A challenge for many businesses when hiring new salespeople is what is called ramping up time.
This is the period of time from when the person is hired, until they start meeting their sales quota.
This is the time when they actually start making you money.
A recent study of over 1000 small to medium sized businesses found that the average ‘time to aptitude’ was 27 weeks! (or around 6 months)
So I guess something you might be thinking right now is -
‘Should I invest in sales training?, will this get them up to speed faster????’
Well before I get to answering that, a second study on ramping up found that on average it takes 40% of organisations between 7-12 months to effectively get their new salespeople up to speed and meeting quota.
Furthermore, the same study found that for over 18% of businesses it can take up to 12 months!
OK, so what happens to these figures if I do train my new salesperson?.
Well the same studies found that salespeople who have undergone effective sales training hit quota 7 weeks earlier.
There are two things you have probably thought about when considering sales training -
What happens if I train them and they leave?
What happens if I don’t train them and they stay?
Well let’s do some numbers around this.
Say your average annual turnover is $500k
This means your monthly average would be around $41,000.
If you don’t train your new salesperson now, you could stand to lose close to $80k
Or two months worth of revenue.
But hey, even if it was half that….
...can you afford to lose a month’s turnover?
You see the thing is, yes your salesperson may leave, but if they do, you have done something good, you have added value to them, upskilled them.
And they will know they were valued.
They will tell others that you were a great company to work for.
If they stay?
Well you have a well performing salesperson, who feels valued, and is making you money with a heck of a lot less ramping up time.
Furthermore, if you have a high turnover in salespeople, effective training can mean less time is wasted on that onboarding stage.
So even if they do leave, they have spent more time making you money, and less time getting up to scratch.
So I have a couple of questions for you -
How much would a month’s lost revenue cost your business?
What is the Return on Investment for you for training your new sales people?
How much are you willing to invest in your team?
What happens if you don’t train them…..and they stay?
Have a great week!