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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!

How to Build a Sales Organization That Survives a Founder Exit

Navigating the complexities of business transitions can be quite a journey, especially for those in sales and leadership roles. When a founder chooses to pass the baton, whether through selling to someone outside the company, passing it within the family, or setting up an employee stock ownership plan, each option comes with its own unique challenges and chances for growth. For salespeople, sales managers, and CEOs of small companies, understanding these dynamics is really important.

When a business owner considers selling to an external buyer, they often experience a surprising realization: the valuation shock. It’s common for owners to overestimate their company’s worth, only to encounter a reality check during the valuation process. This moment is so important because it influences all future negotiations and strategies. Buyers don’t just look at the numbers; they also carefully examine the business’s sales processes and the owner’s involvement. Here, the owner’s role as the main salesperson can be both a strength and a challenge. If the owner accounts for a large share of sales, such as 30%, it can worry potential buyers. 

The key is to build a business that can thrive even when the owner isn’t around, supported by a solid sales system and a talented team eager to keep everything running smoothly.

For the owner contemplating a sale, preparation is key. 

The question to ponder is: what if you were suddenly unavailable? 

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Transform Your Sales Team: Strategic Compensation Adjustments for Year-End Momentum

Autumn is the time of year for sales leaders, managers, and CEOs to begin laying the groundwork for next year’s success. Have you considered how your current sales compensation plans impact your team’s motivation and productivity? Now is the ideal moment to evaluate, adjust, and deliver these plans, preferably by December 1st. Doing so can significantly influence your team’s drive to close deals in December and build momentum heading into the next fiscal year.

Sales compensation should be motivating and rewarding for employees. It directly shapes your sales team’s behaviors and priorities. An effective plan incentivizes the right actions and deters the wrong ones.

Consider a common pitfall: salespeople holding back deals to inflate their numbers for the following year. Does your current compensation structure inadvertently reward this practice? If so, you’re unintentionally harming your year-end results.

To counter this, strategically incorporate compensation escalators and cliffs into your plan. Escalators progressively reward increased sales performance throughout the year. Higher performance equals higher commission rates, driving your sales team to push forward continually. 

Commission cliffs reset commission rates at the beginning of each year, creating a sense of urgency to close deals before the end of December. Communicating these compensation details clearly by early December ensures your team understands what’s at stake.

Don’t hold your team back!

Another critical compensation consideration is eliminating commission caps. While some organizations cap commissions to control expenses, this practice can backfire dramatically. Caps tell your top-performing salespeople that their exceptional efforts are neither valued nor rewarded appropriately. This demotivates your top talent and encourages them to seek opportunities elsewhere that offer uncapped rewards. 

Removing commission caps signals that the organization fully supports and rewards outstanding performance. Have you considered how much growth your company might achieve if artificial constraints didn’t limit your sales team?

When evaluating compensation, look beyond simple cost containment. Consider the true profitability of incentivizing increased sales volume. Once salespeople reach their targets and enter accelerators, each additional dollar earned typically comes at a lower incremental cost to your organization. 

Sales transactions earlier in the year have already covered the salesperson’s base salary once they have met their annual quota. In fact, at 100% of quota, the salesperson should have covered all their costs and their share of the overall company’s revenue needs. Thus, every extra sale at escalated commission rates still contributes positively to your overall profitability. 

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Two Tall Guys Talking Sales Podcast – Empowered by ESOP: Enhancing Sales Management in Employee-Owned Firms with Wisdom by Marc Metz – E83

In this enlightening episode of Two Tall Guys Talking Sales, hosts Kevin Lawson and Sean O’Shaughnessey continue their engaging dialogue with Marc Metz, a seasoned expert in the sales and business transition arena. Building on the momentum of their previous conversation, they delve into the intricacies of transitioning a business through an Employee Stock Ownership Plan (ESOP). Marc shares firsthand experiences and practical insights, making this a must-listen for business owners contemplating a transition that… 

Two Tall Guys Talking Sales Podcast – Mastering the Art of Business Transition: Insights from Marc Metz – E82

In this riveting episode of Two Tall Guys Talking Sales, hosts Kevin Lawson and Sean O’Shaughnessey welcome a special guest, Marc Metz, President of Optimus Sales Group. Together, they delve into the critical yet often overlooked topic of business transitions, providing invaluable insights and strategies for companies navigating the journey from generation to generation. This episode is a treasure trove of knowledge for business owners, sales leaders, and anyone involved in the business’s lifecycle. Key…