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Advice from a veteran sales trainer
Don't Spend Money On Sales Training
Think about this...  

Spending money on sales training is a waste of time and, well, money.

 
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New head

 

Do you really want to spend money on sales training and development - or do you want to increase your bottom line?

It's a matter of perspective -

A significant percentage our income (for SaleSSuiteS, LLC and 21 Associates) is from conducting sales training courses. Some are single event, live presentations, some are ongoing online courses and some are multi-year sales development relationships. So why would I suggest that spending money on sales training is a waste?

 

I can be a slow learner and a hopeless optimist sometimes. Optimistically, I think every CEO/CSO understands the value of sales development (which includes training). After some of the incredible successes I have seen in client organizations that got serious about sales development, I assume every organization will want to invest in it. I have finally learned that if there is not buy-in at the top, sales development will flop (apologies to Johnny Cochran and Al Sharpton!).

 

If sales development is seen as an expenditure, it will have less impact than when it is managed as an investment.

 

The same companies that will invest in new, sophisticated equipment and advanced programs, like Lean Manufacturing, are often the same ones that see any funds going into sales development as an expense. They understand the payback from investing in the new computer or implementing the new program. What they do not realize is the return they can expect from investing in their salespeople.

 

How does this happen? Ironically, sales trainers and developers like me have been slow to qualify and quantify the value of sales development for our clients. In other words, we aren't eating our own dog food!

 
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So to remedy this - yes, you guessed it - I built a calculator to help you determine how much your organization should invest in sales training and development. To use this calculator you will need the following data:raise

 
  • Annual sales revenue objective (previous, current or forecast)
  • Gross margin (use any you like: EBITDA, SWAG, etc.)
  • Number of salespeople
  • How much you would like to invest in training/development
  • What percentage increase in sales you are expecting from the development (5% is minimal)

The calculator will give you the following:

  • Average current sales revenue per salesperson
  • Training investment per person
  • Revenue increase per person
  • Total revenue increase
  • Sales development ROI based on revenue
  • Sales development ROI based on profit/return

CLICK HERE or on the image above to access the calculator

 

 

How much should you budget for sales development? Depending on the complexity of your sales, one week to one month's salary per salesperson per year. If you have not been investing in sales development, you will have some catching up to do.

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Chuck Reaves
21 Associates