The Revenue Trap
Personal dream
Great salespeople are in the sales profession for reasons other than “just” money. They are in sales to allow their family to live an above average lifestyle or to support a hobby—like sailing, car racing, or cottaging. They remain focused day in and day out on success, which helps them fulfill their dreams. They are not desperate or pushy for business. They love the sales game and ooze confidence and a love of their job. It isn’t hard work for them. Do they work hard and put in long hours when needed? Absolutely. For them sales is the easiest thing in the world. Success allows them time with family, to give to charity or their communities, to travel, have great hobbies—whatever their dream is.
Watch great salespeople in action. It is effortless, regardless of the situation. Their behaviour remains the same whether they are winning a deal or resolving an issue with an angry, screaming client. They know what needs to be done and they’ll make it happen. They have a dream and know when they are successful. They are never chasing the Holy Grail. They know when they have arrived and what success means to them. They are not competing to keep up with elusive “Jones’s.” That is not their dream!
Now watch a struggling salesperson in action. It is a real effort for them to perform poorly. I mean think about it. It takes a lot of effort to be rude, to be lazy, to blame everyone around you and to be a complete screw-up at times. I would argue that these people do not have a crystal clear view of their dream. They are living someone else’s dream or life. That has to be tiring and a waste of time and energy.
Revenue only trap
Sometimes I meet with organizations and discover their focus is only on their revenue shortfall. Their solution is to beat the sales team for more revenue. When this is the case, I ask them to take a step back. If companies do nothing but concentrate on the revenue number, it is only a matter of time before reps begin looking for better jobs elsewhere. I ask the company questions like these:
• What are your top six sales metrics or measurements other than revenue?
• Who are your customers that deliver the majority of your revenue (the old 80/20 rule)?
• What are you selling?
• What is the process map for your sales cycle?
• What is the morale like in your business?
• What would your customers say if I asked them if they’d refer your company to a friend?
If an organization can’t answer these questions then chasing revenue only is a desperate and challenging exercise.
Holistic view of business
It takes some upfront work to look at the whole business, as it relates to sales. Yet if business leaders do not look at the “whole” then they are always looking for the silver bullet to fix their problems when they are halfway through their fiscal year! That is why big companies are constantly robbing the next quarter of revenue to make their numbers. They learn to play the P&L game and manipulate the numbers to make their targets. The danger is, of course, that it eventually catches up to you and when it does, the results can be disastrous. Ask the executives from Enron.
Sayers says
So what game are you playing? Are you chasing your revenue tail, month in and month out? Take some time in the next week or two and ask yourself the above questions. What story do your answers tell?
• What is your dream?
• Why are you selling?
• What is your measurement for your success?
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