Hello everybody in this session, we're going to be looking at planning our sales goals. What type of goals you want to attain, and how do we adequately and effectively set up our goals. So, that we can have something to look forward to and something to work for. And be able to realize, the results we want to get from our sales careers. I hope that you've had as much fun as we've had, myself and our team of trainers in enjoying this program. And learning a lot about sales, and being prepared for a sales career, should it be the path you decide to take? And more importantly, we hope you've developed the skills or gain the skills, and learn the skills. Is going to help you be effective in any sales situation moving forward. If your going into the sales career, and I encourage you to do so. And I hope maybe this session, when we talk about Sales Goals Planning, that you'll see that there's a lot of value in a sales career. But let's say, we're going to talk about our sales goals, hitting our sales goals, the sales goal planning, we do the math. Well, you see we have a target there with the arrow stuck in it. We have certain goals, you may want obtain most cases and sales situations. We have a desire to meet with a specific dollar amount or commission amount, we wanted to obtain. Now, depending on the company you going to work for, you're going to have some companies that provide straight commission only. You have some that provide strict straight salary only, with some benefits or you find most likely in most cases. An organization that provides both a salary and the commission base. So, the cool thing about sales is this, we're able to pretty much and I know it sounds trite, but it's true. Pretty much to design our own income, if we're in a sale situation. So, what will happen is that we want to plan, organize to achieve the goals we want to get, and hit those desired commission targets that we want to attain. Again, in most cases, you're going to have a sales manager or sales organization, that's going to say, here's your quota. Here's a quota, you have to meet to stay employed basically are to stay involved in our company. And, depending on the type of company, sometimes we hope the quotas are realistic. In most cases they are realistic. Sometimes, some companies are a little bit overwhelmed, and ask for too much. But for the most part, you're going to have their quota that you need to meet, we need to meet that. But for our own goals, the way we want to, things we want to get for ourselves, the car, the house, the family. How we want to take care of our loved ones, the things we want, we want to travel, for us to find the financial ability to do the things we want to do. We may not be comfortable with their quota, we may want more, and we can get that. So, we not only want to meet their quotas. We also want to exceed their quotas, and basically there are ways which can do that. Now again, there's information on up docks in your material, that is going to be a little bit complex. I want to simplify that for you, and as a previous business owner, because I retired from, I don't own the business any longer. Also as vice president sales, and the sales manager and a sales trainer for many years. Here are some statistics and some numbers, I think that may give you a good idea about, what I mean by being able to write your own ticket. Or write your own dollar amount when it comes to sales. If you look at this, these are numbers that are accepted nationwide. Maybe even worldwide, as standardized numbers that you can pretty much live with. Now, it's going to vary somewhat and fluctuate from company to company, and type of sale and so forth. But, I'm going to give you some examples here into, how we can really break down the activity we have to be involved in. To attain type of lifestyle we want to have,so, as a norm. When you look at these numbers, these are pretty much accepted across the board. If you make 100 calls a day or 100 dials, I'm sorry, not today. Let's just say across the board 100 dials or 100 calls, for every 100 calls you make, whether do a daily or weekly or multi whatever. For every 100 calls or dials you make, again, you going to get voice mail, you're going to wind up with 25 connections of some kind. Many of the connections you make will be people, not the right person or not interested, whatever it may be. So, from 25 connections you may have 10 conversations, of the 10 conversations, okay? You may possibly get if you're really good. At those people who do have conversation with, and they express an interest in your product or service. You may get five appointments, of those five appointments. Somewhere along the way, somebody's going to, not be able to make it or cancel out on you. So, of the five appointments that you actually make, you really only get to do four presentations, four proposals. Maybe four needs analysis, four presentations. To earn their business, if you're really good and you've gotten to a point where you've done the analysis, your proposal is spot on. You've done a really good job, of the four presentations. Hey, we're not going to win them all right? Of the four presentation, we wind up getting two sales ultimately. So, when you break this down across the board, the numbers pretty much look like. For every 100 calls you make, breaking down, going through that process, you'll make two sales on an average. Now,and again it depends on your sales skill levels and so forth, but, for the most part these are acceptable numbers. So, if for every 100 calls we make, we make two sales. And let's say and it's got again, it going to vary depending on what type of products are selling and so forth. Let's say just for the sake of numbers. Each sale that you make is $10,000, of revenue for the company you're representing, for the product or service you're selling. Well, let's say at this $10,000 revenue level for every average sale you make, you receive, the company pays you 20% commission. That means that, you're going to receive $2,000 of commission on every sale, on an average again. So, now we're looking at for every 100 calls we make or dials we make, we're going to make $2,000, as you go through that process in it. And it a, procedure, well, we know these numbers to be relatively stable, and relatively acceptable across the board. What we want to look at is, what do we want to make in terms of our own income. What's the money we want to make? Well, let's break this down even further, let's say that you wanted to make $80,000 commission in a year, okay? And that means $80,000, maybe in addition to a salary they give you and so forth. But you want to make $80,000 a year. And let's for the sake of our argument, we're still looking at that $2,000 commission per sale. Well to make $80,000 of commissions in a yearly basis, you're going to have to have 40 sales that year. Well based on the numbers, we looked at in the previous slide, in order to get 40 sales per year. We have to make 2000 calls a year or dials a year, which means we have to make 170 calls per month. We're working on 20 day months, because we had holidays and so forth, averaging 20 days per month, that means we have to make 10 calls a day. Quite honestly, 10 calls a day is not a lot of hard work, that's not working very hard. In some cases people like to see upwards of 100 calls a day,100 dials a day. Okay? But at any rate, if you make 10 calls a day, it's 170 calls a month, that's 2000 calls a year. That's what you need to make, as you will go through that process, to get your 40 sales per year, at 40 sales per year. The revenue for the company is $400,000, and again we mentioned that your commission was 20%. So, at 20% of the revenue that you brought in for the company, your commission will be $80,000. That's how you can get your goal of in yourself planning. Now, let me share two other pieces of this for you, your commission may not always be 20% of course, your revenue per sale may be higher or lower. So, it's going to be adjustments we need to make but, you get the idea. If you go with the previous power point I share with you, and look at that power point and understand the numbers. Then you can pretty much decide how much money you want to make, if you're willing to put in the work. Now here's a couple of caveats for you, one caveat again, is that in some cases your numbers can be much different. The commission won't be 20%,the cost per sale is much higher or lower, than what we mentioned here. Again, this is simply for examples, but it's a good footprint to get an idea of what we can do to adjust. There's other things that will come into play in terms of Sales Planning. And that's going to be, maybe you have been depending on the company are working with, they may have territorial type of planning. You have to abide by,in some cases you may have, your pipeline needs to be fuller or not. Maybe not as full as we're looking at here, the bottom line for sales, I think is going to be know where you want to be. What kind of lifestyle you want to have, what type of numbers you want to hit in addition to what the company's quotas are. And go for it using these numbers in this process, that we've shared already today. Now, here's the caveat and the challenge again, as your skill level goes up and increases in terms of sales ability. Then these numbers may change, you may be doing four or five sales for every 100 calls you make. Depending on how good you get, how confident you are, how well your presentations are, how good your proposal is and how well you deliver it. So, there may be some things that jump out at you saying, well as I get better from a sales perspective. And understand my product service better, and get better at what I'm doing. Then ultimately I'm going to make more money, and that's true,here is a warning for you [LAUGH] Should you decide to go into sales. I find this to be true with many sales individuals, many sales teams, no matter how long they've been in sales. What happens to people is they get better and better at sales, as they start taking shortcuts don't do that. Here is the example, let's say for example, for every 100 calls, I'm now doing three sales. Every 100 calls, I'm now doing four sales, well, I'm getting good, my sales numbers are for my closing rates, 4%,5%, 6%. I'm doing much better for every call I make, because what typically happens is we get a little overconfident. We realized that, hey, we're really good, we're great now. We don't have to do all these calls and so, as our skill sets get better and better. We feel a little bit, over confident and our activity level goes down, and down because we're good now. We don't have to do all that work, that these other people have to do. Unfortunately friends,what happens in this case is, as our activity level goes down, even though our sales skills have increased. Our commission is going to go down, because we're not making the calls we need to make. And all of a sudden, we'll find ourselves in a situation we say, wow, what happened? You know, my paychecks, not what they used to be,well, we're not doing the work. So, my recommendation you, is this by all means as it comes to a point where our skill sets get better, continue the activity level. We'll wind up making a lot more money. And live maybe the lifestyle that we really want to live, that might be exactly we're looking for. And that's what I mean by write your own ticket, when it comes to being a sales, having a sales career. Well that's my take on Sales Planning and Goal Setting for our goals and for our sales. The bottom line is, basically keep that pipeline full, keep the activity level high. And as you get better and better at sales, you'll find it, it's a very lucrative business to be into.
