Tweet

How Pareto's Principle Impacts Your Sales Success

Written by: Virden Thornton

Article Overview: Hiring Top Sales Producers Is Almost Impossible Because Of Pareto's Principle. Find Out What You Can Do About It!

How Pareto's Principle Impacts Your Sales Success

Pareto's Principle {the 80/20 rule) is vividly illustrated in the sales statistics of most industries, companies and professional service organiizations. Eighty percent of all products or services are sold by just 20 percent of the sales professionals in the United States and Canada. How does this rule effect the overall management of the selling process in your company or firm? Basically, Pareto’s principle impacts your selling process in three key areas:

· Hiring The Right Sales People,
· Training Sales Team Members, and
· Coaching The Team To Higher Performance Levels

Almost all of the candidates that apply for sales positions today fall into the 80 percent group of sales or service industry professionals who produce only 20 percent of the sales. Therefore, when hiring, you must screen carefully to discover a candidate’s selling skill potential, not just his or her past sales success levels. It is almost impossible to find and recruit sales professionals in the 20 percent bracket because employers do everything in their power to keep their top producers happy, so the turnover in Pareto’s 20 percent bracket is extremely rare. Even if you find a “top gun” who is looking for a position, many organizations can’t afford to bring one of these high priced professionals on board.

If finding one or two top producers is difficult, think how hard it is to recruit a team of these superstars. Therefore, you need to change your mindset to find candidates that have the potential to move into the top producer or rainmaker category and then train, coach and manage them until they produce at the level of the superstars in your industry or pro-fession.

Just “liking” a given candidate for a sales position can lead to long-term sales or business development failure.


To learn how to build a sales team where you no longer carry 80 percent of the team members. Where is it written that your company or profes-sional service firm must live with Pareto’s Principle anyway.

Good luck in producing a team of top producers. You can find some tools to help in the process of training and coaching your new hires at Related Articles
  Creating Success
  Value-Driven Marketing: How To Increase Your Clients, Referrals & Customer Loyalty With Ease
  “Your Strategic Thinking Coach’s Top Ten Positive Impacts From Coaching”
  Don't Wish It Were Easier, Wish You Were Better Like The Water Hyacinth
  Increase Your Business Luck

Article Tags:



Related Forum Posts
Online Sales and Marketing vs Traditional - Hi Evan, I am noticing that many of the posts in the Sales/Marketing section deal with online marketing, SEM and and SEO and Affiliates. I was wondering if it might be a good idea to separate that section into two; 1) Online Sales and Marketing; 2) Traditional Sales and Marketing
Re: Online Sales and Marketing vs Traditional - [quote="ltrahan":31w9r2iz]Hi Evan, I am noticing that many of the posts in the Sales/Marketing section deal with online marketing, SEM and and SEO and Affiliates. I was wondering if it might be a good idea to separate that section into two; 1) Online Sales and Marketing; 2) Traditional Sales and Marketing[/quote:31w9r2iz] I second the request...
Re: Blog sells for up to $15 million - Okay. I'm in. How do we, as EvanCarmichael.com members, work together as a group to start a business blog with some niche focus that we can all contribute [u:yn1bfylm]quality[/u:yn1bfylm] content to (like the quality of the $15 million blog) to eventually attract the interest of a $15 million buyer? We can then sell it and split the limelight and the proceeds! ;-] Forgive me, Evan, if you already have such a blog started on your site! The Mastermind Principle. Can we put it into practice? GT :-]
Re: THE SECRET TO SUCCESS IS ALL IN YOUR HEAD...RIGHT NOW!!! - Success = Thinking (Head) + Heart (Feeling / Interest) + Hand (doing/ action). Success - H3 Robert
Re: Blog sells for up to $15 million - [quote="GT Bulmer":23fizvat]Okay. I'm in. How do we, as EvanCarmichael.com members, work together as a group to start a business blog with some niche focus that we can all contribute [u:23fizvat]quality[/u:23fizvat] content to (like the quality of the $15 million blog) to eventually attract the interest of a $15 million buyer? We can then sell it and split the limelight and the proceeds! ;-] Forgive me, Evan, if you already have such a blog started on your site! The Mastermind Principle. Can we put it into practice? GT :-][/quote:23fizvat] GT, I am game. Let set up a committte to get the blog rolling. But which niche are we writing about?


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Adapting to Technology and the Internet

Providing Feedback

B2B PR – Planning for Success

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.