Be an A-Player

Figure 14.1

Just like professional athletes, the best salespeople are A-Players.

© 2010 Jupiterimages Corporation

No matter what job you have or what company you sell for, you can and should be an “A-Player.” That means being the best at what you do. You don’t have to be a celebrity or a person who went to Harvard, according to blogger Auren Hoffman in her April 2009 post “The A-Player Janitor”: “An ‘A-Player’ by definition is incredibly productive and smart and has that ‘it,’ that rockstar-esque factor that makes everyone want to work with her.”Valeria Maltoni, “How Do You Become an A-Player?” Social Media Today, April 17, 2009, http://www.socialmediatoday.com/SMC/85675 (accessed September 4, 2009). Her point is that hiring managers want to hire the best person for every job. So you don’t have to be an A-Player in everything, just be an A-Player in the one thing you do best.Auren Hoffman, “The A-Player Janitor,” Summation Blog, April 9, 2009, http://blog.summation.net/2009/04/the-aplayer-janitor.html (accessed September 4, 2009). Find your sweet spot and focus on it. In sales, being an A-Player means connecting with customers. You might be surprised to learn what makes someone an A-Player in sales according to this video.

Managing Yourself: Making the Most of Your Resources

“The best part of a career in sales is that it is undefined,” according to Ann Devine in a recent article on The Black Collegian Online.Ann Devine, “Is a Career in Sales Right for You?” The Black Collegian, http://www.black-collegian.com/career/career-reports/sales-grad05.shtml (accessed August 19, 2009). Every day is completely different; some days you will be researching leads, and other days you might be making a presentation to a prospective customer. This exciting, unstructured, and sometimes unpredictable environment rarely gets boring. But it’s this lack of structure that can present a challenge in choosing priorities and accomplishing goals. Those who are successful realize how to manage themselves and their time and use the resources that are available to them from their company, their colleagues, and their community.

You might be wondering what managing yourself means. When you are in sales, one of the most important jobs you have is being sure that you have clear direction about what you want to accomplish and what you need to do to get there. Even though you are used to managing yourself and your time at school, it can be a daunting task to be responsible for calling on customers and generating sales, especially if you are based in a location remote from the company office such as your home office. So first things first—identify your resources. Even though you’re traveling solo, you are not alone.

Use Your Sales Manager

Many salespeople don’t realize that their sales managerPerson to whom a salesperson reports and who is accountable for delivering on sales goals. (i.e., the person to whom they report) is ultimately responsible for delivering the company’s sales goals. As such, the sales manager wants to do everything he can to help his salespeople be successful. Even before you start your job, it’s a good idea to touch base with your sales manager. Chances are you interviewed with him, so you probably have his contact information. A good way to get off to a great start is to send him a handwritten thank-you note after you’ve accepted the position. What better way to start a new relationship than with a personal note.

Your sales manager can be your most important source of company information as well as customer insights. He had a lot of experience selling before he became a sales manager, and he would likely share his insights to help you be successful. Not only can he make your job (and your life) easier, he can teach you a lot about selling. It’s always a good idea to keep your sales manager updated with the status of your customers and prospects. He will appreciate your proactive and regular updates about the standing of each lead and customer in addition to your regular one-on-one meetings, staff meetings, or conference calls.

Sometimes new salespeople are nervous about asking questions of their sales managers, which is natural. It’s best to remember that your sales manager doesn’t expect you to know everything. Your questions show him that you are interested in learning more about the business from him and help him identify what areas would be most beneficial for coaching. Your sales manager can be a part of your success story. Ask questions, ask his opinion, keep him in the loop, help make him look good, and you will have a relationship that works and grows.

Just as communication is important with customers, it is critical to building your relationship with your sales manager. He probably has a span of controlThe number of people that report to one manager., or the number of people reporting to him, ranging from a two to twenty or more people. It’s important to understand the organizational structure of a sales department. While each company is different, the basic structure of a selling organization is shown in Figure 14.2 "Sales Department Organization Chart". In some companies, salespeople may be responsible for a city or cities, region, or other geographic area. This is called territory managementOrganizational strategy whereby salespeople are responsible for a designated geographic area such as a city or cites, state, or region.. In this case, salespeople, usually called territory managersSalesperson that is reponsible for the customers in a designated geographic area., are responsible for the customers in their specific geographic area. This organizational strategy helps minimize the amount of travel time between customers.

Figure 14.2 Sales Department Organization Chart

In other companies, salespeople may be responsible for specific brands, products, or product categories. In the case of food manufacturers, these categories might be noncarbonated beverages, prepared meals, or dairy products. In the professional services arena, the organization might be vertical, such as retail sales, financial services, or health care. This product or category approach may require salespeople to travel to customers in various parts of the country based on the needs of the customers. It requires the salesperson to develop expertise in a specific product or discipline. These sales positions may have titles such as account manager, product manager, or sales rep. The different types of sales positions are discussed in more detail in Chapter 2 "The Power to Choose Your Path: Careers in Sales".

Managing Your Time: Organizing and Prioritizing

Depending on the type of business you are in and the company you work for, you might have as few as one customer and as many as a hundred or more. You might be wondering how you determine which customers to call on each day, how much time should be spent on prospecting versus calling on existing customers, how much time should be devoted to nonselling activities such as travel, paperwork, and internal meetings. While there is no hard-and-fast answer to these questions, your goal should be to spend as much time as possible with customers or prospects. It’s impossible to sell if you are not in front of a customer.

Consider this: Salespeople spend approximately fourteen hours a week engaged in face-to-face selling. That means that 70 percent of the time, in an average forty-six-hour workweek, salespeople are doing something other than face-to-face selling.Gerald L. Manning, Barry L. Reece, and Michael Ahearne, Selling Today: Creating Customer Value (Upper Saddle River, NJ: Pearson Prentice Hall, 2010), 31. See Figure 14.3 "Activities of Salespeople in an Average Workweek" for a complete breakdown of activities.

Figure 14.3 Activities of Salespeople in an Average WorkweekData from Gerald L. Manning, Barry L. Reece, and Michael Ahearne, Selling Today: Creating Customer Value (Upper Saddle River, NJ: Pearson Prentice Hall, 2010), 31.

Since your objective is to spend as much time as possible with customers, you’ll need to balance where you physically spend your time and with which customers you spend it. This is where territory management strategies come into play. Based on the call cycleThe frequency at which you call on each of your customers (e.g., once every twenty days)., the frequency at which you call on each of your customers, and where each is located, you’ll develop a plan to call on your existing customers and allow time for prospecting. In other words, you will need to have a plan to invest your time wisely to meet your goals.

To plan your sales calls, you’ll need a map (Google maps or MapQuest) and sales and potential sales information by customer (your company CRM system should include some, if not all, of this information), and your call cycle. Identify the location of each of your customers with a red dot or push pin. Then, divide your territory into sections by geography (designated as one, two, three, etc.), this can become the basis of your territory management plan. Review your customer data, including current sales and potential sales, to organize and prioritize your customers and calls. Figure 14.4 "Territory Management Worksheet" includes an example of a territory management worksheet.

Figure 14.4 Territory Management Worksheet

Based on this, you would plan your route so that you are making calls in one section of your territory on a given day, then covering another section on another day. This will ensure that you regularly visit your best customers and those with the most potential for growth, minimizing your travel time. While this might seem like a lot of work to do, it will save you time in the long run and help you increase your sales…and your income.

Time Management

If you’ve ever felt this way, it’s time to focus on time managementThe practice of organizing and prioritizing your activities to ensure that you can achieve your goals.. Salespeople get paid on results, not on the number of hours worked. As a salesperson, there are so many demands on your time: client needs, internal meetings, follow-ups, proposals, phone calls, e-mails, text messages, and the emergency du jour. All these can be time thieves, or activities that literally steal your time away from selling. You can easily fill your days with demanding tasks like these that really do not bring value to customers or ultimately close sales. Keep in mind that according to renowned sales consultant and motivational speaker Zig Ziglar, “Nothing happens until someone sells something.”Ann Devine, “Is a Career in Sales Right for You?” The Black Collegian, http://www.black-collegian.com/career/career-reports/sales-grad05.shtml (accessed August 19, 2009). To understand how to avoid getting caught up in the daily sea of details, it’s a good idea to realize why these interruptions and administrative demands consume your day. Here are three key reasons that time can get away from you:

Figure 14.5

Time management skills can help prevent you from feeling overwhelmed.

© 2010 Jupiterimages Corporation

• Poor planning. Avoid getting caught up in the moment and make a plan every day of selling activities—not time-fillers—that you want to accomplish. True selling activities include things like identifying six new prospects, setting up three appointments for the coming week, or closing at least one sale. “Write your top three outcomes at the top of your plan” is good advice.John Hacking, “Time Management for Sales People,” Buzzle.com, October 15, 2007, http://www.buzzle.com/articles/time-management-for-sales-people.html (accessed September 5, 2009).
• Procrastination. Fear of rejection causes many salespeople to stay involved in meaningless tasks. It’s hard to get an appointment with a customer, as they don’t always have time to give to salespeople. Customers want true solutions, not a sales pitch. It takes time, research, and creativity to really understand a customers’ business.“Procrastination Costing Your Sales Team,” ArticlesBase, April 29, 2009, http://www.articlesbase.com/education-articles/procrastination-costing-your-sales-team-893170.html (accessed September 5, 2009).
• Making tasks too big. Thinking about how long it takes to go from identifying a prospect to actually closing a sale can sometimes make the job seem overwhelming. Sales success comes from a series of wins, not one home run. It’s best to set short-term goals to make steady progress toward the larger, longer-term goal.John Hacking, “Time Management for Sales People,” Buzzle.com, October 15, 2007, http://www.buzzle.com/articles/time-management-for-sales-people.html (accessed September 5, 2009).

Work Smarter, Not Harder

Being successful in sales doesn’t require working longer hours; it requires taking control.Tom Metcalf, “3 Steps to Better Time Management for Sales Reps,” Sales Reps, Increase Your Productivity! Blog, January 3, 2007, http://telenotes.blogspot.com/2007/01/3-steps-to-better-time-management-for.html (accessed May 16, 2010). Time management is all about taking control of your time, your life, and your results. Here are six road-tested tips for effective time management that you can use for school and in sales:

1. Get organized.Doug Dvorak, “How to Use Time Management to Become a More Successful Sales Professional!” EzineArticles, http://ezinearticles.com/?How-to-Use- Time-Management-to-Become-a-More-Successful-Sales-Professional!&id=1081316 (accessed September 6, 2009). Get all the right tools to do your work efficiently and effectively. Be sure your work space is adequate with appropriate light, get file folders for each subject, organize your electronic files by folder, and choose a naming convention (e.g., customer name_topic_date) so it will be easier to find files that may have been saved to the wrong folder.Margot Carmichael Lester, “5 Ways to Get and Stay Organized” SalesHQ.com, http://www.saleshq.com/training/articles/1353-5-ways-to-get-and-stay-organized (accessed September 6, 2009).

Consider using a time management product to help you stay organized. Franklin Covey offers a world-renowned planning system at http://shopping.franklinplanner.com/shopping/index.jsp?. Day-Timer also offers paper and electronic options (including iPhone apps) for planning at http://www.daytimer.com. In addition, Microsoft Outlook and other e-mail programs offer excellent tools to help you organize and plan your time.

2. Set goals for the day, week, month, and year. If you don’t know what you expect to accomplish, you’ll never know if you get there. Write down the goals you want to accomplish every day in a to-do list; it’s a good idea to write down your goals at the end of the day for the next day.Doug Dvorak, “How to Use Time Management to Become a More Successful Sales Professional!” EzineArticles, http://ezinearticles.com/?How-to-Use- Time-Management-to-Become-a-More-Successful-Sales-Professional!&id=1081316 (accessed September 6, 2009). Invest fifteen minutes at the end of every day to plan for the next day.Jim Meisenheimer, “25 Ways to Get Motivated to Start Selling More,” EvanCarmichael.com, http://www.evancarmichael.com/Sales/407/25-Ways-To-Get-Motivated-To-Start-Selling-More.html (accessed August 19, 2009). Take the time to write down your goals for the coming week, Sunday night is a good time to do this. Be clear and realistic about what you want to accomplish and by when.

3. Prioritize your activities. Now that you have created your action plan, or to-do list, review it and reorder it to put the most important things first. Focus your time on the most important activities.“How Good Is Your Time Management?” Mind Tools, http://www.mindtools.com/pages/article/newHTE_88.htm (accessed September 6, 2009). Lee Iacocca, the former CEO of Chrysler, said it best: “If you want to make good use of your time, you’ve got to know what’s most important and then give it all you’ve got.Donald Latumhahina, “Time Quotes: 66 Best Time Management Quotes,” Life Optimizer Blog, March 8, 2007, http://www.lifeoptimizer.org/2007/03/08/66-best-quotes-on-time-management (accessed August 19, 2009). In other words, do important and challenging things first.

Sometimes people think it’s best to do a lot of small things first so that you can scratch them off your list. But it’s best to take on more challenging things when you are fresh and leave the smaller things for later or when you have a few minutes in your day.

4. Create a schedule. Using your to-do list as a guide, put times to your activities so that you can identify the amount of time it will take to accomplish each one. Also, during the day this schedule will serve as a guide and help keep you on track. And “manage minutes” effectively; use travel time, waiting time, and other downtime to return phone calls and e-mails or to think about solutions for customer problems.Margot Carmichael Lester, “5 Ways to Get and Stay Organized” SalesHQ.com, http://www.saleshq.com/training/articles/1353-5-ways-to-get-and-stay-organized (accessed September 6, 2009). Include addresses, phone numbers, and e-mail addresses for each person you need to contact if they are not already in your address book. This will help save time and prevent distractions.Jim Meisenheimer, “25 Ways to Get Motivated to Start Selling More,” EvanCarmichael.com, http://www.evancarmichael.com/Sales/407/25-Ways-To-Get-Motivated-To-Start-Selling-More.html (accessed August 19, 2009).

5. Delegate work to others. Although you might be working independently, chances are there are other people in the company that can help with certain activities. Clerical and administrative tasks should be delegated to your assistant or other support person. Always thank someone (subordinate, colleague, family member) who helps you get your work done.Doug Dvorak, “How to Use Time Management to Become a More Successful Sales Professional!” EzineArticles, http://ezinearticles.com/?How-to-Use- Time-Management-to-Become-a-More-Successful-Sales-Professional!&id=1081316 (accessed September 6, 2009). Delegation is the true secret to success: a survey conducted by Watson Wyatt shows that high-performing salespeople spend 30 percent less time on administrative tasks than the low performers.Doug Dvorak, “How to Use Time Management to Become a More Successful Sales Professional!” EzineArticles, http://ezinearticles.com/?How-to-Use- Time-Management-to-Become-a-More-Successful-Sales-Professional!&id=1081316 (accessed September 6, 2009).

6. Maximize selling time. Your objective should be to spend as much time as possible in front of customers; it’s practically impossible to sell anything if you’re not talking to and learning about your customers.Shane Gibson, “How to Operationalize Your Selling Strategy,” SalesHQ, http://www.saleshq.com/training/articles/1990-how-to-operationalize-your-selling-strategy (accessed September 6, 2009). That means that you will have to manage interruptions.

Managing Your Results: Set Goals and Determine Your Income

Patricia Schneider, a former beauty queen, aspiring actress, and law firm clerk, started selling Mary Kay Cosmetics because she heard that the company awards a pink Cadillac for meeting certain goals. With 150,000 miles on her Toyota Celica, she decided that she could sell makeup. She got her first pink Cadillac in 2003; in 2009 she earned her fourth one.Lori Basheda, “May Kay Consultant Scores Fourth Pink Cadillac,” Orange County Register, August 18, 2009, http://www.bta.org/ (accessed September 6, 2009). Patricia learned that if you want to earn cars and money, go into sales.

• salaryA regular payment from an employer in exchange for services.. This is a regular payment from your employer in exchange for your services. Salary is a set amount and is usually the same amount for every pay periodThe interval of time for which an employee is paid., or interval of time for which you are paid. A pay period may be weekly, biweekly, monthly, or quarterly depending on the company and the position. Most companies have biweekly pay periods. In most sales positions, if salary is included as one of the components of the compensation plan, it is usually a small portion of the compensation. This allows the company to provide incentive to the salespeople with a greater opportunity to earn more money based on the amount of sales (or gross profit) generated but still provides some regular guaranteed income to the salesperson. In other words, salary doesn’t necessarily provide incentive for a salesperson to sell more since it is paid no matter what sales are generated.Jim Kahrs, “Sales Compensation: Creating a Plan that Works for Your Dealership,” Prosperity Plus Management Consulting Inc., http://www.prosperityplus.biz/ArticleSalesComp.html (accessed May 16, 2010). If a company pays salary, the salary usually makes up 15 percent to 40 percent of total compensation.“Sales Compensation Plan Components,” Online Business Advisor, http://www.onlinebusadv.com/?PAGE=178 (accessed August 19, 2009). The percentage of salary will be higher for new salespeople; whereas more experienced salespeople will earn a higher percentage of their compensation from commissions. For example, if total compensation is $50,000, salary might be $20,000 for a new salesperson (approximately 40 percent of total compensation); whereas an experienced salesperson might earn $24,000 in salary but earn a total of $120,000 including commission (20 percent of total compensation).

• commissionIncome that is based on the percentage of sales (or gross profit) generated.. This is income that is based on the percentage of sales or gross profit generated. Commission is usually the largest portion of salesperson compensation. It is designed to be an incentive to the salesperson to sell more. This is one of the ways that salespeople have virtually unlimited income. Most sales jobs include some kind of commission element; others pay straight commissionCompensation method that includes only a percentage of what is sold with no guarantee of salary., which means that the salesperson makes only a percentage of what she sells without any guaranteed salary.“Sales Compensation Plan Components,” Online Business Advisor, http://www.onlinebusadv.com/?PAGE=178 (accessed August 19, 2009). Depending on the company, commission might be paid on sales dollars, on gross profitThe difference between sales generated and the cost of the product or service. dollars, or as a percentage. Gross profit is the difference between sales generated and the cost of the product or service. Gross profit may be expressed as dollars or a percentage. Gross profit dollars are calculated by multiplying the gross profit percentage times the sales.Jim Kahrs, “Sales Compensation: Creating a Plan that Works for Your Dealership,” Prosperity Plus Management Consulting Inc., http://www.prosperityplus.biz/ArticleSalesComp.html (accessed May 16, 2010). When salespeople have control over pricing, commission plans are usually based on gross profit to ensure that the company makes a profit on each sale.“Sales Compensation Plan Components,” Online Business Advisor, http://www.onlinebusadv.com/?PAGE=178 (accessed August 19, 2009). For example, if a 15 percent commission is paid on sales of $1 million, the income for the salesperson is $150,000 ($1,000,000 × 0.15 = $150,000). If a 25 percent commission is paid on gross profit (the difference between the selling price and the profit) based on a 35 percent gross profit and $1 million in sales, the commission would be $87,500 ($1,000,000 × 0.35) × 0.25 = $87,500. This calculation is also shown in Figure 14.6 "Commission Calculations".

  While most sales positions include commission, some positions pay a combination of salary plus commission. This helps provide some steady income for a salesperson, especially during businesses that have peaks and valleys.

  Do you want to earn enough money to drive a pink Cadillac, a BMW, or Mercedes? Or is your goal to buy a condo? Maybe you want to be able to travel to the islands during the winter or experience exotic locations around the globe. All these can be possible in sales because how much money you earn every year is usually up to you. It’s not too good to be true; it’s the reality of sales. The lifeblood of every company is its sales force, those people who connect to customers and generate sales for the company. That’s why most selling jobs provide at least some portion of compensationMoney and benefits received in exchange for providing services to a company including elements such as salary, commission, bonus, benefits, and any other elements in payment for providing services.—money and benefits received in exchange for providing services to a company that is based on performance. Compensation may include one element such as salary or several components including salary, commission, bonus, benefits, and more. To understand how compensation works in sales, it’s important to know the terms.

  Generally, it takes time for a new person to build up a customer base and begin earning higher commissions. For more detail about how commissions are calculated, follow this link:

  http://compforce.typepad.com/compensation_force/2009/01/sales-commission-calculation-basics.html

Figure 14.6 Commission Calculations

• drawAn advance against future commissions or bonuses.. This is an advance against future commissions or bonuses. Earning a draw provides steady income to the salesperson, especially if commissions are paid on a monthly or quarterly basis.Jim Kahrs, “Sales Compensation: Creating a Plan that Works for Your Dealership,” Prosperity Plus Management Consulting Inc., http://www.prosperityplus.biz/ArticleSalesComp.html (accessed May 16, 2010). For example, a salesperson might be guaranteed a draw of $2,000 per month; if the salesperson earns more than $2,000 in commissions she makes whatever she earns. If she earns $1,500, she is paid $2,000 for the month. In some cases, the $500 shortfall would be deducted from future commission earnings; this is called recoverable drawA shortfall in commission earnings that must be repaid to the company from future commission earnings.. On the other hand, a nonrecoverable drawShortfall in commission earnings that is not repaid to the company. means that a shortfall in commissions earned would not be owed to the company. Generally, a draw is designed to provide an income to a salesperson while he is building his customer base.“Sales Compensation Plan Components,” Online Business Advisor, http://www.onlinebusadv.com/?PAGE=178 (accessed August 19, 2009).
• bonusAn incentive paid to sell a particular product or service or to reach a specific sales goal.. This is an incentive paid to sell a particular product or service or to reach a specific sales goal. Bonuses are paid in addition to salary and commission. They are usually paid quarterly but may be paid monthly.“Sales Compensation Plan Components,” Online Business Advisor,http://www.onlinebusadv.com/?PAGE=178 (accessed August 19, 2009). Bonuses can be a significant portion of total compensation, depending on the industry and company. For example, in primary care pharmaceutical sales, a bonus can be between $20,000 and $25,000 and as high as $50,000.Cory Nahman, “Frequently Asked Questions Regarding the Profession of Pharmaceutical Sales Representative,” http://www.coreynahman.com/how_many_products.html (accessed August 19, 2009).

Plan to Earn

Now you can see why managing yourself, managing your time, and understanding compensation plans are so important to success in sales. All these elements are linked to the company’s goals, which ultimately determine your sales goals. For example, if the company is planning a 6 percent sales increase for the year, each salesperson is responsible for delivering a certain portion of that increase. Since some salespeople are new, their goals will undoubtedly be less than those salespeople who have been at the company long enough to develop customer relationships and steady income streams.

The most important aspect of sales is to understand your sales goals: exactly what is expected and by when. Most companies establish annual sales goals or quotas, expectations of sales for a specific time frame, by salesperson, and then break down the goals by month and sometimes by week. Establishing specific, measurable, actionable, realistic, and time-bound (SMART) sales goals (covered in Chapter 8 "The Preapproach: The Power of Preparation") provides a clear set of expectations for the salesperson and the company. For example, a SMART sales goal is “to increase dollar sales of accounting software with current customers by 8 percent by December 31, 2011.”

When this goal is broken down by month and by week, it provides a way to measure progress regularly. More important, the SMART goal provides a method by which to have a regular conversation with your sales manager to discuss how to remove barriers or gain access to additional resources to achieve the goal. SMART goals become the basis of sales quotas.

Since many business-to-business (B2B) sales have a long sales cycle, many companies use key performance indicators (KPIs)Measures of productivity that relate to achieving goals. to help gauge the productivity of each salesperson. KPIs might be compared to miles per gallon; they are a measure of efficiency and effectiveness. So while sales or gross profit might be included in a SMART goal, KPIs provide insights into performance; they can act as a way to diagnose problems in the selling process. KPIs are used to evaluate performance and compensation. Results are how salespeople are evaluated and paid. If a salesperson is not generating the desired results, chances are he won’t last long in his position at that company.

KPIs may be organized by type of goal—performance KPIs or conversion KPIs. Performance KPIsMeasures of productivity that include outcomes, such as sales, new accounts, units sold, or gross profit percent. are those that include outcomes such as sales, new accounts, units sold, or gross profit percent. Conversion KPIsMeasure of a salesperson’s productivity or efficiency that do not have outcomes, such as sales per customer or closing ratio. are used as a measure of a salesperson’s productivity or efficiency but do not have outcomes. Examples of conversion KPIs are sales per customer or closing ratio.Baron A. Weitz, Stephen B. Castleberry, and John F. Tanner, Selling: Building Partnerships, 5th ed. (New York: McGraw-Hill, 2003), 397. The following are some performance KPIs and conversion KPIs that are commonly used to measure the effectiveness of salespeople.