1. Owners hate sales management and avoid the necessary work
2. Promoting a high-performing salesperson to sales manager rarely works.
3. Selling sales managers underperform vs. exclusive sales managers
4. A little bit of sales management goes a long way…..coaching, accountability, pipeline management
5. 1/3 the time of a sales management pro yields better results than 100% of the time of an average sales manager
6. Many companies do not have a proven prospecting process, sales process, closing process, and accountability system. Sales managers create them.
7. Every salesperson, even a business owner, will sell more with a sales manager helping them
8. Without a quality sales manager, the “inmates are running the asylum.” If you have ever felt like you were hostage to your sales team, you know what I mean.
Said a different way:
Some businesses have a problem that is not their fault – sales diseconomies of scale….and there’s no good way to fix it. That’s a complicated way of saying that the cost of quality sales management per salesperson exceeds the profit gained by it. An excellent sales manager can add tremendous value, but if they cost $250K managing only three salespeople, $83K is too much per salesperson. Everyone gets economies of scale in manufacturing. If I make paper towels, I cannot produce them as efficiently as Bounty. When the diseconomies are in the sales department, it usually plays out one of three ways:
1) the owner manages the sales. This is a great idea as the owner has the talent to do the job. However, most business owners are already time-starved and really don’t have the time to manage sales, so it doesn’t get much attention…..and creates a leaky sales department.
2) the best salesperson is told to keep selling AND manage sales. This is a double losing proposition as you typically trade a great salesperson for a weak sales manager…..and lose part of their sales production in the meantime.
3) there is no one managing sales. The owner tells himself that the salespeople can manage themselves so no manager is needed. This may be partially true but it’s hard to fathom that no management will create equal results to excellent management?