Rid Your Team of Parasites
What do you call a tenured salesperson who makes a comfortable living generating business from existing accounts? If you're Landy Chase, you call that salesperson a parasite.
According to Chase, a nationally recognized sales trainer and professional speaker, the parasite salesperson represents a difficult personnel problem. The parasite is usually a long-term employee with extensive print industry knowledge who has been a dependable producer in years past. However, this person has given up trying to grow a territory or market through new business development.
Most companies are set up to reward this type of behavior. Compensation packages are structured according to volume, not new business activity. And most companies don't see any harm, as long as an expected total sales volume is being generated.
However, think about the overall effect on your company. The parasite's territory is essentially dormant, generating little or no new activity. The salesperson involved is collecting large commissions and bonuses for essentially babysitting house accounts.
The salesperson may argue that he or she originally developed a particular account and is therefore entitled to a portion of revenue from that account forever. However, account development is the reason you compensate your salespeople so highly.
Chase suggests restructuring your commission plan to reward new business and reduce commission rates on existing accounts, tying rewards and recognition programs to new account development and introducing specific accountability goals for new account growth.
Accounts belong to a company, not a salesperson. So take a good look at your salespeople and their accounts. And check your company for parasites.
For more information on Landy Chase go to www.landy chase.com.