Commission Based Sales – The Pathway to Self Employment
The disciplines learned from a sales commission based job is great training for startups
© David Newton – July 20, 2009
What is the best training ground for starting your own business?
Yes, the commission sales world is still one of the best places to learn all about being in business. Around 50 to 100 years ago, we saw many companies lead by former sales people. This was long before companies became faceless organizations and driven by appointed CEOs, company boards etc. Those who lead the charge to the top were often sales people who used their skills to build a big business and employ many people in the process.
How can a sales career help you?
Many small businesses require certain (ok then try; CRUCIAL) skills that are found in sales jobs. Those which are commission based mean that sales people get paid on the results they achieve rather than being paid on an hourly rate alone.
Communication Skills
Above all the abilities of spoken and written communication are big benefits and the result of sales training. Some people enter the sales profession timid and shy, but later develop ability over time to communicate and get their message across.
Cold Calling Skills
Taking a complete zero level of business to a thriving hub of contacts, names friends and networks usually starts from cold calling. Like it or hate it, but many big businesses today started by making cold calls. It still works today and costs you nothing to get going in your business.
Negotiation Skills
Alongside good communication is an ability to negotiate a deal. Sales people learn this as a part of their training at some organizations more than others. Besides, if each client or customer wanted exactly the same thing, there wouldn’t be much need for sales people right? They resolve the difference between needs, wants, price and buyers and sellers – they resolve those conflicts so that everyone is happy.
Sales Closing Skills
A huge benefit from sales training and doing it right is closing sales rather than merely talking about them. Amateur small business owners, often miss this and don’t fail in business, they simply fail to be sales closers.
Sales Targets Achievement
A true sales closing professional will be targeted on making a “sales quota” which is determined on a weekly or monthly basis. If you’re running a small business, you can’t sit around when there are sales waiting for you, or they will buy from your competition won’t they? Plus, most sales people find a huge sense of fulfillment when they reach a sales target.
Self Discipline
In order to reach targets requires a discipline to stick to routine cold calling, seeing a quota of people on a weekly or monthly basis – even when no sales happen, not to give up , but to keep on trying.
Working Towards A Sales Award Based On Your Results
Without some public recognition, we all daze in the shade. We all crave to be given a pat on the back and recognized for our contribution to the company and the team. This is what sales training gives and is vital in growing a business.
Reaching Your Own Sales Goals
Apart from the company targets, what about our own sales targets? This is what makes sales people drive harder and harder towards making that extra phone call or the extra sales appointment.
Building A Client List And Retaining Them
Without residual or trailer commissions, there would be no need to look after existing clients. That’s what they are there for. The incentive to look after clients also comes vital in a small business. When a company pays you a residual commission, they are saying to you to take care of your clients for us.
When you have a combination of the above skills in place, starting your own business is easy because you know what you need to do to get the results your business requires so you can draw a sizable and livable income.
Former Sales Professionals Dominate The SME Landscape
Maybe the MLMers have got it right after all? Quite a lot of former MLM giants turn their talents towards a new business and use the disciplines they learned while working at their former sales related business. They not only have sales skills, but have learned how to build an organization with people and know learned how to manage them.
Same too can be said with former computer sales people or former recruitment specialists, their skills from building another persons business are quite easily transferred over to their own new business even if it’s in a completely different niche to what they working on before. In the past, we’ve seen insurance sales people, car sales encyclopedia sales people, real estate sales people and similar sales professionals all branch out into small businesses of their own.
Building An Organization
Team leadership plays a big part in new business development. When a sales person becomes a sales manager and begins to recruit and build a team – they are creating a small business hub for the company they represent.
Same too if you are starting a new business – you not only need to recruit, train and build a team, but same too with your suppliers, business partnerships and channel partners. If there is one thing some sales organizations do well its teaching leadership skills. If you get this type of training, you’ll be well placed when you later leave to begin your own business – regardless of whatever that maybe.
The Frustrated Startups Penalty Line
Sad to say, we all feel frustrated with our jobs if we are working at one, even true again if we are in business and are simply “bored” with that business and want a quick way out. Learn persistence!
BUT, and here it is, dropping everything and leaving will not result in instant achievement at business for you if you haven’t solved your challenge in your current job or business. The answer is to look for a solution – test out new strategies, and make things work. If you do, you’ll be able to sell your business at a higher price or if you solve your current job woes, you’ll be better set for a new business due to learning persistence.
Sales Commissions Are Often Misunderstood
In the press over recent times, a lot of mud has been thrown at sales commissions and trailer commissions – especially in the financial world, real estate and telecommunications. They are saying planners are biased and make sales based purely on commissions. Such sweeping generalizations are not true.
In fact if it wasn’t for sales commissions, things we take for granted like orange juice and television sets wouldn’t be sold. Most of the items in your house or car wouldn’t be there as sales commissions are on a staggering number of merchandise items and services (if not all items) we use each and every day.
Why Sales Commissions?
The whole idea of sales commissions is to pay by results not by an hourly rate whereby the business owner doesn’t know if or if not; the sales person has worked those hours. It’s also an incentive for sales people to stick to their work schedule and to be self-disciplined as opposed to being told what to do each hour of the day by a manager. And the sales person who works the hardest or shall we say “the smartest”, will be paid the most. Rewards follow to those people who put in consistent efforts rather than one shot sprints.
Recommended DVD to watch – “The Pursuit Of Happyness” This is a truly inspirational movie and how a sales career brings out the best in a person – in triumph against adversity and hardship.