In the next few weeks, you will be setting goals for 2020. Sales people can dread this process. Might next year's goals be too high? Will they be achievable?
This process should not be focused on what management wants you to bill. It should be focused on what YOU want to EARN! You determine your paycheck. Isn't that one of the most exciting things about being in commission sales? A part of every sale goes into your wallet. Ideally, your personal income goals should lead to billing goals that are higher than management requires.
So, what DO you want to earn in 2020? Here's a simple formula to calculate what you will need to bill to earn what you wish to earn:
Amount I want to earn___________________________
Divided by:
Commission rate_______________________________
Equals:
How much I must bill___________________________
Then, divide that total yearly amount into months. What must the billing be for each month, and what will I earn that month?
This simple exercise will give you a starting place to plan your efforts for the coming year. Now that you know what you must bill monthly, you can calculate how many face-to-face calls you will need to make each day to achieve that billing level:
Monthly goal: _________________________________
Divided by:
Average order: _________________________________
Equals:
Number of orders needed: ________________________
Divided by:
Closing ratio %:________________________________
Equals:
Number of meetings needed:______________________
Divided by:
Number of work days in a month: _________________
Equals:
Number of meetings per day: _____________________
Sales is a numbers game. You now know your numbers. You have a road map to increasing your income in 2020.
Happy Selling!
