Apr 05, 2017 12:39PM
By Karl Schaphorst
The term “commission” is familiar to ranks of sales professionals. However, I want you to think about your income a little differently. Rather than earning commission when a sale is made, think about your pay as an hourly wage. What makes your hourly pay different from the familiar, traditional hourly jobs is that your hourly rate will change based on the activity you happen to be doing at the moment. For example, in my previous career, for every 10 presentations I made, I would close on, and get paid commission for, three orders. On the three projects I won, my hourly rate was great, but on the projects I lost, my hourly rate was $0/hour. I thought “this is just how it is in sales,” so I did little to change or improve my sales performance until I was taught to think of my compensation as hourly. Spending 60 hours per week on sending proposals to my customers meant missing out on my kids’ activities and time with family, all so I could get paid for 30 percent of my time. That made me angry. This is madness, yet a vast majority of salespeople would give you a similar story.
I think there is a better way to sell that will pay more per hour, which means one can earn their desired wage in less time. I just need to figure out how to get rid of the seven prospects who don’t buy quickly and only spend time on the three who will buy. If I can figure this out, then I will close the three orders, so my pay is the same as before, but I do not spend much time on the seven who do not buy. Can you see how my hourly wage more than doubles?
Since your time is just as valuable as your prospects’ time, only the prospects who plan to buy from you get any of it. In order to do this, you must sort all prospects who talk to you as either buyers or window shoppers. The first step in doing this is to recognize that there are four possible outcomes of a sales call: yes, no, maybe, and clear future. Let’s examine each one.
Yes: Congratulations! You achieved an order and you will earn money.
No: Shoot! Shake it off. There are plenty of other customers out there who will buy. Did you know that “no” outcomes are good, and they can actually make you money? If you get a “no,” that opportunity no longer consumes your time, which means you can divert time to those who buy, and your hourly rate actually increases.
Maybe: Stay away from the dreaded “I need to think it over.” These outcomes represent the “window shoppers” and will cost you money. These prospects waste your time and consume your resources. Therefore, when a prospect stalls, push them to “no.” At least a “no” will make you money.
Clear future: Sometimes your product or service cannot be sold in one call. You might need multiple meetings to formulate the solution and make the sale. This positive outcome is for those prospects who see value in your solution, are willing to move the process forward, and want the sales conversation to continue on a specific day at a specific time.
Thus, the rule is “No more maybes.” If you can make this rule part of your selling system, you will increase your hourly rate and significantly grow your sales. You effectively sort the buyers from the window shoppers and spend more time on those who buy. Now, I close three out of four presentations I make, my income has increased by triple digits, and I spend less time doing it all.
So, what is you hourly wage?
This article was printed in the Spring 2017 edition of B2B.