Okay. Good morning, everyone, and thank you for attending the webinar this morning. I appreciate your time. Sorry we started just a minute late. That was due to a technical difficulty that was my fault, but I think we're ready to go. The subject today is from no pay time to pay time in sales. This is a subject that's near and dear to my heart as someone who's been doing selling and managing salespeople for quite a long time. I hope that you can take away some practical tips to increasing selling time for your reps, and we'll also talk about what we call the trouble line and explore some ways to stay on the right side of it. Ultimately, what we're trying to do is turn time into some good money that we can take to the bank rather than the pennies that our time produces. My first few slides were a little bit out of order, so I'm going to do just my quick background slide first. A little bit about my background. I've spent the last 20 years in software development and roles from operations, sales, and marketing. The reason that it's relevant for the topic today is that my company, of which I'm the owner and CEO of PopArt Incorporated here in Portland, Oregon, our primary purpose is actually to build technology, to build software, to build mobile apps that make sales and marketing operations for manufacturers, OEMs, and their distributors and dealer channel more efficient. My perspective and that of my firm is very much to figure out how can sales become more efficient and thereby more effective in producing the desired outcomes, which are happy customers and certainly more sales. Let me actually go back to the prior slide. A little upfront contract. I like to start meetings and presentations with a quick expectation setter. We do have 60 minutes to full hour reserved. I really don't think it'll take that long unless we really get going with lots of questions, which would be great. The more interactive, the better. We're going to start off by talking about some of the biggest problems that are facing sales. We're going to go into pay time and no pay time and how that can potentially offer us a valuable perspective that can help us solve some of those challenges. I hope to leave you with a few takeaways. It could be some new ideas to take back to your dealership or organization, and then possibly even some solutions. Even if nothing else, what I hope to offer you today is a little bit of a new perspective and a change in your perspective. One quick note, there is a chat box over on the window that you should be seeing in your browser. I welcome any and all questions as we go along. I'll keep one eye on that chat box at times. If we get a few questions throughout, I may just stop for a moment and we can talk through the questions. If we get lots of questions, I'll probably leave them until the end and we can have a little Q&A at that point. If any questions, please fire away and we will get going. Here's the question to start with as we eventually get to the topic of pay time and no pay time. This is a question that I would ask you rhetorically, but also if you want to give feedback, please enter it in the chat window there. What is the biggest challenge in sales in 2019? A recent survey was done by the firm Richardson, a really interesting survey that you can find on their site, which I've listed there, which actually looks at the biggest challenges facing sales in 2019 and also looks back to the data from 2018. We know that sales is a complex job with many components from prospecting to negotiation and expanding accounts. I thought that some of the biggest challenges facing sales in 2019 would be extremely relevant and resonate well with AED members, particularly when you look from prospecting and gaining appointments to maintaining profitability. We know that these are big themes and topics from AED seminars and AED annual, particularly down to expanding accounts and becoming a trusted advisor. There are a few things more important than being thought to be a trusted advisor to one's customers. Breaking it down into some specific selling activities and again, just to ground our conversation and frame some of the biggest problems facing sales today, we can see that on the strategy side, there are two standouts, creating competitive differentiation, always hard in a competitive marketplace like you're in, and helping create a case for change. This is particularly true for your organizations, but also for mine. Anytime we're talking to somebody about new software, a different way of doing things, creating that case for change can be difficult. The prospecting selling activity is interesting because as you can see, all five of these areas are about the same percentage in terms of being cited as biggest challenges. Clearly to me, what that means is that there are a lot of challenges with prospecting that are facing salespeople out there. There's also the matter of meeting client needs, creating value and insight during the conversation, certainly relevant to big equipment and to distributors and channel-centric sales. Then of course, we talked about becoming a trusted advisor. The takeaway from these few slides is that there are lots of challenges facing salespeople in 2019. They're all across the board. If anything, we might pause and say, well, where do we even start with this? As I often do at my firm, I would actually ask another question at this point. What is really the biggest challenge in sales in 2019? This is frequently the case, right? There's many challenges that are out there, but there's often something more fundamental, the root cause, something which leads to the other problems and can be solved in a way that is more fundamental and further reaching than the more downstream things, which still need to be dealt with, but not as fundamentally. What is really the biggest challenge in sales in 2019? You may hear this from your colleagues. You may say this yourself sometimes within the sales profession. Simply, I don't have enough time. There are too many things to do. There are too many things that are distracting your attention and those of the people in your dealership or organization, just the point of I don't have enough time, which I think speaks to the deeper issue. Let's look at some statistics. Accenture put out a research report about where salespeople are spending their time. It's amazing. 20% of time spent by salespeople is going to data entry and CRM, 17% to meetings, 15% to research, 12% to training and other activities. It's already obvious what the basic point is. Only one-third of time spent by salespeople in their entire week actually goes to selling activities. If we look at it through that frame, I think we can probably agree that before we go to too many of the downstream implications and particulars of challenges facing sales, the most fundamental challenge facing sales is that there isn't enough time being spent on the critical selling activities. I think that's a problem that we need to try to solve with pay time and no pay time, which I'll get to in just a moment. Again, how do we take that time? How do we create more time? It's difficult to do, but how do we do it so that salespeople can spend more time selling? Going back to the slide just a few ago, what can be done? Certainly, we can look at these percentages and say, well, incrementally, if we can reduce the amount of data entry, if we can reduce the amount of time spent on meetings, cut out one meeting a week, if we can improve availability of research and have that take less time, if we can reduce that a little bit, then those are things that by reducing those activities and by reducing the percentages of that time, we can somewhat automatically create more selling time for the reps. Some specific ways to do this that I've seen that work, which might have implications for your firms, number one, just simply reducing admin time. Every company, and unfortunately mine, too, has unnecessary bureaucracy and administrative work that can be cut down. That's important. Another thing is sales reps spend a lot of time looking for things that they need. There are sales enablement software and other platforms that can be very helpful in reducing that time, and we certainly have experience with that. Centralized mobile-friendly resources, whether it's VAM or mobile apps, and we personally have experienced a more efficient CRM platform moving from Salesforce, which is great if you use a lot of its functionality, and there are still things we like about Salesforce, but pipe drive is a better fit for us because it takes so much less time to manage. These are all ways that you can incrementally try to do things, but what I'm going to propose is I'm going to propose a little bit of a more radical shift, a little bit of a more fundamental shift, getting back to what we talked about before, and that is the notion of pay time and no pay time. I was first introduced to the concept of pay time and no pay time on the first day of my Sandler training, which I took many years ago. Sandler's selling system is my personal favorite and transformed my abilities as a salesperson. I think the unique genius of David Sandler and his Sandler submarine, which you may have seen, is that it is such a well-structured selling system that you can teach to somebody and then follow. It's where I got the original idea of pay time and no pay time, again, on my first day of training with Sandler's selling. It's really to David Sandler and to Sandler's selling that I owe a debt of gratitude and knowledge and, frankly, inspiration. Let's talk about pay time and no pay time. The other way that I would say it is it's one strategy to achieve sales effectiveness and efficiency, effectiveness being doing the right thing and efficiency doing things right. I would say that of those two, when you look at any time that you spend in your life or any of your employees spend in their lives, it's primary, it's most important to be effective, meaning to work on the right things. Then once you're working on the right things, sure, do them efficiently. Spend as little time as you can to do them well and to do them right, and then you can have an effective work-life balance. But if you're not doing the right things in the first place, then you're really in trouble. That's really what pay time and no pay time are about. The definition of pay time. These would be overall, and we'll get into a bunch of examples and specific ways to potentially implement changes for yourself or for your organization. First, pay time defined. Think of pay time as the things that, or pay time activities as the things that people do that directly pay. We think about those as professional salespeople understand that certain activities should be done during regular working hours. These are called pay time hours and these are called pay time activities, and you should do those activities first. You should prioritize them. Without these activities, the sales numbers won't be hit and the proposals and the opportunities and everything else won't be advanced. Anything that does not directly lead to paying, meaning non-sales activities, is called no pay time activities and should be done during off time. That can be a pretty challenging concept because sometimes, as we saw before, if sales reps are spending two-thirds of their time on non-sales activities, you're not going to be able to fit two-thirds of your time outside of working hours. It can be a bit of a radical paradigm shift for people. Yes, it's difficult. We'll go through an exercise. I think there are ways to make it less difficult and more possible. We will go through those ways, but this is just the first high-level definition. It's useful to recall from another one of my favorite authors, Stephen Covey, Seven Habits of Highly Effective People and First Things First. He cites the example of the jar and putting in the big rocks first. If you have a jar, let's say a mason jar, and you fill it up with some larger size rocks, eventually you won't be able to put any more in. You'll say, well, from the perspective of these big rocks, the jar is full. Then if you have some gravel, some smaller stones, you'll be able to add a number of those in between the spaces, between the larger rocks. You can actually put quite a bit of gravel into the mason jar. Then eventually you won't be able to add any more gravel. From that perspective, you'll say, well, it's full, unless you have some sand, in which case you can add some sand and fill in the cracks even more. Then you can say, well, it's full. Then you can grab some water and you can actually fill it up again. Now, truly, there is no space left in the jar. The lesson of that example is if you don't put the big rocks in first, you won't ever have any space for them at the end. Think of the big rocks as the most important selling activities. This could even be extended beyond sales into other areas of life. The most important things you need to do, whether it's with family, whether it's health, whatever it is, the big rocks are the most important things. You've got to put the big rocks in first. If you do the other things, if the gravel and the sand and the water are the no pay time activities, like meetings and other things that are not as valuable from a selling perspective, then you're not going to have room for the big rocks. Let's look at it a little bit step by step. This is the structure of pay time and no pay time, which I think is its primary advantage. First off, you need to define your working hours. For many people, this will be 8 to noon and then an hour off for lunch and then 1 to 5. Some people would say 9 to noon. Some people might go until 6. Some people might start earlier, whatever. Whatever your working hours are that are hours that other people are working too probably are your pay time. Secondly, you've got to identify the activities that do not pay you directly. These are your no pay time activities. You have to do them, but you don't want to do them during working hours if you can at all help it. Do them during no pay time. Third, identify activities that pay you directly. These are the kind of things that are direct contact or involvement with prospects and customers that can pay you. We call these real sales activities. We looked at a list before. These need to be done during your pay time hours. Again, ask yourself the question, what do you do that really pays you? This is a tough exercise because so much of what fills up sales rep's days are those non-selling activities. It is very hard to look at those and to move them off. I would cite as one approachable example for a way that this could actually be done is think about email. You probably know some people who have their email open all day long and probably spend 80% of their day in their email just scanning to see if new messages have come in and just it's really kind of unnecessary. And then you probably know people or maybe hopefully you've evolved to this point where you only check email at certain points of the day. You structure the time so that it doesn't encroach on the whole rest of your day. This is a really good example of taking something that's fundamental and important to your business and to your professional life which is email and communications and realizing that it is possible to structure time around it so that it doesn't take up too much of your time. So talking about no pay time activities, some of these things are going to be pretty obvious. Expense reports, you don't want to spend a bunch of time in the middle of your prime selling hours doing miscellaneous administration like expense reports because they can be done outside of working hours and you should be talking to prospects. There's some other things here like quotes and proposals might be difficult to fit outside of hours but again the more you can, the better off you're going to be and the more efficient you're going to be. Research, internal meetings, LinkedIn and other social media, yeah I know these are tough but these are no pay time activities. And then the pay time, this is the important stuff, the sales appointments, the calls, the meetings, the prospecting, the famous line from Sandler, you don't have to like doing prospecting, you just have to do it. Follow up emails, again it's part of the sales process, demonstrations, presentations, meeting with existing customers, also really valuable also ways to get paid. So those are the pay time activities. So ultimately we'll get into some more specific steps about how to even go to this process at a more granular point and a couple of the really key takeaways to make this happen but again how do you achieve it? First of all and before ever undertaking an effort like this to restructure one's day or one colleague's or direct report's day, you need to recognize that there's only so many hours in a day, balance is important and you have to put the big rocks in first. Really successful sales professionals know the difference between pay time and no pay time. During those core working hours that they've defined, they are spending nearly all of their time on selling activities and they're relegating the administrative stuff, the less important stuff, still necessary but spend as little time on it as you can to the no pay time. I want to get into a particularly relevant example that I like, Glen Gary Glen Ross, one of my favorite movies and also an all time great movie about the profession of sales, maybe the underbelly of the profession of sales but certainly many lessons about the sales profession to take from the movie. In the iconic early scene, Alec Baldwin is this kind of heavy, from downtown shows up to essentially berate and criticize the sales team for not hitting their numbers and for doing such a poor job. During the process of his world's toughest pep talk, he says it always be closing and copy is for closers and some other quotable things but he also lets you know that half of the sales force is going to be fired at the end of the month and that just the top performing people are going to still have their jobs, truly an iconic scene. Again, the famous line which gets repeated a lot around here anyway is copy is for closers. I'll come back and finish the example in a moment but before I do, this is what we talk about when we talk about the trouble line. The trouble line is what separates no pay time from pay time. With no pay time on the left, the necessary but lower value support activities, the kind of things that if you could, you would delegate to someone. If you had that, I can't delegate much of my work so most people can't delegate too much of their work but that's over on the left and then the pay time is over on the right. The trouble line is all about if you are doing no pay time activities during pay time, then you've crossed the trouble line. The phrase we have here is try to stay on the right side of the trouble line both literally because the pay time activities are on the right side of the trouble line but also figuratively because you want to stay on the correct side of the trouble line which means out of trouble. Back to the example. The character is giving the team some tough love and he's trying to get the team to do the right thing. He's trying to get the team to do the right thing. He's trying to get the team to do the right thing. He's trying to get the team to do the right thing. He's trying to get the team to do the right thing. He's trying to get the team to do the right thing. He's trying to get the team to do the right thing. He's trying to get the team to do the right thing. He's trying to get the team to do the right thing. He's trying to get the team to do the right thing. He's trying to get the team to do the right thing. The other thing about this scene is that Roma is not present. He is not in this internal meeting getting a tongue-whipping from this character who needs to motivate everybody. So what is Ricky Roma doing during business hours while all these other poor stiffs are stuck back at the office getting berated? Well, it's pay time. He's out selling. Of course, it's Al Pacino so he's going to be doing the right thing. Roma is out there talking to prospects, closing deals, and going to the bank. So there's this extended scene where he is talking to a prospect and trying to close a deal and doing a brilliant sales job. Meanwhile, these other guys are back at the office. So that's a classic example of pay time versus no pay time. The top performer is out there selling. He doesn't have time for internal meetings. He's spending his time on the things that are there. He's got the guts to go out and do it, whereas all the rest of them are backstaffed in the office during office hours. So ultimately, why does this matter? We talked about effectiveness being doing the right things, but in sales it's also about goal achievement as much as anything else. If you're spending more time during pay time on pay time activities, which are the highest value activities, the big rocks first, then you're simply going to create more of an opportunity to get paid and to achieve sales. Efficiency is optimum use of time. So the pay time, no pay time split certainly affects optimum use of time. You're going to be much more efficient, particularly if you're saying, well, I'm going to be doing my administration and my expense reports and everything else outside of business hours. You are going to figure out ways to do them in a minimum amount of time. Daily planning. I think a lot of times, I've certainly seen that with my people, my employees. You give a structure within which to operate and everything just becomes so much easier to understand because it's clear, because it's defined, because new activities as they come up can simply be put through that filter of the pay time and no pay time concept to create effectiveness and efficiency. Again, a few more key concepts. First, a key concept on pay time. When you utilize this concept, it will result in being with as many prospects as possible during the prospect timeline. This is critical. One of the reasons that pay time is so important is because that's when your prospects are in the office. That's when your customers are working. That's when you can maximize your time with them. This is an important way to think about it. You're spending time with them when they are available. Key concept on pay time. Key concept on no pay time. Again, things that are apparently important, and in fact, they are important, but they just don't have to be done during office hours. They don't have to be done when your clients and prospects are available. They should be performed during no pay time, because they can't be. This is one of the challenges. When you find yourself doing no pay time activities during pay time, you've crossed the trouble line. We looked at that already. Is it possible for anybody to achieve 100% pay time during pay time activities or 100% pay time activities during pay time? I would say it's challenging. I would say there are people out there who do it. 90%, 80%, 70%, all of these percentages mean two things. Number one, you need to know how much of your time you're actually spending on pay time activities during pay time. This requires tracking. It requires keeping a journal. It requires something that allows you and your company to know where the time is going. There's got to be some way to track that. Otherwise, you just won't have a percentage. You won't be able to know how you're improving it over time. Ultimately, with my operations background, the number one thing I want to do is I want to measure things, and then I want to try things. Then I want to measure them again and see if the numbers are moving in the right direction. I think you have to approach pay time and no pay time the same way. This is just one example of how to do it, of how to actually roll this out. It's a pay time, no pay time worksheet. This is actually from Sandler. The Sandler rule being stay on the right side of the trouble line. Again, this is a practical way. You can give a worksheet like this. You can find many of these online. You can give these to your people. You can use one yourself and just go through the exercise. What activity do you do that should be done in no pay time? What are the activities that should be done in pay time? Doing an inventory like this is really eye-opening for a lot of people because many people have not thought about it this way before. It's not to say that people don't work hard and all that kind of thing and have their heart in the right place, but until you really start looking at your time, I think that some of these things can just slip away. So to work with somebody on this, you can get it done. You can complete the worksheet, identify the pay and no pay time, track your time like I said. Sometimes that's the missing link in many operations. Measure efficiency weekly. I think it should be done weekly. I think that's a useful time increment for measurement. And then, as I referred to the operations from a continuous improvement perspective, develop plans to increase your efficiency. And you may not get to 100%, but maybe you can get to 90%. Maybe if you start at 70%, you can get to 75% or 80%. It's all about striving to increase the number as high as possible and then just understanding when you get there and just try to get as close to 100% as possible. I've seen 90%. 90% is pretty tough. 90% is people who are really focused and go through this exercise and are really willing to take a hard look at their own time and how they spend their time. As I sort of get to closing here, I would say that another thing that's important, in terms of pay time and no pay time, is to have a selling system. I think this is really important for the reps that I've trained and for reps that I've worked with across many industries. If you don't have a system, then results are going to be hit or miss unless you're just the most talented salesperson out there. The two books that I go to constantly and constantly refer to are one of my favoritely named books, which is by David Sandler, whom I mentioned earlier, and the 49 Sandler Rules, which get into many, many related concepts which I think are pretty easy to digest and certainly applicable from a pay time and no pay time perspective. A few just kind of closing thoughts, other ways to maximize pay time. I mentioned watching what you do, keeping a journal. It's really important. If you have a time tracking system that your salespeople use, that's okay, too, but I'm not sure how common that is in the sales profession outside of my place. Stay on goal time, not clock time. I think this is really important, actually. Of course, there's a clock time relationship when we talk about no pay time and pay time because that creates the original structure, but I think it's really important to have behaviors that reach the goals because ultimately this is a very goal-oriented profession and it's not about punching a clock. It's about staying on goal time. And then finally, one of the biggest and most important lessons that I've learned in my selling career is about keeping a cookbook. A cookbook meaning, the concept, of course, I'm not sure if you all use cookbooks, but a cookbook being a recipe, a set of ingredients that when put together will create the final dish that you want and you can follow it every time. Same thing for sales, and it's all about behaviors. Cookbooks and sales are all about the weekly, monthly, quarterly activities that are necessary, how many prospects you have to talk to, and managing it hard. It works well within the pay time framework because if you have a cookbook and you can manage the behaviors within the frame of the time that are your working hours and you stay on the right side of the trouble line, I think real increases in both effectiveness and efficiency become possible. I will just throw out there here at the end of the presentation that I am talking to you from beautiful Portland, Oregon, and if you ever happen to make it out this way you should know that Portland was recently ranked the number one beer city in the United States, so come out and look me up and I will be more than happy to take you out for a beer. Here's my information. I have my LinkedIn information there. If you would like to chat further about pay time and no pay time or just connect on LinkedIn, please feel free to reach out to me there and some other contact information right there. Thank you very much for your attention. I haven't seen any questions come in, but if anybody would like to type them in that would be great. I guess maybe no audience questions at this time, so thank you very much for your time and attention. I hope that treatment of pay time and no pay time was valuable.

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