As we dive into the New Year, it’s crucial for sales professionals, managers, and CEOs of small companies to reflect on one pivotal aspect of their sales strategy – the art of negotiation. I am committed to guiding you toward more profitable deals this New Year and beyond.
Evaluating Past Deal Profitability
Take a moment to review your deals from the previous year. Were they as profitable as they could have been? The ease of offering discounts can often overshadow the challenge of selling at list price. However, your company’s profit model heavily relies on effective negotiation.
Look back at your past deals. Pinpoint the aspects where negotiations fell short. Set a clear goal for this year to avoid repeating these mistakes. Improvement begins with recognizing what didn’t work well in the past.
Embracing Continuous Learning in Negotiation
As I’ve emphasized in a previous video, continuous learning is crucial. This is particularly true in negotiation. A slight improvement in your negotiation skills can significantly impact your bottom line. Consider attending a class, webinar, or consulting with an expert to hone this skill.
If negotiation is not your forte, reach out for assistance. I’m here to offer suggestions, recommend training resources, or even provide personal training to help you negotiate more effectively.
Preparing for Negotiations Proactively
Prepare a list of items you can afford to discount and those you cannot. Develop scripts and strategies for common negotiation scenarios. This preparation will help you remain steadfast during negotiations, ensuring you don’t make concessions on a whim.
Identify services or add-ons you can offer during negotiations that provide value to your client but don’t significantly impact your costs. This strategy can be a game-changer in making your proposals more attractive while maintaining profitability.
This is the year to enhance your negotiation tactics. By doing so, you’re not just closing deals; you’re maximizing the value and profitability of each transaction. Remember, effective negotiation is not about conceding profits but finding a mutually beneficial ground where your company’s value is rightly recognized and compensated.
Happy New Year, and here’s to your profitability and success in the New Year!
Check out my video below (the final video in this year’s series to start the New Year with confidence and capability).
Welcome to another insightful episode of “Two Tall Guys Talking Sales,” where hosts Kevin Lawson and Sean O’Shaughnessey delve into the critical aspects of sales, especially as the year winds down. This episode is a must-listen for sales professionals looking to close their year on a high note. Kevin and Sean share their seasoned perspectives on prioritizing deals, managing customer relationships, and the art of effectively closing sales without succumbing to the pressure of year-end discounts.
Key Topics Discussed
The Importance of Prioritizing Deals: Understanding how to focus on deals with the highest probability of closing.
Effective Sales Strategies for Year-End: Tactics to avoid unnecessary discounts and focus on profitable deals.
Building and Maintaining Customer Trust: Strategies for nurturing trust and client relationships.
Time Management in Sales: Maximizing efficiency and effectiveness in the final sales push of the year.
Navigating Internal Processes and Decision-Makers: Tips for understanding and working within a client’s internal purchasing processes.
Post-December 15th Strategies: How to engage with clients after the critical sales period.
Kevin Lawson: “Focusing on the right things is never a wrong thing. This is a time management moment. Don’t get caught up in the hype of what’s my biggest deal. Get caught up in the hype of what relationships have I secured.”
Sean O’Shaughnessey: “You need to focus on getting deals done that are profitable for the company. Don’t focus on what if I gave him a 22 percent discount that was only good for the next three days? Those are bad deals for the profitability of your company.”
This episode of “Two Tall Guys Talking Sales” is a treasure trove of wisdom for sales professionals. Kevin and Sean, with their extensive experience, offer invaluable advice on prioritizing deals, building trust, and closing the year strongly without falling into the discount trap. Their conversation is not just about strategies but also about the mindset required to succeed in sales. This episode is your go-to resource if you want to refine your sales approach, especially as the year ends. Tune in to gain insights that could transform your sales journey!
Are you struggling to create a sales compensation plan that aligns with your business goals and motivates your sales team? Look no further! In this episode of Two Tall Guys Talking Sales, hosts Kevin Lawson and Sean O’Shaughnessey dive deep into the intricacies of crafting effective sales compensation plans. With decades of experience in sales and management, Kevin and Sean share invaluable insights on how to set up your sales team for success. Whether you’re a startup aiming for your first million or an established business looking to optimize, this episode is a must-listen!
Key Topics Discussed
The Importance of Timely Compensation Plans: Why releasing compensation plans in line with the fiscal year is crucial for sales teams.
Simplicity is Key: The need for straightforward, easy-to-understand compensation plans.
Aligning Compensation with Business Goals: How to incentivize behaviors that align with your company’s objectives.
Understanding Costs and Profitability: The role of CEOs and CFOs in determining the budget for sales commissions.
Attracting Talent with Compensation Plans: How a well-structured plan can be a recruitment tool for top sales talent.
Kevin Lawson: “Compensation plans are the bedrock for someone’s income. And we should treat it as such, not as a cost line.”
Sean O’Shaughnessey: “The magic of writing a great compensation plan is to make sure that you maximize the things that you want to maximize to grow your business within that budget that you put together.”
EOS (Entrepreneurial Operating System): A set of simple concepts and practical tools to help entrepreneurs get what they want from their businesses. https://www.eosworldwide.com/
Don’t miss out on this episode if you want to revamp or create a sales compensation plan that works. Kevin and Sean offer a comprehensive guide that covers everything from the timing of releasing plans to aligning them with your business goals. Tune in to Two Tall Guys Talking Sales and equip yourself with the knowledge to build a compensation plan that retains and attracts top sales talent. Start setting your sales team—and your business—up for success today!
Welcome to another episode of “Driving New Sales: Transforming Small Businesses into Sales Powerhouses.” This podcast is your compass in navigating the complex world of B2B sales, especially in the enterprise landscape. In this riveting episode, our host, Sean O’Shaughnessey, deep dives into a topic of crucial significance for sales professionals: Researching Industry Trends in the Enterprise Space. If you’re eager to transform from a transactional vendor into a strategic partner, this episode is your blueprint for success.
Key Topics Discussed
The Importance of Research for Enterprise Sales – Unearth the value of knowing your client’s business landscape, from understanding decision-making structures to identifying specific needs.
Risk Mitigation as a Sales Strategy – Leverage quality research to transition from merely providing solutions to actively mitigating risks at an enterprise level.
Being Predictive, Not Just Reactive – Adopt a visionary approach by predicting future market trends and tailoring your sales strategies to match long-term client needs.
Crafting Tailored Sales Messages – Learn how to craft sales proposals that don’t just meet current needs but align with the strategic objectives of your enterprise clients.
Strategies for CEOs and Sales Managers – Understand the role of top management in fostering a culture that prioritizes research and long-term client alignment.
“Market research becomes your navigation tool, guiding you through the labyrinthine structures of enterprise decision-making.”
“Your deep understanding of market dynamics enables you to frame your offering in a way that lowers or even eliminates certain risks.”
“With your research, you become more than a salesperson. You become a consultant equipped with actionable insights into your client’s industry.”
SWOT Analysis Templates – For conducting industry-specific research.
Public Records and Financial Reports – Annual reports, quarterly filings, and investor presentations for understanding company goals and strategies.
CRM Systems – Efficient tools for sales professionals to organize and manage research data.
Our sponsor for this episode of “Driving New Sales: Transforming Small Businesses into Sales Powerhouses” is Carpe Diem Consulting Group. Carpe Diem Consulting Group and its founder, Chris Spanier, drive growth by crafting effective marketing and compelling brand stories for their clients. They love collaborating to bring fresh strategic perspectives that increase their clients’ impact and connections through results-driven marketing – enhancing your online presence, crafting better messaging, prospecting assistance, and more. Working with Carpe Diem Consulting Group leads to more compelling brand narratives, deeper engagement with customers and prospects, and measurable success. You can reach Chris at chris@CDCG.US.
Sean is a professional sales leader with over 38 years of experience in complex business-to-business sales.
Sean helps company owners realize the maximum value of their company by improving their revenue generation capability. He helps owners enhance their sales management, methodologies, processes, teams, and messaging to accomplish this.
In his current role as a Fractional Vice President of Sales, Sean has:
Helped a company increase its value by 50% with a significant and successful acquisition of the company.
Helped a company scale from its angel investments to its series B investments.
Helped a company achieve a 50% increase in revenue with a 300% increase in profitability in a single year.
Stabilized and put predictability into the sales teams of his clients.
If you need help making your sales organization a top-performing part of your company, you can contact Sean at Sean@NewSales.Expert.
About the podcast:
Driving New Sales: Transforming Small Businesses into Sales Powerhouses focuses on arming CEOs with the knowledge and tools they need to build an exemplary sales operation. This is not a podcast that skims the surface; it delves deep into each facet of sales management, shedding light on the best practices that can elevate a company from mere competence to true excellence. “Driving New Sales” is not just a podcast; it’s a toolkit for building sales powerhouses that are responsive, proactive, efficient, and exemplary.
Let’s start by grounding ourselves in the foundational premise: Sales benchmarks are not merely numerical goals but the defining coordinates of success. If you will, consider them as your organization’s North Star, guiding your sales team through the complexities of quotas, customer relationships, and revenue targets. Benchmarks transcend the limitations of raw numbers and extend into the realm of qualitative assessment—whether it’s the ability to understand customer needs or to align solutions accordingly.
To further clarify, think of benchmarks as akin to a financial portfolio’s balance of risk and return. They offer a comprehensive view of performance, much like a diversified portfolio that offers an integrated financial health assessment. Each component—be it customer retention rates, average deal sizes, or response times—contributes to this multifaceted view. Benchmarks thereby act as a composite score that tells you where you are, where you should be, and, most importantly, how to get there.
The Nuances of Crafting Benchmarks: It’s About Alignment
Creating effective benchmarks requires alignment with broader organizational goals, current market realities, and the sales team’s inherent capabilities. Striking this balance is akin to setting the interest rate in an economy. Set it too high, and you risk stalling growth; set it too low and invite complacency.
Thus, the process of setting benchmarks demands an understanding of averages and outliers. If a high percentage of your sales team consistently meets the benchmarks, they may not be challenging enough. Conversely, if only a small fraction achieves them, it could demoralize the rest and raise questions about the benchmarks’ attainability. The idea is to challenge your team just enough to stretch their capabilities while ensuring the goals are rooted in reality.
Diagnosing and Addressing Underperformance: A Structured Approach
The objective of performance benchmarks isn’t to point fingers at underperformers but to provide a structured mechanism for evaluation and growth. Having established benchmarks, the onus shifts from mere identification to a deep-rooted understanding of ‘why’ the underperformance occurred.
Is it a lack of training? Is it a mismatch between talents and tasks? Or perhaps it’s a more systemic issue related to product-market fit? Each diagnosis demands its unique course of action, requiring leaders to blend empathy with decisiveness. As you identify these pain points, you’re not merely putting a spotlight on them; you’re transforming them into actionable insights. Provide the necessary tools, training, or environmental changes, and monitor the impact on performance against the set benchmarks. In this way, underperformance becomes not a point of failure but an opportunity for both personal and organizational growth.
Benchmarks: Your Compass in the World of Sales
To CEOs, Sales Managers, and leaders in the trenches, understand that performance benchmarks are not just numbers on a performance review sheet but the milestones on your roadmap to success. They offer a dynamic, multi-dimensional gauge by which to measure, evaluate, and, most crucially, enhance performance.
Just as a ship’s captain would be rudderless without a compass, your sales team would navigate in the dark without well-defined benchmarks. These are not mere numbers but signposts in your journey toward sales excellence. They offer a vision of what could be and a measurement of what is. Establishing and adhering to these benchmarks provides direction, clarity, and a lens through which to transform challenges into growth opportunities.
If you’ve got your first 10 customers and are wondering, “What next?” then this episode of Two Tall Guys Talking Sales is essential listening. Hosts Kevin Lawson and Sean O’Shaughnessey explore the transformational journey from acquiring your first customers to scaling up your business. Dive into critical topics like product-market fit, market messaging, the role of the CEO as a salesperson, and much more. Arm yourself with practical, real-world advice to take your business to the next level.
Key Topics Discussed
The Crucial Jump from 10 to 50 Customers
Kevin and Sean examine the strategic shift required when you’re looking to grow from 10 customers to a more substantial customer base. They stress the importance of formalizing and aligning your offering with a well-defined buyer persona.
Understanding Buyer Personas
A recurring topic was the art and science of buyer personas. Kevin emphasizes the need to revisit and revise these as your business evolves. The objective is to understand who you’re selling to and what problem you’re solving for them.
Sales Leadership & Standardization
Sean explores the standardization of sales processes and offerings, particularly for scaling from a one-person operation to a multi-person sales team. This standardization is crucial for scalability and profitability.
The Role of the CEO in Sales
The hosts delve into the inevitable shift in the sales role of the CEO as the company grows. While the CEO might be heavily involved in sales initially, scaling to 50 or 100 customers requires a dedicated sales team.
Selling Tools vs. Selling Solutions
Sean provides a compelling analogy between selling tools and selling solutions. He emphasizes the importance of selling a standardized product rather than a customizable toolkit, using historical examples like Henry Ford and Steve Jobs.
Kevin: “One challenge I see here that sales leaders need to solve is how to formalize and standardize the attraction process.”
Sean: “You need to really start focusing on who do you sell to, what problem do you really solve, and how do you sell this thing so that other people can sell for you.”
Don’t miss this episode if you’re gearing up for rapid growth. Both Kevin and Sean provide actionable insights that will equip you to transition from a startup to a scalable business. With a blend of theoretical knowledge and real-world advice, they lay down a roadmap for you to follow. Whether you’re a CEO doing sales, a startup looking to break into the market, or a sales leader aiming for standardization, this episode is your guide to elevating your sales game. Tune in now to pave the way for your business growth!
The Art of Tailoring Sales: Why Market Segmentation Matters
Embark with me on a journey across the sprawling business landscape, an expanse echoing with the cacophony of countless potential clients. As vast as this sounds, CEOs and sales leaders quickly recognize a fundamental truth: their offerings aren’t for everyone, no matter how exceptional. The cost of gaining any customer, regardless of that prospect’s business, location, or specialty, risks the profitability of selling to them all. This realization is where the art and science of market segmentation come into play. This approach, akin to a seasoned sailor charting a course through diverse waters, ensures businesses traverse the right seas, leading them toward unparalleled prosperity.
In the realm of business, imagine a master tailor. He meets diverse clients daily, each with their preferences, sizes, and desires. A one-size-fits-all suit? It’s a fantasy. Instead, he meticulously measures, understands individual tastes and crafts a suit that fits impeccably. This artistry mirrors market segmentation, where businesses dissect the extensive market into specific sections, ensuring their strategies align seamlessly, much like that well-fitted suit. The effectiveness of such an approach isn’t theoretical. Historical data unveils a striking revelation: 75% of B2B firms grew their market share if they managed to personalize their sales and marketing directly to the individual customer. This isn’t merely a figure but a testament to the monumental influence of aligning offerings with distinct market needs.
However, as we dive deeper, the waters of segmentation aren’t always placid. Over-segmentation can be treacherous, dispersing focus like a ship trying to anchor at numerous ports, eventually reaching none. Furthermore, a mere segmentation without an accurate understanding can mislead, like mistaking a looming storm for a serene day at sea.
So, how do businesses chart this course effectively?
Establishing the Pillars of Segmentation: The segmentation can hinge on varying criteria, be it demographic nuances, behavioral patterns, or geographical distinctions. A tech solution catering to bustling urban enterprises would understandably differ from one aimed at serene, rural family-owned businesses.
Deep Dive into Data: The depth of knowledge determines the journey’s success. Harness data analytics to grasp the intricacies of each segment, echoing a sailor studying sea charts before setting sail.
Strategic Customization: With a sound understanding of your most profitable customers, mold your sales strategies, ensuring they resonate with each segment’s unique aspirations and needs.
Embrace Adaptability: The seas of business are ever-evolving. Thus, gather feedback and recalibrate strategies, ensuring alignment with the shifting dynamics.
However, segmentation’s influence isn’t confined merely to optimizing sales. This tailored approach weaves deeper customer relationships. Clients perceive this customized attention, feeling valued and inevitably gravitating towards businesses that reflect their specific needs. Furthermore, this clarity in approach empowers sales teams. Each pitch, each dialogue is infused with purpose and precision. The approach transitions from casting expansive nets in hope to that of expert fishermen, with each cast deliberate and confident.
Market segmentation unfurls as a harmonious blend of art and science. This orchestration is about understanding, tailoring, and fostering profound connections. The outcome for CEOs and sales maestros mastering this realm isn’t mere sales acceleration. It’s about sculpting experiences, nurturing relationships, and consistently delivering unparalleled value.
As the contours of sales constantly change, segmentation emerges as an enduring beacon. It accentuates a profound understanding, recognizing who truly holds value and optimizing strategies to serve them immaculately. In the intricate mosaic of sales, segmentation assures that every piece, every shade, and every nuance aligns impeccably, weaving a saga of sustained growth and success.
Bob Robinson, Jr., and his mechanical-engineer father, Bob Robinson, Sr., came up with the idea for a product the world truly needed 25 years ago: a “no-touch” restroom cleaning machine. Their company, Kaivac, is a Hamilton, OH-based manufacturer of cleaning machines. Hamilton is a suburb of Cincinnati, OH.
“We were on our hands and knees, crawling around the bathroom,” recalls Bob, Jr. “It was disgusting. We said, ‘There’s got to be a better way.'”
Through hard work and dedication, the Robinsons created the KaiVac to help solve that initial problem in public restrooms. Over the years, they grew the idea to create dedicated machines to clean kitchen floors, hallway floors, and grocery displays. Beyond its bathroom cleaning technology, it has expanded into floor cleaning and spill response machines and has 18 patents with 16 pending.
Along with growing their manufacturing capabilities, they also grew their sales capabilities. They adopted a hybrid strategy of selling through distribution and selling directly to key customers. Their direct team, under the leadership of Bob Robinson, Jr., who had taken on the role of VP of Sales, closed many enviable customers with massive deals, including Walmart, Kroger, and Target.
They realized that they needed to step up their sales professionalism after having a down year during COVID after having a record-breaking year the year before. They wanted to grow to $75 million in annual revenue within three years and a Big Hairy Audacious Goal (BHAG) of $1 billion in annual revenue within 20 years.
Bob Jr. says Kaivac is just getting started. “At 20 to 25 years in business, you’re at an inflection point where you’ve got resources, tenure, and history and have been through ‘adolescence,'” he says. “Now is the chance to build a professionalized organization.”
They contacted New Sales Expert LLC as the nation was coming out of the global pandemic, but before all the supply chain problems had paused. New Sales Expert LLC is a fractional vice president of sales consultancy. Sean O’Shaughnessey, the CEO of New Sales Expert, is aligned with SalesXceleration and has 38 years of experience in sales and sales management.
According to Sean, “Kaivac is a joy to work with. They are the shining star of Hamilton, OH, and Butler County. They had so much raw potential when I walked in the door; all I had to do was to focus their energy and enthusiasm on working smarter and just a little harder.”
Building an organization with a heart
Kaivac had a great culture to build on to make a great sales culture. Before Sean showed up, the company leadership had already developed their One-Page Strategic Plan and their “Why?” statement that reflects the owners’ Christian faith: “To glorify God by using KAIVAC as an instrument for Good.”
In addition to the “Why?” statement, they had drafted an acronym called FIGS that conveys the “heart” of the company. FIGS—which appears on signs that hang on the factory floor and in break rooms—stands for
F: “First shall be last, last shall be first.”
I: Integrity—as in “The truth shall set you free.”
G: Golden Rule—meaning “treat others how you want to be treated.”
S: Servant’s Heart, as in “We are in a race to help people.”
The company uses the first three letters of its name–KAI–to inspire the team’s thinking and actions. These letters stand for inspiring phrases such as: “Keep At It,” “Keep Always Improving,” “Keep Attempting the Impossible,” and “(creates) Kick-Ass Inventions.”
Prioritizing net income and growth
Sean’s first change was to make a compensation plan that motivated the sales team to sell bigger deals and to sell them quickly. Kaivac implemented a 50/50 plan in concert with defined territories to keep the Key Account salespeople focused on the goal of more significant and profitable orders.
After the motivation component was in place, it was time to help the team learn how to sell big deals more repeatedly. The big deals of the past had been challenging to work on and, while very profitable, had been disruptive to close. Sean encouraged the company to read John McMahon’s book, “The Qualified Sales Leader,” and with that tome as inspiration, quickly deployed MEDDPICCC to help them qualify deals.
MEDDPICCC by itself is not enough. The company had already licensed Salesforce, one of the highest-rated CRMs on the market, but Sean put MEDDPICCC into the various stages of the sales process to ensure that the salespeople knew all the required information about a big deal. Sean also created dashboards within Salesforce to track deal progress at the management level. The company implemented Sales Plans for Key Accounts and the Power Matrix to document the most influential people in the customer’s decision-making process.
The very first big deals that the company found after Sean started to help them also benefited from the Decision Timeline. The Decision Timeline is a tool to allow the sales team to walk through the entire decision-making process of the customer to understand all of the steps required to make a significant investment decision. It allowed frank and honest conversations to take place with the prospect as the team worked to close the largest deal in the company’s history to date.
Time to run on their own
As with most of the assignments with New Sales Expert, LLC, the goal is to allow the company to run independently. Bob Robinson Jr. was the company’s VP of Sales. Still, he needed to shed those responsibilities to help run the entire company. To finish the transition, Bob and three of his leaders took SalesXceleration‘s Certified Sales Leadership course delivered by Sean O’Shaughnessey.
The Certified Sales Leader (CSL) designation is the country’s most comprehensive sales leadership certification program offered. CSL leadership training and certification will prepare you with the analytical, tactical, and strategic sales management skills needed to drive revenue growth now…and into the future. CSL training expands the skill set of a Sales Manager by providing coaching, techniques, and tools to lead a successful sales team.
All four Kaivac leaders passed the CSL test. One of them, Mike Perazzo, was tagged to take over as Executive Vice President of Sales. According to Mike, “Sean is a master coach for helping shape sales process and methodology. Following his methods will help grow sales faster, transactionally, and strategically. Often a couple of pieces of the puzzle are missing, and Sean helps quickly identify them.
You have everything to gain by having Sean look at your current approach. He is a change agent and disruptive to the status quo. Pushing the pace and flow of deals is his sweet spot. I am a better sales leader because of my time with him.”
Sean O’Shaughnessey of New Sales Expert, LLC states, “Kaivac is a wonderful company. They have created a line of machines that gives pride to the workers in one of the toughest jobs in America – keeping things clean. They are focused on the success of their customers and their employees. They had all of the raw skills within their sales team to be a great sales organization; they only needed me to focus them on activities and techniques that allowed them to close bigger deals faster and at a higher profit level.”
“If anyone works in a clean building with clean restrooms and hard surface floors, they are either cleaning it with Kaivac technology or paying too much for that cleanliness,” Sean explains.
Revenue and profitability have grown since Sean helped Kaivac develop a higher level of sales professionalism. Recent results have shown a dramatic increase in revenue and profitability. The sales and revenue growth have allowed the entire family of Kaivac to prosper. The Robinsons have always considered their employees an extension of their family. The company’s prosperity is passed along to team members through a bonus structure for the whole company. It all fits into the spirit of Kaivac. Bob Jr. says, “Our organization was built to have heart.”
As B2B-focused businesses navigate the ever-changing landscape of a post-COVID economy, sales leaders must adopt and institute strategies to meet the demands of a business in growth or recovery mode.
While the goal for a sales organization may be to sustain the growth trajectory aligned with organizational goals, the year-over-year approach to achieving success can vary significantly. Sales leadership styles depend on the current situation, the starting point, and the existing team charged to accomplish the goal. Good sales leaders find a way to achieve the annual goal; great sales leaders find ways to achieve the goal and systemize the process to allow for repeatable growth, pivots, and rapid scale.
Growth Focused Leadership
Sales leaders focused on growth must proactively identify new market opportunities, verticals, geographies, platforms, or sales talent. They must invest in new sales channels and technologies, along with onboarding and training programs to support the growth of their sales teams and the acquisition of new client relationships.
When sales teams are in a breakout stage of growth, it can be challenging to gain the discipline to systems and alignment on processes and approaches due to the nature of managing client expectations on a wildly rising revenue outlook. This situation demands that all of the skills of a sales leader be applied consistently and strategically across the team and sales practices.
Seasoned leaders know that hiring for an increased workload and rapidly scaling teams can be tempting. However, this approach can often lead to problems down the line. Further, we must suppress the desire to hire quickly instead of exercising patience in finding the right candidate to continue to scale teams and culture appropriately. That patience means we must endure the short-term challenges of being under-resourced and under a great deal of pressure to keep performing as if we already had the resources on the team. Instead, it is essential to focus on finding the right candidate who will not only be able to handle the current workload but also contribute to your team’s culture and help your organization achieve long-term success. Take the time to vet candidates carefully and consider not only their skills and experience but also their values and how they fit into your team’s dynamic. By prioritizing quality over speed, you’ll set your team up for success in the long run.
Another important consideration when building a team is to prioritize scalability. It’s easy to get caught up in your organization’s immediate needs and hire for the present moment, but it’s crucial to think about how your team will grow and evolve. Look for candidates with the potential to take on new responsibilities and leadership roles as your organization expands. Consider investing in training and professional development programs to help your team members acquire new skills and stay up-to-date with the latest industry trends. By prioritizing scalability, you’ll be better equipped to adapt to changing business needs and continue to achieve success over the long term.
Discipline to proven systems is essential for leadership and having transparent KPIs and organizational goal communications. The rigor and discipline of a sales leader in a growth cycle are particularly demanding. One primary concern for leaders in this mode is talent loss due to competitive pressures to grab your resources for their growth. It would help if you had experience and discipline for these growth moments.
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.