Want to learn how to stop making hiring decisions that are nuking your business’ progress?
Want to find out what numbers to crunch when hiring someone for sales?
Want to know what kind of people to hire and for what roles to flesh out a killer team?
What Level Of Talent To Look For And Where
Let’s talk about the hiring spectrum/talent spectrum, and the different levels of talent you can get from every position you’re looking to hire for.
We'll go through everything from entry-level sales positions to ultimately hiring a CEO so that you can replace yourself as the business owner.
Once your business gets to a certain level, you will want to replace yourself as the core operator and build out a CEO to run your business for you.
First, let’s talk about salespeople. As a business owner, you typically have this vision of this ideal salesperson that will work with you, right?
Maybe you've watched the Wolf of Wall Street and you think you're going to get Jordan Belfort… Sure. That's what every ideal candidate would look like, but what ends up actually happening? You end up onboarding that one weird sales guy.
You have no idea how he sells. It’s a mystery.
This guy is a weirdo.
And still every single day, he’s closing deals.
At Coaching Sales, we work hard on basing our decisions on data.
We recommend you onboard at least three sales reps because you don't know if your top producer is going to end up being Jordan Belfort, or being this weird guy.
Onboard three, find out who your number one's going to be.
This brings us onto the talent spectrum.
There are three different tiers that we recruit for.
There are entry-level roles. There are mid-level talent, and then there ends up being your Elon Musk. The further you go to the entry-level, the more volume that you want to hire.
We found that in entry-level sales positions the churn is 12%. The retention is 4%. One out of eight people will end up sticking with you long-term (30 days).
They're usually someone who's very fresh to the phones. Maybe they're young and driven by money. Coming from McDonald’s, they’re likely to stay in a job where they're making three to five grand a month, they'll be happy, especially with the autonomy to work from anywhere in the world.
We hire four setters at a time because we know that retention is 12% across the board. Three in the first week or two either quit or get fired because they're just not active.
As soon as they fall off, we replicate the process.
For a closer, we don’t onboard as many. This is a more skilled position, right? When I got started in this space, I had been working in sales for seven years at the time. We're looking for that senior-level talent or not senior, but mid-level talent to come in and replace you off the phones.
This is a more high-risk position. Once you start moving over towards the CEO level, this is when you start getting more selective.
When Tesla was hiring Elon Musk, they weren't saying, Hey, let's go and hire three different CEOs, put them on trial and see who does the best. They're going off of a very specific background. And then making them an offer, usually with certain targets to come in and achieve those targets. And they paid off those targets.
When To Let People Go
The name of the game is really decisiveness. You have to know when to let people go.
Getting too big for their boots? Let them go.
Asking for too much? Let them go.
Not willing to participate fully? Let them go.
What separates a business owner from having success with their salesforce, versus a non-successful business owner, is a lack of decisiveness.
I've heard a lot of people talk about Elon Musk saying he's nothing more than the most talented salesperson in the world.
What happens a lot of times is that a mid-tier employee will think that they want to be a CEO. And then just their salesmanship alone is not enough to scale a business and they can implode a business because they've been promoted too quickly. They can grow into a director of sales and they can implement a sales team because they're under-experienced, which happens all the time.
The good news is as long as you have a strong operating business, you can just fall right back in love with the sales process and get fixed in a matter of 30 days.
How To Grab Top Performers For Your Own Team
How can you get top-performers? It's getting harder and harder, but it’s absolutely possible.
You have to sell them harder on the opportunity in the interview process because they have all these different options.
And with the market being so volatile with COVID people don't want to leave their nine to five jobs with their benefits and all the extra perks to move into a commission-based only role. So you really have to sell them on the opportunity and the interview process.
How to find someone who’s hungry?
The problem is that there's no initiative to do some reach out or things on their own. We need people that are going to just like, Hey, let me reach out. What can I do to read that? That's what we're looking for.
You definitely want somebody that's hungry because even in our interview process, we're almost talking them out of it. And the more they're trying to beg us for the job is though those are the people we push through. But if they're like, they don't want to be cold calling or doing a hundred messages a day, we just eliminate them from our candidates.
The other day we had this really aggressive sales rep that didn't want to go through any onboarding or training and our team had a really tough time. And she said that, as a strong sales rep, she can fly alone, like her own little Eagle that she is, and she doesn't want to be working as a team.
So that's just a virus in its own self that you don't want in your team either. The business owner that we were working with just told us to let her go right off the bat. It wasn't going to be a good fit regardless.
But a lot of times the opposite happens too. A lot of times we find more seasoned sales pros who are like, Hey I sold my business. I'm ready to call it a wrap. I just get bored of sitting on the beach and drinking margaritas. So if I can take a mid-level position and have a good relationship with the business owner…
Stats To Watch And Stats To Ignore
How much weight would you give metrics when it comes to a new team starting with one of our partners?
It depends completely on the role that we're hiring for. If you're looking for that closing role quite a bit, which is why we want to buy it from a million-dollar person. A million dollars. That's going to be a year at the least in sales.
It's going to be usually around two years, depending on what they're selling. But it gives us a foundation to, they have the chops to make it in sales.
You pretty much just want to hire anybody that applies and just have them battle.
But when you're hiring the CEO of Tesla, it needs to be a very quantitative experience. What businesses have you grown in the past? What gives you the right to take over my business and not be at the forefront of my business? Much more results-focused because there is a lot more risk.
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