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Choose The Right Sales Force!

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Choose The Right Sales Force!

"One of the most crucial decisions you make is how to sell your products or services."

Choosing Sales-Force Alternatives
There are basically four different alternatives for building a sales force:

  1. You can hire a larger company or a distributor to sell for you.
  2. You can hire independent manufacturers' reps.
  3. You can hire your own outside salespeople.
  4. You can hire inside or use phone salespeople.
Which choice you make will have a huge impact on your ability to generate sales and, also, your cost structure.

Often the best solution is to use a combination of the different sales models. For example, we use distributors abroad and in specialty markets; our own sales managers for the largest book and software accounts; manufacturers' reps for midsize accounts; and phone selling for the smallest accounts.

Use Someone Else's Sales Force!
Especially if you have a small product business, you're probably going to be better off trying to get a larger company or a distributor to sell your goods.

Even if you could get sales reps or manufacturers' reps to sell your product, it may be difficult to persuade companies to open a new account for you, and getting paid may tax your patience.

Remember, you need a distributor with an outside sales force who will call on customers and push your product--not a wholesaler who typically stocks a very broad group of manufacturers and more or less waits for customers to send in orders. The terms "wholesaler" and "distributor" are often confused, and it's difficult to judge how aggressively a distributor will push your products--so get references!

Manufacturers' Reps Build Businesses!
Manufacturers' reps played a crucial role in building my book business and a lot of other businesses. They are paid on commission, so you're not stuck with a high overhead for salaries and travel when sales are low, and they already have an entree with the prospects to whom you need to sell.

Generally a manufacturer's rep sells a lot fewer product lines than a distributor does and will push each line harder.

But it's up to you not just to find reps, but to really sell them continually on how hot your products are. Meet with them in person; tell them sales success stories; send them media clippings; send them sales samples; and pay them promptly.

Sales Force!
I hired my first salesperson to sell advertising for a tiny map business I started while still in college. I told her to call in every day with a progress report. Three weeks later she first called in and reported nobody was interested. She had lost her call reports, and she needed her paycheck!

Believe me, it's not easy starting up an outside sales force. It's the most difficult and expensive sales solution by far, but the results can be great if it all clicks together.

If you decide to hire outside salespeople, you'll need to pay a base salary, not just commission, and keep real close tabs on them. For one, you want to make sure they're really working. And for two, even if they are highly experienced, you need to keep motivating them.

Inside Sales Is Easier To Manage!
Managing and motivating inside or phone salespeople is a lot easier than putting together an outside sales force. You can contact a lot more prospects for a lot less money, and you'll save a lot of money by avoiding travel costs.

Hire people who are articulate. Test them by role-playing a sales scenario before you bring them on board. Pay them an hourly or weekly base wage plus a bonus based on results. In addition, consider impromptu contests like "The next sale gets an extra $25 or a pair of movie tickets!"

If you really need to close sales in person, you may want to have phone salespeople find and qualify leads, and then send a more experienced salesperson, or yourself, to close the sale.

* Source Streetwise Business Tips

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