ability to Achieve Early Wins:
Proof That Your Systems Works

Contact Management / Customer Relationship Management System:
Web-Based
Easy To Learn and Use

Training:
Sales Training
Product Training
Rookie Ramp-Up Training
Ongoing Veteran Training
Role Modeling
Role Playing and Hot Seating

Detailed Scoreboard:
Give Us Proof That People Are Out There Making It Happen
Web-Accessible (if possible)
Every Team Member is Listed
Daily, Weekly, Monthly and Year-to-Date Production
Total Sales, Pipeline Size, Closing Percentage

Company-Wide Transparency:
Everyone Knows What Everyone Else is Doing
Who Are All The Players and What Are Their Roles?
Who Reports to Whom?
Contact Information Directory

Follow-Up Systems:
Email
USPS
Telephone

Focus on Repeat and Referral Business:
Why Ignore 2/3 of Your Potential Revenue?

A System for Reengaging Orphan Customers:
You Know They’re Good Prospects
You Have A Lot of Purchase Information on Them

Paperwork Minimization:
Digitize and Make Web-Accessible Wherever Possible
Make It Easy to Close A Deal!

Alignment with Production Department:
Communication
Support
Integration

I’m not suggesting that any firm spend thousands of dollars or hundreds of hours to implement these elements. Most of them are simple and inexpensive. Many are free. If they weren’t, I wouldn’t use them!

All 15 of these Theses are doable, affordable, reasonable and logically unavoidable. Don’t just sit there – get to work!

If all of this sounds like a great idea but you have no idea when you’d find the time to implement it, give me a call.

Frank Felker
frank_felker@yahoo.com
866-949-2661

For more information:

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