Skip to content

How to Compensate for Windfall Sales

Many sales organizations will periodically experience a windfall sale. In some cases the win fell into the lap of one of the sales reps and in other cases, the sales person played their cards right, the stars aligned and the big sale occurred.

Back in my earlier days as a sales manager, I had a situation where we secured a piece of business that on its own made up a pig part of our sales target. Obviously a great thing. For the rep who owned the account, it meant overachieving on his sales quota by 3x and a big potential commission. This would have normally presented a challenge for my company in terms of funding the commission, were it not for the fact that I had pre-negotiated a “bluebird” clause in the sales comp plan for my reps which effectively allowed me to negotiate the commission for any large and unusual sale. Here are some of the things that I considered in negotiating a fair commission for my rep.

What is Windfall Sales?

A windfall sale is when a product or service suddenly sells a lot more than expected. This usually happens because of things outside of the business’s control. This sudden surge in sales can lead to a substantial increase in revenue and profit for the company.

While windfall sales can provide a financial boost to a company, they are often temporary in nature and may not be sustainable in the long term. Businesses must carefully handle windfall sales and find ways to make the most of the increased revenue. They should also plan for when sales return to normal after the windfall ends. Additionally, businesses should be prepared to meet the increased demand and ensure customer satisfaction during these surges in sales.

Effort and Fairness

In typical sales deals for our company, the rep would play the lead role, with minimal or no support required from management or others in the company. In the case of this large win, there was significant involvement by senior management and other members of the team to develop, negotiate and close the deal. While the sales person was credited with the win, many team members invested considerable energy to help win the business but would not normally receive commissions or any other type of bonus. Would I share the full commission to those involved or adjust the commission to compensate for the opportunity cost of pulling others out of their normal roles?

Precedent

Sales people dream of big commission cheques and because we had a well designed compensation plan, when they were earning well, the company was doing well. Whatever we decided to do with the commission to be paid on this large sale, I didn’t want to discourage this rep or any others from pursuing deals that are good for the company and a large profitable deal is definitely a good thing.

The Bluebird Clause or Windfall Profit Clause

A windfall profit clause (or bluebird clause) addresses how unexpected or unusually high profits will be distributed to the sales representative.

A windfall profit clause was critical when navigating the windfall sale mentioned above. In the end, we worked out a split and spread the commission amongst those involved with the majority going to the sales rep. We also worked out a timeline for the commission to be paid over time as we were a small company and the cash flow from the contract didn’t support the commissions to be paid on the normal schedule. The rep was comfortable with all of this because we had identified in their comp plan how we would deal with kind of a situation and we negotiated a fair deal.

To your success!

relpost-thumb-wrapper

close relpost-thumb-wrapper

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:

The Importance of First Impressions in Sales

Leading sales trainer and author, Colleen Francis, recently had this to say about first impressions in sales:

Salespeople will generally have between 4 and 30 seconds to make a first impression on prospective clients that will compel them to want to engage

This is a sobering observation. Most companies have a limited number of prospects and can ill afford to be making a poor impression that ends up in a prospect taking their business to a competitor. So it behooves the sales manager to make sure reps are properly prepared to make successful calls and/or the right reps are on the sales team.

To your success!

 

Image courtesy of stockimages / FreeDigitalPhotos.net

 

 

 

 

 

relpost-thumb-wrapper

close relpost-thumb-wrapper

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:

Non-Financial Rewards for Sales People

Non-Financial Rewards

We have written about the linkage between money and sales rep behavior (see links below), but money is not the only way to motivate your sales team members and there may be times when you need to motivate using additional methods or alternatives to financial rewards.

Here are some of the key ways to motivate reps using non-monetary rewards:

1. Recognition – Most people appreciate being recognized for their accomplishments. Certainly, many sales people are competitive and will enjoy the spotlight when they have done well. The recognition can be a big shout out in front of the whole team or a simple pat on the back fro a job well done, but in any case, this is one of the easiest and most powerful ways to reward your reps.

2. Gifts and Prizes – Sales people love a good competition! Prizes such as trips, trinkets, gift certificates, gas cards and dinner vouchers can create great incentives for reps to over-achieve.

3. Flex Hours – I have never been big on working hours, placing more emphasis on achieving goals. So for the reps that meet or exceed targets, I have always given them the opportunity to work flex hours or take some time off. This always proved to be a big motivator in spite of the fact that overachievers typically aren’t interested in a whole lot of time off.

4. Training – If your organization is large enough you can offer the opportunity to be mentored by a senior member of the team when someone meets their targets. This offers a unique chance for the motivated to advanced their career.

5. Status – Similar to recognition, formal achievement awards work very well for rewarding sales reps.  President’s Club is the typical program that companies set up to recognize sales achievement, however other awards such as profit, customer wins, and customer service awards can also be useful in motivating positive behavior and providing appreciated rewards to the sales reps.

 

Click below to see other posts on using financial rewards to motivate the sales force.

Sales Comp Plans and The Age-Old Debate About What Motivates Sales Reps

Are Sales Reps Motivated by Money

To your success…

relpost-thumb-wrapper

close relpost-thumb-wrapper

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:

Gain access to key sellers in your industry.

It is no accident that many successful sales force’s are highly ethical. When

customers are treated the right way and their best interests are made a priority, they reward their suppliers with more business. Immoral and dishonest sales people don’t achieve long term success (and they certainly don’t sleep well at night), but getting your sales reps to be honest and behave ethically can be a challenge – the pressure to perform is high and short term success is often rewarded, and furthermore many sales people (and sales organizations, for that matter) see sales as a zero sum  game where winning must be achieved at all costs – even at the cost of the customer’s best interests.

What are some of the things you can do to ensure your reps are behaving ethically?

1. Make Ethics Part of Your Culture– Use sales meetings and presentations as an opportunity to highlight the role ethics play in success and the importance to your organization. Showcase examples and talk through common philosophical challenges – ie situations where in order to make a quota, a rep may be tempted to close a piece of business that is not entirely in a customer’s best interests. Take ethics seriously and discuss it often.

2. Reward the Ethical Behavior – Not only encourage your reps to be transparent with customers and treat them with the highest level of care and respect, but find ways to reward reps for doing so. Competitions, spot prizes and public recognition will go a long way to helping set the tone.  Also don’t be afraid to come down hard on offenders and those reps who repeatedly disregard the customers best interests.

3. Walk the Talk – Sales reps emulate the actions of those around them, so it is not enough to simply talk about the importance of ethics. As a sales leader, you have to lead by example in showing the highest level of integrity and professionalism. Talk up your customers and act in the exact way you want your reps to act.

If you create a culture of ethical sales, your customers will reward you.

To your success!

Image via winnond / FreeDigitalPhotos.net

relpost-thumb-wrapper

Related posts

The SaaS Sales Process: Finding the Right Cycle and Model for Your Startup Company
30 Game-Changing Statistics To Improve Your Cold Calling
Top 7 Characteristics Essential to Sales Success [Infographic]

close relpost-thumb-wrapper

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:

The Traits of Top Sales Performers

Spend some time with high achieving sales people and it quickly becomes obvious that they share some key personality traits. Evidence of common attributes amongst top sales people comes from many high profile studies. Some of these are particularly notable in terms of the specific traits of top sales performers.

Dr. Christopher Croner, Ph.D, who himself has studied sales people for more than 25 years, cites the following about top sales people:

Over 80 years of research in the sales sector has found that the most important trait common to the DNA of nearly all successful salespeople is drive. Drive is the passion that causes great salespeople to get up early, stay up late and make whatever personal sacrifices are necessary to close business. It is the inner fire that determines not just whether a salesperson can sell, but whether they will sell.

He goes on to explain that drive consists of three elements.

1. Need for Achievement – Top performers are ambitious and goal oriented. They are not satisfied with simply working towards their goals, but are also highly self motivated to achieve their goals. Once they realize a goal, they instinctively set new, higher goals and keep progressing.

2. Competitiveness – The highest achieving sales people want to not only do well, but they also want to be best. Regardless of the pursuit they want to win and when it comes to sales, they are driven to outsell and out earn their peers. They are excited by the opportunity to influence a buyer to buy and speak as if selling is a sport, hence the expression “winning a sale.”

3. Optimism – They expect to succeed. It is what drives them to persevere through the grind and rejection that every sales person faces. Croner points out that some studies indicate that optimists outsell pessimists by 20% to 40%.

Since the mid 1980s, Target Training International has researched  human behavior and sales people worldwide. The company’s research indicated that a person’s attitude had the most impact on sales performance and more than 70% of top sales performers share a utilitarian attitude which is characterized below:

  • Utilitarian – People with a utilitarian attitude focus on investing time, energy or money, with the expectation of a return in greater time and resources. They strive to understand what is valuable, useful and, or practical and focus their energies on monetizing their value. They are attracted to financial incentives and realizing an optimal return on their resources. They are inclined to avoid pursuits that do not provide a return on their investment in time and energy, preferring instead to find the shortest path that leads them to achieving their financial goals.

All of this research is consistent with our own experiences recruiting sales people and building high performance sales teams over the last 20 years. If we were to list the predominant traits that we see across top sales people they would include the following:

  • ambition and drive
  • confidence
  • optimism
  • competitive
  • strong sense of urgency
  • high need to interact with and influence others
  • persistence 
  • resilient / impervious to rejection

A sales leader that is lucky enough to know that these traits are important, is half way to building a high performance sales force. The other half of the challenge is being able to select people with these traits. No easy task. For more on this see Sales Interview Questions and 10 Ways to Motivate Your Sales Team to Crush Their Numbers.

To your success!

 

relpost-thumb-wrapper

close relpost-thumb-wrapper

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:

Do Looks and Appearances Matter in Sales?

Looks in Sales - Peak SalesIn a perfect world, appearances don’t have an impact on business, but in the real world, unfortunately, looks seem to matter. Studies have shown that people considered to be attractive earn more money and generate higher sales results. The studies aren’t necessarily conclusive, but I know this from being in sales for many years: buyers do judge  – appearances matter in sales and in spite of any conscious efforts to be objective, this judging is happening at least some of the time if not most of the time.

So that brings us to the question of looks in sales. Do looks matter and how much?

In an interview with the Wall Street Journal, Daniel Hamermesh, an economics professor at the University of Texas in Austin, and author of the fascinating book, “Beauty Pays: Why Attractive People Are More Successful” says that attractive people are likely to earn an average of 3-4% more than a person with below-average looks and that an average-looking worker is likely to make 1-2% more over a lifetime than an ugly worker (his words, not mine). His research also indicates that attractive people sell more.

In the interview he also goes on to say that “While looks can be altered by clothing, cosmetics and other short-term investments, the effects of these improvements are minor. We are generally stuck with what nature has given us in the way of looks.” Not good news if you are judged to have less than great looks.

Other researchers have found similar results. Peter Reingen, a professor at Arizona State University, conducted a survey in the pharmaceutical industry and found that physical attractiveness was correlated with buyer impressions of like-ability, trustworthiness, communication abilities and a salesperson’s adeptness at selling.

So if looks matter in sales, should I hire someone who is not attractive?

Wow. This is a loaded question in every sense. I think only a hiring manager knows who they should hire, but I will say this about high end sales people. We see a lot of very successful sales people who are not what you would consider overly attractive. Part of this has to do with the fact that we are typically engaged to recruit top B2B and complex sales people, who are involved in sales that are higher dollar value (and made over longer periods of time where looks are less of a factor) and where decisions are more cost/benefit oriented and impacted by emotional factors. The studies mentioned above focussed more on sectors with short sales cycles and more face to face selling. There is also the fact that more selling is done over the phone these days than ever before, even for complex sales.

Target Training International, has administered psychometric tests to tens of thousands of sales people since the mid 19080’s in over 90 countries. The company’s founder,  Bill Bonstetter, has this to say about the impact of looks on performance:

As a result of our twenty years of research, development and distribution of assessment tools to measure performance, we have been telling organizations that it is what’s on the inside, not the outside that counts, especially in sales performance. What we are fighting is the myth that hiring people who look and sound good leads to good performance.

While there is no research that proves that looks have a significant impact on sales success in complex sales, there is little question of one thing – that the smartest sales people tend to be the most successful, so that’s where we put our money.

What about interviewing? What appearance-based biases exist there?

Many interviewers suffer from a bias called the Halo Effect, which refers to the act of favorably judging someone’s character, in spite of the facts, if they are attractive. For instance an interviewer might think a person is friendly, which leads to a false assumption that they are also smart and capable. We see this a lot in sales hiring. A charming, good looking interviewee might be considered successful and qualified even if they have not been successful (conversely an aggressive sales person may create a feeling of mistrust on the part of the interviewer even if the sales person is in fact very successful and capable). We know that without the right sales DNA, a sales person won’t be successful, no matter how they look, so every hiring manager needs to be aware of the negative impact of the Halo Effect on hiring results. An objective hiring process and screening strategy helps mitigate this issues (see the Top 3 Reasons to Have a Structured Hiring Process)

So what about my existing team?

As I pointed out, appearance of sales people may or may not be a factor in success depending on the role, but it definitely paves way to the formation of strong impressions – positive or otherwise. Any sales manager should care about the personal grooming habits of the reps on the salesforce for several reasons:

  • Proper appearance gives the impression of professionalism and contributes to trustworthiness and respect
  • Casual appearance indicates a casual approach to the prospect’s needs
  • Proper grooming instills confidence in sales people
  • Grooming can impact the attractiveness of a person and swing the odds for all the reasons we discussed above

Grooming falls into three categories:

  • Cleanliness: Things like hair, teeth, nails, breath, and personal hygiene. Customers notice all of these.
  • Wardrobe: Casual dress is becoming more and more popular, but in most cases it is safe to overdress. If you think your customer will be formally dressed, the rep should dress formally. If the customer will be dressed casual, then properly pressed formal wear usually won’t hurt the rep, however under dressing is likely to have a negative impact.
  • Attitude: Above all, wear a positive and confident attitude on your sleeve. Wear a clean smile that elicits trust.

relpost-thumb-wrapper

close relpost-thumb-wrapper

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:

Sales Qualifying Questions and Challenges

We wrote about cold call reluctance earlier this week (see My New Hire Won’t Make Cold Calls). Qualifying a prospect is one of the most critical phases in the sales cycle is another area where we see reps exhibiting reluctance. After the initial call is made, qualifying is one of the most feared phases in the sales cycle, particularly for more junior reps. Sales people hesitate to pose qualifying questions to their prospects and there are several possible reasons:

  • The rep simply doesn’t know the value of qualifying prospect or understand how it is done
  • The rep does not want to upset the prospects by asking uncomfortable questions.
  • The rep is afraid that the qualifying questions may prove a deterrent to a long-term relationship with the prospect/client.
  • The rep does not want to spoil their own image in front of prospects.

To be successful, sales people need to get over these hurdles and this is where a sales manager can really help. The first step is understanding the value of qualifying questions:

  • Separates good prospects from those that are unlikely to buy, which allows the rep to spend the most time with the best prospects
  • Increase understanding of prospects company/business needs – This will be a response to the ‘What are your needs?’ kind of questions which help a rep optimally position his or her product/service offering.
  • Better understanding of the prospect’s intentions – This will be a response to the ‘Why do you want this?’ or ‘How will it help you?’ kind of questions, which again enable better position of the reps offering.
  • Understanding the buyer’s plans – This will be in response to questions about their schedule for taking action which is critical to gauging urgency ad motivation to buy.
  • Knowing the stakeholders – This will be a response to the ‘Who in your company will make the decision?’ kind of questions, which help to identify who needs to be convinced that the purchase makes sense.

Basically, the sales qualifying questions are a sum of what, why, when, and who, which drive towards a successful sale.

Working with reps to understand how qualifying makes them successful is critical. Understanding where your rep is hung up is the first step.

To your success!

relpost-thumb-wrapper

close relpost-thumb-wrapper

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:

My New Sales Hire Won’t Make Cold Calls

New Sales Hire and Cold Calling

We hear this story a lot.

I recently hired a new sales person. During the interview process they seemed like a great hunter. They pursued me during the hiring process and actively closed me during our final interview. Now that the rep is on-board, it seems they won’t pick up the phone to save their life.

Few products sell themselves. Achieving targets takes concerted effort and in most cases, requires contacting prospects and making cold calls.

If you have a rep on your team, perhaps someone you just hired, who doesn’t seem to want to make cold calls, then you have a serious problem, but you are not alone. The book “The Psychology of Sales Call Reluctance“, written by psychologists Shannon Goodson and George Dudley, indicates the following research findings:

As many as 80% of all sales people who fail within their first year, do so because of insufficient prospecting activity.

Even experience does not immunize a sales rep from call reluctance.

….during their careers, approximately 40% (of veteran sales people) will experience one or more episodes of call reluctance serious enough to threaten their continuation in sales – despite years of experience, product knowledge, or current income level.

Our experience from recruiting for thousands of sales positions, Rep right up to Sales VP, indicates that the minority of people in the sales profession are comfortable with calling on new prospects and would rather handle inbound and warm leads where a need has been identified and the customer has invited a call with a salesperson. Unfortunately in most companies, sales growth comes from opening up new accounts, not growing existing ones.

There are many reasons why people avoid cold calling. Various studies show cultural and age correlate to call reluctance, however in our experience, DNA plays the largest factor. Some people are simply not engineered to put themselves to take risks and face the rejection that typically comes with cold calling.

If you hired a sales rep that appeared to have the right DNA for new business development, but won’t make cold calls, chances are you misdiagnosed the person’s DNA when you interviewed and selected them. Now you are faced with two choices. Cut bait and move on, or work with that person. You will know the right answer to this question, based on the the degree of call avoidance, but assuming your initial strategy is to work with the person, here are some of the methods that worked for me as a sales manager that you can employ to try and get your rep to make more outbound sales calls:

  1. Get Trained – Fear of making cold calls can be mitigated if a rep achieves more success in making cold calls and one way to do this is to develop callings skills.
  2. Don’t Take it Personally – Encourage your sales rep to not take the cold calls and rejection personally. A prospect is rejecting the company’s offering, not the sales person.
  3. Get Into a Rhythm – The more calls a rep makes, the more comfortable they will be with the routine and by sheer law of averages, the more positive responses they will get, which in turn helps build confidence and reduces fear of cold calling.
  4. Make it a Game – If you know that you are going to hear “no” 9 time for every “yes”, then turn it into a game whereby the rep tries to see how quickly he or she can get through the the negative responses to get to the Yes. Like the rule of not taking it personally, making turning it into a sport makes cold calling more abstract and less scary.
  5. Get Better at Targeting – Often calling the right person can increase call success rates and reduce fear of cold calling. In a similar way, if a rep improves their ability to qualify a prospect, then they will spend less time with prospects who aren’t going to buy, and more time with those that will. This, of course, reduces the negative feeling associated with prospecting activities.
  6. What is the Worst That Can Happen? If the rep asks themselves honestly, what is the worst that can happen as a result of the rejection on sales calls, they will see it is not that bad. They might fear they are going to be unsuccessful and lose their job, but a smart sales manager doesn’t terminate reps who are doing the work and utilizing their energy efficiently. A smart sales manager knows that if you work the plan, the plan will work and reps will be rewarded who commit to the work.
  7. Develop an Expectation of Success – If the rep knows the ratio of rejects to closed sales, then they can view the cold calling activity as a pure math exercise and one which leads to success. This develops self confidence, reduces call reluctance and has a snowball effect on sales success.

In the end, the sales rep has to buy in and make these techniques work. If you have tried and your sales rep still won’t make the calls, contact us. We’d be happy to help you find a sales rep with the right sales DNA and no fear of cold calling.

To your success!

Photo Credit: Jon Pinder via Compfight cc

relpost-thumb-wrapper

Related posts

Cut Your Costs: Onboarding Sales Reps
The SaaS Sales Process: Finding the Right Cycle and Model for Your Startup Company
VP Sales Interview Questions

close relpost-thumb-wrapper

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:

10 Steps to Building a Terrible Sales Team

There are countless articles on how to build a high performance sales team (including ours: How To Create A High-Performance Sales Culture), so we decided to take a lighthearted look at how not to build a sales team.

  1. Only look for talent when you need to hire – If a hiring manager looks for talent only when an open spot has been identified, then they are likely going to be focussed on talking to job seekers and feel pressure to hire whoever is available, but potentially miss out on recruiting high achievers who are currently busy selling for other companies and not looking for jobs. Limiting the pool from which to recruit is a great way to hire less than stellar candidates. Alternatively, a hiring manager can maximize the chance of getting exposed to top sales talent by practicing the ABC’s of Recruiting – Always Be Recruiting.
  2. Determine who to interview based on the resume – The hiring manager who only considers the resume when deciding who to consider for open sales positions, assumes that experience and credentials are more important than sales DNA. This is a risky bet. Furthermore, the best written resumes are often created by the reps with the most free time on their hands, so to filter candidates based on resume alone is a great way to focus on reps with weak Sales DNA and those who spend more time polishing their resume than selling. Alternatively, you can seek the right DNA and build a team of superior performers (see the DNA of a Peak Performer)
  3. Hire on gut feel – Intuition is a bad substitute for carefully and objectively evaluating potential hires, and avoiding bias-based mistakes like selecting someone because they are likeable, good looking, good at interviewing or share personality traits with the sales manager is critical if you want to make the right hire. Sales leaders who make hiring decisions based on feeling or brief assessments have remarkably poor hiring success rates, so this is a particularly good way to hire poor performing sales people.  Alternatively, a hiring manager with a structured hiring process will increase the chances of selecting overachieving sales people ( see The Top 3 Reasons to Have Structure in Your Sales Hiring Process)
  4. Have no on-boarding process –  One the best ways to ensure a new sales rep under performs, gets frustrated and/or leaves an employer is to provide them with no training, coaching or insight into how to sell a company’s products or the most effective ways to be successful. Alternatively, a sales manager can create a structured on-boarding process that sets new reps up to succeed (See The First 90 Days – Your Guide to Making New Sales Hires Produce Fast
  5. Expect your reps to be successful on their own – The assumption that  sales reps can be successful with little or no guidance is flawed – all reps, even the great ones, need to be led or they are likely to choose their own direction and under perform (see The Myth of The Self Managing Sales Rep). Alternatively, a sales manager can actively manage and lead reps to maximize their output.
  6. Avoid setting goals, communicate infrequently and refrain from holding reps accountable – One sure way to ensure poor sales results is to poorly communicate explicit goals and have an ad-hoc meeting schedule between the reps and the sales leader with infrequent pipeline reviews during which the reps are challenged to deliver strategies for success. Alternatively, a sales leader can ensure a high level of sales force performance by adopting the 7 Habits of Highly Effective Selling Organizations and the Habits of Highly Effective Sales Leaders. See also Top Sales Teams Have Quotas.
  7. Change their comp plan regularly – One of the biggest frustrations for sales reps which is often a cause for leaving an employer is frequent changes to the compensation plan that make it difficult to maintain a certain compensation level. To ensure top sales reps are distracted from selling by their compensation plan or seeking to join another employer, a sales manager can change the compensation plan quarterly or even annually (see 19 Simple Ways to Make Your Best Reps Leave). Alternatively, a sales manager can create a sales comp plan with all the Components of an Effective Sales Compensation Plan and ensure reps are happy and motivated to exceed targets.
  8. Change  direction even more regularly than comp plans – Another frustration for sales reps are frequent changes to the company and sales direction which require them to change the focus of their selling efforts and/or compromises the quality of the pipelines they have worked hard to create. This is a good way to ensure inferior sales results. Alternatively, a sales leader can pick a direction, stick to it and Be the Leader That People Choose.
  9. Never part ways with a poor performing rep – Another great way to foster poor performance is to keep sales people long after they have proven they are not capable of meeting quota and contributing to the success of the sales force. This will also have the effect of annoying customers and fellow employees so there will be a strong multiplier effect at work. Alternatively, the sales manager can decided when it is time to part ways with a rep and make the hard decision to move on (see Ten Signs You Need to Part Ways with Your Sales Rep)
  10. Don’t foster a culture of success – A great way to ensure that your team never meets or exceeds quota is to invest little in creating a winning attitude on your team. Reps will form bad habits and slide into a mindset of mediocrity. Alternatively, a hiring manager can consistently exceed targets by Building a Culture of Success.

Image courtesy of imagerymajestic | FreeDigitalPhotos.net

relpost-thumb-wrapper

Related posts

Try These 7 Strategies to Increase Your Sales Team Motivation
Best & Worst States to Work in America
How to Improve Your Sales Team’s RFP Close Rate

close relpost-thumb-wrapper

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:

Are you wasting your time with reference checks on sales hires?

Reference Checks

Reference Checks

Reference checks are one of the most critical ways to validate the traits and performance abilities of a potential sales hire (see The Importance of Reference Checks in Sales Hiring). Unfortunately many companies make up their mind to hire someone and then perform only cursory reference checks or, surprisingly often, none at all.

Most sales people, even the poor performers, are often able to come up with what appear to be good references. Here are the three biggest pitfalls that will prevent a hiring manager from getting useful insight from a reference check:

  1. Not speaking to former managers – Many sales people will provide peers, customers, and indirect bosses who can’t effectively speak directly to what it was like to employ the sales person and their specific habits and behaviors.
  2. Only checking one reference – Candidates will usually provide their three best references who have likely been coached to say complimentary things. A wise hiring manager not only calls all of the provided references that are provided, but also seeks to find other people who have been exposed to the rep and can  cross references answers and provide support for achievements.
  3. Failing to ask behavioral questions – Often reference checks involve confirming a candidate’s employment dates, attendance habits, and one or two weaknesses, but fail to key in on the specific behaviors that made the rep successful. Asking for examples where the person displayed desired behavior not only ensures some degree of honesty (because it is difficult for anyone to anticipate these kinds of questions and fabricate answers), but also gives you detailed insight into how the rep will behave if they join your team.

To make the most of your reference checks on potential hires, be sure to be thorough and avoid these reference checking pitfalls.

To your success!

 

relpost-thumb-wrapper

close relpost-thumb-wrapper

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: