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Skinned Knees Blog

What An MBA Didn’t Teach You About Sales

The sales profession is challenging. You need to work hard at it to succeed. You need to learn from the best. You need to improve your skills continuously. If you think you can sell since you are a hit at parties and have a lot of friends, you may soon find that you are a failure as a salesperson. Blunt truth:

because the sales profession is so hard, you have to focus on doing everything in sales very well, or you will be considered a failure.

I call this blog, Skinned Knees because I try to relate all of the learning that I have done over the past 4+ decades (while skinning my knees in the learning process).

I hope that you learn from my mistakes so that your business will grow!

Fractional Executives Are Better Than Consultants For Driving Valuable Changes in Small Businesses

Change is inevitable, and small business owners must constantly adapt to stay ahead of their competition. While traditional consultants may offer valuable insights and recommendations, they often lack the hands-on commitment to implement these changes effectively. A consultant will write a report and presentation to advise management of required changes and then count on management to deploy the advice effectively. More than a report or playbook is usually needed to drive tangible results.

Enter the concept of a fractional executive. This innovative solution provides small businesses the strategic guidance and support they need to grow and evolve. In this blog post, we’ll explore the role of a fractional executive, discuss their benefits, and share tips for finding the right fit for your business.

A fractional executive is a seasoned professional who offers expertise and leadership on a part-time or project basis. These individuals often have extensive experience in their respective fields and can fill critical gaps in a company’s leadership team. From acting as a temporary CEO to guiding sales or financial strategies, fractional executives provide services tailored to your business’s unique needs.

The critical difference between a fractional executive and a traditional consultant lies in their level of commitment. While consultants often deliver a one-time report or set of recommendations, fractional executives are actively involved in the day-to-day operations of your business. They work closely with your team to implement changes, monitor progress, and adjust strategies as needed, ensuring that your business thrives in the long term.

Consultants can create beautiful reports using modern tools like Chat GPT. While a report generated by Chat GPT can provide valuable insights and recommendations for a business, it is crucial to recognize that such a report alone is insufficient to drive meaningful changes. To successfully implement and manage the recommended changes, businesses require a more hands-on and personalized approach that addresses their unique challenges and opportunities. A report can serve as an excellent starting point, but companies must invest in dedicated human expertise to ensure that the proposed changes are effectively integrated into their operations.

A Chat GPT report may be insufficient for driving change because it cannot fully account for the intricacies and nuances of each business. While AI-generated reports can be well-researched and informative, they may need a more profound understanding of company culture, team dynamics, and specific market conditions necessary to develop tailored strategies. On the other hand, a human expert can work closely with stakeholders, employees, and customers to gain a comprehensive understanding of the business’s unique needs and challenges, allowing them to develop and implement more effective change initiatives.

Additionally, change management requires ongoing support and guidance, which a Chat GPT report or an absentee consultant cannot provide. Implementing changes often involves overcoming obstacles, refining strategies, and addressing unforeseen issues that arise during the process. A human expert, such as a fractional executive, can provide the necessary support and adaptability to navigate these challenges and ensure the success of the change initiatives. By working closely with the business daily, they can monitor progress, identify areas for improvement, and make real-time adjustments to keep the change process on track.

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Two Tall Guys Talking Sales Podcast – Part 2 – Building and Scaling Successful Sales Teams: A Conversation with Tim Warren of Helium SEO – Episode 28

In this podcast, Tim Warren, CEO of Helium-SEO, discusses his approach to handling difficult situations in a sales environment. He emphasizes the importance of coaching opportunities and scaling through challenges or problems with existing salespeople. Tim shares his approach to handling a situation where an account manager did not provide the level of service they were supposed to, causing a client to feel that the service level had dropped. He stresses the importance of being… Two Tall Guys Talking Sales Podcast – Part 2 – Building and Scaling Successful Sales Teams: A Conversation with Tim Warren of Helium SEO – Episode 28

The Art of Motivation: Designing Sales Compensation Plans That Drive Results

Designing an effective sales compensation plan is critical to any successful sales organization. A well-crafted plan motivates your sales team, drives revenue growth, and aligns the interests of both the company and the sales representatives. 

It’s essential to understand the impact of compensation on salespeople. Sales reps are highly motivated by money, and their income is directly tied to their performance. Incentives such as bonuses, commissions, and accelerators can all play a key role in driving sales performance. However, these incentives can have unintended consequences if not implemented correctly.

This blog post will explore various aspects of creating a successful sales compensation plan, including setting quotas, selecting base and variable pay, using accelerators, and employing rewards and contests. We’ll also discuss strategies for designing effective compensation plans for different types of sales roles and tips for continuously improving your compensation plan.

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Unlocking Your Company’s Potential: The Power of a Strong Sales Organization in Driving Revenue Growth and Boosting Valuation

A strong sales organization is the cornerstone of any successful business. The sales team serves as the company’s lifeblood, driving revenue growth and ensuring long-term financial stability. When a company prepares for a merger, acquisition, or public offering, having a strong sales team can translate into a higher valuation. 

A strong sales organization is the backbone of a thriving business, as it directly impacts revenue generation. When a company’s sales team is well-organized, well-trained, and motivated, they become more effective in closing deals and fostering relationships with clients. This increased effectiveness leads to more sales, ultimately resulting in higher revenues and profits for the company.

By investing in a strong sales organization, businesses can capitalize on opportunities and achieve maximum value. The best sales organizations have a proven track record of success. These teams have established a consistent sales process, streamlined communication channels, and aligned with the company’s overall business goals.

A successful sales team is crucial for driving revenue growth. The following factors contribute to a sales organization’s ability to increase revenues and profits:

  1. A clear sales strategy
  2. A process-oriented approach
  3. High-quality sales training and coaching
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Two Tall Guys Talking Sales Podcast – Building and Scaling Successful Sales Teams: A Conversation with Tim Warren of Helium SEO – Episode 27

In this podcast, Kevin and Sean talk to Tim Warren, the founder, and CEO of Helium SEO. Tim talks about his background and how he got into sales. He discusses his experience building technical engineering-focused SEO and SEM campaigns for mid-size and enterprise clients. He also explains how his company has been able to drive higher ROI for its clients. Tim shares his leadership journey as a sales leader and how he has learned that… Two Tall Guys Talking Sales Podcast – Building and Scaling Successful Sales Teams: A Conversation with Tim Warren of Helium SEO – Episode 27

Two Tall Guys Talking Sales Podcast – Selling Yourself: The Importance of Personal Branding in Sales – A Conversation With Megan O’Hara – Episode 26

Kevin and Sean continue to discuss the importance of staying relevant to customers and prospects. In the first part of the podcast, Sean interviews Megan O’Hara of EasyIT about the challenges of reaching customers in the digital age, where everyone is bombarded with emails and messages. They discuss the importance of being authentic, providing value, and standing out from the competition. They also emphasize the need for salespeople to adapt to changing technology and stay… Two Tall Guys Talking Sales Podcast – Selling Yourself: The Importance of Personal Branding in Sales – A Conversation With Megan O’Hara – Episode 26

Fractional Executives: The Cost-Effective Solution for Small Businesses in Need of Expertise

Fractional executives are experienced professionals who work part-time or on a project basis, providing expertise and guidance to help businesses achieve their goals. Often, small businesses need more resources and expertise, making it difficult for them to achieve growth and success. While hiring a full-time executive may not be feasible due to the costs involved, fractional executives can provide a cost-effective solution to this problem. 

A fractional executive differs from a consultant, but the difference may confuse some. Typically, a consultant will provide advice and guidance, but they are separate from your company. A fractional executive works alongside your team, helps in company operations, and is responsible for the outcomes of those operations. They are an extension of your existing leadership team. In most instances, a fractional executive provides all of the responsibilities to your company as a full-time executive.

Cost-effective Expertise

One of the most significant benefits of using fractional executives is cost savings compared to a full-time employee with a similar amount of experience. Hiring a full-time executive can be expensive. Fractional executives work on a part-time or project basis, meaning companies can save money by only paying for the services they need. Additionally, businesses can avoid the costs of recruiting, hiring, and training a full-time executive.

As explained in the FRACTIONALS UNITED BLOG, it is essential to explore the cost of an FTE (full-time employee) compensation plan compared to fractional monthly retainers. The data is eye-opening!

According to data gathered (March 2023) by Salary.com, the median (50th percentile) core compensation (salary+benefits*) for the following C-Suite leaders is as follows:

  • Chief Financial Officer (CFO)- $558,999 ($46,583/mo) + 22% bonus
  • Chief Operating Officer (COO)- $622,672 ($51,889/mo) + 23% bonus
  • Chief Marketing Officer (CMO)- $464,651 ($38,720/mo) + 25% bonus
  • Chief Revenue Officer (CRO)- $408,619 ($34,051/mo) + 12% bonus
  • Chief Technology Officer (CTO)- $387,001 ($32,250/mo) + 15% bonus
  • Chief Human Resources Officer (CHRO)- $449,340 ($37,445/mo) + 25% bonus
  • Chief Talent Officer (CTAO)- $337,197 ($28,099/mo) + 20% bonus

Bonus comp and equity cash totals were excluded from this comparison since both are variable compensation, only sometimes guaranteed. The average percentage offered was noted instead.

The average monthly retainer for fractional executives starts at around $5,000 and goes upwards to $15,000 per month. Retainers vary depending on the experience, scope of work, and level of hourly commitment per month (i.e., 25%, 50%, or 75% commitment to the team/company). The retainer may be higher if the professional has more years of experience, is in high demand, or if the organization is in a large metropolitan area.

If we assume that any given fractional executive discipline is $10,000 per month, then:

  • Fractional CFO – 21% of an FTE
  • Fractional COO – 19% of an FTE
  • Fractional CMO – 26% of an FTE
  • Fractional CRO – 29% of an FTE
  • Fractional CTO – 31% of an FTE
  • Fractional CHRO – 27% of an FTE
  • Fractional CTAO – 26% of an FTE
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Two Tall Guys Talking Sales Podcast – Part 2 of Communicate Your Value Proposition to Win More Deals with Kelly Crandall of Sales Xceleration and Next Level Strategies – Episode 25

Kelly Crandall returns to Two Tall Guys Talking Sales for her second episode in two weeks. Kelly is an expert in sales after working in the corporate world, running a small business, providing Fractional Sales Leadership for her customers in Florida, and now is the Visionary for Sales Xceleration.  This episode centers around building a strong value proposition and creating a sales strategy that resonates with customers. In this particular episode, the topic of discussion… Two Tall Guys Talking Sales Podcast – Part 2 of Communicate Your Value Proposition to Win More Deals with Kelly Crandall of Sales Xceleration and Next Level Strategies – Episode 25

Two Tall Guys Talking Sales – Communicate Your Value Proposition to Win More Deals with Kelly Crandall of Sales Xceleration and Next Level Strategies – E24

Kevin and Sean have a special guest for this episode! Kelly Crandall of Sales Xceleration and Next Level Strategies.  Kelly is a sales expert who works as an advisor to help mid to small-size businesses build a path to more sales. The topic of the conversation is “The Sales Skills Required to Communicate Your Value Proposition to Win More Deals.” Kelly discusses the importance of value proposition and its broader concept, focusing on why buyers… Two Tall Guys Talking Sales – Communicate Your Value Proposition to Win More Deals with Kelly Crandall of Sales Xceleration and Next Level Strategies – E24

How Small Businesses Can Compete with Larger Competitors Using the Fragment Sales Strategy

Small businesses often find themselves at a disadvantage when competing with larger, well-established companies. However, they can still succeed. It requires them to think creatively and strategically and to develop unique approaches to win customers over. One approach small businesses can take is implementing the Fragment Sales Strategy. This approach is advantageous when small companies find themselves in David vs. Goliath-type sales campaigns, going up against larger competitors with more resources, references, and success stories.… How Small Businesses Can Compete with Larger Competitors Using the Fragment Sales Strategy