Category Archives: free sales training
You Can’t Afford Free Sales Training
A client once told me that even if a competitor were to offer free sales training courseware and tools, it would not be wise to accept.
So why is free sales training not a good enough value?
The short answer is that the cost of the courseware itself is almost always the smallest piece of the overall expense for any sales training and performance intervention.
The following two categories dominate the cost of sales training and deserve greater consideration before moving forward:
Lost selling time — This is, by far, the largest and most important cost category to consider. If you take a salesperson out of the field for a material period of time, you lose sales revenue and, most importantly, it is a significant expense. It’s pure economics 101 at work, with the calculation taking into account the total average revenue per salesperson, the gross margin, the total number of selling days, and the size of the training population. Costs are large, usually very large, but the returns are even higher — if, and only if, you have a quality intervention, sales behavior changes and sales increase. Even a small gain of, say, 1% in sales performance per person post-training can provide a tremendous present value contribution, outweighing all costs by a factor of 10. Out of Pocket Costs — This is the second-largest cost factor, but it is small » Continue Reading.