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What Type of a Sales Leader Are You?

We have all seen the different types of sales managers and probably even worked for a few. When we looked back over our own experience, we identified seven different types of sales managers, which we have affectionately named below. Which one are you?

  1. The Fire Marshall – This type of sales manager can trigger immediate results but they have no long-term sales plan, and focus on different deals and challenges from week to week.
  2. The Dreamer – This type can create exciting plans that upper management love, but sometimes lack a grasp on realities and risk the support of the reps.
  3. The Dealmaker – A sales person at heart, this type cherry picks the best incoming leads and drops into of the team’s accounts to personally close big opportunities. Can secure big wins, but usually can’t scale the sales function.
  4. The Dashboard Director – While they know all the metrics cold and can allocate resources efficiently, this type rarely spends time with customers, so doesn’t appreciate the hard work that goes on in the field and often fails in building true customer loyalty.
  5. The Dictator – This type doesn’t care for input from the team, but can drive direction and is very decisive (unfortunately they are often wrong).
  6. The Microprocessor – This type needs to review every detail of the sales team’s work, which prevents the reps from getting sufficient time for selling and, in turn, stifles growth.
  7. The Prodigy – Reasonable decisions, a good sense of reality, team support and strong sales results are the hallmark of this type, which is why they will likely get promoted to CEO at some point.

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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When to Promote Your Top Sales Rep to Sales Manager (Requires 35 seconds to read)

Many moons ago, we blogged about the Six Reasons Not to Promote your Top Reps to Sales Management, and here are the top seven reasons you as the company executive or business owner *would* promote your top sales rep to a sales manager position.

  1. There is a common understanding between yourself the rep that this is not a promotion at all, but in fact a job change since selling and managing sales are two completely different jobs (managing involves overseeing, training, coaching, reporting, visioning, communicating)
  2. The rep has thought long and hard about their decision to effectively depart from sales and assume a new job – you don’t want to pay for their life experiment
  3. You can afford the loss of their sales production since they will no longer be selling at that rate if at all
  4. You have carefully considered the job requirements and objectively assessed the suitability of your top rep as well as other internal and external candidates who may be qualified (often the best sales people are hardwired to be anything but capable sales managers)
  5. You are prepared to work with them to help them be successful including coaching and training them, especially if they are a first time manager
  6. The rep has the respect of their peers on the sales team – they don’t need to be liked, but must be respected
  7. You have been very clear about the goals and expectations associated with the role – again if this is a first time manager, assume nothing
Image courtesy of Ambro / FreeDigitalPhotos.net

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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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Outcomes by Design – Hunter vs. Farmer Sales Compensation Plans

The hunter vs. farmer categorization for sales roles is a crude way to segment the sales function, but it is often a useful distinction, particularly when it comes to comp plan strategy.

While new business development roles and existing account management roles both share the goal of generating sales, the roles are fundamentally different and such should is the strategy behind compensation (see Improve your Hiring Record by Learning to Spot Real Hunters and Farmers).

The Profiles

Just as the roles are different, so too are the characteristics of the different individuals that usually excel at hunter and farmer roles. Hunters enjoy the the novelty of pursuing new accounts and the excitement of the chase, and while they are likely to be impervious to rejection and it may be this trait that tends to make them a bit more mercenary than professionals in other sales roles. With a more risk oriented personality and appetite for excitement they also tend to like larger more leveraged comp plans and is fairly common to see a total packages which pays 50% or more in in commissions when target sales are achieved. At a high level, the account manager works at a different pace, is more nurturing and relationship oriented and drives customer loyalty. They typically have a longer attention span, are less money motivated and more security oriented. They will often trade-off total compensation for a higher base and 60/40 or 70/30 plans are more typical for account manager roles.

Outcomes by Design

What specific outcomes you want depend on your sales strategy and goals. To this end, the compensation plan is a very powerful tool for driving the behavior of your sales team. While everyone enjoys commission cheques, sales rewards and spiffs, the rewards need to be tied to the actions you want to see in your team. For instance, comp’ing your business development team on trailing business and business from existing accounts will diminish their focus on acquiring new accounts. If the strategy is to enter new markets, the commissions will need to be sufficiently high to justify the additional effort required to break new ground – otherwise reps will stick to what they know will put commission in their pockets. By the same token, if you want your account managers to truly service existing accounts, look for ways to compensate them not only for sales, but account growth. The variable compensation options are endless, but must all be tied to the sales plan.

The Total Compensation

Opening new accounts or sectors is tough work. It is not the kind of work that everyone enjoys or is even suited to performing well. For this simple reason, there are fewer great hunters than farmers and the laws of supply and demand dictate that hunters get paid more across the sales profession. Keep this in mind if you are trying to attract reps from other companies.

To your success!

Sales Contracts – Critical Elements


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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 Power of Not Having All the Answers (Honesty in Sales)

New research from the Boston University School of Management suggests that the best phrase a sales person can use to build trust and increase the likelihood of closing a sales is to respond with “I don’t know” when stumped by a question rather than making up an answer. Perhaps this has to do with the perception that sales people will say anything that they think gets the sales so therefore, any sales person who admits they can’t answer a question, must be telling the truth and be demonstrating honesty.

The phenomena is certainly true in interviewing. Often candidates sail through interviews with answers too good to be true until it comes to validating the answers with references and then the stories start to change. Few candidates know everything and it is a brave few that are prepared to admit this. These candidates are often the ones that end up being great team players and easier to manager…The ones you want.

See BNET Article The 3 Most Powerful Words in Sales

Image courtesy of Teerapun / FreeDigitalPhotos.net

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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:

Latest posts by Eliot Burdett (see all)

Where is the Sizzle in Your Hiring Value Proposition?

Hiring Value PropositionCompanies make huge investments in creating value propositions that will attract customers, but reading the typical job ad shows far less effort is put into attracting the top class sales talent that will actually secure those customers. Boring checklists of required credentials and bland mentions of the company’s mission statement will attract lots of candidates in this economy, but few if any of them will be the highly desirable types because these ads don’t speak their language. Forget about “competitive” compensation, benefits and management “that cares about its staff” – these are all important, but every company promises these things. Where is the sizzle??

If you want to hire top performing sales people, you need a hiring value proposition that compels someone to leave a job that is probably paying them well. The pitch needs to speak to the DNA of the top performer and must encompass the key reasons why they might choose a new employer such as the chance to join a passionate team of experts, sell an exceptional product, enjoy ecstatic customers, or be part of a fantastic voyage of success.

People with the “right stuff” are excited by challenges and are more likely to respond to your job marketing if it stands out and speaks to them.

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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:

Latest posts by Eliot Burdett (see all)

Alternative Ways of Evaluating Sales Candidates

Evaluating Sales CandidatesInterviews are the staple method for most companies when hiring sales staff and often there are multiple interviews conducted by different team members of the hiring company. Some companies will take the screening process a step further and conduct in depth reference checks. All of this is done to ensure the new hire is the right person.

So how can you be sure that the person you are hiring is going to be a reliable and consistent long term performer?

We have talked before about the importance of understanding your unique selling environment and role requirements. Here are several additional methods for evaluating candidates to make sure you hire the person you need:

Simulations and Role Plays
Have candidates sell you something like a pencil or make a presentation on something they know. This will give you a sense of how they actually appear in front of customers and tactics they use. Even better have them sell you your own product to test their level of your product. If it is an inside sales role, have the candidate call you and do the role play over the phone. We know from experience that candidates may be a bit apprehensive about these types of exercises because they are artificial, so be simply reassure them that you will take this into consideration.

Personality Tests
Candidates tests can be administered to provide useful additional insight into the nature and suitability of a prospective sales hire. There are thousands of companies offering tests that can be purchased for as little as a $25 dollars to more than $1,000 per test. There are many different kinds of test ranging from behavioral traits (how do they behave in certain situations) to competencies (skills and capabilities). Some tests are general tests administered to people in any role and provide general characteristics, while others are tailored to sales and some tests can be customized for your role and company. The tests aren’t always reliable so be sure to pick your tests carefully. To learn more about using tests, see our post – A Guide to Sales Candidate Assessments.

Challenges
Rather than just engaging in an interview or preplanned simulation, you can create challenges for the candidate to respond to which provides insight into how they react in real live situations. For instance, providing confusing or overly complex email submission instructions to see who actually follows your request. We had one client who liked to make all his candidates wait in his lobby for interviews and then watch how they reacted. Another method might be to actually challenge answers during an interview, questioning the logic of the candidate. In all cases, the objective is to see how the candidate operates under stress and reacts on the fly to the curve balls that will inevitably face them when they are working to generate sales for your company.

Homework
Another good method of evaluating the capabilities of candidates can be to give them a “homework” assignment. For example, ask the candidate to prepare a 90 day sales plan or an account plan to penetrate a specific prospect. This will give you insight into the level of industry and domain knowledge they possess, the way they approach problem solving, how thorough they are, writing skills as well as other characteristics which can contribute to your knowledge of the person.

The goal of assessing candidates is to make sure you are hiring the right person and to avoid making hiring mistakes which could cost you time, money and credibility with customers. Depending on the criticality and seniority of the hire, you may use one or all of these methods, and it always holds that the more steps in your sales hiring process the more likely you will pick the right person.

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:

Latest posts by Eliot Burdett (see all)

Four Sales Trends that Affect Sales Hiring in 2011

We know we sound like a broken record on the evolution of sales. Selling is not the same as it used to be. Just 20 years ago, golf memberships, long lunches and snazzy

promotions had a huge influence on customer decisions and Herb Tarlek’s character on WKRP in Cincinnati was a funny depiction of the truth, but not totally out of line.  Next watch the movie  Tin Men to see what selling might have looked like 50 years ago. Each of these eras had their own characters and  methods of inducing buyers to buy and today is no different. Pervasive access to information via the Internet and more sophisticated buyers has changed the way buyers buy and the way organizations sell. This in turn has an impact on the people that get hired and traits top performers possess.

Here are several sales trends that are changing the way organizations hire sales people.

1. The Economy – For the last few years, the economy has put downward pressure in most sectors which in turn has caused companies to try to do more with less. This is old news.

Impact on sales hiring:

    – The obvious impact is downward pressure on compensation packages, but we also observe that many organizations have trimmed senior and middle management, so there is a higher ratio of reps to managers and in smaller companies we are seeing all the members of the sales team reporting directly into the CEO.

2. Internet Sales – With more buyers researching and buying online companies are investing more in online marketing and lead generation programs.

Impact on sales hiring

    – Budgets that would have been allocated to reps performing outbound calling are instead going into online marketing, partnering and social media marketing. In many companies this means a drop in sales headcount.

3. Sales Methodologies go Mainstream – The relationship sell is no longer an option for many companies and most are applying some sort of structured selling approach, particularly for B2B orgs which must deal with the requirement for senior level signoff on even small purchases.

Impact on sales hiring:

    Companies are increasingly seeking to hire sales reps with some degree of sales training or exposure to methodology-based selling. We regularly have clients ask for candidates who have had success applying Sandler, Value Selling or Miller Heiman training. While anyone can take the training, it takes a certain breed to learn AND successfully apply the training.

3. Higher Demand for Solution Sales People – The number of companies calling themselves a “solution provider” surely peaked in 2010, when it was hard to find a company that did not claim to be a solution for whatever problem their target customer experienced.

Impact on sales hiring:

    On the one hand, there are a lot of companies that confuse selling something they call a “solution” with “solution selling” and on the other hand there are more companies actually seeking solution sales people. Understanding the difference is important because it takes time to master solution sales, so great solution sales reps are usually more senior and demand higher compensation. It is also important to keep the distinction in mind when setting sales strategy because solution sales people who can effectively hunt for new business are a rare breed – for a variety of reasons, as sales professionals age it is pretty common for them to be less inclined to be in roles which require hunting for new business. This has forced companies to invest in new internal training programs that develop existing talent or the requisite skills at an earlier stage in a sales reps career.

4. Production Line Selling – Larger sales teams are becoming more sophisticated in order to be able to tailor the selling approach to target markets and customers. Many organizations now have separate inside and outside sales teams as well as groups dedicated to certain account sizes or industry sectors. Sometimes these teams make hand-offs between each other as leads are developed from a prospect to a customer.

Impact on sales hiring:

    The demand for the generalist sales person is less common and the demand for people with vertical strong experience or selling a certain way, for example strictly inside or strictly outbound. Where this significantly limits the candidate pool, companies seek to hire sales professionals with the mix of personal traits and DNA that would enable them to easily acquire the necessary skills.

With all this change, if nothing else, 2011 will be an exciting year!

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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:

Latest posts by Eliot Burdett (see all)

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

Thought provoking video from Dan Pink on the relationship between incentives and behaviors with a couple of interesting observations that potentially relate to sales comp.

  1. According to Pink, studies show that for non-mechanical tasks that are complex and require conceptual and creative thinking, a basic amount of compensation must be paid or the person will not be motivated. You need to pay people enough so that they are not thinking about money and are instead are thinking about the work
  2. Money is often not a motivating factor, however, the three factors that do influence motivation are autonomy (self direction), mastery (urge to get better at their work), and purpose (making a difference)

On the one hand, I tend to disagree with painting all humans with one brush and saying that beyond a certain basic point, people are implicitly not money motivated when many factors such as individual upbringing, personality, profession, and stage in life might heavily influence money motivation. People attracted to sales are wired differently than people attracted to other professions so this alone might support the argument that there are segments of the population that are more or less money motivated. If sales people weren’t money motivated, we wouldn’t see so many people gravitate to larger compensation and commission packages. Then there is the details of how the study was conducted, and how the questions are presented. Without knowing these details it is somewhat problematic to debate the results.

On the other hand, I am beginning to see more and more studies that imply people are less money motivated. There are certainly increasingly more candidates that we speak to that express a desire to work in a certain environment and the right for the right employer. So perhaps there is a trend away from pure money as a driver.

Either way, heed this advice next time you consider a 100% commission comp plan. A very aggressive commission rate is not likely going to help you hit your sales targets. Hat tip to Phil Culhane for the link to this video.

 

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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:

Latest posts by Eliot Burdett (see all)

How to Build a Sales Team for Web Development Business

We answered this question in LinkedIn today

I wish to take my web development business to the next level. Lead generation and sales is my current weakness. I think the right person(s) to help with sales could be the next step but I do not know how to go about this. Ideally, I could start with someone part-time and for commission only while business is developed. Are there proven steps I can use to bootstrap a sales force? (even if this means just one person to start?) Thanks in advance.

Our answer

Great question and good on you for gearing up to get to the next level. I spent several years in the Web dev business and now build sales teams for a living.

Your strategy for building sales depends on your target customer – if you are selling large projects to large business accounts, you will need someone with experience doing larger deals which comes at a price, so you may have to be that person for the time being. If you are going after smaller clients/deals, you may be able to use younger less experienced sales people. In either case, paying commission only will reduce the pool of people that will be attracted to your position and you will experience more turnover in the sales position. To attract a reliable sales rep, you will have to prove the return they will get by taking the risk and working for you.

Another challenge that you face in the web business is that outside of selling packages, projects usually have a custom scope, which requires the sales rep to have a certain degree of domain knowledge and ability to sell solutions (even more so if they are selling to the marketing dept of a corporation). These attributes typically come with more experienced sales people.

When companies are small the customers usually want to speak to the owner and in the end, you are the most knowledgeable and motivated rep your company can hire in spite of your sales strengths or limitations. This makes it tough to support a rep and set them up to succeed.

Beyond the good suggestions above, another angle may be to hire a sales assistant to help you be a more effective sales person.

Hope these suggestions help.

All the best!

 

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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:

Latest posts by Eliot Burdett (see all)

Changing the Culture of the Sales Organization

We met with several customers and prospects last week, all of which are mature companies in mature markets.   A common theme we noticed was the desire to change the mindset of their associated sales organization. Changing the sales culture is no easy task and I admire organizations with big ambitions and serious commitment.

Sometimes sales functions get out of sync with customers and the market, particularly in established companies where the sales organization may have been assembled based on out-dated sales philosophy. Changes in customer needs, the way they buy changes and the competitive landscape all contribute to the need for a sales organization to make sure it is aligned with the corporate objectives (See Building a Culture of Success)

When the decision is made to change, the challenge companies face is how to get the rest of their organizations to go along with the change. Middle management who are either not intimately familiar with the plan, or not committed to the execution are a big focus of the change effort. Getting these players on board will go a long way to getting the rest of the organization to change. The organizations we met with last week understand this and I commend them for being proactive.

A few years ago we worked for a national level telco that wanted to change the sales culture in one of its divisions. The company wanted to shift from a transactional culture to a solution mindset. We were invited in to help them replace about 20% of the sales force virtually overnight. This was a risky move on the part of senior management, but it worked because the company carefully weeded out the reps that might object to the changes and kept team members who most likely to be able to adapt. As it turned out the company was able to hit an aggressive growth target in year after they made the change.

Changing the sales culture requires serious commitment from all levels of management, but the payoffs can be enormous.

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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:

Latest posts by Eliot Burdett (see all)