The Real Reason for the Dot-Com Bomb

There are lots of fancy-sounding excuses being bandied about to explain the economic downturn and market correction of 2000 (dubbed by many the dot bomb explosion).  Market under-capitalization.  Poor strategic planning.  Telecom infrastructure and inventory distress.  Blah-blah-blah.

 

Here's the bottom line -- they hired salespeople who couldn't/wouldn't/didn't sell.

 

FC Network tracks the failure of Internet companies.  When Avaya, Lucent's networking unit, cut about 3,000 jobs ( 11% of their total workforce), the press release said there was "lots of negative performance numbers."

 

After laying off around 10% of it's people, Iinternet consultancy Digiterra has tightened travel policies and cancelled all raises.  One employee summed up the real situation this way:  "this (downsizing) is apparently due to the stupid sales(people) who couldn't sell dog **** to a maggot."

 

Rep Refugees

Whether you're a dot com or not, you can't afford to hire salespeople who won't actually get out there and sell. The world is full of people who call themselves "salespeople," but they are really rep refugees.

 

A rep refugee is someone whose resume says they've been "in sales" for a long time -- 5, 10, 15 years.  But for all practical purposes, the rep refugee actually has about a year's worth of real selling experience.   Rep refugees move around, taking up squatter's rights in any sales organization they can convince to hire them.  They hang on through the training cycle and can usually cajole managers into another 6 months (sometimes more) with promises to do better and by attending remedial workshops.  But nothing helps.  They know how to sell, but they're eventually forced to move on because they don't produce.  Like refugees, they pack up their belongings and hit the road again looking for the next desperate recruiter who will hire them on the basis of gut feel and intuition.

 

Here's how one rep refugee put it:

"It's my experience that when a company (is struggling), they usually have no clue what is going on and a person could suck them dry if they aren't careful. I did this once before and got 9 months of pay before they realized that I never even showed up for work. They tried to collect back 3 months of the pay but could not because they didn't technically dismiss me."

Rep refugees know all the hiring tricks.  They know how to convince recruiters they can sell.  They draw up dynamic resumes and say all the right things on the phone.  They've taken so many sales tests, they're experts at manipulating results. They'll sell the unsuspecting manager that they have ability, aptitude, a winning personality, and even a list of contacts ready to buy.  The only problem is -- in spite of what they can do, when the pressure is on, they don't sell.