A successfully executed sales strategy will, at some point, dictate the need for expansion. In past teams I managed, expansion was never well-received by the existing sales reps. Expansion in the sales team meant a re-organization of sales territories. To add new reps, we had to realign the territories of the existing reps. Sometimes this meant realignment geographically, sometimes it meant specializing in a certain segment of our market. Sales reps always feared that shrinking their sales territory would mean they had less opportunity to meet their quotas.
The reality was, most of the time, the sales reps were not even coming close to reaching and engaging all of the potential prospects in their marketplace. This is why it is important to select a tightly defined niche (geographically or by segmenting the market) and go after it. Here are three reasons a niche market works:
It is easier to write marketing material that is specific to a niche.
“We provide financial planning solutions for single parents.”
“We know the real estate needs of the upper peninsula better than anyone.”
It is easier to position yourself as an expert in that niche.
“I specialize in helping single parents save for their child’s future.”
“I know more about real estate in the upper peninsula than any other agent.”
It is easier to charge a premium. People are willing to pay more for a specialist than they would for a generalist.
I recall, after one extremely successful sales year, adding 10 new sales reps across the country. Every one of the reps that were already there (the very ones who complained they would never meet their new quota with a smaller geographical territory), exceeded their quota the following year. More focus = more sales. It is a simple and trustworthy equation.