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The Center for Sales Strategy Blog

Trey Morris

Recent Posts by Trey Morris:

112,500 Reasons Why Turnover is Bad

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$112,500 is in flames every single time that you lose a salesperson and have to hire a new one! 

Yes, over $112K! 

How do you figure that dollar amount? Easy. The average cost of turnover for an employee is 1.5 times annual compensation. So, if your salesperson is earning $75,000 per year when they leave, it will cost your organization $112,500.  

So, what if your top salesperson is making $150,000 per year? Then the cost of losing that sales rep and replacing them will cost your business $225,000! So, what is your turnover ratio? 10%, 25%, 50% per year? Then start adding up the cost of your turnover. 

How does that affect your EBITA? Cash Flow? Net Profit? 

A recent study from Bersin by Deloitte estimates the cost of turnover from 1.5 - 2.0 an employee's annual compensation. And a report from Maia Josebachvili, VP of People at Greenhouse, argued that retaining a salesperson for three years instead of two, along with better onboarding and management practices, yields a difference of $1.3 million in net value to the company over a three year period. 

$1.3 Million?!?! 

Yes, turnover is a big deal for your organization. A really big deal. 

So, how do you "fix" turnover? Well, it's simple, but not easy. It's a process that can take months and in some cases even years to slow your rate of turnover in your sales organization, but here are 5 ways that you can reduce turnover:

Topics: hiring salespeople sales management Talent

5 Lessons I Learned as an Ad Salesperson and as an Ad Buyer

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I have had the rare pleasure of being on both sides of the advertising desk, both as an advertising salesperson and sales manager, and as an ad buyer at a marketing agency.

For 15 years, I sold and managed for radio stations in Dallas and Chicago and loved every single minute of it. Radio was my career, my hobby, my passion. I never thought that I would ever leave radio. Then one day, an “advertising guy” called me and wanted to take me to breakfast.

I spent the next 6 years as the Vice President of Business Development for a mid-size full-service advertising agency in the suburbs of Chicagoland. The ad agency side has been an incredible adventure. I had direct access to clients and had become the consultant that I was trained to be in radio. I worked hand-in-hand with the client as we grew their businesses together. No longer was I an adversary, but truly a marketing partner. 

Here are some of the secrets that I've learned from being on the “other-side-of-the desk”: 

Topics: Needs Analysis Sales media