Why This CEO Will Never Hire Another Salesperson
I have many good friends who work in sales. That's why this post is going to hurt, but let me say in my defense that I have already spoken with many of you about this. My friends work hard and love what they do. But it doesn’t change the fact that I will probably never hire another VP of Sales or commissioned salesperson again.
Salespeople have often been the growth engine of business -- but I believe the tide is turning. I think this is true for many industries, but particularly relevant for emerging high tech companies.
So, consider this the first volley in a healthy debate.
The traditional sales role is endangered. Today's buyers have access to endless information and peer feedback like never before. New data on B2B sales shows that 60% of a typical purchase decision is made before talking to suppliers and up to 90% of the buying cycle is done before buyers speak with sales reps.
At Aha! we purposefully don't have a sales team nor do we pay commissions on new customers. That's because we believe it drives the wrong behavior and outcomes.
Instead, we have a Customer Success team that takes a consultative approach to engage product managers and their teams. It's not just a new name -- they are truly different. They are well compensated, benefit from profit sharing, and are owners in the business. They have no quota, do not prospect, and do not know commissions. This means that they are free to focus on the only thing that matters, the customer's success.
What does this mean for traditional technology sales teams? They are no longer required -- and likely are hurtful to profitable long-term customer relationships and growth. It's not them though and they should not be blamed, it's how they are motivated that's all wrong.
Here are four reasons why emerging technology companies will not look to commissioned salespeople to drive their business.
Relationships
Growing a business is about fostering trust and relationships, not pushing product. The goal is to show the value of the product and build a relationship with the customer. The only thing that matters is the customer's success.
Authenticity
People crave honest suggestions, and can tell when someone is pushing an agenda. They do not want to be cajoled to buy something, especially a product that is a poor fit. Being authentic accelerates personal and business growth and the value that is created for everyone involved.
Collaboration
It’s much more exciting to collaborate to understand the customer’s needs vs. making a disjointed pitch when there is a bad fit. At Aha!, we hire experienced product managers who love helping customers build product strategy and visual roadmaps so they can build what matters. It's a rewarding two-way street that leaves both parties feeling energized.
Information
Today's customer can easily research an entire marketplace in minutes. This brings transparency to a process that was previously veiled. And this applies to everything from buying a car to new software. They don’t need someone to connect them with products anymore. What they do need is to be engaged, surprised, and delighted on their own terms.
We are players in a new world where innovation is being industrialized and every aspect of daily life is being impacted. We all have the opportunity to influence the future — and it's just not clear that commissioned sales people will be part of it.
Don't get me wrong. There will always be people who work with customers, but I doubt that in the most successful companies that their compensation will be tied to the deals they close.
What do you think? Will we see commissioned sales people disappear?
If you liked this post -- please see the follow on post as well:
1,000 Salespeople Called This CEO a Jerk
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ABOUT BRIAN AND AHA!
Brian seeks business and wilderness adventure. He has been the founder or early employee of six cloud-based software companies and is the CEO of Aha! -- the world's #1 product roadmap software. His last two companies were acquired by Aruba Networks [ARUN] and Citrix [CTXS].
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Owner Razzelberry Road
2yWhat you do NOT address is the characteristics of a sales person. You can't "teach" that, you cannot put that down as an SOP in a manual; it is worth its weight in gold. Yes there are different types of sales people and you have to be selective on choosing the right kind for your company, but to say that Customer Service will build your company is bottom line a non-starter as a basis for growth. I agree that having quotas in prospecting is ludicrous, but don't throw out the baby with the bath water. The fact that all sales people are beating the bushes for new business is one of the key ingredients to building growth. The fact that sales people are rewarded for that growth is incentive to keeping that ball in the air and their own relationship, with the client, collaboration, sharing of information is what not only puts it through the basket and then follow up with the rebounds. Sales people are the contact, they address and answer the questions, the share ideas, go beyond the basics, respond to the client's needs and grow, grow, grow. If you don't have great sales people, or call them whatever you like, but pay them, you will NOT grow you business. 😁
Owner Razzelberry Road
2yThe title of your posting may get many "clicks" but all you are doing is changing a title and taking away the $$ from great sales people. What you described as a sales person is so dated and may apply to the old used car sales guy in the plaid coat who doesn't even speak to women, but it really has nothing to do with the great sales people in today's world. The four new characteristics you describe above are innate in a great sales person, if it wasn't, there wouldn't be sales. They build collaborative relationships with clients before they even present a product or line of goods. They are authentic in all they do from customer service to sales to follow up.
VP Strategic Partnerships @ Scaeva | Transforming Audio with RealRoomTM | Music Data Storytelling |
3yBrian de Haaff - Just resurfaced this awesome post with a new team I'm involved with - so so flipping spot on!
I work with owners and CEO's of established enterprises to imagine, build, and scale new businesses—and develop the capabilities needed to accelerate sustainable and holistic growth.
7yBrian de Haaff Sales does not happen in a silo. What you predict needs to take into account "Whether sales readiness factors are addressed?"
Realtor at Blue Homes of Stone Harbor and Avalon, NJ
7yGood post, Brian I agree in that The business model has changed and is changing I see it in my Business, real estates sales and I think the days of commissioned only agents are numbered It doesn't work anymore....