How much do you and your company spend on sales?
Too many companies have made cutbacks in sales all because they want to save money. More often than not, I’ll argue they don’t save anything but wind up hurting themselves.
I have looked at some of the data of the percentage of revenue that some successful companies spend on sales and marketing. The numbers range from a low of 12% up to nearly 32%. I’ll argue you and your company are spending far less. The company on the low-end: Google. The company on the high-end: Linkedin. The source was an article I read from Forbes.com, the on-line version of their magazine.
As I was reading these numbers, I couldn’t help but reflect back on what others have told me they spend. Yes, the percentage a company is going to spend is going to vary dramatically based on the profitability of the industry they’re in, the selling cycle, role of media, etc.
I get it.
No two businesses are the going to be the same.
But — and it’s a big but — are you spending enough?
Nothing happens in a business until something is sold, so doesn’t it make sense that if you want to make more, you need to sell more? Sounds pretty basic to me.
I know of a lot of smaller companies and self-employed salespeople who have cut back on their sales efforts way too much. Yes, cash-flow can be tight and the year ahead may not look as promising as you might like, but keep one thing in mind and that’s Linkedin.
The reason I say to keep Linkedin in mind is because about 3 years ago the argument could have been made that they were quickly becoming irrelevant and headed for the exit. Today, they’re a company making things happen on several fronts. Their success has been huge and a key part of it has been, according to their CEO, the focus they’ve made on sales.
What can you do in the next 60 days to increase your sales focus?
Is there something you need to buy? Is there some sales training or sales development you need to do? Is there another person you need to hire? You get the drill.
If you want to make more money, you need to be prepared to invest more money….in sales!
Copyright 2012, Mark Hunter “The Sales Hunter.” Sales Motivation Blog.
