Should I Hire a Direct Sales Team?
Should I hire a direct sales team? Conventional wisdom would say “yes, of course.”
If you said “yes,” you should understand what you are committing yourself to do. You are committing to entering the stiffly competitive arena of target marketing local insurance professionals, and competing against nearly every restoration company in your market. Is that really where you want to put your time and energy?
So, before you say “yes” to the notion of direct sales consider these things:
- How long and how many trips do you think it will take a marketer to convert a single insurance agent into a referral source? Keep in mind this agent is likely marketed by a competitor nearly every day, and by each one for a lot longer than you have been around.
- How much will you have to pay a plumber to convert them into a referral source? The going rate for this pay-to-play relationship ranges between $250 – $750 per lead. Can you, will you, pay this to a plumber to partner with you?
- If you successfully market a property manager (typically of apartments or other multi-family housing) would you really want it? Do you want to be underpaid, told to do the job on the cheap, and pressured to do the minimum work to get the apartment back on the market? Probably not.
More than 90% of the effort of restoration direct sales and marketing personnel are focused on these 3 groups and to what end? In today’s marketplace – not much by way of tangible results and increased work.
Another major hurdle to effective direct marketing is the absence of supervision. Most direct sales staff are part-time and inexperienced, and are given little training or guidance by ownership in how to do their job.
They don’t know what to do, what to say, and where to go. They are told little other than to “go market agents”. Is it any wonder that the group is as unproductive as they are?
You might think twice before you answer the question of hiring direct sales personnel with a “yes.” You may be wasting your time and money on an effort that produces few results in growing your restoration business in today’s market.
If you don’t hire a sales team then what do you do to grow your business?
Reference: 9-Month Coaching Plan – The Business Transformer: Double, Even Triple Your Business in 18 – 24 Months
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