Today, you will learn about an interesting concept about eradicating commission as part of the business model. Say what? Okay, hold your horses now. Our guest today has a pretty interesting perspective on eradicating commissions that you might want to tune into, plus more!
Justin Roff-Marsh is the Founder and President of Ballistix, a sales management and marketing consultancy where they build sales functions for organizations either from scratch or go into organizations and re-engineer their sales environment to look more like a production environment. Serving clients in the US, Australia, and the UK, they’ve worked with clients across these three continents over the last 20 years.
Here are the highlights of my conversation with Justin:
The use of the word “process” in the formal sense:
Most organizations do not have a process but a bunch of people running around trying to sell stuff.
Core components of a successful sales environment:
Figure out what activities generate sales and the various activities that contribute to sales which make the bigger contribution.
These are the primary drivers of sales volumes. For field sales, the primary driver is the number of times of face-to-face conversations with potential customers. For telephone sales, the driver force is the volume of telephone selling conversations with prospects.
To have people focus on selling, they have moved activities to customer service and engineering handling the following areas:
This takes away 60% of their work
The repercussions of outsourcing your prospecting:
The idea behind doing away with commissions:
Justin’s Major Takeaway:
Read Justin’s book, The Machine: A Radical Approach to the Design of the Sales Function
Eliminating commission is a consequence of applying division of labor itself, not as a primary.
If all you want is incremental improvements, take 1-2 ideas from them but if you’re looking at sales and recognizing that you can’t achieve your growth objectives for the organization by scaling your sales function in its current form, then stop looking for worn-off fixes and read the book.
Get in touch with Justin through his blog at www.salesprocessengineering.net.
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Donald is the host of the popular sales podcast,"The Sales Evangelist". He is the founder of The Sales Evangelist Consulting Firm where he helps small companies develop killer sales process to scale their business and increase growth. Donald is also an award-winning speaker, sales trainer, and coach. He's a big fan of traveling, South Florida staycations and high-quality family time. Donald has a belief that “anyone” can sell if they have the desire and receives the proper training.