What to do if you're on a PIP

what is a PIP and how to avoid one.

June 06, 2023

Happy World Environment Day! Shout out to all of the sales reps using the phrase “save the environment” in their pitch. ♻️ 

 

In today’s Follow Up:

  • Is 2023 the Year of the PIP? 📉 

  • Sales in the news 🗞️

  • Sales tools 🛠️

  • Sales jobs for closers 💰

Sales Fact of The Day

91% of customers say they’d give referrals. Only 11% of salespeople ask for referrals.

What is a PIP & How to Deal with Them

It’s 2023 and sales reps are missing quotas like Shaq at the free-throw line.

According to Repvue, only 39.6% of AE’s hit quota in May. No bueno.

Just as Chipotle leads to gas, missed quotas usually lead to PIPs.

This week alone there were 10+ mentions of the word “PIP’ on r/sale. PIPs are in and bonuses are out.

So, that’s why you’re no B.S. sales buddy is here to help.

PIPs are sales reps’ kryptonite. You should avoid PIPs like an AI Twitter thread.

But before we dive in, let’s get on the same page. What exactly is a PIP?

PIP stands for Performance Improvement Plan. 

Everyone in sales experiences a down month or two, but a PIP is a bit more serious.

It’s the corporate way of saying “get your sh*t together or you’re gone”.

PIPs are used across all departments, but they’re most common in sales because of how easy it is to quantify quota and performance.

Sales managers use PIP plans to

  1. Get underperforming sales reps back on track.

  2. Cover their ass if they fire the employee.

Just like an STD, the best way to deal with PIPs is to avoid them altogether.

If you sense you’re falling behind or going to miss your quota, you need to be proactive (not reactive). Meet with your manager before you need to, focus on your inputs, and sign up for The Follow Up (100% proven to save you from a PIP) 🤷.

In some cases, PIPs are just out of your control. The market may be in a bad spot, it could be a down month, or a big deal just fell through at the last second.

If a PIP is in your future, here’s what you can expect:

  1. Description of job functions and expectations (call metrics, quota, etc.)

  2. Examples that prove expectations were missed.

  3. Measurable goals that are expected within a timeline.

  4. Resources provided to hit the goals.

  5. What happens if you don’t hit them (aka, fired).

But just because you got put on PIP, doesn’t mean you have to accept it.

PIPs are typically presented with two options:

  1. Leave the company with a severance or payout.

  2. Agree to the goals laid out in the PIP and get to work.

This decision is a tough one, and one that should be carefully considered.

At many companies, PIPs are a death sentence that very few reps ever make it through.

But don’t worry, a PIP is not the end of the world. Many reps are able to use PIPs as motivation and a chance to prove themselves.

If you’re presented with a PIP and are trying to decide what to do, here are two questions to consider:

  • Have other reps successfully made it through a PIP in the past year? (If no, take the severance and run).

  • Do you see yourself at the company long-term? (If no, take the severance and run).

If the answer to both questions is yes, taking on PIP may be the best option for you.

Key Takeaways: Although PIPs are a salesperson’s worst nightmare, they’re becoming more common as the economy is uncertain and reps are missing quota. PIPs are a tool used by managers to get underperforming reps back on track or get rid of them.

PIPs are just one tool that should be used in serious cases and proactive coaching, metrics tracking, and communication should used be to avoid them at all costs. If you’re faced with a PIP, carefully consider your decision based on the two questions above.

👇️ Let us know your thoughts on PIPs.👇️ 

Sales Tip of The Day

Remember that discovery is not just one step in your sales cycle.

Discovery should be done at all stages.

Good reps make discovery a part of every conversation (without it feeling like discovery).

Sales in the News

Sales Weapons of The Day

  • Bardeen: A Google Chrome plug-in that automates manual tasks like sending meeting reminders, adding people to a CRM, or getting the social profiles of all meeting participants. All in one click.

  • Effective Ape: Send personalized videos using Gmail and see when your prospect opens your email & watches your video.

Cool Jobs at Cool Companies:

A word from our LinkedIn Influencers:

Sell the Honda, not the Ferrari.

Meme of the Day

And that’s a wrap!

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