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Sales Training - 10 Tips to Reach New Sales Goals

By Steven J. Schmidt

Setting goals in the wonderful world of sales is a must for any salesperson. Of course, you have to set goals according to the industry that you're working in, but every salesperson should have goals broken down.

From a numbers perspective, lets say that you're selling subscriptions for Time magazine. The law of averages in sales as far as closing a deal is 1/10 contacts that you make. Don't get this confused with one out of 10 doors that you knock on; I'm talking about one out of 10 people that you actually contact at the door. If you're a really good sales person, the average can go up to two or three sales for every 10 contacts.

If you know these averages going in, you'll obviously know how many doors you must knock on in order to get a sale. Selling is a tremendous numbers game; the more contacts you make, the more you'll sell. Most sales positions give you an enormous amount of independence, so it's up to you as the salesperson to get those numbers.

Let's say you're selling two types of subscriptions. One is an 8-week subscription for $39.99, and the other is a 16-week subscription $69.99. Let's also keep it simple and say that as the sales rep, you get $15 for each subscription sold for the former deal and $20 for the latter. Say you have a goal to make $50,000 a year. If you sell six 8-week subscriptions and five 16-week subscriptions, that comes out to $190 per day, $950 per week and $49,400 for the year.

In order to get 11 sales for the day, you have to make 110 contacts. The standard of people who are actually home to contact is between 40 and 50 percent. This means you'll have to knock on about 220 homes per day. The average home will take you two minutes, which means you will have to be out in the field for 7 1/3 hours. Obviously, if you can close at a faster rate and talk to more people, you can gain more sales. By the same token, if you talk to less people and take more time at the door, you won't get as many sales.

Obviously, as we mentioned, if you're a sales person who wants to perfect your craft and make more money, you'll need to close at a higher rate than 10 percent. If you hit at 25 percent, you'll only need to make 44 contacts per day to get your $50,000. That means 88 homes and only three hours doing so. Now, if you want to earn more money, you can spend six hours in the field, knock on 176 homes, make 88 contacts and earn close to $100,000.

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