How Sales Hasn’t Changed – And Probably Should!

“He who plans no further than the present is mentally blind.
He who plans for a year ahead is a general.
He who plans for a lifetime is a genius.
He whose mental vision extends beyond his life and plans for generations yet to be is a seer, a prophet.”

– Arthur Sheldon shared this in a 1909 book, and I believe it speaks to our sales problem today.

The current design of the sales profession took shape between 1885-1920. Prior to the late 1800s, there were very little in the way of big corporations, making things at scale. People built things, and sold off their excesses. Shoes, rugs, drapes, and all sorts of other consumer staples were sold at fairs, or via manufacturers’ reps – known as Drummers or Bagmen. 

Those drummers and bagmen sold on behalf of many, went town to town, drank a lot, slapped a lot of backs, told a lot of jokes, and made commissions on their sale. Caring about the outcomes wasn’t a big priority.

As the progressive era of the Industrial Revolution took form, companies were beginning to produce things at scale – they needed their own reps, not manufacturers’ reps, drummers or bagmen.

So, our version…today’s version…of sales recruiting, sales training, dedicated territories, quotas, salary + variable compensation plans, even sales kickoffs all began during that time.

The process designs, compensation strategies, and almost all of the selling methodologies are based on this foundational approach – which, for the most part, I’d argue has been correct.

Sure, people argued for change, but the core has been the core.

The Core Has Shifted!

The design of the sales profession was based on many core components, but three of those core elements have changed…somewhat dramatically.

1. Money as the primary sales motivator: 100+ years ago, money had to be the motivator. Your lifespan was shorter. Your odds of dying unexpectedly were higher. You didn’t have a 401k or social security. You had to hoard dollars – for your family’s security and for your retirement.
2. You weren’t selling “subscriptions” or “aaS” (as a service): The deal was the peak. If a customer didn’t want to buy again, you’d just go find another. Profitability was at the deal level.
3. The consequences of dissatisfied customers: You were oversold? Product doesn’t do what you thought? Product sucks? What were you gonna do, write a letter? Tell a couple of buddies at the local watering hole?

In today’s environment,

1. When done right, we thrive when money is the reward for work we love to do, not the primary motivator for doing it. We have mechanisms to save and protect.
2. We’re in the as-a-service economy, where the deal is merely an early milestone to profitable customers who stay, buy more…
3. …and advocate! The proliferation of feedback and reviews has permeated everything, easily!

“He who plans no further than the present is mentally blind.”

If we believe this quote to be true, our processes, compensation, and measurement lens all continue to be based on “the present”. Get the deal. Hit the quarter. Get paid.

Will we still be designing processes, compensation plans, and primary measures on the “present” in five years? I’m afraid we might, but I also believe that to be a mistake. Anyone with a heart or a soul knows – and always has known – that playing the long game is better – but it’s so much more than that today. The financial metrics and blowhorn of experience-sharing means we now HAVE TO think and act long term, but our processes and structures don’t support that type of thinking.

Yet, as my friend Richard Nockholds points out, another core difference that makes the challenge here more pronounced, is serving as the ying to that yang. 

I’d like to add a fourth shift to the core: the separation of investors and managers. John H. Patterson and his ilk were owner/managers. Nowadays, most of the businesses we’re likely to be talking about here have external investors – whether that’s a public company or a PE-funded business. External investors mostly seek growth, and ideally so-called ‘predictable’ growth. (Admittedly, recurring revenue businesses can, of course, shield some volatility with multi-year ‘subscription-style’ contracts.) Valuations are mostly driven by growth while keeping within a penny or two of our forecasts. What I’m trying to get at is that while playing the long game makes enormous sense, I wonder whether the division between investors and managers makes that much more difficult. As ever, the short term often trumps the long term – daft as that may be.

Moving the needle on what is now a long-term focus need (versus the previous long-term focus nicety) would need to start where the money comes from – and the measures are driven. 

How do we change this? How don’t we, as my friend Scott Anschuetz suggests, “orient the GTM function around lifetime value? The cycle from product engineering, marketing, lead gen, etc through renewal should be viewed as an infinity loop. All functions supporting that cycle.” 

It feels like a change is necessary. But is it coming? Who’s driving it? 

Let’s first realize we are being “mentally blind” at worst, and “a general” at best. That’s not going to be enough to standout and optimize our go-to-market. Those who can rally around “genius” level thinking, processes, measures, and rewards will win! 

“Let us plan for the good of our children and our children’s children and their children – and the other fellow’s children too. There is more in business building than in business getting.” – Arthur Sheldon

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I speak and teach revenue organizations on how to leverage transparency and decision science to maximize their revenue capacity. It’s what I do…teach sellers, their leaders, well…entire revenue organizations how we as human beings make decisions, then how to use that knowledge for good (not evil) in their messaging (informal and formal), negotiations, and revenue leadership. I wrote a book Book Authority lists as the 6th best sales book of all time (𝘛𝘩𝘦 𝘛𝘳𝘢𝘯𝘴𝘱𝘢𝘳𝘦𝘯𝘤𝘺 𝘚𝘢𝘭𝘦), and a second award-winning book (𝘛𝘩𝘦 𝘛𝘳𝘢𝘯𝘴𝘱𝘢𝘳𝘦𝘯𝘵 𝘚𝘢𝘭𝘦𝘴 𝘓𝘦𝘢𝘥𝘦𝘳).

Reach out if you want to discuss The Transparency Sale sales methodology, or really…anything else (sales kickoffs, workshops, keynotes, the economy, history, etc.)! Email info@toddcaponi.com or call 847-999-0420.

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