Is Outside Sales an Endangered Species?

Written by Jeremy Miller

Our world is changing. Global warming is causing polar bears and killer whales numbers to decline. Human sprawl is knocking out major sections of natural habitat, which impact species like the gorillas and pandas. And now rising fuel prices and the growth of the Internet are killing off outside sales professionals.

Who would have thought we could ever see the end of the outside sales professional? They have been helping companies grow for over 100 years. They have introduced products, educated markets and grown companies through their efforts. They have been the driving reason for some of our greatest companies like IBM, Xerox and American Express. Many of our most successful business leaders started their careers in sales. Today outside sales professionals are in jeopardy.

Google has had a profound impact on sales. In just a few short years Google has taken control away from the sales professionals and given it to the customers. In a few keystrokes a customer can identify all of their buying options. They can read product reviews, get competitive pricing, find vendors and choose the best option without ever speaking to a sales person.

Google has replaced much of the front-end work sales people do. Customers aren't waiting for a sales person to cold call them. When they have a business challenge they go to Google to find the answer. When they want to compare their options and see which companies offer the best value, again they go to Google. Try this on yourself. When you buy your next car will you A, head to a dealership and ask a sales person what they have for you, or B, search Google and build your own shortlist. If you are like most, you will know exactly which car you want to buy long before you speak to a sales person.

The second major influencer for the extinction of outside sales professionals is the rising price of fuel. In less than two years gas prices have soared by more than 30%. The annual cost of a sales person who drives an average of 500 kilometers per week has increased by $9,620 per year. This may not seem like much, but imagine you had 100 sales reps on the road. That is close to a million dollar increase in the sales force's budget! Imagine if you directed that investment to more productive marketing efforts? Imagine you put that money into Internet marketing programs? Would you be better off? Most likely.

At a $1.40 a liter even sales professionals are monitoring their driving habits. In June 2008, LEAPJob, a Toronto-based sales recruiting firm, polled sales professionals on the impact of rising fuel costs on their driving habits. Over 50% said they have reduced the number of trips they are taking. This is a remarkable thing for a sales person to do, because it is their job to visit customers. If they are making fewer trips then they are seeing fewer customers. This will directly impact how they sell. They will have to be much more strategic in their sales efforts if they hope to hit quota.

The outside sales professional is being squeezed at both ends. Customers are circumventing the sales process by getting information on their own, and the cost to travel is forcing sales people to think twice about trekking across the city. Sales forces must become much more strategic about how they engage, support and sell to their customers.

Sales forces need to master the same web tools their customers have embraced. The obvious statement for any company is "be where your customers are." If the first place a customer looks for products and services is Google, well you better be in their search results if you want a shot at selling to them. If a customer's first impression of your company is your website, well it better be remarkable. The reliance on an outside sales force is a clear sign that a company's sales and marketing efforts are too dependent on very expensive sales resources. The increasing costs of an outside sales force means companies have to focus these expensive resources to where they will have the most impact such as product demonstrations, negotiations and strategic account management. Conducting business as usual is suicide.

It is safe to say that the cost of gas isn't going to suddenly fall, and that innovation on the Internet is going to suddenly stop. The forces killing off outside sales professionals are here to stay. Companies have a choice. They can embrace their new realities, or they can become conservationists and try to save another endangered species.

Jeremy Miller -
	Jeremy Miller is a Partner with LEAPJob, a sales recruiting firm in Toronto, Canada. LEAPJob recruits sales professionals and sales leaders for many of Canada's most recognized companies. Their clients range from the Top 50 Employers to smaller organizations building their first sales force. For more information visit http://www.LEAPJob.com . You can reach Jeremy at 905.281.3090 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it . Read More >>
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