10 Actionable Tips for Creating Your Sales Team Development Plan + Budget [“Sales Shot” Workshop]
10 Actionable Tips for Creating Your Sales Team Development Plan + Budget
[“Sales Shot” Workshop]
[“Sales Shot” Workshop]
[Guide]
[Webinar Recording]
[Cheat Sheet]
Congratulations! The decision to develop your sales reps and managers is a sound one. If you don’t already have battle wounds from our industry’s war for talent, the fight may be coming your direction as our hiring pool shrinks and the demand for digital sellers grows (at a rate of 10-14x traditional sales).
For most of us this means that our talent is harder to find, harder to keep, and coming to us with less and less experience. In other words, we can’t always count on “buying” the talent — especially at the top of the sales funnel — instead we have to prepare our companies to “build” it.
“We can’t count on buying talent, we must learn to build it.”
According to The Bridge Group, the average tenure of a BDR/SDR role in technology is under 15 months and shrinking. And although best practice is being at quota by month 2, the average is closer to month four to six. So we’re left with a year or less of productive sales talent and a lot of open reqs.
So how do we get them up to speed faster and staying longer? Glad you asked: You train them.
Forbes reported last year the #1 thing Millennials search for from an employer is development opportunity.
Sadly, only about half of Reps rate their companies as providing them with the training to be successful (American Association of Inside Sales 2019). That means half the folks working for you right now may be looking elsewhere as your read this.
AA-ISP also taught us that only half of us Inside Sales Leaders actually get the budget we need to provide ongoing development for our teams.
If our industry continues to think of training as something we do when there’s a budget surplus, we simply won’t have the tools and talent we need to attract, ramp, and retain our reps for the foreseeable future. We’ll literally lose the war for talent.
Here’s how to fix it:
What do I budget?
Best practice line item per rep is about $1500 and $2500 per manager. If you haven’t trained in a while, have lack-luster onboarding, or a big hill to climb with a strategy shift or goal increase, double it. The average spend across all industries is just under $1000 per person, with IT industries and sales professions trending at or above best-practice spends.
A few more stats to feather your pitch:
All preaching and pitching aside, the absolute differentiator for companies in the next five years will be our ability to develop and retain our current teams + our ability to recruit from diverse hiring pools. Now is the time to create an annual development line item in the budget. it’s up to leaders like us to fix the development gap with the generations we are hiring, or the scraping sound you hear today as we recruit from the bottom of the barrel will sound a lot more like a puncture as we blow out the barrel itself.
If your Inside Sales team is relatively new, chances are you don’t have a defined training budget at your disposal (am I getting warm?). I’d also venture a guess that your somewhat green team could definitely use some inside sales training. (Still warm?) Which means that either:
We’re here to help!
STEP ONE: DETERMINE NEEDS
The average company spends around $1000 / rep / year on training. Companies that score in the “best practices” range for sales spend closer to $2K. This goes right next to your incentives and recruiting budget my friends. Every year. In the meantime, ask for the equivalent of $1750 / Rep. You have some gaps to fill. This should buy you a few days of training per rep.
STEP TWO: FIGHT FOR BUDGET
Enter the Big-Bad–Doesn’t-Want-to-Spend-Money-On-Your-Silly-Little-Team-Boss:
“Why would I spend money on training! I heard that by the time you back to your job, you’ve lost 90% of what you’ve learned in training and 3 months later the rest is gone too. And by the way, these Reps will be gone in six months anyway, right?” (Whoa Boss Man!)
Don’t panic…we’re gonna get through this. Ready for your side of the negotiation?
You (Superstar Inside Sales Leader): Sure, sometimes that is true (with bad training) but did YOU know that:
So providing good sales training will reduce attrition!
STEP THREE: FIND YOURSELF A VENDOR
So, what does good inside sales training look like? How can you prevent the “fall out”? Check out my recent video for quick tips to get the most from that training budget you fought so hard to get!
Hope this helps you Super Star Inside Sales Leaders out there!
Cheers!