In today’ issue…
By our estimates there are over 5,000 salespeople in the CEDIA world alone. Isn’t it interesting that only a small percentage – probably fewer than 10% of the salespeople in Ci – achieve the two-million-dollar sales level year after year? Yet, this is the level at which sales productivity and cost efficiency are achieved.
After studying many who have consistently performed at this level, I think there is a prescription for someone who aspires to be one of the top sales producers in the business.
The simple math is: you need to produce, on average, $170K/month in new business; $40K a week; $8K a day. But those are measuring sticks, not a prescription. Digging into what these top producers do and how they position themselves strategically is more telling.
Our research shows 9 out 10 top producers perform just a few focused tasks. They sell. They are not proposal writers, not parts runners, not project managers, not even business development folk. They spend more time with clients and their builders than the average salesperson.
To get to $2M you need a target. How many projects, what size, from where, how many leads, how many at bats, what on base percentage and is it sustainable?
Here is what we know: big producers have at least 10 solid trade partner relationships that deliver recurring projects. Partner definition: he who gets the client first. Builders are the logical ones, but architects and designers can serve the same purpose.
Ten good solid sources with 35 to 50 projects. Yes, almost one a week. This will mean you need to average above $40K per project. Some very large ($250K and above); others lower 6-digit and a solid mix of $20K to $40K to round it out. You can get to multi-million-dollar status with smaller projects, but you must become a machine to handle the transaction (conversation) volume.
These recurring project sources will get you involved early on every project. The later your involvement the lesser your success rate and more pressure on price and potential competition.
Next week we’ll lay out our prescription for sales success. Until then, stay healthy and…