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Am I Paying My Salesperson Too Much?

Bigg Challenge
Max is a business owner. He hired a salesman about a year ago. Max put him on the same compensation plan that his other sales people were on (a small base salary with an incentive).

The guy has done a phenomenal job. Max’s company is showing record sales and profits, largely due to this sales person. But here’s the problem: this salesman is now making more money than Max.

Max wants to know if he should adjust his salesperson’s compensation.

Bigg Advice
What should you do about this, Max? Here’s what we think …

Nothing!

Here’s why …

Is it costing too much?
It is possible to over-compensate your people. You can’t design a system where a small number of top performers win bigg while the company loses money.

But that’s not the case here. You’re also making more money, Max. So if it ain’t broke, don’t fix it!

Handle with care
We’ve heard of great sales people who were let go when a situation like this occurred. It does happen. But remember the nursery rhyme about the goose that laid the golden egg?

This sales person is the goose. Handle him with care. Like the old Proverb says,

“Kill not the goose that lays the golden eggs.”

Your bigg payoff
Don’t miss the bigg picture. The bigg payoff for owning a business often isn’t what you make each year. It’s what you make when you sell it.

You’re building an asset whose value is based on the income of the business, sometimes called owner’s cash flow. As your bottom line increases, so does the value of your asset. That’s your bigg payoff.

How you can get paid more
You’re making record sales and profits so you can probably afford to add another salesperson. Before you do, look at your infrastructure and capacity to make sure you can support an additional salesperson.

If you can, then go for it!

There’s a good chance, if you do that, you’ll be the highest paid employee of the company again!

Model this employee
We would suggest cloning, but okay … we won’t go there! 

So try to find someone with traits and characteristics similar to this salesperson. To do that, think about what you know about him.

What industry did he come from, if he came from outside your industry?

What experience did he have?

What education?

Are there any other clues you can get from his background?

If you did a personality assessment as part of your hiring process, what did his look like?

And ask your sales person if he knows anybody who might work out well. Bigg goal-getters know bigg goal-getters.

Thanks Max for sending us your bigg challenge. We wish you bigg success!

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This Nugget Is Worth a Quarter

By Dana Mancuso
Bigg Success Contributor
07-10-08

Career Builders

quarter

Years ago, I worked part-time as a telemarketer to earn some additional income.
The goal was to set appointments for a sales representative to meet with the person on the other end. We called for a few hours at a time, had a lunch break and called again. In addition to a base salary, I earned bonuses (a quarter) for every confirmed appointment. This could result in up to an additional dollar per hour on a particularly successful day.

I lasted exactly three months. One day, I pulled into the office complex parking lot and a feeling of such aversion and dread came over me that I just could not work one more day at that job. I went in and quit on the spot.

I figure, in only three months, that I must have called a few thousand businesses and homes. As a result, I have a well-earned appreciation for the difficult job it is to call people out of the blue to sell them something they are not looking to buy.

In my opinion, the best way to handle a telemarketer you do not want to speak with is to cut him or her off at the earliest possible time with a, "No thank you," and hang up. This allows the caller to move on to the next prospect without a lot of time wasted.

Think about it, if you let the caller get to the end of a really long speech and say “No”, who benefits?

You? Nope. You wasted a lot of time listening to a spiel.

The telemarketer? Definitely not. You got someone's hopes up and then lost that guy or gal their quarter.

Just last week I answered a sales call at work. I took my own advice and politely ended the conversation quickly. Even in my work today, I have used knowledge from that less-than-perfect job. 

Think about what nuggets of wisdom you learned from former jobs, part-time or otherwise. You may not realize the important lessons you took away with you, even from those short-lived or terrible work experiences.

You'll be surprised at the little (and big) ways they have impacted or influenced things you do today. And that in itself is worth at least a quarter!

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