I have found that a really good sales rep will pay for themselves and maybe even teach you a few things. Not just a good one. A phenomenal sales rep. They come with experience and they may have a few tricks you haven’t seen. And if they came from a bigger company, they may have seen the service done differently or better than yours so leverage that employee’s knowledge to see if you could be more efficient or take on a new service.
Sales is one of the easiest positions to manage.
- Set their minimum quota based on sales from each month last year + 5%.
- If they don’t hit that number, put them on a PIP. For the next 3 months they have to hit 80% then 90% then 100% of quota. If they miss a month, they get let go.
- Set their commissions to grow AFTER they hit their minimum quota. Our reps are required to hit $50k. Once they hit their number, their commission grows only 1-2% at a time for the first 3 levels. And then it grows increasingly after that. This is to set the standard that at the minimum, you won’t make much money. But if you push past that you will make boatloads. This mitigates your risk and reserves a fat payday for the sales rep to the point when you can afford it.
- Know when it’s time to hire your next sales rep. How many leads or appointments can one rep handle? What thresholds will you create so you have guidelines to make your next hire?