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What Priority Should Sales Recruiting Be for a Sales Manager?

Stacking a sales team with great talent is one of the toughest jobs a sales manager will face. The constant pressure to meet immediate goals creates a natural barrier to being patient and waiting for the right person. Participating in a discussion on LinkedIn recently reminded me that many sales managers don’t believe that great sales people even exist, and that, as a result, recruiting should be pushed down their priority list.

Running to Stand Still 

In my early days as a sales manager, selling large enterprise level web content management solutions for GlobalX back in the mid 90’s, we worked our butts off to compete with very well financed start-ups such as Vignette, Opentext and Interwoven. My team had a mixed bag of reps – some at and some below targets, but I spent a lot of my time managing some under-performing reps on my team and trying to train them to be better. Some days I was helping my reps focus, other days it was helping them create account plans and sometimes it was literally helping them write properly. The time I invested in these reps usually didn’t translate to better sales numbers and because I didn’t know any better at the time, I wondered if I was simply a poor manager, not able to inspire the right results in my team.

I probably wasn’t much of a sales manager, but the point I am trying to make is that I really had no clear idea whether the problem was me or my reps. Looking back, it is clear to me now that it was a combination of both, but I had not set myself up to succeed because I had not been careful to hire sales success DNA onto my team.

Naively, not only did I not realize hiring sales talent was a priority, but I also didn’t realize that hiring great sales people was an option. Whenever we tried to hire someone, we seemed to attract a certain caliber of sales people applying for our positions – either journeymen who were out of work and had no choice, but to accept the risk of a start-up, or hot shots who knew the Internet (a key thing in the early days) but who had no track record of success. For me, it seemed replacing the weaker sales reps I had would only result in hiring the same types over again and bring about the same poor performance and management challenges.

What I didn’t realize at the time was that my refusal to be proactive about sales hiring was taking a huge toll on our sales numbers.

Reactive Sales Hiring is Painful

At any point in time, there will always be a percentage of reps on any team that are missing their targets. Even on the best teams there are typically 20% of reps below target. In some companies the number is much higher. In any event, a savvy sales manager expects this and factors this into their sales projections, but what do they do about reps that are consistently missing targets? My approach has always been to try all ways to motivate the employee to get better before cutting bait. I would rather develop a sales person I already have on my team and know than invest the big effort in finding a new one. But at a certain point, if I can’t motivate the right behaviours and results then I will accept that we aren’t meant to be together and I’ll trigger a separation.

It makes little sense to spend the time and money training and developing your sales team when the people in whom you are investing do not have the capability for sustainable improvement. ….“Mishiring” is an epidemic. Depending on the industry, ESR estimates that somewhere between 20 and 33 percent of salespeople do not have the capabilities to be successful at their jobs. Investing in sales processes, training, attractive incentive plans, technology, marketing support and strong products and services to sell will not do much unless you have a team of qualified sales professionals with the right attributes. (Check out Dave Stein’s article If You Want Sales Training to Work, Get the Right People on the Team)

Avoiding Inevitable Change

Too infrequently in practice, is the “hire slow, fire fast” philosophy followed. Many sales managers will hang on to reps long past the point where it is time to let go. Sales people are an optimistic bunch, so in some cases there may be honest hope to turn things around, but hope is not a good strategy.  If a rep is consistently mediocre or worse, the pressure to make a change will mount over time until eventually making a change is unavoidable.

When a performance problem has been permitted to persist for a long time,  ultimately forcing a rep to be released from their employment, the sales manager is often more desperate than ever to find a replacement who can generate much needed sales ASAP.

You can’t train employees to be great people. Hire great people. And they’ll take care of your customers. It’s that simple.” Cameron Herold – You Can’t Train Employees to Be Great

Proactive Sales Hiring

Going back to my own early experiences in sales management, I will admit that I placed a low priority on sales recruiting, treating it like a fire that needed to be fought every now and then. I was conditioned to expect poor results and also felt that the level of effort was out of line with the return.

Hiring great sales people is an arduous process. First you have to get exposed to the right people, which requires effort since they are working and not looking at or responding to job ads. Secondly, you have to convince the sales person that what your company offers is better than what they currently have, and you will have to deal with some skepticism. Thirdly, you have to deal with the reality that some have non-competes, and lastly you have to wait while they resign from their current employer which may involve a long termination period, handoffs, staying to collect quarterly bonuses and/or closing maturing deals. This all takes time and time is something the sales manager who needs to make a quick hire does not have. Simply put, if you have to make an immediate hire, then hiring the best sales people is going to be a frustrating experience.

That is to say, recruiting great sales people will be frustrating if you have to hire quickly unless, you have established a system for attracting sales talent even when you are not hiring. Such a system needs to include ways to get the attention of high achieving sales sales people, passive candidates, who are actively working for other employers. Most of the things you do to attract top sales talent are also the same things you do to attract great customers:

Sales Recruiting as a Top Priority

If attracting strong sales people is a primary driver of sales success (which most experts agree), then shouldn’t recruiting be a top priority?

As I gained experience as a sales manager, I came to realize that by hiring a better breed of sales people, I would spend less time managing in the weeds, and could more effortlessly deliver my numbers. But this took effort. It takes a commitment to hiring and regular investment in attracting the right people to sales team. In my case, that meant it was on my list of things to work on every week and we worked hard to address the areas mentioned above to attract great sales talent.

What amount of attention to sales recruiting is the right amount? When I recently asked the EVP of sales in a national telecomm company, he told me that he spends 90% of his time working on deals contributing to the current quarter’s goals and 10% of his time on strategy and future planning which includes sales recruiting.

Sales expert Colleen Francis, on the other hand, is more explicit about the priority of hiring on the sales manager’s list of responsibilities:

You say it to your sales team all the time: “ABC. Always Be Closing.” Well, as a sales leader, I’d recommend that you adopt a slightly different mantra for yourself: ABR: Always Be Recruiting. Many sales managers settle into complacency when their team is performing well, or recruiting falls by the wayside when there’s too much else on their plates. But in reality, it’s essential to constantly have recruiting on your to-do list.”  Recruiting Great Sales People

The right answer probably has a lot to do with your company’s programs to attract talent. A large, established company is likely to have the profile to attract a steady stream of job applicants and an HR department actively working to recruit on behalf of the sales manager, while a sales manager in a smaller company may have to do the recruiting themselves and should be on the lookout for good sales people 24/7.

In either case, if a sales manager doesn’t make sales recruiting a top priority, then they are likely be disappointed with the quality of sales hires they are able to make. And a sales manager that cannot consistently attract great sales people is unlikely to be able to consistently deliver great results.

To your success!

Photo Credit: nocas via Compfight cc

Running to Stand Still 

In my early days as a sales manager, selling large enterprise level web content management solutions for GlobalX back in the mid 90’s, we worked our butts off to compete with very well financed start-ups such as Vignette, Opentext and Interwoven. My team had a mixed bag of reps – some at and some below targets, but I spent a lot of my time managing some under-performing reps on my team and trying to train them to be better. Some days I was helping my reps focus, other days it was helping them create account plans and sometimes it was literally helping them write properly. The time I invested in these reps usually didn’t translate to better sales numbers and because I didn’t know any better at the time, I wondered if I was simply a poor manager, not able to inspire the right results in my team.

I probably wasn’t much of a sales manager, but the point I am trying to make is that I really had no clear idea whether the problem was me or my reps. Looking back, it is clear to me now that it was a combination of both, but I had not set myself up to succeed because I had not been careful to hire sales success DNA onto my team.

Naively, not only did I not realize hiring sales talent was a priority, but I also didn’t realize that hiring great sales people was an option. Whenever we tried to hire someone, we seemed to attract a certain caliber of sales people applying for our positions – either journeymen who were out of work and had no choice, but to accept the risk of a start-up, or hot shots who knew the Internet (a key thing in the early days) but who had no track record of success. For me, it seemed replacing the weaker sales reps I had would only result in hiring the same types over again and bring about the same poor performance and management challenges.

What I didn’t realize at the time was that my refusal to be proactive about sales hiring was taking a huge toll on our sales numbers.

Reactive Sales Hiring is Painful

At any point in time, there will always be a percentage of reps on any team that are missing their targets. Even on the best teams there are typically 20% of reps below target. In some companies the number is much higher. In any event, a savvy sales manager expects this and factors this into their sales projections, but what do they do about reps that are consistently missing targets? My approach has always been to try all ways to motivate the employee to get better before cutting bait. I would rather develop a sales person I already have on my team and know than invest the big effort in finding a new one. But at a certain point, if I can’t motivate the right behaviours and results then I will accept that we aren’t meant to be together and I’ll trigger a separation.

 It makes little sense to spend the time and money training and developing your sales team when the people in whom you are investing do not have the capability for sustainable improvement. ….“Mishiring” is an epidemic. Depending on the industry, ESR estimates that somewhere between 20 and 33 percent of salespeople do not have the capabilities to be successful at their jobs. Investing in sales processes, training, attractive incentive plans, technology, marketing support and strong products and services to sell will not do much unless you have a team of qualified sales professionals with the right attributes. (Check out Dave Stein’s article If You Want Sales Training to Work, Get the Right People on the Team)

Avoiding Inevitable Change

Too infrequently in practice, is the “hire slow, fire fast” philosophy followed. Many sales managers will hang on to reps long past the point where it is time to let go. Sales people are an optimistic bunch, so in some cases there may be honest hope to turn things around, but hope is not a good strategy.  If a rep is consistently mediocre or worse, the pressure to make a change will mount over time until eventually making a change is unavoidable.

When a performance problem has been permitted to persist for a long time,  ultimately forcing a rep to be released from their employment, the sales manager is often more desperate than ever to find a replacement who can generate much needed sales ASAP.

“You can’t train employees to be great people. Hire great people. And they’ll take care of your customers. It’s that simple.” Cameron Herold – You Can’t Train Employees to Be Great

Proactive Sales Hiring

Going back to my own early experiences in sales management, I will admit that I placed a low priority on sales recruiting, treating it like a fire that needed to be fought every now and then. I was conditioned to expect poor results and also felt that the level of effort was out of line with the return.

Hiring great sales people is an arduous process. First you have to get exposed to the right people, which requires effort since they are working and not looking at or responding to job ads. Secondly, you have to convince the sales person that what your company offers is better than what they currently have, and you will have to deal with some skepticism. Thirdly, you have to deal with the reality that some have non-competes, and lastly you have to wait while they resign from their current employer which may involve a long termination period, handoffs, staying to collect quarterly bonuses and/or closing maturing deals. This all takes time and time is something the sales manager who needs to make a quick hire does not have. Simply put, if you have to make an immediate hire, then hiring the best sales people is going to be a frustrating experience.

That is to say, recruiting great sales people will be frustrating if you have to hire quickly unless, you have established a system for attracting sales talent even when you are not hiring. Such a system needs to include ways to get the attention of high achieving sales sales people, passive candidates, who are actively working for other employers. Most of the things you do to attract top sales talent are also the same things you do to attract great customers:

Sales Recruiting as a Top Priority

If attracting strong sales people is a primary driver of sales success (which most experts agree), then shouldn’t recruiting be a top priority?

As I gained experience as a sales manager, I came to realize that by hiring a better breed of sales people, I would spend less time managing in the weeds, and could more effortlessly deliver my numbers. But this took effort. It takes a commitment to hiring and regular investment in attracting the right people to sales team. In my case, that meant it was on my list of things to work on every week and we worked hard to address the areas mentioned above to attract great sales talent.

What amount of attention to sales recruiting is the right amount? When I recently asked the EVP of sales in a national telecomm company, he told me that he spends 90% of his time working on deals contributing to the current quarter’s goals and 10% of his time on strategy and future planning which includes sales recruiting.

Sales expert Colleen Francis, on the other hand, is more explicit about the priority of hiring on the sales manager’s list of responsibilities:

“You say it to your sales team all the time: “ABC. Always Be Closing.” Well, as a sales leader, I’d recommend that you adopt a slightly different mantra for yourself: ABR: Always Be Recruiting. Many sales managers settle into complacency when their team is performing well, or recruiting falls by the wayside when there’s too much else on their plates. But in reality, it’s essential to constantly have recruiting on your to-do list.”  Recruiting Great Sales People

The right answer probably has a lot to do with your company’s programs to attract talent. A large, established company is likely to have the profile to attract a steady stream of job applicants and an HR department actively working to recruit on behalf of the sales manager, while a sales manager in a smaller company may have to do the recruiting themselves and should be on the lookout for good sales people 24/7.

In either case, if a sales manager doesn’t make sales recruiting a top priority, then they are likely be disappointed with the quality of sales hires they are able to make. And a sales manager that cannot consistently attract great sales people is unlikely to be able to consistently deliver great results.

To your success!

Photo Credit: nocas via Compfight cc

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Eliot Burdett

CEO at Peak Sales Recruiting
Before Peak, Eliot spent more than 20 years building and leading companies, where he took the lead in recruiting and managing high performance sales teams. He co-founded Ventrada Systems (mobile applications) and GlobalX (e-commerce software). He was also Vice President of Sales for PointShot Wireless.Eliot received his B. Comm. from Carleton University and has been honored as a Top 40 Under 40 Award winner.

He co-authored Sales Recruiting 2.0, How to Find Top Performing Sales People, Fast and provides regular insights on sales team management and hiring on the Peak Sales Recruiting Blog.

Connect:

Hiring The Right Salesperson: Sales DNA vs. The Resume

A few days back I was having a conversation with a B2B startup exec who is in the process of building out a sales team. The company provides a tech solution to a niche market and the primary trait the company is using to filter potential sales candidates is experience selling technology to the market being targeted – the strategy being that such a salesperson would possess a network of contacts which enable them to generate sales very quickly.

The Rolodex Sales Hiring Strategy

The desire to hire someone with a great network and  book of business is pretty common. At Peak, this requirement is a part of probably half of the B2B sales recruiting inquiries we receive. Can anyone blame an employer for wanting to hire someone who can generate sales immediately upon being hired? It often works. Particularly in industries where relationships are paramount and there is limited turnover in buyer organizations. Good luck getting a construction company or a military supplier to hire an account exec without industry experience (I have learned first-hand it can be folly to try).

But there are many sectors that are less static and in which buyers change jobs and employers regularly. How much value is a rolodex worth if “friendly” buyers are regularly replaced by buyers who may have allegiances with alternative vendors? The answer is not much unless there is concerted effort to maintain relevant contacts in every customer organization.

Moreover, in many companies procurement processes such as open tendering and selection committees strive to select vendors based on merits and thus neutralize the explicit value of relationships. When a sales person changes from one vendor to another, deep relationships with buyers may be useful for opening the door, but won’t help in closing business unless the offering is superior to that of the competition.

And perhaps the largest challenge inherent in hiring someone with a specific resume and set of experiences, is that it considerably narrows the pool of talent upon which to draw, which in turn creates a sellers (as in candidate’s market). Using the defense industry as an example, Peak has been involved in several searches for account executives selling into the defense sector where our customers needed us to find sales people who had sold very specific products and services to very specific customers. We successfully recruited the candidates, but when the number of sales people in the world who qualify for a specific position can be counted on one hand, the recruiting employer is going to have little negotiating leverage with the candidate on matters such as compensation and may have to compromise on key issues such as culture fit – at a certain level the employer has to take what they can get, since the number of candidates simply isn’t large enough to be picky. This may seem like an extreme example but it is not grossly out of line with the situation that many employers will face where there will be a total of 10 or maybe 20 sales reps who qualify with the right resume.

Sales DNA Hiring Strategy

The alternative to hiring based on experience is hiring based on sales DNA and here’s what I know from close to 30 years of sales and management experience: sales DNA almost always beats the resume. With the exception of rare instances, some of which detailed above, where domain experience and relationships are critical and hard to acquire, the right DNA, meaning personal character traits, find a way to get the job done.

Sales DNA almost always beats the resume

When we study the character traits of top performing sales people across different industry sectors, we see traits such as ambition, competitiveness, sense of urgency, confidence, perseverance, optimism, resilience, ability and desire to influence others. These intangible, but highly critical traits are what drive high achieving sales people to be successful. They are what allow top sales people to make good judgements, create good luck for themselves and capitalize on opportunities that average sales people miss.

These are also the traits that allow a door to door dictionary sales person to beg their way onto a software sales team and then become the number one sales person in a matter of months. True story. These are also the traits that allow a person selling shoes come into a company selling VOIP systems and become the perennial sales leader. Another true story. These are also the traits that enable a person with a tech sales background to come into a construction company desperate for new sales and drive new sales growth. Yet another true story.

I have seen this story played out countless times. The right sales DNA finds a way to succeed. The right sales DNA acquires the requisite knowledge quickly, figures out who they need to know and makes the connections. While they may not have a rolodex in theory, they are able to get to the buyers and influencers and find ways to make themselves indispensable, ergo building the relationships they need.

The biggest upside of hiring based on sales DNA is that the talent pool is exponentially larger than if hiring based on sector experience. So rather than being limited to a small number of candidates that qualify, an employer is in a far better position to hire someone that fits the comp plan and more importantly, is a fit with the employer’s values and culture, which is the primary basis for a long and successful relationship with a sales hire.

DNA vs. Resume?

Every sales situation is unique and each sales manager will know whether their sales team members really have to have the sector experience in order to be successful, but in my experience, more often than not, sector experience is not the determining factor in who is at the top of the sales team leaderboard.

To your success!

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Eliot Burdett

CEO at Peak Sales Recruiting
Before Peak, Eliot spent more than 20 years building and leading companies, where he took the lead in recruiting and managing high performance sales teams. He co-founded Ventrada Systems (mobile applications) and GlobalX (e-commerce software). He was also Vice President of Sales for PointShot Wireless.

Eliot received his B. Comm. from Carleton University and has been honored as a Top 40 Under 40 Award winner.

He co-authored Sales Recruiting 2.0, How to Find Top Performing Sales People, Fast and provides regular insights on sales team management and hiring on the Peak Sales Recruiting Blog.

Connect:

Book Review: Nonstop Sales Boom

There is a lot to like in the latest book we are reviewing, Nonstop Sales Boom, by Colleen Francis.

First of all, this is not simply a sales book. This is a book about avoiding the boom-bust cycles that are a major stress on many businesses and creating systems that will drive consistent business growth over the long term.

Second of all, this book is not written by a sales consultant who sits on the sidelines theorizing. Having worked with Colleen in several accounts, we know that she rolls up her sleeves and applies these systems and techniques to deliver real results.The book picks up where Francis’ last book, Honesty Sells, left off and there is a theme of transparency and partnering with customers to make real contributions to their success. Over the years, I have read hundreds of sales books, and the value of integrity is critical for me to appreciate any of a book’s contents. Life is too short for tricks, manipulations or anything other than helping others be successful, particularly paying customers.

There is a mix of classic and progressive sales advice in this book, but where Nonstop Sales Boom book really excels is providing common-sense and actionable advice in the context of a modern sales world where buyers have unprecedented access to information which translates to leverage over competing sellers.

Booming Companies

Francis argues that top performing sales teams and companies share several key characteristics:

  1. They view customers beyond the current transaction
  2. They are driven by metrics, beyond the most basic ones such as quota
  3. They ensure that 80% or more of the sales force is at target – underperformers are coached or removed
  4. They rigorously manage, monitor and renew product and service lines to create exceptional customer experiences
  5. They consistently meet forecasts

Business Growth

Sales leaders and business owners interested in long term growth, will find a couple of key concepts presented in the book:

Sales Radar – to compliment the sales funnel, the Sales Radar, characterizes prospects more holistically as business growth opportunities rather than the way they are traditionally tracked, as individual transactions. There are four quadrants in the Sales Radar – Attraction, Participation, Growth and Leverage – and the book is organized around each of these concepts.

Ubiquitous Prospecting – Never more relevant than now is the adage that people like to buy, but don’t like to be sold. In this context, driving demand and creating the conditions for buying are critical. Colleen presents a model for companies and sales people to achieve high visibility with ideal customer prospects, including direct methods such as cold calling and email as well as indirect methods such as social media and speaking.

The book rounds out with a section on the organization and support required for ongoing sales growth. Francis expresses the importance of enforcing a high performance culture, suggesting that “sales managers who do not enforce high performance are the worst performers of all” and that sales managers need to be diligent about weeding out under-performers from the sales force – “find the best, remove the rest.”

With lots of real world examples to support her ideas and actionable advice, Francis’s book is a must read for sales managers and business leaders interested in achieving long term growth and success.

Find Colleen Francis on the web at Engage Selling and on Twitter at @EngageColleen. You will also find her book on Amazon via the link below.

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Eliot Burdett

CEO at Peak Sales Recruiting
Before Peak, Eliot spent more than 20 years building and leading companies, where he took the lead in recruiting and managing high performance sales teams. He co-founded Ventrada Systems (mobile applications) and GlobalX (e-commerce software). He was also Vice President of Sales for PointShot Wireless.

Eliot received his B. Comm. from Carleton University and has been honored as a Top 40 Under 40 Award winner.

He co-authored Sales Recruiting 2.0, How to Find Top Performing Sales People, Fast and provides regular insights on sales team management and hiring on the Peak Sales Recruiting Blog.

Connect:

Why Great Sales Candidates Get Rejected

We see it all the time. A great sales candidate meets with a prospective employer who rejects the candidate and elects to hire someone else. Oftentimes the reasons are legitimate – such as poor cultural fit – but many times, there are no logical reasons for the decision not to consider the candidate who would in all likelihood otherwise be a strong producer.

When reliable sales talent is in such high demand because it is so important to the success of any business, excluding great sales candidates from the hiring process for the wrong reasons is a real issue. There are several reasons why this happens:

Top Performing Sales People Are Different – If you spend any time with sales people who consistently perform at or above targets, you will quickly see they are different than the average sales person. The over-achievers possess higher drive and ambition, are more competitive, and exude confidence. While these are the traits that lead to sales success, they can be misinterpreted as liabilities, as Joseph Skursky noted in his post, Sales Thoroughbreds: The Key to Winning New Business, “the very nature and intensity of a hunter’s personality frequently turns off some recruiters and people in HR.”

Top Sales Talent Is Rare – As Colleen Francis points out in her book, Nonstop Sales Boom, only 20% of reps consistently hit well above their targets. Since the vast majority of applicants and the majority of sales people employed are average or below average sales people (see John Kearny’s post, Is Your Talent Hurting Your Sales Initiatives?), hiring managers are often not conditioned to spot them and instead are looking for more of what they are used to – average sales people.

High Producing Sales People Are Employed – Great sales candidates are not sitting at home waiting for a call from a new employer. Sales people who are consistently at or above target are busy producing sales for another employer. And being paid well to do so. Any employer trying to recruit one of these may find that they may not be as enthusiastic as another unemployed candidate who desperate for a job; any job. Often enthusiasm is mistaken for ability and a hiring manager focuses on the sales person they can easily hire rather than the sales person that will produce the desired sales results.

Broken Hiring Processes – In many companies, the hiring process is disjointed. Multiple people are involved in the hiring decision without clear and shared hiring criteria. This leads to confusion about the traits the employer is seeking and some great candidates can get nixed because someone misunderstands the hiring needs. Furthermore, it is often the case that people involved in the interview and hiring process have no formal training on how to interview or select candidates (in case you need it, here are some tips on how to interview sales candidates). As sales expert Dave Stein points out, “a key to successful hiring is objectivity.  Hiring salespeople on gut feel, the old-fashioned way, doesn’t work.”

It takes a lot of hard work and effort to attract and hire great sales people. High producing sales organizations know that the odds of attracting sales talent is greatly increased when top performing sales people are immediately recognized and given the attention they deserve.

To your success!

References:

Sales Thoroughbreds: The Key to Winning New Business – Joseph Skursky

Is Your Talent Hurting Your Sales Initiatives? – John Kearny

Nonstop Sales Boom – Colleen Francis

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Connect:

Eliot Burdett

CEO at Peak Sales Recruiting
Before Peak, Eliot spent more than 20 years building and leading companies, where he took the lead in recruiting and managing high performance sales teams. He co-founded Ventrada Systems (mobile applications) and GlobalX (e-commerce software). He was also Vice President of Sales for PointShot Wireless.Eliot received his B. Comm. from Carleton University and has been honored as a Top 40 Under 40 Award winner.

He co-authored Sales Recruiting 2.0, How to Find Top Performing Sales People, Fast and provides regular insights on sales team management and hiring on the Peak Sales Recruiting Blog.

Connect:

Does Your Company’s Online Reputation Matter When Sales Recruiting?

Sales Recruiting and Online Reputation

As we have written about before, top performing B2B sales people want to work for industry leading and highly reputed companies which their chances of success are greatest. Since there is excess demand for the services of top sales people, why wouldn’t they be selective in who they work for? In an Internet dominated world, a key question for employers is how much value the best sales professionals assign to the online reputation of an employer when deciding whether or not to be engaged in their recruiting process?  And, what can I, as an employer, do to ensure that our online presence and reputation doesn’t interfere with recruiting efforts?

How much does online reputation matter for employers?

Top sales professionals, whether they are a rep or a sales VP, are passive. They are leaders in their space because they not only hit, but exceed their sales goals year after year. They win deals because they do their due diligence on prospects and don’t waste time; they are efficient. Furthermore, they have excellent compensation packages and are not usually interested in making a move because they are set-up to succeed in their current role. So when trying to attract the best-of-the-best, it is important that you, regardless of your position in the company, ensure your company puts its best foot forwarded when headhunting ‘A’ level sales candidates.

Often, the first exposure a candidate will have with your company is online. Perhaps the candidate will enter the url of your company and check out the website directly. Most likely, candidates will Google the company name to see what top search results are returned. Usually sites like the organization’s LinkedIn company page and Google+ page will be high on the list. But remember how top sales performers do their due diligence, instead of stopping at a basic Google query, they will enter “company X + reviews” or “working at company X”.  These searches can return information that will make or break your sales recruiting efforts.

In this day and age, companies that don’t have an exceptional online presence are simply not going to attract A level talent”

-Cameron Herold, Founder of BackPocket COO.

Perhaps the most important detail that candidates look at is, of course, customer reviews. These reviews are arguably the lifeblood for an organization since they are tell-tail factors of whether or not the product or service provided has actually been embraced by the market. Things like business awards, a testimonial page, case studies, and a sizeable social media following (depending on B2B vs B2C organizations) do most of the ‘talking’ about where your organization ranks at the end of the day. Bottom line, if your organization has no ‘proof’ that its deliverable has a fan base, you can forget about attracting the best-of-the-best.

In a close second to customer reviews are employee reviews. Often posted by past employees, but sometimes posted by current ones, online sites like Glassdoor.com, Indeed.com, LinkedIn, and Vault.com provide an avenue for candidates to be armed with a dump truck full of knowledge about their potential employer. While the reviews posted on sites like those listed above are often, and rightfully so, taken with a grain of salt by candidates, their ability to influence should not be underestimated.

Monitor and Develop 

Luckily there is a way to fight back, especially against those employees who left with a sour taste in their mouth. It’s simple, world class employers not only showcase their customer’s rave reviews but actually quote some of the things current employees are saying about why they love to work at their company..

Take one of our favorite clients, Thomson’s Online Benefits, for example. Not only do they talk about their “bright, clean, modern and just a little bit different” working space, but they also talk about how keeping their employees healthy and “alleviating those mid-afternoon energy slumps” by providing a “seasonal selection of free fruit in the office.” Furthermore, as you can see in the picture below, they actually showcase their Pay and Benefits awards and have a short Q & A with one of their team members on what it’s like working there.

Company Online Reputation and Recruiting

Show casing awards and the working environment are just a few of the ways your organization can amplify its online attractiveness to ‘A’ level sales talent. Try doing a case study of on one of your reps that has rising up the ranks. In it, be sure to identify what originally attracted the candidate to the organization, how management provided the tools for the candidate to succeed from day one, and how they are now impacting the current working environment. Put it this way, just as sales prospect respond best to the success of others, so do sales candidates.

Another option which Human Resources and your organization’s Marketing department could undertake is to conduct a short, 2-3 minute video interview with the President or CEO where he or she discusses why your organization is a great place to work and make a fantastic living. If you are hiring a sales rep, do a video with the individual who would be managing them too.

Bottom line, in the war for talent, it is worth investing to ensure that your company looks and sounds it’s best online since an active, positive online reputation is one of a firm’s most strategic and valuable assets.

TIP: work with your marketing and PR departments to fine-tune your online presence.

Happy hiring.

Found what you read useful, then you would love our newest FREE eBook  – The First 90 Days, Your Guide to Making New Sales Hires Produce Fast.

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Eliot Burdett

CEO at Peak Sales Recruiting
Before Peak, Eliot spent more than 20 years building and leading companies, where he took the lead in recruiting and managing high performance sales teams. He co-founded Ventrada Systems (mobile applications) and GlobalX (e-commerce software). He was also Vice President of Sales for PointShot Wireless.

Eliot received his B. Comm. from Carleton University and has been honored as a Top 40 Under 40 Award winner.

He co-authored Sales Recruiting 2.0, How to Find Top Performing Sales People, Fast and provides regular insights on sales team management and hiring on the Peak Sales Recruiting Blog.

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Could One of These 2015 Sales Conferences be a Game-Changer?

Optimized-2015 Sales ConferenceLet’s be honest. Not all sales conferences are created equal. You probably don’t even remember the worst conferences you ever attended. After all, they were far from memorable, but suffice it to say you ducked out as soon as possible, feeling like you would never get that time back. With so many conferences to choose from, and so many that don’t live up to their promises or can’t justify your time, how do you make sure you pick one that’s worth your time (and money)?

Use a Structured Approach:

Like everything we advocate in our sales hiring philosophy, we believe in a structured approach. Haphazardly selecting conferences to attend and showing up without any preparation leaves conference ROI to chance. We recommend following a defined process to help ensure the next sales conference you attend is a catalyst for real results.

Don’t worry; it’s easier than it sounds.

Set Desired Outcomes:

Start by jotting down some outcomes that would make a sales conference worthwhile for you.

Here are a few we came up with:

  • Network with thought leaders, peers, new client prospects, and potential sales team recruits.
  • Gather competitive intelligence for benchmarking, insight, and strategic planning.
  • Brainstorm new ideas to improve your company’s processes and performance.
  • Learn from industry experts sharing their own successes and failures, tactics and strategies, and tools and technologies.
  • Sell your company’s services to existing and new leads when relevant and appropriate.
  • Get actionable insight on the trends, developments, and forecasted changes in your industry.

Determine Selection Criteria:

Now that you know your desired outcomes, use them to come up with appropriate selection criteria to determine the conferences that are most likely to produce those outcomes.

For example:

  • Large (250+) number of participants. Why? Higher attendance means more chances to broaden your network, gain actionable insights, and uncover new opportunities.
  • Targeting B2B sales executives and managers. Why? The content will be tailored specifically for you!
  • Cost $300 or more to attend. Why? Amazing speakers deliver amazing value…and charge for it.

Pick a Conference:

We used the above criteria to compile our own list of 2015 sales conference recommendations:

Sales 2.0

Philadelphia: March 16, 2015

San Francisco: April 27-28, 2015

Hosted by Selling Power, this is a high profile series of events typically held in four or five different U.S. locations each year. The Sales 2.0 conference focuses on helping sales leaders leverage Sales 2.0 technologies and strategies to optimize operations, enablement, and marketing performance. The 2014 San Francisco event featured 40 speakers, including Jim Dickie of CSO Insights and executives from Selling Power, Xactly Corporation, and Oracle.

INBOUND

Boston: September 8-11, 2015

Hubspot strives to inspire, teach, and empower sales and marketing leaders to transform their businesses in its annual INBOUND conference. The 2014 event hosted 7,500+ marketing and sales professionals from around the world, an impressive list of speakers (including Martha Stewart, Simon Sinek, Malcolm Gladwell, Guy Kawasaki, Jill Konrath, and Marcus Sheridan), an INBOUND Rocks evening event, INBOUND Happy Hours, and Club INBOUND (the lounge at Hubspot HQ).

Dreamforce

San Francisco: September 15-18, 2015

Hosted by salesforce.com, Dreamforce boasts a 95% recommendation rate by its past attendees. Past speakers have included Hillary Rodham Clinton, Al Gore, Tony Robbins, and Jill Konrath. The innovation-focused conference offers over 1,000 breakout sessions, sales-focused themes, reduced-cost salesforce.com training and certification opportunities, and a gala and benefit concert.

Sales Force Productivity Conference

Atlanta: 2015 Dates TBA*

The Sales Force Productivity Conference focuses on sales strategy and operational effectiveness; sales force technology, motivation, incentives, and compensation; and sales manager education and development. Hosted by the Sales Management Association, this event promotes collaboration among attendees, speakers, and solution providers for a more personalized experience.

Conversations that Win!

Chicago: September 24-25, 2014 (2015 dates TBA)

As its name implies, this event’s claim to fame is its focus on improving the conversations between your salespeople and your customers. Attendees gain insight into all types of conversations, from differentiation to justification to deal maximization. The 2014 conference featured 20 speakers and 40 sessions emphasizing the importance of sales and marketing alignment and compelling story creation and delivery. Conversations That Win also includes a “BIG” evening entertainment event.

Ready, Set, Go!

Once you’ve selected the conference that’s most aligned with your desired outcomes, apply these tips for extra assurance that you’ll get game-changing results from your experience:

  1. Set auto-responders on your email and voice mail so you don’t feel the need to check them constantly. Instead, use your downtime to engage with as many people as you can. Jump in the coffee line, and strike up a conversation with the people next to you. Sit with someone different at each meal.
  2. If you do find yourself on your smartphone, get on Twitter. Participate in the event hashtag to connect with other attendees and keep a pulse on the conference. Tweet takeaways from the sessions you’ve attended so far to share knowledge with your network. (You took notes, right?)
  3. Talk less, listen more. Show a genuine interest in the stories of the people you meet. Maybe you can help them solve a problem. Maybe they can help you solve one?“It’s no longer about interrupting, pitching, and closing. It’s about listening, diagnosing, and prescribing.” – Mark Roberge, SVP of Sales and Services at Hubspot
  4. Don’t be afraid to approach a speaker. These folks may be famous, but they’re there to help you. Just do your homework and pay close attention during their speeches so you can ask thoughtful questions.
  5. Speaking of homework, research the speakers, sponsors, exhibitors, and attendees in advance. Have a specific game plan for each person you want to meet. Review the conference agenda. Schedule meetings during session breaks with anyone on your list that you’re able to reach in advance (but don’t book all of your time).
  6. Keep an open mind. Remember your list of desired outcomes, and consider these words of wisdom from Jill Konrath: “Sometimes a change in perspective changes everything.”
  7. Focus on action. Conference speakers will share a plethora of stories, insights, and wisdom, but keep your ear tuned for actionable advice. If you hear a tip you can implement immediately, write it down or star it in your notes. Write down any necessary action items on the back of new contacts’ business cards.
  8. Follow up. Share key takeaways from the conference with your team. Put ideas into action. Thank attendees and speakers who gave you their time and insights. Fulfill any commitments you made to new acquaintances or prospects to send them additional information, make further introductions, etc
  9. Focus on Priorities – While we suggest keeping an open mind, if there are some sessions that don’t offer lessons that are immediately useful, feel free to use the time to make calls and get some work done. Sometimes it only takes one or two really good sessions to make a whole conference worth the investment.

What sales conferences will you attend in 2015? Are there any we missed that deserve a mention? Let us know in the comments.

*Note: 2015 dates for some of the annual conferences had not been announced as of the date this article was written. Post will be updated as information becomes available.

Sources:

4 Tips for Better Networking at Conferences – Lisa Gschwandtner

50 Tweetable Quotes From Sales’ Top Thought Leaders [SlideShare] – Emma Snider

20 Inspirational Sales Quotes from Jill Konrath – Gareth Goh

Photo Credit: BenRogersWPG via Compfight cc

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Eliot Burdett

CEO at Peak Sales Recruiting
Before Peak, Eliot spent more than 20 years building and leading companies, where he took the lead in recruiting and managing high performance sales teams. He co-founded Ventrada Systems (mobile applications) and GlobalX (e-commerce software). He was also Vice President of Sales for PointShot Wireless.

Eliot received his B. Comm. from Carleton University and has been honored as a Top 40 Under 40 Award winner.

He co-authored Sales Recruiting 2.0, How to Find Top Performing Sales People, Fast and provides regular insights on sales team management and hiring on the Peak Sales Recruiting Blog.

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The Problem with the 80/20 Rule for Sales Managers

Sales Manager and the 80/20 RuleMany sales managers accept the 80-20 rule – that 20% of their reps make 80% of the sales – which I suppose is acceptable if the sales manager is consistently meeting targets, but it certainly is not a recipe for superior results. There are many downsides to allowing under-performers to exist on your sales team. Sales leaders who regularly exceed targets are vigilant about removing the weak performers from sales force.

“Traditionally, sales teams fall into a pattern: Twenty percent hit well above target – they are your high performers; 60 hit their target fairly consistently – they are your workhorses; and another 20% underperform” Colleen Francis – Nonstop Sales Boom

Wasted time and effort

While it is customary for sales leaders to pay more attention to their best reps and neglect the weaker ones, the poor performers require an inordinate amount of coaching and management time relative to their output. As a young sales manager for a B2B Internet solutions company I had two reps on my team that weren’t hitting targets. As I was unused to aggressively pruning my teams at this point in my career, I tended to work with each rep as they suffered through their troubles. I would spend considerable time coaching them through account strategies and in many cases, reworking their proposal to fix basic mistakes. It didn’t take me long to realize that my time was better spent on finding more capable reps.

U.S. managers waste an average of 34 days per year dealing with under-performance. Senior executives claim they spend seven weeks a year — or over an hour per day — managing badly performing employees.  – Inc. Magazine

Under-performers do more than hamper results

Anyone who is missing their goals, is not an overly happy person. Reps are no different. In spite of the perception that reps are overly optimistic and eternally happy folk, they are emotional and can become sullen when they are not succeeding. Just as positivity is infectious, so is a negative attitude.  Furthermore, when some people get in a rut, they take it upon themselves to actively bring others down with them.

In one of my previous companies, an unhappy team member acted like a contributing and “on-board” member of our team during sales meetings, but outside the meetings she opposed the direction we were going in and was verbal about it to others, trying to solicit support for her viewpoint and undermining our efforts to execute on our plan and create momentum.

Lost Opportunity

Once after terminating a rep for lying to a prospect, I made calls to the accounts the rep was managing and learned that while the customer liked the benefits they received by using my company’s products, they were reluctant to refer us to others since they really didn’t like the rep that they were dealing with. This situation was salvaged by assigning a new rep to the account, but how many other opportunities were lost because we were unaware of the dislike for our rep? Research shows that customers are far more likely to share bad experiences with companies than good experiences. How much bad buzz did our unlikeable rep create?

66% of B2B customers stopped buying after a bad customer service interaction. 

95% share bad experiences. 

54% shared bad experiences with more than five people

45% share bad customer service experiences and 30% share good customer service experiences via social media

Survey: The impact of customer service on customer lifetime value – Dimensional Research / Zen Desk

Morale 

Top sales achievers take a lot of pride in the companies that they choose to work for. Poll your best sales producers and you will find that they are annoyed when some people don’t meet the performance goals that would justify their role on the team, but are allowed to remain as a team member. Over time this frustration can boil over and cause a good rep to consider moving to a company with higher standards. As a sales recruiter, we see this all the time and make a living out of meeting great sales people who are open to considering a career change.

Replace the weak with the strong 

Perhaps the biggest reason for rejecting the 80/20 rule of sales rep output is that the gains of replacing low achieving reps are huge. Consider this – if you replace a rep performing at 70% of target with a rep at 120% of target, you get a 50% boost in sales output with less management effort. Win-win.

There are a lot of reasons why sales managers fail to trim inferior sales talent for their teams  – lack of awareness, sense that there isn’t anyone available to replace the rep, fear of change are some of the main reasons – however failing to make hard choices can be the difference between success and a long downward spiral.

To your success!

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Eliot Burdett

CEO at Peak Sales Recruiting
Before Peak, Eliot spent more than 20 years building and leading companies, where he took the lead in recruiting and managing high performance sales teams. He co-founded Ventrada Systems (mobile applications) and GlobalX (e-commerce software). He was also Vice President of Sales for PointShot Wireless.

Eliot received his B. Comm. from Carleton University and has been honored as a Top 40 Under 40 Award winner.

He co-authored Sales Recruiting 2.0, How to Find Top Performing Sales People, Fast and provides regular insights on sales team management and hiring on the Peak Sales Recruiting Blog.

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Need-to-Haves That You Don’t Need When Hiring Salespeople

Non Mandatory Hiring Criteria for Sales ProfessionalsProspective clients often come to us with a typical problem: many of the salespeople they hired seemed great during the interview process, but under-performed once they were hired.

When a new sales hire doesn’t work out, the loss is huge. Poor-performing salespeople can cost thousands in lost opportunities and revenue, and worse yet—damage a company’s reputation and credibility.

As part of Peak’s 5 step process for recruiting top sales talent, we help our customers clarify their hiring requirements so we can focus our search on finding candidates with the specific characteristics and traits that will make them successful in our customer’s unique selling environment.

Oftentimes we find that companies use job descriptions when hiring salespeople that require candidates to have certain qualifications. Over the years we have found that the typical hiring requirements of most firms have little to do with sales success. In fact, some of these “need to have” conditions adversely limit the pool of candidates and create great costs for the business.

Sometimes these requirements are carried over from previous job descriptions or tossed in to fill out a job description. The bottom line is that they detract from the focus on what really matters.

Why Many Need to Have’s are Not Really Need to Haves:

Many of the typical hiring requirements that employers use in job descriptions are neither necessary nor sufficient for sales success. Here’s the top 3 “Need-to-Have” requirements most often listed in job descriptions and why your company doesn’t actually require them.

1. Why salespeople don’t “need-to-have” university degrees:

Steve Martin writes in the Harvard Business Review that more often than not, top sales people are born, not made. Martin administered personality tests to over 1000 top salespeople and estimated that:

“Over 70% of the top salespeople are born with ‘natural’ instincts that play a crucial role in determining their sales success.”

Dave Kurlan, the author of Baseline Selling, too points out that “salespeople don’t succeed because of their education.” As Kurlan points out, many top companies like Google who carefully study their recruitment efforts, have arrived at the conclusion that there is no correlation between higher education and success.

What Kurlan and Martin are pointing to is that selling prowess is not determined by a piece of paper or four years of tuition. Too many companies require their salespeople to have university degrees—when such a requirement has nothing to do with sales success.

The question then arises: what determines success in the sales world?

Our experience has taught us that top sales achievers have certain innate qualities, traits and attributes—what Martin called “natural instincts.” We call these traits the Sales DNA. A candidate’s Sales DNA is the most importance factor in determining sales success.

Selling is something that comes naturally to the best salespeople. It’s something a university education cannot teach. This is why it makes little sense to require a university degree for a sales job.

What is this Sales DNA? Gallup has researched these traits of top sales achievers for over 30 years and concluded that the Sales DNA includes traits like “motivation, ability to influence and build relationships; creativity, innovation and problem-solving abilities; and natural tendency to derive joy from their work.”

Our experience over the years has confirmed this too. More often than not, the top sales earners are successful NOT because they have a college degree, but because they have characteristics such as ambition, drive, confidence, optimism, goal-orientation, persistence, competitiveness and curiosity. That’s why our recruiting process includes not only strict, behavioural based interviewing by our seasoned interview team, but third party, psychometric testing that spells out not only what drives an individual, but how they can be managed to produce optimal sales results.

2. Why salespeople don’t “need-to-have” experience:

Many sales job descriptions stipulate that the candidates “need to have” X years of experience.

But, like education, past experience too is a poor determinant of sales success. It matters not where someone worked, but how they behaved in a relevant and similar sales environment and whether they demonstrated the behaviours required to be successful.

Gallup conducted a massive study of over 250,000 sales reps in over two dozen industries which revealed that “sales is primarily a talent-driven occupation.” Top salespeople have innate talents or tendencies that are “extremely difficult or even impossible to teach.” Thus, experience, like education, has little impact on sales success, or in Gallup’s not-so-subtle words, “traditional reliance on experience, education, and skills or competencies is a grossly inadequate and often misleading way of building your best team.”

In all our years of work with top companies around the world, we too have found that experience cannot predict future sales success.

There are several dangers with relying on past experience as the key to recruiting.

Experience doesn’t protect an employer from mediocre salespeople who just happened to work in a fast growing company. The candidates’ sales numbers may look pretty on paper but they might be extremely poor when looking across the industry or even at their colleagues. Sometimes top salespeople are the product of their environment, and may not be able to duplicate their past success in their new environment.

Experience may even be a detriment to selling in certain situations. As people’s buying habits and methods change, sales tactics learned years ago can seem obsolete and harsh today. Experienced salespeople might need to unlearn their past habits, costing money and time for a new employer.

Top sales people keep up with changing times and are flexible enough to sell to today’s buyers. However mandatory hiring requirements often stand in the way of spotting real sales talent. Many salespeople with great sales DNA, yet only have 5-7 years of experience, are often disregarded by companies that make it mandatory for candidates to have 9+ years of experience. Maturity may play a role in ensuring that a seller can relate to a potential buyer, but if a sales candidate has demonstrated that they can perform the job successfully, does it really matter if they have less years of service than the job description requires?

Experience is not a holy grail when it comes to recruiting, nor should it be dismissed, especially if it is in the same industry or niche. It can be a useful tool but should not become a hard-fast rule while screening sales hires.

Research by Leadership IQ confirms that 46% of all new hires fail within 18 months of being hired, chiefly due to ‘attitudinal factors’.”

3. Why Salespeople don’t “need to have” sold X product previously:

Experience in selling a similar product is perhaps the most desired requirement in recruiting. Experience tells us, however, that if a candidate has been successfully selling the same kind of products, this experience can be a good indicator as to whether they will be able to contribute to your bottom line from day one. To sum it up, if a candidate has sold similar products to similar industries and worked in familiar environments, then their contacts, innate understanding of the vertical, and past selling habits might come in handy at your company.

But as with the other two requirements, this requirement isn’t overly necessary.

Working for the competition in the past is no guarantee that they will excel at your company nor an indicator that the sales person will fit with your organization and culture. In fact, working for the competition may be a detriment if it means they think and do things considerably different than what your company requires. Their specific product or niche experience should be viewed through the lens of your own organizational needs.

Remember that it is not necessary that only salespeople who have worked for direct competitors will be able to succeed at your company. In fact, many employers overvalue sector experience so much that they miss out on other great sales hires and stellar candidates who may not have worked in that sector before, but have worked in environments with a similar offering, selling process, buyer, and prices and would be rewarding hires nonetheless.

Each selling role and environment is unique—even within the same sector. A Hunter’s DNA will push them to succeed even if they don’t have sector experience. It is a great sales attitude and work ethic that creates great sales results.

As we have said before, sales recruiters should expand their pool of candidates by recruiting across a variety of industries. Often, the industries may differ, but the sales approaches, product features and selling tactics can be the same.

Searching within a broader candidate pool, might help you find great salespeople in a more cost-efficient manner than if you restrict your search for people within specific industries. The larger the pool of candidates the more leverage an empolyer will have in hiring the ideal person at the right price.

Companies can unknowingly limit their candidate pool if they continue looking at these meaningless requirements when filling their sales jobs. When the starting pool is weak and screened based on unnecessary metrics, well-meaning companies lose out on star sales professionals who can boost revenues.

Hiring people with top-notch sales DNA—personality and behavioral traits— will lead your organization towards A-players and radically lessen chances of attrition or failure.

Like what you’ve read? Check out our eBooks here!

References—
Rally the Troops—Gallup Business Journal
Hiring for Attitude—Research & Tools to Skyrocket your Success Rate—Leadership IQ
What Google Might Know About Hiring Salespeople—Customer Think
Are Top Salespeople Born or Made?—Harvard Business Review

Photo Credit: george.bremer via Compfight cc

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Eliot Burdett

CEO at Peak Sales Recruiting
Before Peak, Eliot spent more than 20 years building and leading companies, where he took the lead in recruiting and managing high performance sales teams. He co-founded Ventrada Systems (mobile applications) and GlobalX (e-commerce software). He was also Vice President of Sales for PointShot Wireless.

Eliot received his B. Comm. from Carleton University and has been honored as a Top 40 Under 40 Award winner.

He co-authored Sales Recruiting 2.0, How to Find Top Performing Sales People, Fast and provides regular insights on sales team management and hiring on the Peak Sales Recruiting Blog.

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What Can Bootstrapped Start-Ups Offer to Hire Sales People?

I answered the following question over on clarity.fm:

What do (bootstrapped) startups offer to new sales hires? Commission only?

Here I reiterate and expand upon my answer.

Having spent the last 25 years launching my own companies and working with start-ups, I understand the pressure to hire sales people that can accelerate the acquisition of customers and infusion of cash, but I also have first-hand exposure to the problems of hiring sales people, particularly in the earliest days of the venture, so I generally advise against doing so. There are a few reasons:

  1. Cost Prohibitive – Reliable sales people and those that can consistently sell and convert prospects into customers (the only ones that should be considered for hire) are highly sought after by employers who can pay them well, but unfortunately unfunded and bootstrapping start-ups,  typically can’t afford to compete for these sales people. I have worked with several startups where the prospect of paying a $75k base salary plus commissions, or even a $4k monthly draw would be problematic. The default response is often to hire sales people with spotty track records who will accept less base salary. Unfortunately, this typically doesn’t result in the sales person magically becoming a superstar and achieving the desired sales goals.
  2. The Right Mix of Skills and DNA – Selling for a startup is very different than selling for an established company where the brand is well known, the product is stable and established, there is a customer base for references, and there is sales infrastructure and support for the sales person. In many of the startups I have been involved with, the product offering, value proposition, and target market have evolved quickly, and there have been many start-stops and product challenges. Not all sales people, even the great ones, have the predisposition to be successful in a this kind of an environment. It takes a rare mix of skills and DNA/personality traits along with the critical domain knowledge for someone to be a successful sales person in a startup. Startups often hire the wrong sales person, who in turn achieves disappointing results (after several unsuccessful tries at recruiting sales reps, many of these companies come to Peak for help).
  3. Care and Feeding – Many start-up execs and founders, under great pressure to generate sales, have the expectation that a good sales person will be able to come in and simply produce sales. Not much thought is given to the sales support and/or management a sales rep might need and management’s time is often spent fighting fires. It is not unusual for there to be a “sink or swim” culture, where the rep is expected to figure things out and sell, but this presents a major challenge for most sales people who need to be managed in order to perform well. For more on this, see The Myth of The Self Managing Sales Rep.
  4. Too Early – In some cases, there may not even be many or even any sales that validate the product, yet the founders have a lack of faith in their own sales abilities and/or a feeling that they don’t have time to sell, and want to hire a sales person that can bring on customers. While it may be virtually impossible to get an established and successful sales person to accept the risks of coming into this kind of a situation, it may be even more difficult for them to actually produce the desired sales until the company is further along the path of launching and the direction has settled down. In my experience, the founders need to be very involved in the selling activity (for the sake of having an intimate understanding of what does and does not work) and customers will only want to deal with the founders who have extensive domain knowledge and are very closely tied to the company’s offering and direction.

That said, if a startup venture’s plan is still to hire a salesperson, my advice is to find someone who has demonstrated sales success in startups and is excited by the early stage in company building. Create a compensation plan heavily leveraged on sales results but pay a fair base to attract an established sales person. Unless the startup is in an industry where 100% commission is a common practice, I would recommend against a $0 base as this may creates the false impression that the hire isn’t passing time with one company while looking for another job with a better compensation plan. The rep will need to be 100% focussed on selling for the startup in order to have any success. Don’t sugarcoat the challenge, it will be tough, but certainly sell the vision and opportunity to be part of a growth story, which will be more likely to attract the right type of DNA.

A sales person is not a magic bullet in a startup, although I wish that were the case. Instead, the timing and expectations have to be in line with what the right sales person can realistically contribute.

Here are some additional posts related to the topic of selling in a startup that I would recommend any entrepreneur to read when they have a few minutes:
Tip: Don’t Stop Selling Once You Hire Your First Sales Rep.
An Intro to Hiring Sales Reps for Startups.
The 5 Types of Reps Common to Startups.

To your success!

Photo Credit: benarent via Compfight cc

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Eliot Burdett

CEO at Peak Sales Recruiting
Before Peak, Eliot spent more than 20 years building and leading companies, where he took the lead in recruiting and managing high performance sales teams. He co-founded Ventrada Systems (mobile applications) and GlobalX (e-commerce software). He was also Vice President of Sales for PointShot Wireless.Eliot received his B. Comm. from Carleton University and has been honored as a Top 40 Under 40 Award winner.

He co-authored Sales Recruiting 2.0, How to Find Top Performing Sales People, Fast and provides regular insights on sales team management and hiring on the Peak Sales Recruiting Blog.

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The Single Most Important Benefit of On-Boarding New Sales People

on-boarding new salespeopleGreat post, the 9 Results You Can Expect From Sales Onboarding, by Lee Salz (link below), summarizes the many benefits a structured program for onboarding new salespeople. In it, he discusses why a structured onboarding program helps achieve the following: protects an investment in recruiting and employing sales people; help provide increasing revenue performance; improved client experience; protecting company brand; reducing sales force turnover; and enhancing the ability to recruit and achieving faster identification of hiring mistakes.

SALES RESULTS SOONER

But if there was one reason alone for any company to commit to an intensive new sales hire onboarding program, it would be to speed up the time it takes to get new sales reps producing sales. We come across companies where more than 50% of new sales reps are let go within the first year. This represents an enormous waste in terms of hiring and management effort as well as lost sales opportunity. Properly training and developing new sales hires, even senior sales executives, addresses many of the challenges which cause new sales hires to fail, but also exponentially increases the chances that they will be successful, quickly which is of paramount importance in highly competitive markets.

Check out Salz’s post here: 9 Results You Can Expect From Sales Onboarding

Also check out Peak’s guide to onboarding new new sales people, The First 90 Days – Your Guide to Making New Sales Hires Produce Fast

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Eliot Burdett

CEO at Peak Sales Recruiting
Before Peak, Eliot spent more than 20 years building and leading companies, where he took the lead in recruiting and managing high performance sales teams. He co-founded Ventrada Systems (mobile applications) and GlobalX (e-commerce software). He was also Vice President of Sales for PointShot Wireless.

Eliot received his B. Comm. from Carleton University and has been honored as a Top 40 Under 40 Award winner.

He co-authored Sales Recruiting 2.0, How to Find Top Performing Sales People, Fast and provides regular insights on sales team management and hiring on the Peak Sales Recruiting Blog.

Connect: