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What to offer my first salesperson?

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Re: What to offer my first salesperson?

#11
post #5

Having been a hi-tech quota exceeding :-) sales rep for a number years, here is what I advise: 1. Hire two reps: one for each coast. Even two part-time reps at each coast I say is better than one rep running around from coast to coast. Time wasting and regionally differences do crop up. 2. Read the the book, Selling to Big Companies. 3. Yes sell yourself so you understand the issues involved. 4. "Salespeople are noto…

> "Salespeople are notorious for giving excuses when they don't meet the sales targets they agreed to."

This is the sister argument for "developers are notorious for giving excuses when they miss deadlines they agreed to"

The key point about metrics is having something to base them off; difficult with a new product unless you know the competition (and the basis on which their clients switch) very well. A better starting point would be to agree upon how the rep intends to make 5 sales. If they make them, all is well; if they don't, you look at a simple measure of performance like whether they attended the meetings expected of them and ask what the feedback was. Resist the temptation to micromanage KPIs if things aren't going so well: if you suspect your salesperson is failing due to laziness then either you're wrong, and you'll drive them away faster or you're right and you still won't make things any better.

Re: What to offer my first salesperson?

#12
post #5

Having been a hi-tech quota exceeding :-) sales rep for a number years, here is what I advise: 1. Hire two reps: one for each coast. Even two part-time reps at each coast I say is better than one rep running around from coast to coast. Time wasting and regionally differences do crop up. 2. Read the the book, Selling to Big Companies. 3. Yes sell yourself so you understand the issues involved. 4. "Salespeople are noto…

Edit: andrewstuart's said the quote on item 4. I am just responding that I do not agree.

Re: What to offer my first salesperson?

#13
post #10
post #5

Having been a hi-tech quota exceeding :-) sales rep for a number years, here is what I advise: 1. Hire two reps: one for each coast. Even two part-time reps at each coast I say is better than one rep running around from coast to coast. Time wasting and regionally differences do crop up. 2. Read the the book, Selling to Big Companies. 3. Yes sell yourself so you understand the issues involved. 4. "Salespeople are noto…

How do you feel about handing over all the in-progress sales to the account rep, so he can get some easy wins? I'm in a market with a 2 year sales cycle (there are shortcuts to make it 3-6 months), and there are leads/pilots in various stages. Do you get reduced commission for those, or none, or full?

I am not sure who you are asking, but I will respond.

There is no such thing as an easy wins. Most companies do not realize a customer is not a sale. A customer is a customer that renews, tells others (referral aka word of mouth), or comes back as repeat business.

P&G has 4 moments of truth: First that the customer knows about you, second customer buys you, third customers accepts that you did what you claimed, and fourth customer tells others or buys again.

The more customers that are using your product the more sales you will get; kinda like network effect. They each can talk to each other about their experience and how it improved their lives/company. Since more people are using it, it is easier to get internal buy-in and sales on new accounts.

I agree with the person that said sales are hard initially. You have no brand awareness. Make it easy for your rep to sell. Sales is hard. Ask any CEO who has done it. I would pay the person for the numbers in each of the stages in the sales pipeline since that is how sales are made: step by step. vary the commission rates. Like the other person, focus on the process and then conversion rates for each stage.

My questions to you: How much profit will you make on 0 sales? What are you waiting for? Either close the business yourself or let a professional who has vested interest do it. In the beginning it is not about profit but market share and building brand equity.

Re: What to offer my first salesperson?

#14
post #8

Earlier quoted context omitted.

Agree about many salespeople being good at selling themselves to prospective employers. My experience is that there's more of those than genuinely good ones. My trick is to offer very low retainer and high commissions. The best ones will go for it. Anyone who wants a high retainer might be better at making up excuses for lost sales. I'm seeing two other problems. 1. You say that you are not in the US and you are hiri…

Haha - you are so right on several accounts: 1. Any good sales rep should be able to sell self, their best product. 2. When I went for jobs I was mainly interested in commission. However if the sale took long that is not good enough. You can have the commission stagger - matching the sales pipeline stages. This meaning - they get x for number of potentials in that have been qualified, y percentage for that have been…

Great collection of info. I especially liked your bit about "looking for a personal stake ... someone else's money so even less diligence". That's how Apple sold so many IIe's with VisiCalc.
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