The Three Myths of Industry Experience

One of the things that always puzzled me is how prospective employers seem to confuse the importance of sales experience with the relative significance of industry-specific experience. For those seeking salespeople there are clearly some benefits to hiring proven selling professionals from within your industry but hiring solely based on industry "experience" could be a tragic, though common, mistake.

Let’s look at a few myths about the value of industry “experience”:

Myth #1
If they’ve spent time in the industry, they must have a lot of contacts

Of course, this can often be true and may not be a myth in and of itself, but how did they get these contacts? and did they sell them anything? A large book of contacts is only important if the salesperson can convert them into customers. And even if they can, another problem remains: What does the employee do after bringing (converting) their clients to your company? Will they make new ones, or are they “bled dry”? And what happens if that employee now leaves your company? Will those customers now jump ship again and leave you? Do you really want to be held hostage by your salesperson’s book of contacts?

Myth #2
If they’ve been in the industry, they understand the product and can educate prospects

This is a fundamental misunderstanding what you’re hiring a salesperson to do in the first place.
 
First of all, unless you're selling jet-propulsion systems any reasonably intelligent future-employee can be taught to understand all your product/services and their value propositions.

Secondly, and most importantly, since when is your salesperson's goal to "educate" their prospects? Has education actually led to a sales in the past? The truth is, you want the opposite; you want your prospects to educate your salespeople. You want the salesperson to listen, ask good question, earn prospects’ trust and respect by understanding their needs through curiosity. The last thing you want salespeople to do is lecture prospects on the benefits of your product/service. No one likes to be lectured or convinced, and aren't your prospects perfectly well “educated” on what they need, anyway?

Myth #3
If they’ve been in the industry, they’ll make prospects more comfortable by speaking their "language" and can quickly establish credibility

This one is hard for people to let go of, and to be honest, there is some truth to it - but not much. Once again, I have to assume that you’re hiring an intelligent person who won’t misrepresent your firm. 

Most people, including your prospects, are their own favorite subject and they will be more than willing to enlighten others on the topic when asked. As long as your salesperson is comfortable in admitting that he is a non-expert, new to the industry and determined to gauge a prospect’s needs and answer their questions or bring in the right subject-matter experts to do so things should flow smoothly. In over 20 years as a salesperson, I’ve never had a prospect reject me for not knowing enough about their industry. By the same token, gleaning product and industry knowledge from a prospect allows you gain a new friend whose needs you can more accurately understand and fulfill.

You need your future salesperson to close deals.  Maybe it's time to reconsider whether industry knowledge and experience are as important as they might sound in helping you reach that goal.