Five Truths about Sales for Leaders that have Never Sold

Wish you understood sales? Here are some helpful hints-

So many businesses that I work with are run by smart, hard working leaders that have never sold anything in their lives. They are engineers, financial wizards, CPAs etc., but have never felt the elation of finally closing a deal after months of pursuit, or the pangs of hunger when a commission check comes in lighter than expected. Sound familiar? Here are five tips to get your sales efforts in the right direction: 

1. See potential, not expense. A mistake I see time and time again from business owners that lack a sales background is their focus on the expense of salespeople, not the benefit. Without a top line, there is no bottom line. Having a high commission expense is a good thing; it means that you’re selling!
2. Not all salespeople are motivated by money, but it helps! I once had a sales manager that would hand out $100 dollar bills at the morning sales meeting. They were ours to keep if we made a certain number of appointments in the day. I never gave one back!  Identify what motivates each seller in your organization. A single mother may value additional time off, a young father may want a weekend vacation at the beach that’s not in his family budget, or a luxury brand purse, briefcase or backpack might do the trick for others. Actively listen to water cooler conversations, check out their social media spaces if you’ve been invited (social stalking can get creepy quickly, but if you’re friends on Facebook or Instagram, they can provide valuable insights!) 
3. Set sales goals together and agree on them, then sign a piece of paper. No salesperson wants to have unrealistic goals dictated to them. I’ve found that gentle nudging during budget review process results in a fair but aggressive budget that both management and seller can agree on. Once finished, both parties initial or sign the actual worksheet. The signature makes it live and real!
4. Build a sales plan from the bottom up: account by account. Make it realistic, leaning towards conservative. Too many sales managers accept a number that they want to hear without listening to the rationale behind it. By forcing salespeople to look at each account individually, you create a conversation rich with insights and details about the client and their plans for the coming year. If the seller doesn’t have specific information, give them a short deadline to get it. If they miss the deadline, assign the account to another seller. After all, it’s business. 
5. Set stretch goals with big rewards. If you’re uncomfortable about the potential payout, it's probably good. If your business plan calls for 5% annual growth but you want 15%, make two goals, and reward accordingly. Too many business leaders think that the normal commission rate is just fine; sellers see it differently! If they overachieve, reward them handsomely. Not only will you grow your top line, but you will have happy salespeople that your competition can’t steal. 

Feel a bit queasy after reading this? Good. Go get’em!

Larry Sands helps companies build sales structure, teams, systems and compensation packages. He has helped clients in broadcasting, manufacturing, retail, and transportation and logistics among others. He can be reached at [email protected]