Hiring a Sales Rep

DrewChan

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I wanna take the plunge and start a small startup business, one of the main components is someone to sell the product. How do I ensure that someone on the road does their job and doesn't just sit back and collect a salary (I plan on offering a fixed salary as well as commission).

I understand that people management, setting expectations and targets will all play a role however I am hoping to hear the experiences of someone that has gone through something similar.
 

ISP cash cow

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All out Reps do petrol logs and business reports. This way it will be very difficult for them to lie about where they have and haven't been as the logs should tie up with their customer visits.
 

maumau

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wjat ISP said.

also, s a new business the rep will have his own concerns.
 

Crystal Web

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1) Know the qualities of the type of individual who will work well in the organisation's plans and culture before you start the hiring process
2) Don't settle - hire right the first time
3) Set SMART goals, and operate a proper CRM system for "remote" management
4) Train properly
5) Don't micro-manage unless that's the sort of individual you want (people requiring micro-management are typically not very good sale people)
6) Go to meetings with the individual and set the right examples in-meeting
7) Ensure admin is completed accurately (should form part of the SMART goals)
8) Set realistic targets and incentivise accordingly
9) Have scheduled meetings to discuss each new prospect, the previous week's activities, and to ensure that plans are being stuck to (be prepared to revisit plans, but not on a whim. Revisit quarterly imo)
10) Ensure that you have targets for conversion rates (calls, meetings, follow-ups etc) and that you are able to monitor these properly. And run A/B experiments on value propositions as well to determine which work and which don't. Don't be too frigid with this sort of thing, especially for cold calls.
11) Know your own sales cycle beforehand
12) Ensure that systems and support around the sales staff are 100% - don't leave them with broken systems and zero support - you'll lose good staff very quickly that way.
13) Ensure that honesty forms a part of their sales mantra - the last thing you want is a bullschitter - they have quick wins, but you'll sacrifice brand value and recurring revenue. It's simply not worth it.
14) Ensure that as management you continue to evolve your product and your business. Good sales people get bored too quickly when things become monotonous. Keep them feeling like they're a part of the business' success, and involve them in certain brand and product evolution discussions.
15) Don't mix up business development, sales, and account management. Many small companies try to blur the lines there to save costs, and it always backfires. You'll find a super salesman may not be the best account manager - be prepared to invest in this depending on your business and product range.
16) Make their life easy - plan properly, operate a solid business, give them the correct tools to make them successful, invest in training, let their personalities shine, ensure they're properly informed, keep them honest, incentivise properly, and don't EVER let them own the customer to an extent that if they left, so would your clients. Stay actively involved.

Much more advice available, but in general those are good pointers in my experience with sales staff to get you on the right track.
 
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DrewChan

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Thanks for replies thus far, some good advice to chew on. I currently have a pretty good full time job. Looks like this may not be feasible unless I quit.

Some big decisions to make
 

Crystal Web

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Thanks for replies thus far, some good advice to chew on. I currently have a pretty good full time job. Looks like this may not be feasible unless I quit.

Some big decisions to make

You can't leave a salesman in charge of running your company - you'll either need to find the time, or hire a general manager, or find someone to partner with who has those skills and buys into your plans.
 

Magnum

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Don't they are all a lying bunch of ***heads...Have never met an honest sales rep in my life ever.
 

spyketdog

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Don't they are all a lying bunch of ***heads...Have never met an honest sales rep in my life ever.

Really that is very condescending. A really good sales person will concentrate on service and after sales service. When a sales person fails to deliver it is 90% of the time the company's fault. Companies forget one thing- they look down on sales person forgetting these people are their bread and butter. Bashing them with target targets targets and more targets. Without ever backing them and motivating them. And for micro management - a sales person knows their jobs. No sales no commission. No service and after sales backup from the company put the sales person just in a bad light and a lost angry client and a demotivated sales person. It happens all the time. Then companies ask where are the sales. The fault lies with you the company and the managers.
 

DrewChan

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You can't leave a salesman in charge of running your company - you'll either need to find the time, or hire a general manager, or find someone to partner with who has those skills and buys into your plans.

Alas my startup capital is only 50 - 100k

Not enough to hire a large employ. Might need to save a bit more.... or quit.
 

noob_saibot

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Alas my startup capital is only 50 - 100k

Not enough to hire a large employ. Might need to save a bit more.... or quit.

Personal piece of advice:

If you can't conduct the sales yourself, then don't expect to get an understanding of what is good/bad from the sales person and you may burn through that cash quickly (and eventually lose it all).

Be the salesman on a part-time basis and build the leads/channels yourself in the start (eg. first 6 months).

It is (in 1 word) "****ty" work, but you will know what it takes to get "started" and then you can bring someone on board, especially when cash-flow is better.
 

FatBoySlim

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Thanks for replies thus far, some good advice to chew on. I currently have a pretty good full time job. Looks like this may not be feasible unless I quit.

Some big decisions to make

Partner with someone on it, if you are willing to give up some equity - sometimes this can be more cost effective than employing someone in sales due to the quick go to market by partnering with someone already in the industry.

I took the plunge and have gotten excellent traction and I look for startups that need some assistance getting off the ground. If you need some advice PM me.
 
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