Why Investing in Quality Sales Reps Is Crucial for Your Business Success

In the high-stakes world of sales, the decision between cost-cutting and quality hiring can make or break your business.

There was a story on LinkedIn about a VP of sales who spent $50,000 on an artificial intelligence program that would do the work of an SDR. In the first month, it booked 20 meetings. By the third month, it no longer worked. Longtime readers may remember that those who try to cheat nature will find that nature almost always wins. Nature is approximately 4.8 billion years old, making it a lot older than you and me, and quite a bit wiser.

Tech Sales Cost Reduction Strategy

Over the last decade or two, tech sales leaders have tried to reduce the cost of a salesperson. Their strategy was—and is—to split the sales role into pieces, then hire young people and pay them less than they would a full-cycle salesperson. These SDRs and BDRs are used for cold outreach and qualifying a prospective client before handing it off to “the closer,” who sits waiting to be served a new opportunity.

Non-tech companies followed, adopting this new model as their own. They pay SDRs and BDRs less than they would pay a successful salesperson who could not only book their own meetings but also win and grow their client portfolio over time.

Moving SDRs and BDRs Effectively

I have helped move SDRs and BDRs into full-cycle sales roles by advising them to call a VP of sales and explaining that, just like they called the VP, they will call every contact in their territory. This works because it is difficult to say no to the only person doing exactly what the VP needs someone to do.

The story above is about trying to lower the investment in booking first meetings by handing this duty to artificial intelligence, something that costs even less than a number of SDRs or BDRs. But most who try fully-automated prospecting sequences find that their multiple emails end up at the delete key.

Where to Find Good Salespeople

One of the most frequent questions from sales managers and sales leaders is, “Where do you find good salespeople?” Oftentimes, these leaders don’t want to pay for the salesperson they need. Instead of hiring an experienced salesperson who can command a salary and a generous commission, they settle for a salesperson who comes with a lower price. Nature will remind them that you get what you pay for.

The second-order effect of trying to reach your goals with a sales force that isn’t what you need to succeed will only disappoint you. You can do anything you want, but there will always be consequences to the decisions you make.

Comparing Sales Leaders’ Strategies

Two sales leaders are hiring salespeople. The first sales leader offers a generous salary and an equally generous commission program. This sales leader knows that they are better off hiring someone with the sales effectiveness to win deals right out of the gate. Because this person would have the experience and chops to win large deals, the sales leader and the sales rep succeed together.

The second leader is trying to build the sales force with salespeople who are willing to take an under-market salary and a low commission. This sales force is much cheaper than the first sales leader’s, but this low cost comes with a tradeoff. The salespeople are not nearly as effective as the first sales leader’s team.

One senior sales leader told me that everyone can do everything on virtual platforms. To do this, he was going to make his full-cycle reps into SDRs. I had to remind him that his competitors will have a tremendous advantage in any contested deal with his team. Any decision that would cause you to fail to provide your client with the salesperson they need to win their business is going to be more expensive, even if it comes with a cheaper investment.

The True Cost of Low-Paid Salespeople

The less you pay for a salesperson, the more likely you are to struggle to reach your goals and your sales targets. There are no “deals” when it comes to hiring. The money you spend on ineffective sales reps is mostly lost, as they will get paid without creating the revenue you need to grow.

If you have a B2B sales training program that allows you to build effective sales reps, you may be able to hire salespeople who have enough experience that you can develop them in a reasonable amount of time. If you don’t have a B2B sales training and development program, you will have to pay more to acquire the sales force you need.

Conclusion

The cheapest sales force ends up being a very expensive sales force, as they are not productive enough to pay for themselves. This is why the cheapest sales force is the worst sales force. As you think about hiring, you should focus on hiring salespeople who can already win relationships and your client’s business. Any attempt to save money may result in losing the revenue you need.

If you are a sales leader, you have to buy your sales force or build one. It is often faster to buy the talent you need instead of building your sales force from scratch. If you are a salesperson just getting started, you want to work for a company that will train and develop you. If you are an experienced sales professional, you want to work for a company that is willing to pay for your experience.