Wednesday, July 23, 2008

Sales Effort vs Reward

All sales people should understand that their financial rewards are in direct proportion to their efforts. In other words, the harder you work the more money you will make. This concept is absolutely true! However, you don’t necessarily need to work twice as hard or twice as long to make twice as much money. Let me give you an example.

In the game of baseball, a player who averages 3 hits out of 12 at bats has what we call a 250 batting average or hits .250% of the time. A typical income for this player might be $1,000,000. Another baseball player who averages 4 hits out of 12 at bats has a 333 batting average or hits the ball safely .333% of the time. A typical income for this player might be $5,000,000. The difference in performance is one more hit out of twelve at bats, or an increase of 8.3%. However, the difference in income is four million dollars more.

Here is challenge for each of you: Determine what an 8% increase in effort and sales activity might be and then work that much harder for the next month. I can promise you that your sales commissions will increase significantly – far more than just eight percent.