Bottom line… Sales success is based on dollars brought in.
There are certainly several additional organizational contributions a salesperson can (and should) make, but when evaluating a salesperson’s value – sales results are primary. And results are best achieved when goals are formalized (no epiphany here).
So don’t wing it. Don’t allow yourself to say, “What happens happens. I’ll just do the best I can.” Don’t listen to those who suggest goal planning is fluff – whether they’re successful in sales or not. All else being equal, the sales professional who formally sets performance goals is the one to bet on. Leave permission-based failure to your competitors. You know formal goal setting is a good investment of your time, so make sure you get it done if you want to succeed.
If you’ve not had the opportunity to formally set your goals for the coming month/ quarter/ year, consider using the goal setting worksheet below to help guide you on the points to which you should give thought. Because sales environments/ processes/ organizations can differ significantly, you may need to rework some of the points.
Use what you like and toss what you don’t but make sure you do it (in writing) or you’ll always be subject to your environment (a boat hoping the current will bring it safely into the harbor).
You do not have our permission to fail. Yes, you’re human. But in our book that means you sell (and make the world go around).
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Results
- Income target
- Less base salary
- equals commission/ bonus target
- Commission/ bonus target
- Divided by the average commission/ bonus earned per sale
- annual unit sales target to reach income target
- Annual unit sales target
- Divided by 12 months
- equals monthly unit sales target
- Annual unit sales target
- Divided by 50 weeks (assuming two week vacation — adjust accordingly)
- equals weekly unit sales target
Activity
- Average outbound calls per day/ week/ month (method typically used-phone, in person, etc.) to engage in an initial sales interview
- Average number of initial sales interviews or demonstrations per day/ week/ month to find a highly qualified prospect where a contract or proposal will be developed and delivered
- Average number of contracts or proposals delivered per day/ week/ month to close a deal
Activity/ results formula
(given the activity averages and the results targets above)
- Outbound call target per day/ week/ month
- Outbound initial sales interview target per day/ week/ month
- Outbound contracts or proposals delivered per day/ week/ month
Development
- Targeted future position or professional status
- Targeted time frame
- Targeted number of professional development classes or seminars to attend during month/ quarter/ year
- Targeted number of professional development books/ audio/ video to complete during month/ quarter/ year
- Targeted number of professional events to attend during month/ quarter/ year
- Targeted number of comfort zone challenges for the month/ quarter/ year
- List specific titles or names for targets above that are currently known
Additional organizational contributions
- Targeted number of product or service ideas to be submitted during month/ quarter/ year
- Targeted number of improvement suggestions to be submitted during month/ quarter/ year
- Targeted number of company activities to participate in, outside the sales role during month/ quarter/ year (e.g., training others, strategy sessions, writing an internal newsletter, etc.)
- List specific ideas, suggestions, and activities for targets that are currently known
Professional mission statement
- Professional mission statement for month/ quarter/ year
Sam Parker says:
Hi, Robert. I don’t understand the first question.
My feeling on the second is that sharing your goals with others can be helpful in holding yourself accountable. As a competitive tool, it likely depends on the personality as to whether or not it will be helpful.
19 January 2010
Robert Lönn says:
Great point on goal setting.
2 questions for you.
1)Do you think it is possible to reach higher goals by having goals set on a group of 5 rather than personal goals?
2)I you have personal goals. Do you display the results to coworkers during the “race” to make it a competition?
16 January 2010
Mics says:
I was turned on to this site by my Team Leader about 2 yrs ago when I was his Supervisor and it has influenced my life day in day out. I was just given an opportunity to manage an outbound team of sales agents once again and this current list of activities has given me a great idea to share with my agents. Im looking forward to meeting with them this afternoon to challenge them on meeting their goals every quarter. Cant wait to see our results. Im confident they will be impactful towards our mission. Just Sell
Misc…
7 January 2010
Sample Hardship Letter says:
Thank you so much, there aren’t enough posts on this… or at least i cant find them. I am turning into such a blog nut, I just cant get enough and this is such an important topic… i’ll be sure to write something about your site
2 January 2010
Anthony says:
This website never ceases to fail me.
All sales managers should pint their sales people to this website for insight.
1 January 2010
YasmeenTajunnisa says:
Thank You For the Effective article
3 December 2009
Sam Parker says:
Our pleasure, Bill. Luksa! (http://www.justsell.com/luksa)
2 December 2009
Bill Dawson says:
We’re about to finish the 1st half of FY10, with the first 6 months spent in a reactive state, trying to retain clients while getting familiar with new ones that were shuffled around during a FY09 year-end re-org, and learning about new products we are releasing. Needless to say the 1st half has been overwhelmingly busy – but for all the wrong reasons. Revenu generating activitis seem to have taken a back-seat in this environment, and as a result, so have our (me too) business plans for achieving those revenue targets – that are still there, regardless of the economic climate.
So, Thank “You” (JustSell) for reminding us how important setting those goals are, and laying out a plan to achieve them. Our team meeting yesterday focused on the 2nd half now, and just like football, we’ve seen all the moves the clients and prospects have, and now we have to go in and make our adjustments so victory will be attainable when the clock winds down on Q4. The outline provided is such a great tool to keep the most important goal at the front of our minds: making money.
Remember, “a goal without a plan, is just a wish.” – Antoine de Saint-Exupery
2 December 2009
Tej Woodit says:
Being in the car industry we recently had a sales boost training to face the ecomomic crisis.Goal setting was explained pretty much in the manner and guys believe me once you start those calculations or better work out your closing ratio, you won’t sleep at night. Salesreps are like entrepreneurs, we are here to make money and achieving targets won’t help you achieve your dreams.You can work out a dream budget and a survival budget by using the same techniques explained, don’t be surprised if you’re just surviving , well I was but i’ve ignited the change.
16 September 2009