Many of you built your business and have been active in the Sales Process. But as the business grows you may have made these hiring mistakes. We have seen this over and over and when expectations are not met, you are upset and the sales person is confused and on a path for failure.

Wind them up and let go. The compensation plan is what makes them go! Sales people need their internal batteries charged, to be recognized and are begging for more. Additional products & services they can sell. Exciting reasons to see the customer and proof that you care about them and you are a sales (Customer) driven company.

Salespeople can be managed. Salespeople are out there, all day long, trying to get people to say “yes” and not “no.” Create an environment that encourages sales. Be in constant communication with your salespeople, they are in constant communication with your customers. If you aren’t talking to them, providing them leadership, they will make up their own messages and answers to Customers.

Salespeople are eager to change. This one is my favorite, next to your controller; salespeople are the most inflexible people working inside your company. Once they find a method that works, they will use it, long after it stops working. You can never assume that they will change after you merely explain why they must change and how they must change. You will have to check up on them constantly and coach them constantly until they finally have developed a new habit. And, then you’ll have to check up on them some more, because they can easily slip back into their old ways.

The salesperson I’ve hired will sell the way I sell. This is a serious mistake made by sales mangers. The new people do not have knowledge of your value proposition or the network you have built. If you want to avoid this common pitfall, you will map out your successful sales process, figure out the sales tools that are needed at each step in the buying process and be ready to provide him with everything he needs to succeed.

Aggressive/Killer salespeople are best. People, who are, by nature, fundamentally aggressive, make terrible salespeople. They argue with customers. They interrupt them. They push when they should be listening and drawing them in. They make snide remarks. The best long term salespeople are persistent (not aggressive), and detail-oriented. They follow up every opportunity and never let anything fall through the cracks – but they are also, by nature, helpful.

One style of coaching will work. Don’t confuse Training with Coaching. Each salesperson is unique and they all the Coach to talk to them in the way that they understand and can respond to. Why? Because the only coaching that really works, long-term, is the type where you focus on the individual – who is doing things in a particular way – and work with them to improve their methods and behavior, over time. There is not an easier way.

Salespeople know what their customers are thinking. When was the last time you told a salesperson what you were thinking?  It’s important to ask your salespeople what happened – you won’t get the truth about what their customers were really thinking until someone courteous and intelligent asks them.

Eliminate the grief and avoid these typical sales hiring & management mistakes. Successful selling is not that complex. You find the people who might be interested, or they come to you. Listen to their needs; show them how you can meet that need. Answer all their questions, make it easy for them to take the next step, including getting approval from the people above. Close the sale, and make sure they’re happy afterwards.

In the midst of a collapse in the mortgage and financial markets and a tightening of credit underwriting guidelines, is it possible a true No Down Payment opportunity still exists, and is one you can actually get closed?  As far fetched as it may sound, the answer is a resounding – yes, maybe!

The American Recovery and Reinvestment Act of 2009 created an incredible opportunity for a group of home-buyers, one that could allow them to purchase a home with ultimately no money invested in the transaction.  No down payment or closing costs, as long as the real estate agent and mortgage lender understand the new rules.

Under ARRA, first-time home-buyers are given a tax credit of up to 10% of the purchase price not to exceed $8,000, or $4,000 for married filing separately.  This tax credit, unlike the tax credit provided in 2008, does not require the home-buyer to repay the credit, as long as they remain in the home as their primary residence for at least 36 months post closing.  Additionally, as of February 25th, the IRS will allow this credit to be taken in either the 2008 or 2009 tax year.  The only requirements to receiving the tax credit are, they must purchase the home prior to December 1, 2009 and their adjusted gross income does not exceed $75,000 for single or $150,000 for joint filers. 

So what about the No Down Payment and closing costs I spoke about?  If you’re working with someone who qualifies as a first-time home-buyer, someone who hasn’t owned a home in the previous 3 years, and you can place them in an FHA mortgage, here’s how it could go together.   FHA requires a minimum down payment of 3.5% of the purchase price (must be paid by the buyer), plus they need money for closing costs, unless the seller agrees to pay those costs.  If you negotiate the right transaction, your buyer will have no money invested in the transaction, compliments of the government.

Here’s a scenario:  You have a buyer purchasing a home for $140,000,  they will need $4,900 in down payment and an estimated $2,900 in closing costs (may vary slightly in different areas), for a total of $7,800 invested.  If they purchase the home , having the money necessary to close the transaction, they would after closing, immediately file tax return form number 5405 with the IRS (either with their original tax filing or in an amended return, depending when they purchase).  The will receive the $8,000 tax credit funds, making their investment in the property zero.

Now you have ability to help many people buy their own home, using this government assistance program, in a time when home buying opportunities are at their highest level.  This becomes a win-win-win situation for everyone, go help you community!

Today’s economy may provide your customers wealth building opportunities they may never have considered in the past.  With traditional investment sources, such as the stock market, falling to 15 year lows, many consumers should consider moving their money to “Their Own Bank.”  No not the bank down the street, but rather they should become their own bank.  Many people who have liquid assets continue to buy big ticket items, like cars, boats and furniture, and end up borrowing the purchase from their local bank.  If they became their own bank, the interest they would pay these institutions could go to benefit themselves and build wealth along the way.

Here’s what I’m talking about, let’s say Joe has $10,000 in his stock fund, and he wants to buy a car that requires a $10,000 loan.  If he were to get that loan from his bank, it would be at 7.5% interest over 4 years, and he would have payments of $241.79 per month.

If Joe took the $10,000 from his stock fund and bought the car; then executed a loan to himself from the “Bank of Joe,” for $10,000 at 7.5% for 4 years, at the end of the 4 years Joe would have paid himself $11,605.92.  This would mean his $10,000 returned him 16.05% over 4 years TAX FREE, potentially much better than the stock market would have done over the same period of time.

With a falling stock market and uncertain financial times ahead, your customers need to change how they view money and how they utilize debt to their advantage.

Learn the Key to Sales Success

Remember that old advertising adage, “Sell the Sizzle Not the Steak.” Of course, it referred to getting the readers attention by making the promise of a memorable dining experience – rather than the availability of a well prepared meal to satisfy your hunger. Those marketing experts used the phrase as a metaphor in appealing to a customer’s perceived desire to get the most benefit from a product.

People don’t just buy products or services. They buy the benefits that fulfill their needs which are derived from the products.

The best sales people in the world understand human nature almost intuitively. Think of how much more you can sell if you see their needs or wants from THEIR perspective and not from yours. You must sell your product or service because that’s your business. They will only buy if it satisfies THEIR needs. So, once you ascertain what your customer’s real needs and wants are, you can adapt your sales approach to exactly fit what they want to buy.

Leave comments of some of your favorite sales ideas and they’ll be used in future posts.

Alvin Roselin, SCORE New York
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How to REALLY Sell a Service or Product

You’ve heard the old adage about selling – The sale begins when the customer says “NO.”  That’s when you start getting creative and thinking of ways to make that sale. I developed an approach – or a mantra – in my 40 years of trying to convince a client to use my services. I’ve always tried to hone my selling technique to a point that brings the customer to the conclusion: The quality remains long after the price is forgotten!

As a producer of message films – PSAs and video news releases – I found that many of our competitors offered the “same” services at a lower price. Undoubtedly, they were good mechanics and knew how to produce a film. So, it was my objective to convince the client, especially a new client, that my company would ALWAYS deliver the clearest, most creative message that would reach & change the attitudes of their target audience. We were experienced communicators, not just film production technicians.

Especially now, during this recession, it must be quality and service plus the perceived guarantee that the buyers will get more than their money’s worth. Don’t rely on competitive pricing because you do get what you pay for.

Quoting an associate: “When a SCORE client proposes their competitive advantage to be price, I always tell them that price differentials are only for commodities. I tell them they should be the highest price supplier.”

When selling creatively you must convince the customer that they will get MORE than what they pay for and, odds are, you will make the sale.

If you have some interesting sales tips, use the comment box to share them with me.

Alvin Roselin, SCORE New York
View posts by Alvin

This is simple…Take a genuine concern over your customer’s success, then bust your rear end to see that they are successful.

If you follow this golden rule – and you do put in the effort, this will work!