How To Succeed In Sales On Commission Only
When the economy shrinks, the interest in commission only sales rises
. When salaried sales jobs are scarce, sales people are more willing to consider commission only opportunities. In a downturn, employers would rather pay more for results rather than carry the risk of hiring people. Pay per sale is much more reliable than pay per click. There is no sense in fighting the tide when profit for both lies in meeting the immediate need.
Successful 'commission only' sales people make more money than those with a base salary. Companies who make such relationships work, have more flexibility, can be more agile, and are more resilient.
This article is about what it takes to make a success of 'commission only' sales from both the employer and sales persons perspective. They same principles and practices work for anyone who employs sales people as well as any sales person seeking a great employer.
As the employer or the sales person, the requirement is the same certainty.
A sales person contemplating a 'commission only' role needs certainty that he or she will generate sufficient income quickly enough to pay overheads and living costs. Companies who are contemplating an increased reliance on 'commission only' sales people need certainty that the sales people they recruit will generate the required results.
Forethought, planning, and preparation reduce the risk.
At least half of a commission only sales persons success lies in choosing what to sell. First, it has to fulfil a need that is significant to the target customers. Secondly, the proposition a combination of the offering and the terms of supply must be differentiated and have a unique appeal to a subset of the target customer base. Thirdly, the sales person must have reasonable access to the potential customers.
Perhaps most important of all, the sales person must be able to meet their minimum income requirements so it is essential to know the average conversion rate or to have evidence that the expected levels of success are realistic.
Most 'commission only' sales people are not expected to spend on marketing however they may be expected to find their own sales prospects. If this is the case, the process by which they are to find prospects must not be left to chance or individual creativity. It must be defined and credible if a business is to attract the right sales people.
The target market, sector, or niche must be clearly identified and the ideal prospect clearly profiled. Sales people with talent and relevant experience may work this out for themselves however, such people are few. The employers must sell their 'commission only' proposition if they are to attract the right quality 'commission only' sales people. The discerning sales person who interviews the employer is much more likely to succeed.
Once it is clear who is most likely to be interested, the sales person needs to have the names of key influencers in the target organisation that might be prepared to support the purchase. Once again, our mythical super sales people with the right experience would be connected enough and have sufficient skills to find the names for themselves. It is relatively easy to provide help and doing so will increase the attractiveness of the opportunity to 'commission only' sales people.
It may be enough to define a reliable method for discovering the right people. Apart from the obvious telephone enquiry, there are many online networking hubs that facilitate discovery. LinkedIn.com and Plaxo.com seem to be the most widely used in the high tech arena. For a commission only relationship to work, both parties must eliminate or diminish any sales barriers that exist.
Sales people must be equipped to answer what we call the top six customer questions in a succinct and convincing way. The six questions are those that buyers think but dont always pose.
1. Who are (company)?
2. What do they do for their customers?
3. Who are their top customers and what have they done for them specifically?
4. Others offer the same things, how is this company different form the others?
5. We have been let down by others. How do we know this company will do what they say they will?
6. How can we be sure that we are getting good value for money?
It is easy to answer these questions with platitudes and reassurance however; the only truly satisfying responses consist of end to end verifiable facts. Of the sales people who have participated in the SalesSense Sales Exam, few have been able to approach a perfect response to all six questions even though they are forewarned. If an employer cant articulate effective answers, a commission only sales person has no chance accept to make it up. Made up answers cant be verified and inevitably raise resistance. The only solution is for the seller to gather its best brains, and if necessary, outside consultants to come up with fact based answers to these questions that a customer could verify.
For sales people, facing objections is inevitable. There are two points in a sale when objections are commonly thrown up, at the beginning and towards the end. The nature of the objections likely to be raised is easy to anticipate. While superstar sales people will have their own ways of dealing with all types of objection, most others wont. This is another area where forethought, planning, and preparation can make all the difference. Employers need to provide credible model responses for all common objections and then practise them with sales people until they are fluent.
Not all sales follow a predictable path yet having a sales process framework dramatically improves transparency, predictability, and manageability for both sales people and their employer. Once a common process is identified, it becomes much easier to address obstacles and choke points that derail some sales campaigns. Once obstructions are recognised, solutions can be developed.
Many employers have some of this work completed. Those who have a comprehensive understanding of their sales process, its constrictions and solutions for relieving them, and who have compiled this knowledge into an accessible sales oracle, enjoy a significant advantage over competitors.
From a sales persons perspective, success lies partly in choosing what to sell. Testing potential employers for solutions to each of the aspects discussed above will highlight the best opportunities. Employers who have invested sufficient forethought, planning, and preparation will attract better sales people however they are compensated.
As Tom Peters puts it, The only reliable source of competitive advantage, is to get better faster than your competitors.
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Sales Success Formulaby: Clive miller
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