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The saying is: Money makes the world go around. Fair enough—the lights have to stay on. The essential emollient, money manages to insinuate itself into all of our lives. And those who refuse to entertain the reminders that design is a business—whether it’s conducted in a studio, in-house or freelance setting—are always welcome to join the Starving Artists Guild.
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PROFESSIONAL PRACTICE
Working With A Sales Rep (Part Two) (cont'd)

GIVE YOURSELF ENOUGH TIME TO FIND AND HIRE THE BEST CANDIDATE
The sales rep will occupy an important senior position within your company. Don’t be surprised if it takes a while to find someone who’s a good fit, both in terms of skills and personality. The strongest candidates will have solid experience in new business development for a design firm. In addition to that, many firms seek candidates who also have some client-side marketing experience— first-hand involvement in client strategy development and brand management can be a very valuable asset when it comes to selling strategic services. All candidates must have a good understanding of the creative process as well as the detailed advance planning that’s required for complex projects. You’re looking for an individual who has superior verbal and written communication skills. You need someone who is organized and proactive. In terms of personality, you’re looking for someone with a positive, upbeat attitude, excellent interpersonal dynamics, and the special ability to be gently persistent when necessary.

To get the word out about the job opening, it’s best to start in a targeted way. Contrary to popular wisdom, you should avoid advertising the position in your city’s daily newspaper or on a big, generic employment site because that could easily trigger an avalanche of responses from individuals who are completely unqualified. It’s smarter to start in a more focused way, then gradually expand the search process only as necessary.

The best way to start is with active personal networking by the founder and senior staff members. Describe the job opening to people you know within the design community, including your suppliers. You might also get the word out discreetly to your client contacts. Some of them may be excellent candidates— marketing professionals with a deep understanding of one of your target industries plus personal experience as a buyer of design services. However, if a client contact does express interest in moving over to the agency side of the relationship, think through the implications carefully. If you recruit this particular person away from your client, is there a chance that you could lose the account? Or is there a chance that the hire could actually strengthen the relationship?

If you find that personal networking is not producing results, you should gradually expand the search by posting the position on your company’s website, listing it with appropriate professional associations that maintain job banks, and perhaps placing recruitment ads in targeted trade publications that are relevant to your type of business. You also have the option of engaging a headhunting firm. This will increase your costs, but it will also bring many benefits. Established design recruitment firms know lots of people. You’ll gain access to qualified candidates nationwide who may not be actively looking, but who might be interested if personally approached by a recruiter.

When you do identify a number of strong candidates, review their sales backgrounds carefully. Your estimate of their future performance within your firm must be based on their actual performance at past firms. Look at the duration of each past sales position. If candidates have been job hopping every year or so, it may be an indication that past employers carried them through an initial orientation period, only to have them jump ship when pressure mounted to bring in new accounts.

When you find someone that you’re interested in hiring, write a formal employment agreement. This is especially important for commissioned sales positions because the agreement will include a detailed compensation plan. Spell out exactly how and when commissions will be earned and paid, both during employment and in the event of termination. In the document, define all key terms so that there will be no confusion over language. Commissions are a form of wages, so your firm must comply with all applicable wage and hour laws in the state where you are located. Labor laws vary considerably from state to state, so you need expert guidance. Draft the employment agreement with assistance from a labor attorney. A small investment now in legal fees could save you a lot of grief later on. A poorly written agreement could easily lead to disputes and, in some instances, legal penalties for you as an employer.

As you work with your attorney to finalize the text of the agreement, ask for advice about competitive restrictions that might need to be included. The rep that you hire will gain specialized knowledge that is unique to your company. This information might include such things as customer contacts, pricing methods, and other trade secrets. At some point in the future, it’s conceivable that the rep might leave your firm and go to work for a competitor. A non-competition clause (also called a covenant not to compete) may be necessary to protect your company. The purpose is not to prevent the rep from earning a living or to impede future career advancement, but simply to protect your firm against unfair competition. The rep would be prohibited from doing two things: divulging proprietary and sensitive information to anyone outside your firm without proper authorization, and soliciting your clients for any business that competes with you. These narrow restrictions would apply during employment and for a reasonable period of time after termination, such as one year.

TAKE THE NEW HIRE THROUGH A FORMAL ORIENTATION PERIOD
The rep that you hire will not be productive immediately. Some time will be needed for her to come up to speed as an employee and begin establishing relationships with potential clients. Be prepared for an orientation process that may last six months or longer. During this time, you must provide guidance and supervision. You will be reviewing proposals and occasionally helping to close deals. The rep must become familiar with your portfolio and case studies and learn to clearly articulate your offer before she can speak for the firm. This process of acculturation includes learning the firm’s criteria for evaluating opportunities. The rep must be able to determine how closely each potential project fits the firm’s abilities and strategic objectives.

At any point during this orientation process, if it becomes clear that the new hire isn’t working out, don’t hesitate to make a tough judgment call and terminate her employment. New business development is vital to the ongoing success of your firm. Don’t leave it in the hands of someone who is not good at it.

On the other hand, if the new hire is working out well and becoming increasingly productive, continue to provide whatever guidance and mentoring might be necessary. In addition to daily, impromptu interactions, you should also schedule meetings at regular intervals to discuss performance in a more formal way. Have these discussions on the three-month, six-month, and twelvemonth anniversaries of the date of hire. Reserve the right to adjust the responsibilities and activities of the position as needed. At the one-year anniversary, you should also reserve the right to finetune the commission structure if necessary. If you hired the right candidate and provided the right guidance, you’ll be amazed at the results. Over time, the new business development person will become a trusted member of your senior management team and will contribute in very important ways to the evolution of the firm.

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