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Why Commissioned-Based Sales Plans Fail to Work with Justin Clark

Justin Clark Sales Babble Why Commissioned-Based Sales Plans Fail to Work with Justin Clark

Justin Clark is the Director of Sales for a janitorial and packaging products distributor. Over time, Justin’s company found sales reps spending more time auditing their paychecks than selling.  They also found the commission-based sales plans failed to motivate reps to do the best for their customers. To overcome this challenge they moved their sales staff to a pure performance review based salary plan.  In this interview, Justin shares the story of how they were able to make this extraordinary change in their compensation plan.

Challenges Faced

  • Money is emotional. 100% commissioned sales people would spend as much time making sure they’re paid what they earned vs selling.
  • Reps pushed products that brought the most money. There were SPIFs (Sales Performance Incentive Fund) for products that were not good for the customer.
  • Wanted to promote consultative sales and stop sellers pushing products and instead finding solutions.
  • Commission-based sales plans were holding the company back.

Transition Plan

Because of these challenges, Justin slowly created a transition plan to move the organization.

  • Did not move immediately to salary compensation.
  • Slowly moved from commission-based sales plans to salary and bonus plans
  • Still too much focus by reps understanding the bonus
  • Commission-based sales plan was slowly phased out

Final Plan

Once the final plan was finalized it was found to contain:

  • Paid full salaries on most recent best year.
  • Reps paid same as last best year.
  • Money is a manager. Without commission-based sales plans you need to manage. more hands-on and ensure accountability. The final plan requires more coaching and more investigating into reasons reps are not successful.
  • People do good work for many reasons, not just money.

Results

Since the plan has been in place, the results contain:

  • People felt like they needed to hit their goal because the company was ALREADY paying them.
  • Everyone is now on the same team with the exact same goals.
  • Raises are  based on performance review.
  • Some employees didn’t like the plan and found they are not a good fit for the company. Some reps have left the company, others asked to leave.
  • It’s been a 10 year process.

Transition Advice

Now that they’ve reached success, Justin has some clear advice for others interested in changing their compensation plan:

  • Management team needs to look at staff, consider how they will manage them and if they are OK if people leave.
  • Answer this: is it worth getting everyone surrounded around the same purpose. It probably is!

How To Connect With Justin Clark

Commission-based sales plans no longer exist in Justin Clark’s sales department.

Connect with Justin on LinkedIn and learn further details.

 

How to Manage Sales Teams

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How To Learn The Secret Lingo of Your Customer with Jeffrey Shaw #192

Sales Babble Secret LingoHow To Learn The Secret Lingo of Your Customer with Jeffrey Shaw #192

Author Jeffrey Shaw visits Sales Babble to talk about his book Lingo – Discover Your ideal Customers’s Secret Language and Make Your Business Irresistible.   Jeffrey believes that far too often people sell the wrong thing to the wrong people. Unfortunately too few people understand for whom they are for. Your ideal client has a secret lingo that mirrors your traits and values.  Once you learn their lingo, you can quickly discern and serve this market.

Five Step Process

In his book Jeffery outlines a five step process for discovering your prospects secret lingo.

  1. Understand your ideal clients perspective
  2. Create familiarity and comfort
  3. Style – build one that matches your target
  4. Pricing – Use whole numbers for high-end customers
  5. Words – use language they speak

How To Connect with Jeffrey Shaw

To find Jeffrey Shaw, his book,  and the free secret lingo giveaways go here:

  • Lingo mediate kit Inforgraphic
  • Free Chapter of his book
  • Audio version of the first chapter of the book
  • The full book on Amazon
  • LinkedIn
  • Twitter @jeffreyshaw1

Go to Jeffreyshaw.com/sales 

How to Learn About Your Ideal Client

Here are past episodes that speak to the importance of knowing your ideal client.

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How To Generate Leads without Sales and Marketing with John Tripolsky #191

John Tripolsky Sales Babble Advice Generate Leads without Sales and MarketingHow To Generate Leads without Sales and Marketing with John Tripolsky #191

In this episode we meet John Tripolsky, CEO of JTE Marketing. John shares his process to generate leads through a referral process. When starting John had neither  marketing nor a sales staff. Instead he leveraged his existing network to find qualified prospects and generate leads. It worked and this is how to generate leads without sales and marketing!

Hire a Team Without Hiring

The JTE Marketing earned its first two clients from friends and family. They repeated the process by working networking meetings. John kept attending and connected with five people. From those five they built their portfolio. Building personal relationships is what matters.

John is a strong advocate for LinkedIn. He has 7K connections. Almost all have gotten a personal message welcoming them to connect.   Not everyone is a qualified prospect. Yet all know people who ARE qualified. Referrals come from both existing and non clients

Lead Generation Referral Process

  1. Use the three letter word “ask”    Sit down and casually start… “let’s talk about XYZ …..”
  2. He then asks…. “Do you know anyone I could talk too? “
  3. Next he asks … “Would you introduce me? Would you send an introduction email?”
  4. Share “I would love to talk to them and pick their brain about …. “
  5. Once you get the lead follow up … “John Smith recommended I give you a call…”
  6. Lastly asks if they would be open to personally set down and chat for 10 minutes. In person

This is how you learn about a market and it’s nomenclature. It’s also solid advice on how to generate leads without sales and marketing. This process is great news for startups!

A Watershed Deal

After a terrific presentation he was asked for a proposal. He had no idea what to do but eventually created an order form. It was not pretty. Since he’s a marketing company, he believed this poorly represented the company. He made it beautiful with graphics and brand worthy style.

Make your invoices and quotes BEAUTIFUL!

He recommends Pandadoc 

Having a great proposal maintains the positive feeling that happened at the time of the presentation.

Take Action Advice

Ask……  Make it second nature to make requests of clients and prospects. Get over the hump of shyness. If you never ask you’re never going to get anything from it. Keep forward momentum, embrace lifelong learning and ASK.

Where To Find John Tripolsky

This is the link to the JTE Marketing Group

You can also find John on LinkedIn

How to Prospect and Generate Leads

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Why Nobody Gives a S*%T About Your Sales Goals with Mike Dannenfeldt #190

Mike Dannenfeldt Sales Babble Why Nobody Gives a S*%T About Your Sales Goals with Mike Dannenfeldt #190

Highly effective companies collect and measure sales goals. These goals drive performance and results. Mike Dannefeldt and I talk about process management, goal setting and how to manage sales staff. The challenge is to meet and exceed the goals. Yet success is dependent on buy-in and communication.

Why Sales Goals Not Met

Nobody cares about company goals if the vision has not been communicated. Goals by themselves do not motivate. They they must have  meaning and value to all in the organization.

Leaders must be transparent about strategic goals to ensure employees understand and buy-in (communicate and collaborate). Too often transparency is non-existent.

Tools Drive the Process or Process Drive the Tools?

  • We talked at length about the distinction between process and tools. Paper processes are rarely followed.
  • The data collected must benefit all parties. Especially true if employees are responsible for data input
  • Establishing regular metric review meeting drives performance growth and results

Take Action Advice

Establishing regular metric review meetings to communicate vision and drive performance with results. Mike gave us advice on how to set this up:

  • Set up recurring weekly meetings
  • All departments attend
  • Everyone contributes and reports on progress, at least two goals
  • Include sales goals and product/service goals
  • Place something up on the screen so all can see. A dashboard with KPIs (Key Performance Indicators).

Memorable Quotes

Sales Goals quotes shared during the episode:

Goal without a plan is just a wish

Everybody has a plan until they get punched in the face – Mike Tyson

How To Find Mike Dannenfeldt

You can find Mike on LinkedIn 

  • Mike on Twitter .
  • Go to zecutiv.com    You can get a 20%  off if you use the  Promo code “salesbabble” 

How to Manage Sales Teams

 

Sales Goals to Manage

There are two goals to focus on:

  • Nudges – an interaction with a suspect that advances the sale by a prospect responding
  • Appointments – the suspect becomes a true prospect when they agree to meet.

Sellers should focus on maximizing nudges. They will lead to appointments. Managers should assume  opportunities with appointments have a high likelihood to close. All should focus on the true nudges.

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Phiology: Secret Code of Leadership David Eisley #189

David Eisley Sales Babble

Phiology: The Secret Code of Leadership David Eisley #189

In this episode we meet Dave Eisley, author of the book  Phiology: The Secret Code of Leadership. Phiology is the  intersection of physiology, psychology, and philosophy in the context of leadership, but written from a sales management perspective.

Phiology Focus for Sellers

Dave and I discuss how Phiology addresses leadership especially in the case of  sales:

  • Control your physiology to achieve optimal performance.
  • Navigate obstacles by shifting your perception of events.
  • Decode the origins and fallacies of decision making, in yourself and by others.
  • Uncover vital parts of any system, revealing key leverage points that drive success.
  • Expand your influence in an ethical and meaningful way.

Sales and Leadership

Sales is responsible for the rise of humanity.  Our ability to trade separates us from the other species on our planet. Without the idea of a trade, and a fair trade, humanity has been able to team and create civilization. It’s all based on trust.

  1. Talk and share a vision you want to obtain
  2. Get everyone in the room
  3. Empower people
  4. Commission each to take action

Take Action Advice

Control what you can control and leave the rest. 

Influence the few things you can, it will get noticed and you will be rewarded for it. Be bold, be courageous, take action. 

How To Find Dave Eisley

Here are links to Dave online and his book.

Book Raffle

Here’s a chance for you to win a free copy of Phiology. Email Pathelmers @SalesBabble.com

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Selling Mindset

Here are other terrific episodes on mindset. Click a link and listen now!

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Repeatable Success for Sales Development Reps with Brendan Barrett #188

Brendan Barrett Sales Babble

Repeatable Success for Sales Development Reps with Brendan Barrett #188

 

There is a growing trend for companies to separate business development from deal closing. We’re talking about two different people: One person setting up appointments the Sales Development Reps (SDR) and the other is the  closer. In this episode our guest Brendan Barrett and I walk through the SDR process with it’s pros and cons. We do some roleplaying in order to show practical advice for anyone prospecting and trying to set up an appointment.

 

What and Why an SDR?

SDR stands for Sales Development Reps – appointment setters, prospectors and cold callers.  Brendon calls the the Roller to the Closer .  This is different than the traditional inside sales (an order taker).   This is all outbound sales and Business Development.  They are sometimes called Business Development Reps or BDR.

More efficient for closers, who can be closing deals daily vs spending time in the office setting up their own meetings.

Downside of SDRs.

  • Details get dropped
  • Having a process imperative
  • Communication

What Makes For SDR Success?

  • Entry level position
  • Hungry, coachable, naturally curious

SDR Process

In this section we walked through the SDR process and gave practical examples for the Listeners.

  1. Create a relationship
    • Use LinkedIn to prospect
    • Reach out to sescretary
    • Take 2-5 touches to get a meeting
  2. Create a dialogue (conversation)
    • “I’m looking for people who set up your brown bag discussions
    • “I saw your post on LinkedIn and I’m curious about it …..
    • Could be set up on Facebook, Messenger, LinkedIn or email
    • Always wish somebody a good day, that opens up people
  3. Qualify
    • Prospecting is market research
    • Some deals take years, hand off slow deals to marketing to keep them warm
    • Laws of attraction applies by showing interest. Create curiosity, get them to ask you about you
    • Be skeptical, don’t assume they are qualified
    • Ideally you want them to see the value and self qualify
  4. Win permission to sell
    • Make a phone call about them
    • “How was the weekend, what do you have going on this week
    • If you met at a conference, start there, “what’s your next conference on your calendar
  5. Introduction to Closer
    • Sounds like we could work with you well but I’m not the right person

Take Action Advice

Nice guys win and smarter guys win more!

Be helpful!

How To Find Brendan Barrett

Support our Sponsor Bluehost

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How to Prospect and Generate Leads

Other great episodes on business development. Listen today!

 

 

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Sales Success Triangle of Attitude Behavior Technique with Glenn Mattson #187

Sales Success Triangle with Glenn Mattson #187

In this episode we describe the sales success triangle. It’s based on Attitude, Behavior and Technique. Our guest Glenn Mattson is a business consultant and sales coach. Glenn speaks from experience on the issues sellers commonly face and things they can do to find selling success.

Selling Personalities

Gabby people aren’t necessarily the best sellers. Yes they are good at connecting and initiating conversation. But sometimes they are too bound to seek for approval. They struggle with the follow up and closing aspects of sales.

Introverts and techy people, can be extremely successful in sales because they are process oriented,  they follow a system nor do they wing it.  More introverted sellers  don’t care if people like them, they handle rejection better.

Issues top sellers face

We discussed at length the problems, concerns and barriers to success. Glenn mentioned:

  • Attitude
  • Lack of Patience
  • Guilt
  • Worry
  • Anxiety
  • Risk Adverse
  • Poor Discipline
  • Poor Planning
  • Non-Tactical
  • Poor Listening
  • Weak Questioning
  • Reduce cost of sale

The question is this, how to maximize your time and energy for more business?

Sales Success Triangle

According to Glenn it’s Attitude ,Behavior, and  Technique.  Attitude is most important:  For example you earn exactly what you think your worth.  You call the people you think you’re equal to. He recommends that you increase your average deal by 10% every 60 days. Next deal with your limiting commitment. Some people say all the right stuff but don’t do it.   They have an ocean of excuses.

Take Action Advice

Two pieces of advice:

  1. Live in a world of execution
  2. Don’t fear failure.  The more you fail, the more you learn and the more you earn

How to Connect

You can find  him here www.mattson.sandler.com

or call 631 726-3537

Support our Sponsor Bluehost

Sales babble is brought to you by Bluehost. Take your idea and start your business online. Sales Babblers can start for only $3.95/month

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Sales Skills Training

Below are other past episodes that discuss ways to hone your craft of sales. Listen today!

 

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Why Do I Need a Brand with Kim Speed

Kim Speed Sales BabbleWhy Do I Need a Brand?

In this episode I and  Brand expert,Kim Speed dig deep into the  question why do I need a brand. Everyone says having a brand is critical for success. But is it? What is the fundamental value a BRAND provides you and your company? How does a brand make it easier for me to acquire new customers and prospects?

Brand vs Branding

According to Kim, your brand is who you are and what people say about you when you’re not in the room. Branding is all the elements that supports your brand: website, ads, emails, logos etc…   Let’s focus on the former, before the latter.

Sales and Branding

Your brand is useful for your sales process. When done well it open doors and creates trust.  But it’s not an easy path to understand your brand. It’s built on knowing and viscerally understanding your ideal client. This requires companies to go through a value proposition process. Instead of focusing on logos and fonts, focus on who is PERFECT for you product or service.

Who Is Kim Speed

Kim is the owner of Purple Moon Creative, Brand and Marketing Boutique where she helps start-up companies and small business owners to become visible to their prospects, and to turn those prospects into clients.

Kim is the author of the recently published book, Branding on a Shoestring: How to Re-Create Your Small Business Identity and Increase Sales Results in 83 Days or Less.  Go here to get it purplemooncreative.com      and answer the question “why do I need a brand!”

Support our Sponsor Bluehost

Sales babble is brought to you by Bluehost. Take your idea and start your business online. Sales Babblers can start for only $3.95/month

  • FREE Domain
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  • 24×7 support

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Transformative Sales Tools with the Tool Master Miles Austin #185

Miles Austin Sales Babble #185Transformative Sales Tools with the Tool Master Miles Austin #185

In this episode we meet the tool master Miles Austin who shares a number of transformative sales tools that will increase your efficiency, productivity and ability to close sales. Miles is a highly engaging guest, a guy you can relate to. Yeah we’ll be geeking out. But if discovering more leads, booking more sales, and becoming a highly sought out sales professional sounds like a good thing –  then hang on and listen up.

List of Transformative Sales Tools

The following is a list of sales tools that were mentioned during the interview. I’m not familiar with all of these tools. But Miles speak highly of them. Enjoy.

These transformative sales tools can kickstart your selling revolution. Change is hard and it’s easy to stay the course and do nothing.  But consider this. The journey of a thousand miles starts with a single step. Pick one tool and consider it a single step.  Take action!

How To Find Miles Austin

This is Miles Austin’s web page.  Click here to download his Entrepreneur Launch Pad

https://www.fillthefunnel.com

https://facebook.com/MilesRAustin

https://www.linkedin.com/in/milesaustin/

How to Find Pat Helmers

This is my personal website PatHelmers.com 

Check it out! http://helmershomestead.org/

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Sales Tools

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How to Pitch Shark Tank with Michelle Weinstein #184

How to Pitch on the Shark Tank with Michelle Weinstein #184

Michelle Weinstein is a sales strategist who specializes in helping entrepreneurs learn how to sell without selling and without being sleazy. She pitched on Shark Tank and raised over $1M for her last Company placing products into Costco & The Vitamin Shoppe. In this episode she shares the story and the fundamental elements of a strong pitch.

Elements of a Pitch

On the TV show Shark Tank. Michelle was pitching a protein bar business and after a multi-step vetting process she was able to pitch before the “Sharks” only to be shot down. Due to significant coaching for the show, she learned you must your authentic self. If you’re a fake, people won’t trust.

  • One minute to make an impression.
  • 10-20 seconds you will be judged
  • Practice your elevator pitch over and over and over
  • Make it memorable
  • Make it catchy
  • Make it niche enough then be  more niche
  • Know your audience

Take Action Advice

Go take action, too often people don’t take action. Fear is in their way e.g. afraid they don’t know what’s going to happen, afraid of rejection, afraid of failure. She believes you do the market a disservice if you don’t’ reach out and offer your products and services.

Pat’s Pitch Template

Here is an example format that may help….
I help __________________ people
in  _______________ kinds of industries 
who have ___________PAIN or DESIRE___________
by providing __________SOLUTIONS_________
that provided BENEFIT BENEFIT BENEFIT 
Then ask… is that you?
Write this up and read it outloud 20 times until it rolls off your tongue easy peasey.

How to Find Michelle Weinstein

As she shared on the podcast, she is the Pitch Queen.

Go to http://www.thepitchqueen.com/

Support our Sponsor Bluehost

Sales babble is brought to you by Bluehost. Take your idea and start your business online. Sales Babblers can start for only $3.95/month

  • FREE Domain
  • Free Site Builders
  • 1-Click WordPress Install
  • 24×7 support

Special intro offer and 30-day money-back guarantee
Powering over 2 million websites worldwide

Entrepreneurial Mindset

Here are past episodes for the startup and entrepreneurial minded. Listen today!

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