I made that up, Sinking Stock Syndrome, from some interactions I have had recently with a couple of small business owners. Both owners suffered from this syndrome which had disastrously negative effects on their company, both in revenue and morale. Here is how I define my newly-minted syndrome – an irrational hope that a grossly underperforming salesperson will miraculously turn things around and become a sales superstar. It rarely happens. The problem stems from the business owner who has invested in this failing salesperson. Notice I used “business owners” – I do believe this syndrome is more prevalent among this group as they are closely tied to the business (i.e.… Read More
Continue ReadingPreset For Mediocrity
SellingPower.com’s article deals with something we have seen throughout our many years of sales assessing, hiring and coaching – financial comfort zones. Here is a good explanation of it from the article (emphasis mine): Eker stumbled on the concept of financial blueprints while running his first company, a fitness business. In that business, his trainers often referred to a body’s “set point,” or the metabolic rate at which a body is comfortable. Eker, looking back over his financial history one day, realized that again and again he followed the same financial pattern of making a lot of money and then losing it. Up and down, up and down for fifteen… Read More
Continue ReadingWhat Sells In A Recession
Here is an interesting story from abcnews.com – What Do iPhones and Designer Jeans Have in Common? The answer is found in the subheading – They Keep Selling, Even in Recession. Here is a list from the article in regards to hot-selling products during this recession: The iPhone Designer jeans Wal-Mart and Costco McDonald’s Internet access High-definition TV sets An odd list, wouldn’t you say? The low-price options are logical, the other ones not-so-much. The explanation from the article: “Even in down times,” said Michael Gartenberg, vice president for strategy and analysis at Interpret LLC, “people still have some discretionary income. What happens is that they spend it more carefully.”… Read More
Continue ReadingSales Retention Through Compensation
Commission-only sales plans are risky in my opinion. I know they are the truest form of selling – you eat what you kill. I simply think that many salespeople view this structure as a lack of commitment from the company. I’m not saying that is accurate, but I have talked to many salespeople under these plans and this is their perception. Fortune Small Business discusses this topic in their article Why to be wary of commission-only sales staff: “If you hire someone and you’re not really willing to invest time and resources in them – and that’s really what a commission-only sales person suggests – then you’re missing an opportunity,”… Read More
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