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by farout 5567 days ago
Having been a hi-tech quota exceeding :-) sales rep for a number years, here is what I advise:

1. Hire two reps: one for each coast. Even two part-time reps at each coast I say is better than one rep running around from coast to coast. Time wasting and regionally differences do crop up.

2. Read the the book, Selling to Big Companies.

3. Yes sell yourself so you understand the issues involved.

4. "Salespeople are notorious for giving excuses when they don't meet the sales targets they agreed to."

This is usually when the owner does not understand the market or misestimates the market. Any good sales person will leave and stop wasting time with people that will not work with them to make sales happen. It takes a company to sell. Especially if you want the easy and lucrative referrals.

What is the price point for this product? Who at the customer site will ultimately say yes?

At one company, it was easy to sell since the network engineer was the main guy/gal that had to approve the technical aspects. I just made sure they understood the personal utility of our product as well so they had a personal stake on how their life would with us or a competitor's product.

read the book, it is totally awesome. Having done the job for a number of years, I still learned lots of usually things that I was able to use immediately.

In terms of what to offer, I guess it really depends. Realize in the beginning you are really doing business development not just sales. So there needs to be more of a salary cushion. A low end salesperson is usually 40/40. 40k salary and 40k commission. Realize that the you are hiring a profession and not asking them to necessarily do charity work. However, together estimate the metrics of sales and the where the number of sales at each level in the sales pipeline. Also come up with remediation plans. Say in 2 months, you expect the rep will have made 5 sales. What happens if they have only made 2 sales. Have everything spelled out so everyone knows the ramifications and there are fewer surprises.

3 comments

> "Salespeople are notorious for giving excuses when they don't meet the sales targets they agreed to."

This is the sister argument for "developers are notorious for giving excuses when they miss deadlines they agreed to"

The key point about metrics is having something to base them off; difficult with a new product unless you know the competition (and the basis on which their clients switch) very well. A better starting point would be to agree upon how the rep intends to make 5 sales. If they make them, all is well; if they don't, you look at a simple measure of performance like whether they attended the meetings expected of them and ask what the feedback was. Resist the temptation to micromanage KPIs if things aren't going so well: if you suspect your salesperson is failing due to laziness then either you're wrong, and you'll drive them away faster or you're right and you still won't make things any better.

How do you feel about handing over all the in-progress sales to the account rep, so he can get some easy wins? I'm in a market with a 2 year sales cycle (there are shortcuts to make it 3-6 months), and there are leads/pilots in various stages. Do you get reduced commission for those, or none, or full?
I am not sure who you are asking, but I will respond.

There is no such thing as an easy wins. Most companies do not realize a customer is not a sale. A customer is a customer that renews, tells others (referral aka word of mouth), or comes back as repeat business.

P&G has 4 moments of truth: First that the customer knows about you, second customer buys you, third customers accepts that you did what you claimed, and fourth customer tells others or buys again.

The more customers that are using your product the more sales you will get; kinda like network effect. They each can talk to each other about their experience and how it improved their lives/company. Since more people are using it, it is easier to get internal buy-in and sales on new accounts.

I agree with the person that said sales are hard initially. You have no brand awareness. Make it easy for your rep to sell. Sales is hard. Ask any CEO who has done it. I would pay the person for the numbers in each of the stages in the sales pipeline since that is how sales are made: step by step. vary the commission rates. Like the other person, focus on the process and then conversion rates for each stage.

My questions to you: How much profit will you make on 0 sales? What are you waiting for? Either close the business yourself or let a professional who has vested interest do it. In the beginning it is not about profit but market share and building brand equity.

Edit: andrewstuart's said the quote on item 4. I am just responding that I do not agree.