Sales People DO NOT Produce revenue
I had an interesting discussion with a man today that owns his own software and services company. He would fit into that midsize area with only 180 employees. With the revenue that he explained to me that they were pulling in, it was pretty clear that the current economy wasn’t doing to much damage to his business (if he was telling the truth). He said something on the call that got me thinking. He was explaining to me that his large sales team produces the revenue for the company. The field sales and the inside sales groups produce the most money for the business.
I started scratching my head. Do sales people really produce revenue for a business? Well I guess it’s a matter of semantics. I think the customers are the ones producing revenue for a business, not a sales person. It’s the customers wallet the money is coming out of so wouldn’t it make sense?
The point of a sales person either field or inside is to take an opportunity and then move it through the sales cycle. Getting the customer from being interested in a product or service and actually paying for it. Marketing should be targeting new customers with actionable messaging that turns into the opportunity. But it all comes back to the customer being your primary source of revenue.
Do you agree or disagree?
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I agree, but disagree. Producer and source are different. First, customers are the source of the revenue, not the producers. Second, the revenue is generated by the product or service, not the sales person. It is job of a sales person to match the needs of revenue source with the revenue producer.
Of course, there are a lot of potential customers out there with cash in their wallets. But they won’t do your business any good unless they decide to spend those dollars or apply their revenue to your products or services. That’s where the salespeople as well as marketing and promotion come in.
Guy | Technology’s last blog post..The Aeron chair
I agree with you.
I totally agree with you that customer is the source. Because we must alway provide something that the customer wants. Without identifying that, there is no business to take about.
Rick Job’s last blog post..Side Income: Private Tuition
I agree 100%
Niche Socializer’s last blog post..Niche Socializer is For Niche Marketing
We can argue over who owns the revenue source, but I think it is the most beneficial to acknowledge a company’s complete dependence on the customer. Meeting their needs is the only way to have money change hands. Having that proper perspective benefits both the sales team and the customer.
Matt’s last blog post..Big Benefits Buying Forklifts In 2009
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