Adding sales people does not always add sales

One of the companies that I am working with is confronting this reality head on.  Every start-up I have been a part of has learned the lesson (the hard way) that staffing up with a large national (and many times mediocre) sales team for an emerging technology company is a recipe for disaster.  Here's my previous post on Being Intellectually Invested that touches on this. 

Why is this?  I suppose it seems like the right thing to do and I have consistently found investors drive this thinking.  After all, "how hard can it be, pick up the phone and sell."

Here's the challenge: if the company does not understand its product/service within the context of the market and market needs, this approach will fail.  Sales reps will be terminated, soon the pressure is on both the VP Sales and VP Marketing to explain the poor performance, and both will go before the CEO gets the pressure from the investors and is shown the door. 

These cycles of usually good people are expensive, an organizational distraction, and build absolutely no comfort with those to whom you are trying to sell. 

While it may seem counter-intuitive to have fewer rather than more dedicated sales people early in a company's lifecycle, the true cost of adding and losing sales professionals before the company has really figured out how to sell is much more significant than any "lost" sales because of fewer feet on the street.

Once the sales path (or model) is understood, then it's time to spend some bucks on a process and metrics driven VP of Sales and quota bearing sales reps (QBSRs).

 

One thought on “Adding sales people does not always add sales

  1. We may have talked about this in the past, but it recently came to me again that if software companies wanted to sell more software they would focus on process improvement….Spend time with clients, learn their processes, standardize those processes, then add technology. As a small business owner, I see other owners buy software with the hopes that it will cure their process problems, and in reality it complicates and frustrates current operations. A good paper process will beat an automated disaster every time. Seems like IBM made this switch some time ago — focusing on services and not so much on selling products. Good topic for discussion.

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