The 80/20 Theory of Salespersons

At some time just about everyone learns the Pareto principle. Perhaps not everyone learns it by its formal name but rather learns the more common name “80-20 Rule”. Simply stated 80% of the effects come from 20% of the causes. When applied to business: 80% of revenue comes from 20% of customers.

How does this apply to product management and sales people? We know our sales force need tools to sell – collateral, demos, white papers, case studies, ROI calculators, etc. This is completely understandable. Some ask for more, some ask less. Some are nearly full stop without and some don’t ask at all. I would even submit that within Identity Management, because the topic can sometimes be abstract and new, this is a greater challenge than in traditionally more mature areas.

So here it is. The 80-20 Theory of Salespersons and what we learn from it. 80% of your “requests” for more sales tools comes from 20% of your product’s sales force. And the important part of this theory - The 20% who ask the most from you are the least successful of your sales force as they are hoping, grasping, that one more demo or white paper will help them make a deal.

Now it all starts to come together. You are investing most of your time in the area where you’ll get the least return. Very quickly then you reach the conclusion you should be spending time and offering to help the least vocal of your sales team (at least those who are actually working). They are the professionals; they are the ones who can sell ice to Eskimos; they are the ones when properly supported will blow away sales quotas time and time again.

Follow this Theory. In the end you’ll be doing less but generating more revenue for your product. You’ll be enabling the most successful members of that thing every successful product needs: a channel to market.