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Disclaimer: Prepare for a 2 x 4 directly between the eyes. I am not responsible if the proverbial 2 x 4 leaves a mark.

I work with compensation a lot, especially sales compensation. I have 2 compensation tenants that I know are universally true:

1. I have never met somebody who truly thought they were paid enough

And

2. Compensation is an emotional topic that people find difficult to have a rational discussion about

So, if you can keep these in mind for the rest of the entry, it will be appreciated. You see, I have been introduced lately to rational, talented sales people who know all of the things I point out above yet have a very unrealistic expectation of their value, especially in this economy. Look around. Things aren’t what they used to be. Companies still value sales people knowing they are the lifeblood of their Company but want to change the deal a bit. Gone are the days of high base salaries for sales people, with very few exceptions. Say hello to the days of 100% commission opportunities or a lower base. Companies are happy to pay their top sales people who produce but that will be in the form of variable compensation that they earn from sales. Sales people who mention they need a higher base to be comfortable with this new opportunity in an interview might as well say they are a blood sucking leech (sorry, forgot to warn you before the 2 x 4 hit) who will take your money and not deliver.

I am reminded of a recent discussion with a salesperson that had a salary history of $35,000 plus commission and is seeking more than double that in base. When asking the individual why, reasons were family based and changes in their situation, not on the additional revenue they could generate. Bottom line in sales, if you want to make more money you need to sell more.  True hunters are the sales people who are extremely confident they can close business. So, if given a competitive sales compensation plan, having little or no base (depending on the length of the sales cycle) does not scare them. It excites and motivates them because they know their earning opportunity is in their hands. 

So, don’t forget to anticipate the 2 x 4 when searching for that next great sales opportunity. Make sure you have done your research and have a realistic idea of your worth to a company. That way, hopefully you can avoid that nasty bruise on your forehead.

Being that we are in the midst of March Madness and Spring Break we could talk about basketball or beaches but instead I thought we should visit about the current times we are living in. While the year began well for the majority of people I have spoken with, things seem to have slowed down again, with a few exceptions. I am certainly not here to belly ache about it and not sure I can explain it but I know the economists (who are a heck of a lot smarter than I am) have told us the economy is already on the way back. So why did a group on the internet find it necessary to launch an initiative earlier this month to stimulate referrals to small businesses called “make a referral week” ?

I think it is because in the new economy we are living in; referrals are the way to find the business that is out there. For those who love to cold call, we have a case in point to share with you that may be familiar. We are in currently following up on a direct mail campaign to our demographic target market that has a high likelihood for need of our services. The two most common responses we have gotten are:

1. I have not seen your direct mail pieces but even if I had, I would not have read them!
2. I could probably use your help but _____________ (insert your favorite excuse here. No money, waiting until the economy gets better, sticking my head in the sand for awhile…)

Yes, we know the rates of success with cold calling but this exercise has been good for us. It has cemented our belief that by investing in relationships with exceptional referral partners, we find it is the best way to get to the decision makers with the credibility and concrete examples of how you have helped clients with similar issues to theirs. So, while things may be a bit slower right now, take the time to further cultivate your relationships with your referral partners. It is work and takes commitment, but there is business out there and we have experienced and heard numerous success stories of how an excellent referral or introduction has made the difference between getting the deal and being a pedestrian in the crosswalk. Now, if we could only find an easier way to fill out our brackets…

Late in 2009 I was sitting in a presentation by a Senior VP of a major Company headquartered in Kansas City. He was speaking about the ways he is engaged by various Business Development Professionals and what his expectations were of them when he did speak with them.  I thought reviewing his major points here would be a great refresher for all of us.

1. Initial Contact.  E-mails, cold calls, mailings and free stuff don’t work on him. He hits delete and gives the stuff to his staff. If he answered every unsolicited voicemail or correspondence he would get nothing done. He only speaks with individuals who are recommended to him by those he trusts.
2. Modulated Persistence. Once an individual is referred to him, it may take awhile until there is A conversation. Stick with it. However, there is a fine line between persistence in following up and stalking.
3. Choose the right advocate. Your best friend may be the accountant at the organization you are prospecting but they might not be able to get you a meeting with the CEO. Entering the organization at the right level and for the right reason is critical. Top down is always an easier approach than bottom up, that one works best at happy hour;-)
4. Know your audience. Once you have a meeting with the decision maker, do not ask them information that is readily available. Examples of questions are particularly irksome: size of Company, Company culture and diversity. Spend time finding out information from the decision maker that is not readily available and probe at the type of solution that is needed.  The more value you bring through your questions to show them that you are creative and innovative in your approach to problem solving, the more interested he will be in talking with you.
5. Acknowledge differences in point of view (POV). There is no way that you can know what the decision maker is going through. You can offer solutions that have worked for similar situations. So, don’t try to say you know how they feel and what they are going through. Acknowledge that you are coming at this from different perspectives and work on solutions from there.  3^rd party stories are your best tool for giving examples of your experience and knowledge without ‘telling him how to build a watch, when he asked what time it is’
6. One size does not fit all. Flexibility is the key here. Listen to the needs of the decision maker and tailor custom solutions that are right for the situation and client. Keen decision makers see through the stock off the shelf solution most of the time.
7. Don’t love them and leave them. If you are fortunate enough to secure the project, deliver it well and continue to follow up. Don’t collect the invoice and leave a vapor trail to the next opportunity. You can miss out on valuable feedback, possible new work and potential referrals.

While a lot of this information and can sound a bit jaded and cynical coming from the decision maker, I think it is what it is: Reality. So, while you are looking for the next creative marketing campaign and referral source for your business, be sure to pay attention to the basics of business development. You work too hard to create the opportunity to blow it with lack of preparation. 

Have a great month and Good Selling!

Isn’t it funny what life has to teach us under our noses?  We acquired a new cat that had been dumped out at a friends farm and since she already has about 15 (last time she counted) we were recruited into providing a lovely year old kitty with a new home.  All in our household were in favor, but no one asked Caesar, our 5 year old feline, whether he supported the new addition.  And let me tell you the first day he was not happy at all and my mom is still healing from their first face to face meeting. 

So first day the hostilities were abounding, then Caesar changed tactics.  Knowing who the ‘pack leaders’ in the household were he has abandoned the former post of sleeping with whichever body was the largest and warmest (formerly held by our 17 year old 6’+son) to my husband and myself and has become our shadow.  We haven’t had a cat sleeping with us since he moved in 4 years ago and now he wants to be right between us at night.  So, last night he jumped up and we knocked him down, jumped up again and down again he went.  Finally after tossing him out of the room 5 times he snuck up and found his spot at the foot of the bed where he didn’t get booted out.  This cat knows to protect his territory…

How hard do we work when we get booted off?  Right now our current economy requires we work very smart with each and every opportunity we are presented.  So your ‘no’goal that you are after each day has increased, but just because you get the 1^st no doesn’t mean you can move on to the next, especially if you have a limited market.   I can’t count how many times I tell a salesperson I coach, change direction, regroup, go a different path-but go.  We have no time to lick our wounds, we have to go right back at it again.  The statistics before the recession supported that most sales around 85% were made from existing budget and 15% from discretionary, now the numbers are nearly all are made from existing budget, but the budgets now have decreased substantially so our opportunity pool is substantially smaller.  So giving up at the first time now means you probably won’t have sales. 

Caesar didn’t come back to my side of the bed and ask the same person if he could snuggle up, he went between the two of us and finally found an acceptable entrance from my feline ambivalent husband who told me to ‘just leave him alone and go to sleep.’  Go find another entrance or decision maker, preferably higher up in the organization who has more to lose by not changing what they are doing.  Show them that their current tactics are costing them money and they will be receptive to you bringing them solutions to address their economic challenges.

 

Good Selling!

Welcome to our new blog. We will begin posting in the near future (we need to catch our breath after writing a whole website!)