Finding, Hiring, Training, Compensating & Keeping ... 2016 - Jeff Meyer... · rarely brings the...

Finding, Hiring, Training, Compensating & Keeping

Successful Salespeople

Jeff Meyer, MAS, CPA

Certified Marketing Consultants, Ltd.

January 14, 2016

Managing Successful Salespeople

The following material presented by CertifiedMarketing Consultants, Ltd. is based upon historicaldata collected by CMC, Ltd. The opinions andconclusions expressed during this presentation are theunbiased and professional opinions of CMC, Ltd. andare being presented for the purpose of discussion only.

(c) Certified Marketing Consultants, Ltd. 2

Managing Successful Salespeople

Y R U Here?


Today’s Objective

How & where to find salespeople.

How to hire salespeople.

How to train salespeople.

How to compensate salespeople.

How to keep salespeople.


How & Where to find Salespeople

Myth #1 “The best place to get a salesperson is from acompetitor.”

high risk,easy come, easy go,rarely brings the book of sales promised,margins suspect,usually very demanding.



The fact is, it is easy to find salespeople to grow yourbusiness:

salespeople from other industries,college graduates,internal CSR’s,retired business people,owners of other distributorships,firemen?



So how do I contact prospective salespeople?

Newspaper ads,College interviews,Internet / Social MediaJob fairs,Personnel departments at plants that are closing,Intermediaries,Churches, etc.



The promotional product industry is a great industry with alot to offer prospective salespeople. But many don’tknow about it. Make sure your ads highlight thebenefits, such as the large split of gross margin,unheard of in other industries.


How to Hire Salespeople

WIFM High commission rate, Benefits, Industry growth,

Support, Technology, Professional atmosphere with personal feel, “Freedom” for personal lifestyle


How to Hire Salespeople

Hiring sales people definitely takes resources &commitment:

Capital,Interview time,Training time.


Should we hire Employees or IC’s?

SalespeopleIndependent ContractorsLess payroll tax & benefit expense

Sales EmployeesMore control of sales efforts / measurable

results“Ownership” of customers


What should the commission split be?

Salespeople

Independent Contractors50/50?

Sales EmployeesNOT 50/50


Other Hiring Considerations

Contracts with employee salespeople,

non-compete clause

Policy & Procedures Manual,

Personality tests,

Competition,

commissions paid on booked,

resources,

higher commission rates,

draw policies, etc.


TrainingSalespeople

Policies & Procedures Manual,

Trade shows,

Entry level CSR’s,

Industry consultants,

Other salespeople,

Sales meetings,

Sales calls, etc.


A Policies & Procedures Manual is Critical!

Anyone who represents your company must knowwhat they can and cannot do. And more importantly,you and they should know what the costs are andwho pays them.

The number one cause of salespeople leaving adistributor is misunderstanding one or more salespolicies.


Issue Written Policies to Salespeople

Do you require advance payment on orders? (why not?)

Do you require credit applications on new accounts?

Do you hold orders until applications are approved?

Credit policy?



When is commission paid?

When are commissions paid on calendar orders?

What is your commission split?

Minimum gross profit percentage?

What is your bonus policy?

Freight?

Do you have a different commission structure on co-opprogram business?



What do you charge your salespeople in respect to:Sample KitsCatalogsRandom SamplesPersonalized SamplesSamples with Distributor Imprint OnlyBusiness GiftsSpeculative Samples

Other charge-back policies on samples?



Do you have a draw policy?

Do you have a minimum annual volume forsalespeople?New Salespeople?

Do you have house accounts?

Do you utilize contracts with . . . Independent Contractors?Commissioned Employees?



Who pays the supplier rush order fees, you or yourcustomer?

Do you mark-up rush order charges to customers?

Do you mark-up extra charges?



When do you consider an account delinquent?

Do you hold orders on a delinquent account?

Do you charge customers for late payment?

Do you charge salespeople on their customer’s latepayment?

Do you charge back bad debts to salespeople?


How to Keep Successful Salespeople

Myth #2 “You have to keep your salespeople at all costs.”

The fact is, the goal should be to keep your customers:

Employees vs. Independent Contractors,Customer acquisition vs. Customer retention,Clear and consistent Policies & Procedures manual,Common sense, treat them right & keep them

happy.


Operations

Operational StructureCustomer acquisitionSalespeople find the tigers

Customer retentionCSR’s skin the tigers

The goal is to form a lasting relationship between the customer and the Company

while providing superior service.



Myth #3 “If a salesperson isn’t selling $250,000 or more,he/she isn’t worth keeping.”

Salespeople who produce large volumes are usuallymore demanding with lower margins, and areprobably a high risk of defection,Customer acquisition vs. Customer retention,

Margins are much more important than volume,Excellent training reduces the cost of inexperience.



Summary

Finding salespeople isn’t that hard,

Hiring salespeople takes commitment & money,

Employee salespeople are less risk because the customers belong to the company,

A Policies & Procedures Manual is critical.

Keeping Salespeople is easier when you do the other things right.


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