December 2011 Articles

Give a Salesperson a Base Salary; and Don’t Pay for It!

Monday, December 26th, 2011

Salespeople like base salaries becuase it makes them feel secure.

Business owners are weary of base salaries becuase they could end up losing alot of money if the salesperson doesn’t perform.

This is why many business owners offer what I like to call a “guaranteed-base”.

The guaranteed-base is a hybrid between a full base salary and a draw. Base salaries are risky for business owners, and most salespeople do not like taking loans out against their performance through draws.

A guaranteed-base states that the salesperson is guaranteed to make a certain amount of money every month – unless they maky more in commissions, and then they would get the higher amount.

The difference between a guaranteed-base and a salary is that commission is included in the guaranteed base, and not added on top like in the case of a salary. The difference between a guaranteed-base and a draw is that the salesperson will always make at least the guaranteed-base amount, regardless of sales, and does not have to pay back the difference as in the case of a draw.

The guaranteed-base amount is usually set at 50% of what a typical base salary would be.

Here are a couple of examples.

#1 – A salesperson makes less in commission than their guaranteed-base:

Guaranteed-base = $3,000
Monthly commission earned = $1,100
Salespersons monthly check = $3,000
#2 – A salesperson makes more in commission than their guaranteed-base:

Guaranteed-base = $3,000
Monthly commission earned = $5,100
Salespersons monthly check = $5,100

This compensation plan is especially helpful when you are working with mid-experience sales people, or have a salesperson in a 3-6 month training program.

The key to making this type of compensation successful is to set VERY clear performance expectations with your sales staff, review their key performance indicators weekly, and fire them quickly if they are not following their KPIs.

Jamar Cobb-Dennard
jamar@jamarspeaks.com

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Three BIG Marketing Lessons From College Football

Friday, December 23rd, 2011

Well, it’s that time of year again for football fans: college bowl season. From car companies to credit cards, corporate America and colleges from across the land unite and become allies to promote their names, brands, prestige, hype, and oh…I almost forgot, play a game called football.

College football is always a hot topic of conversation, especially with proud alumni from competing schools, but as a marketing professional and student of persuasion, I’m always intrigued as to why people get so fired up and create debate when there are so many other competing options for time, attention, and priorities.

With that in mind, here are three BIG marketing lessons from college football as we enter the season of highly hyped and promoted Bowl games.

#1. Cash is king. Companies of all shapes and sizes spend major money sponsoring everything from naming rights, half-time shows, to other game related promotions in the constant battle to build their brands and force their way into the mind of fans and competitors.

Universities who typically pride themselves as being institutions of “higher learning” and separate from business reverse course during football season and seem to quickly forget why they exist and partner with current and newly created Bowl Games for one central reason: money.

Yes, school pride (Go WMU Broncos – BBA, 1994!) is a major reason cited and spoken by University brass for being a part of a Bowl game, but don’t be fooled by this blanket response as being the main one. At the end of the day it’s not only about pride, but the cash. Football is a huge business in the U.S. and major money maker for many colleges. With a range of revenue streams from merchandise, ticket sales to TV related Bowl payouts; the colleges use the gridiron as much more than a football game with rivalries and school pride, but as a source of revenue.

Now, I’m not saying or implying that this is good or bad, but the fact is universities will often look the other way when publicity and large amounts of money, even from companies they’d sometimes never consider endorsing, are placed before them.

#2. Conversations engage and pull people in. Colleges also love Bowl football games for the conversations they build amongst alumni, current students, and prospective new students and possible ‘blue-chip’ football prospects weighing their university against others salivating to recruit them.

I have to laugh out loud each season how the BCS (Bowl Championship Series) committee denies fans a playoff system and rely on hype, polls, and biased coaches votes to generate massive amounts of publicity, press, passion, and heated conversations. Do you really think the BCS cares or are willing to listen to fan concerns? Are they secretly laughing behind closed doors?
read full article »

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PROMOTING WITHOUT BREACHING CONFIDENTIALITY

Thursday, December 22nd, 2011

In my previous post, I talked about how important it is in the home inventory sector to maintain confidentiality with your customers. This is tough, because referrals are a huge part of this business. So, how do we create a balance talking about our work AND keep the integrity of our Confidentiality Agreement?

One way, as mentioned in that post, is that we are fortunate enough to have customers provide testimonials for our website and offer to tell their story in our blog posts and newsletters. When people offer, that’s a great opportunity and we seize that immediately!

However, there are two other very easy ways to maintain that trust and still be able to discuss your work.

Don’t reveal their names

We often say “one of our customers…” or “during a recent inventory …” when giving examples, answering a question, etc. By not stating a name, address or even the city, you aren’t revealing any information that would give that person’s identity away.

Ask for permission

We recently provided an inventory for a heating and air conditioning company. We signed and discussed our Confidentiality Agreement with the owner. Then we also asked if we could post comments on Facebook about his new-found peace of mind and ability to prove ownership of his assets. He was more than happy to say yes, because he realizes the value of others talking about his company. He, in turn, thanked us on Facebook. You can do this on Twitter and all other social media sites as long as you have obtained permission of your client.

Obviously, it’s less of a confidentiality issue with a company, since people are in public buildings more than a person’s home, and a company’s information is already “out there”. But the need to ensure this level of professionalism is important, nonetheless.

When asking for permission, it’s important to state exactly what you plan to do and stay within those restrictions (notice I didn’t include his company’s name since I didn’t have permission to do so).

These are simple ways to preserve the promised confidentiality, to not disclose your clients’ names, and still be able to tell others about your work, your process and answer specific questions that can be best answered with an example.

Cindy Hartman
Hartman Inventory, LLC
317-501-6818
cindy@hartmaninventory.com

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Teach what they Need, It is about them not You

Wednesday, December 21st, 2011

One of my sales mentors Tim Roberts, with Sandlers Sales Training in Indianapolis or TrustPointe used to say very simply it is not about you it is about them. Meaning focus on your prospects and clients instead of yourself and your business will grow. He inspired me to create a strategy.

The strategy is simple:

1. Immerse yourself in your target clients problems and industry
2. Use all your knowledge and leverage to create solutions for the problems your target industry faces.
3. Commit to create “breakthrough technologies, techniques, tactics or strategies for your target clients.”
4. Apply them directly to your clients’ real world business operations and then get real data, real business cases and most of all real results.
5. Offer the best practices you learned to help your target create a solution for themselves by aggregating them together and teaching them all at once.

This idea of making it about your prospect and clients has grown into a proactive action of working on their businesses for them. Why? Most of us get so caught up working in the business that we rarely have time to look back and work on it. Truth be told ten years as a business coach I have been as guilty as anybody for this business sin.

Let me ask you this? Let’s say you are sick and you need some medicine or a rehabilitation? How willing would you be to buy from the Doctor who has analyzed your charts as well as 100 other people that have your disease. He has designed a program for people at your stage of the disease and has a day by day plan of proven rehabilitation that you can follow just like 100s of your peers.

Do you really care how much it costs?

Tony Scelzo
Rainmakers Marketing Group
317-216-6345
Tony@gorainmakers.com

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