Need help managing sales people

What sales model do you use?  SPIN?  Value Selling?  Do you even have a sales model?

Does it answer your question if I have no idea what any of those are?

So basically my background is in Network Engineering and managing Engineers.  I started my company almost 4 years ago and have thrived by utilizing my personal network of other engineers to get in front of customers and I use my technical knowledge and confidence to make sales.  I'm really acting as a Sales Engineer and people respond to it very well.
My company has grown significantly, but plateau'd a year or so ago because I've pretty much exhausted my personal network and we're in a place where we've got to go "hunt" new customers if we're going to grow.  I have hired several very experienced salespeople, given them lots of technical training on the products and turned them loose to go find new customers, or to essentially get me (the closer) in front of new prospects but it hasn't worked out at all.  It seems as though everyone I hire just wants me to funnel leads to them and then go close them for them.

My system, if you will, has been to hire experienced sales people up to this point with the expectation that they would be self motivated to sell.  This has failed miserably and cost me upwards of $150k.

I know that if I want my company to grow I have to figure this out and get somebody who sticks, but I also recognize that I need to put a real sales system in place with realistic goals and to hold them accountable.

I recognize that I need a "system" but I don't know where to start.

Oh, and more specifically for the person starting on Monday.  I have one product line of Wireless Access Points that is supported heavily by the Vendor.  So her role is going to be to set appointments for the Vendor to do a 30 minute online demonstration of the product and close the sale.  So I've hired a college educated person who is relatively green in the sales world, but very excited to make calls.

So, I don't have to necessarily train her on the entire sales cycle of the product itself because the Vendor will sell the product.  She just has to get the appointment and then follow up after the appointment for the close.

We do have a very good CRM system in place for tracking prospects and forecasts.

Actually, that does help.  Is your product a high ticket item or a high volume/low ticket item product?

It sounds as if it is a high ticket item and you have a reasonably long sales process. If that is the case, look up SPIN selling.  It works REALLY well for those with a scientific background (I've got a BA in Bio and I got it in the blink of an eye).  It is a VERY quick read and might help. 

Basically, if you get a system it might then help you manage the person because you are also managing the system and you can find people that not only fit into that system but also it is something you can measure them against.  Make sense?

is this what you say to your employees?  this may be why they are "coasting."

as an engineer, i'm sure you can appreciate people have curiosity about things outside of their responsibility.  the way i've been most successful in influencing people that i don't have direct control over has been educating them and including them in the process...even if it's not something they have to do or truly understand...they will be far more invested in what they are doing if they have a deeper understanding of what your company does.  does that make sense?  when i work with salespeople, the BEST ONES are the ones who at least try to understand other parts of the process and how their job interacts with all other positions. 

by the way, i think this applies to any job, not just the salesperson.

also, crowny is right, you need a sales strategy.  if you do relationship selling rather than transactional, miller-heimann has a great system and can integrate it with your existing CRM.

1. Everyone in sales likes the customer interaction and of course, loves the thrill of the close.  But there's another side to the job...  the work.  It's often a numbers game and when you're tired and burned out, you need to make just one more call.  Always make just one more call.  Almost as a habit... subconsciously.  Consider bringing in a hypnotherapist for a group session to make cold calls a habit, not a chore.  (I know how powerful hypnotherapy can be since I'm married to someone who does it for a living.  She's helped a lot of salespeople.)
2. Commissions are on the sales.  Give them a work incentive, a leads incentive.  If you come across tickets to a game or concert - whomever generates the most leads, makes the most calls, can produce the most contacts and lead info in a week, wins the tix.
3. Teach them to work horizontally.  Utilize their existing customers and good contacts.  "You know, since you've been happy with how I've helped you out here, would you consider spreading the love?  Paying it forward?  I'm sure you have friends and know people in other districts that you work with.  We should all hook up and I can help them out as well."
4. Give them creative scripts for the week.  "We're offering special discounts this week.  For every point Nebraska crushes Northwestern, that's your discount on top of any existing discounts.  If they win by 14, you get 14% additional off."
5. Challenge them to a cold-calling contest.  Who can make more calls, them for sales leads or you for the Romney/Ryan campaign! 

To oversimplify, everyone has  a motivational trigger. However this can be different in everyone.  Sure $$$ comes to mind as most are working for this reason, but it never works on its own.  People also have to know that the incentive targets are achievable.  Also have to realize their is a balance in managing the sales process and leading it. Managing the process is tracking sales results, holding one on one meetings, checking on progress etc.   Leading is motivating that person to do better without mentioning specifics of their role or #'s.   The latter is what most folks get wrong.  

The biggest mistake I have seen in most sales leaders is that they never show that they can lead by example. How can you ask others to do what you have shown possible?   Not saying that you dont because I never asked, but even if you are, are you doing it enough?  it is good to give a new script or strategy, but 10x better to show them how effective it can be by dong it yourself and showing them.  That doesnt mean do their work, just get the ball rolling and give confidence it is possible.

Thanks for all the great advice.

I most certainly see room for improvement. (hence this thread)

One easy thing for me to do is putting in place a metrics system to track activity.  My CRM system is very good for that, so it won't be too cumbersome.

I'm a little late for the party, but I *may* have heard there is a book titled something like "7 habbits of highly effective managers" or something of the like...(along the lines of the ...highly effective people - but for managers)  (I think)  ...maybe it was just a seminar though...  If the manager book doesn't exist, it's still work reading the "...effective People" book though - you can apply lots of that to your position.

LOTS of good suggestions in this thread though

Be careful about this. You need a handle on how activities translate into results. I've seen inside sales organizations where there was really no lack of activity but production was horrible.  You might want to consider hiring someone to consult with you on setting up a high functioning sales organization and process.  As you are moving away from your personal network and referrals the barrier the job of getting the appointment becomes orders of magnitude harder - if those sales people are only equipped with the technical info and not a carefully crafted set of sales diagnostic questions, value propositions and differentiation from your competitors then they will struggle.

I'm not a sales guy but this is just general for any employees.  There are *competitive* incentives and *cooperative* incentives.  The best places I've worked at had a mix of both.

If you're all competitive, employees become very cutthroat and backstab each other.  If it's all cooperative, you get the school "group project" effect where the true stars get demotivated as they're carrying all the slackers.

Find a balance between the two and you'll have a better work environment.  The really good folks will get rewarded both for their own efforts, and for helping the rest of the team improve.

I was a sales-person for 14 years (non-technology), a role that is 100% new business is not for everyone.  A role in which everyday is cold calls can be a frustrating as each morning you are starting at the beginning.  Think about how often you don't answer your phone when you don't recognize the number, this means your sales-people are going to be leaving tons of voicemails which most likely will go un-returned or they will be dealing with gate-keepers rather than the actual decision-maker.  This can be very frustrating for sales-people even if the goals you set forth seem attainable.

Sales is not a numbers game. It's like saying the Lottery is a numbers game....you can play the Lottery everyday but if you don't guess the right numbers you will never win.  Sales is about people and creating a relationship with your customer, especially in this economy where price tends to be king.

When you hire your sales people are you up-front and letting them know that the job is all new business?  If you do provide some leads, be very specific about the amount of new leads that will be funneled down to them vs. the amount they will need to create on their own. 

Selling into schools and gov't is very difficult as they usually have contracts with specific vendors and getting around those can be difficult.  Does this person already have experience selling into those verticals?

I realize your question is about managing people, so just keep the above in mind.