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80/20 Rule? Think Again.

If you have been in and around sales for a long time you have probably heard reference to the “80/20 Rule.”  The 80/20 rule states that in any given sales group, 20% of the “stars” produce 80% of the revenues, so expecting a better distribution than that is probably impractical. But, actually the 80/20 rule is more of a convenient urban myth than a useful analytic tool, and it can actually be counterproductive when used to replace real metrics when hiring and managing salespeople. So here is some data  . . . some bad news first then followed by some
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You Can’t Judge a Book by Its Cover

We cannot tell you how many times we have spoken to business owners and managers who hire star athletes or other big men on campus who would seem to have everything it takes to sell, only to have them wilt under the pressure of professional sales.  The managers cannot understand why a star middle linebacker or the president of a fraternity cannot muster the same skill sets to deliver as a salesperson.  Here is the problem.
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Stop Hiring Sales Candidates Who Fail to Deliver

Gerhard Gschwandtner, publisher of “Selling Power Magazine,” recently interviewed Dr. Christopher Croner regarding testing and interviewing sales candidates.  The interview covers a range of topics, including how high-Drive candidates handle the interview, the drawbacks of hiring based on industry experience alone and the importance of optimism in long sales cycles.  The interview was released this week and you can watch it below. Watch Gerhard Gschwandtner’s interview with Dr. Croner here: Stop Hiring Sales Candidates Who Fail to Deliver Selling Power Dr. Christopher Croner, Principal, SalesDrive, LLC Runtime: 5:54
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Does a Technical Salesperson Need Drive?

  Many sales managers hiring technical salespeople (for complex solution sales) place primary emphasis on the candidate’s technical expertise or industry knowledge.  They may prioritize a technical background over sales experience or aptitude, thinking that they can always train sales skills later, and that a buyer would prefer a low-key “consultant” to a high-drive salesperson. So, the sales manager at a manufacturing company, for example, may look for someone with an engineering background to fill an account acquisition role.  To be sure, buyers enjoy dealing with salespeople who know their industry well and are adept at answering questions.  However, the
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Be Wary of “One Size Fits All” Sales Training

Often sales managers bring in sales trainers and make it mandatory for everyone to attend.  And often the outcome is disappointing . . . not only are a good percentage of the salespeople, who attend, busy reading text messages and tuned out, but after the time and money is spent there is no noticeable change in behavior.  Usually the reason for this breakdown is that different salespeople have different needs, so a salesperson who is already adept at persuasion is going to be bored stiff at a persuasion seminar, while the well-organized salesperson will perceive a time management seminar as
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Should I Cap My Salesperson’s Earnings?

Sales leaders have occasionally expressed to us a preference for capping a salesperson’s earnings.  The reasoning for such a decision typically goes “My salespeople shouldn’t be making more than me.”  Although we are not a sales compensation firm, we do know quite a bit about personality and how high-drive salespeople react to such a policy.  Here is why that approach can be dangerous . . . Salespeople high in Drive, particularly need for achievement, are motivated by excellence . . . constantly raising the bar for themselves and their performance.  Although money is not their goal in and of itself,
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