I just wanted to share some thoughts on this subject as it is an area I have covered and an area I deal with on a daily basis.
I am not an advocate of commission based sales. I would prefer to pay someone hourly with an occasional bonus. There are a few reasons for this. In most businesses you wont find anyone that is really worthwhile who is going to dial for straight commission all day long. The amount of time you waste having to manage these people and deal with the revolving door eats into the time you need to be spending on your business. Granted there are some businesses that will always be straight commission like life insurance, real estate. I will tell you that the revolving door on any business that relies on straight commission sales people is just going to get worse as time goes by as there are so many jobs available through social networking and the internet. The other reason why I am against straight commission is simple. If I hire someone and I am paying them a flat rate or guaranteed amount then I have more of a right to corner them, lean on them, and train them for the better. Have you ever sold for someone on straight commission (before running your current business) and have the nasty boss pressure you? How did that work out? A sales person on commission is a bit more of an entrepreneur and is less willing to take feedback or direction. If you really know your numbers, which you should, then you really know what to pay your people. You need to be making more money than the owner of a company who is paying straight commission because you are taking the risk. If you know your numbers then you will be able to do so and you will also know exactly how much to pay your people. If you are running a remote operation then there are several ways to get the sales people to clock in with you. The revolving door for commission based reps for a remote operation is more than double a standard in-person facility.
When finding a good salesperson I always have and always will use Craigslist, in the $25 posting section for sales reps. Craigslist list is set up in a way so that people tend to respond right to your ad with their information. This allows me to screen people fast and communicate by email until I am ready to pull the trigger. You can expect 20 applicants per post. This is very cheap compared to major job seeking websites. The job should be short, and the fact that you are not just another guy pushing a straight commission deal should scream.
I see many people with the notepad syndrome and I want to give you a hug because I feel bad for you! There are dozens of free CRMs online that provide APPS for your phones, syncing with the backend. Try using Zoho, you will get addicted. I am the type of guy that logs every detail of every conversation with a client. I find myself tapping my APP and pulling up the client and editing his status several times a day. Can you imagine the value it will bring to the table when I decide to sell my company? Instant manageability on a day to day basis is what I get.
A good b2b sales rep does not need a script. The company owner they are calling can pick up fast on this and will hang up faster when they feel they are being oversold to. That brings up another subject. The massive difference in a B2C rep compared to a B2B rep. Be careful and try not to hire people who have no experience in business dialing. The whole world has done telemarketing. Speaking to a business owner and speaking to a consumer are two different sports. A b2b pro can move over to b2b (business to consumer) although they wouldnt but a b2c pro cant move over to the b2b world. I cant tell you how many hours I have tried to pry people away from the runaway pitch they are taught to use when selling products to consumers at home. A business owner knows he is getting a cold call, they just dont want to feel like a sucker when they are being called. They need the dialer to know how to establish instant rapport, to have a perfect tonality, or else the call is over.
The most important thing I have learned with any product I have taught people to sell in the b2b world is patience. You have to give people time to come together. Just dont make the mistake of hiring someone with the odds against them from the start and dont waste time trying to get good people to work for nothing. Thank you for listening!
I am not an advocate of commission based sales. I would prefer to pay someone hourly with an occasional bonus. There are a few reasons for this. In most businesses you wont find anyone that is really worthwhile who is going to dial for straight commission all day long. The amount of time you waste having to manage these people and deal with the revolving door eats into the time you need to be spending on your business. Granted there are some businesses that will always be straight commission like life insurance, real estate. I will tell you that the revolving door on any business that relies on straight commission sales people is just going to get worse as time goes by as there are so many jobs available through social networking and the internet. The other reason why I am against straight commission is simple. If I hire someone and I am paying them a flat rate or guaranteed amount then I have more of a right to corner them, lean on them, and train them for the better. Have you ever sold for someone on straight commission (before running your current business) and have the nasty boss pressure you? How did that work out? A sales person on commission is a bit more of an entrepreneur and is less willing to take feedback or direction. If you really know your numbers, which you should, then you really know what to pay your people. You need to be making more money than the owner of a company who is paying straight commission because you are taking the risk. If you know your numbers then you will be able to do so and you will also know exactly how much to pay your people. If you are running a remote operation then there are several ways to get the sales people to clock in with you. The revolving door for commission based reps for a remote operation is more than double a standard in-person facility.
When finding a good salesperson I always have and always will use Craigslist, in the $25 posting section for sales reps. Craigslist list is set up in a way so that people tend to respond right to your ad with their information. This allows me to screen people fast and communicate by email until I am ready to pull the trigger. You can expect 20 applicants per post. This is very cheap compared to major job seeking websites. The job should be short, and the fact that you are not just another guy pushing a straight commission deal should scream.
I see many people with the notepad syndrome and I want to give you a hug because I feel bad for you! There are dozens of free CRMs online that provide APPS for your phones, syncing with the backend. Try using Zoho, you will get addicted. I am the type of guy that logs every detail of every conversation with a client. I find myself tapping my APP and pulling up the client and editing his status several times a day. Can you imagine the value it will bring to the table when I decide to sell my company? Instant manageability on a day to day basis is what I get.
A good b2b sales rep does not need a script. The company owner they are calling can pick up fast on this and will hang up faster when they feel they are being oversold to. That brings up another subject. The massive difference in a B2C rep compared to a B2B rep. Be careful and try not to hire people who have no experience in business dialing. The whole world has done telemarketing. Speaking to a business owner and speaking to a consumer are two different sports. A b2b pro can move over to b2b (business to consumer) although they wouldnt but a b2c pro cant move over to the b2b world. I cant tell you how many hours I have tried to pry people away from the runaway pitch they are taught to use when selling products to consumers at home. A business owner knows he is getting a cold call, they just dont want to feel like a sucker when they are being called. They need the dialer to know how to establish instant rapport, to have a perfect tonality, or else the call is over.
The most important thing I have learned with any product I have taught people to sell in the b2b world is patience. You have to give people time to come together. Just dont make the mistake of hiring someone with the odds against them from the start and dont waste time trying to get good people to work for nothing. Thank you for listening!
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