Are you getting to the point where you don’t want to be the salesperson anymore? Do you want to shift from working in your business to working on your business? Perhaps you have a little traction and a decent pitch and you are ready to search for someone that could be your salesman or saleswoman.
Probably one of the biggest mistakes I hear about from new clients is that they either have no clue how to hire the right salesperson or they hired someone that turned out to be a huge liability. Hiring the wrong person can cost your company thousands of dollar and not knowing how to hire is a huge challenge in a quickly scaling business.
In fact, according to an article in Forbes, “the price of a bad hire is at least 30 percent of the employee’s first-year earnings. For a small company, a five-figure investment in the wrong person is a threat to the business.”
So hiring a salesperson is not the right solution. Hiring the right salesperson is the key. It could mean the difference between the life and death of your SaaS company.
BUT before you hire a salesperson, probably the biggest mistake I see is that the founder(s) haven’t created a system that they can actually share with the sales person. If you expect a salesperson (that you can afford) to create you a sales system you will be waiting for results for a long time. If you have the resources to hire a Director or VP level sales professional their first main objective should be to create a system so that they can hire junior level people to replicate it, thus, in effect, replacing that VP of Sales with lower cost salespeople.
This is how any large outbound sales team is built. System first. Salespeople second.
What steps do you need to take to get the system down?
1. You must validate that there is an actual need in the market you plan to serve
2. You must get real life users using your software
3. You must elicit feedback from users finding out what they like, dislike, what they need, and how they would like to be sold too.
4. You must add some kind of KPIs and computational tracking to deduce how many conversations turn into a user and how many users turned into a paid user.
5. You must have some kind of pitch or process you use for selling
6. You must talk to tons of people so you can share your feedback
7. Lastly, you must have some revenue even if it’s just one or two paid clients. Paid clients are a great sign more need it.
Once you get here and you feel like you have a system in place (doesn’t have to be perfect) then it’s time to find that ideal salesperson for your company.
What to look for in a salesperson?
1. Find someone who is passionate about something
2. Find someone that has a track record of being trainable
3. Find someone that has actual past results in selling to your type of target customer
4. Find someone that is used to your length of sales process and make sure they are ok with it
5. Find someone that believes in what you have so much that they will sacrifice large pay upfront for great backend commissions
6. Lastly, find a self-starter who is going to take the ball and run with it
My brother built a sales team of over 12 at PetDesk over the last two years. He took the MRR from $3,000 to well into the 6 figures in less that two years by first creating a system such as the one above and then meticulously hiring the right sales people. He essentially made himself replaceable and now the system works on its own.
Sounds like something you want for your SaaS? Well, we all don’t have the benefit of having a seasoned SaaS sales system veteran on our team, but we do. Not to brag 😉
If you want to learn how to build a replicable sales system for your SaaS and then hire the right salesperson to replace yourself so that you can focus on what you are really good at, schedule a call with us here. http://meetme.so/Saasfunnel