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About the “Roadmap …”

Each issue of the “Roadmap to Sales Success” will contain items of interest to the business (especially the sales) community.

Following is the schedule for this volume, “Profitable Sales Management – for Mangers AND Salespeople” – to help everyone reach their goals:

This Month’s Sales Tips …

“Managed change: the difference between change happening to you and you making changes happen in your organization” - - LaMarsh and Associates  

Please see:
http://www.salespartnersinc.com for details

SECOND of a SERIES

“Profitable Sales Management – for Managers AND Salespeople”

Compensation

Matching the appropriate compensation plan to the sales environment is crucial for our success. How are we compensating our salesperson?

Many executives that we speak with lately think that they want their sales people to be on a “straight commission” plan.

Many salespeople that we speak with have some misgivings about “straight commission.”

Why is that?

Executives think they are minimizing their risks and maximizing sales potential.

In his book, “BUILDING THE HIGH-PERFORMANCE SALES FORCE”, Joe Petrone says that, “A straight commission structure will be most motivating in those environments where the skills, knowledge, and behavior of the salesperson are the sole determining factor in getting the order.”

He goes on to say that “The wrong structure will result in unhappy employees, a high rate of turnover, and depressed sales.”

Regardless of the “upside” potential of this kind of compensation plan, salespeople like everyone else, need to make sure that their efforts will be rewarded properly and that their minimum monthly bills can be paid – especially food and mortgage/rent. Few people want to gamble with those.

“The choices for American companies are simple: either instill a sense of vision and belonging to the company’s future, or face the fact that you are going to lose your best salespeople and managers.”
- - Joe Petrone, Building the High-Performance Sales Force

We strongly recommend that you reduce the risks and try to maximize the results of your plan by working with a professional Sales/HR Consultant – we would be pleased to have a discussion about that “off line.”

Expectations

Part of the Sales Plan should have been the “clear expectations” and detailed action steps required for the first 3 months, then the next 3 months.

For, whether the “Sales Manager” likes it or not, in many selling situations it may take up to 3 months to learn the company “drill” – products, process, resources, organizational sensibilities, etc. and 3 more months to be comfortable in the “territory.” Perhaps less time in smaller companies; perhaps more in larger ones.

The first 3 months (or so.)

If the customers expect our salesperson to be their “resource”, then our person must be fluent in most aspects of our firm/our offerings/our systems/our people. This takes work effort that is not always scheduled into the plan.

After the necessary “housekeeping” has been completed, we begin by making sure that we have a mutually-understood and agreed-upon plan.

Then, it is very important that the new salesperson meet with people in our company. It’s nice to meet as many people as possible, but it’s most important that the salesperson have 1-on-1 meetings with the key “players”, executives and managers who will have an impact on our person’s success, and vice-versa.

And, perhaps most significantly, the KEY administrative people in important departments (we know who REALLY gets things done, don’t we?)

If geographical or other considerations prevent face-to-face meetings, then video/teleconferencing will do. If we really want this person to be successful, it’s important for him or her to begin building individual internal relationships.

It’s also important that the immediate manager have a personal sense of responsibility for this person’s success.

The next 3 months (or so.)

As for the next 3 months, again, whether the “Sales Manager” likes it or not, in many selling situations a sale may not be effected on the first call. Regardless, the salesperson needs time to learn about the customers, their business/personal drivers/challenges, and their needs.

The manager and the salesperson will want to review the “key” accounts in the territory:

• To familiarize the salesperson with them/their history with our company
• To begin doing research on them for call planning
• To prioritize call schedules

Then the salesperson is ready to begin making his/her initial calls.

Please see:
http://www.salestraininginc.com/newsletter/2003/november/
and
http://www.salestraininginc.com/newsletter/2003/december/

If all of these things are done correctly, after 6 months or so, the salesperson should be progressing towards the revenue/quota plan. We’ll cover more of these and building and maintaining the sales “funnel” in the next newsletter.

Next issue:

Be on the lookout for next issue of “Roadmap …” where the topic will be: “Sales Management 101”
Until then, Good Selling!!

Submit your question/comments to: info@salestraininginc.com

Subscribe to the “Roadmap …”