Golf with a Pharmaceutical Sales Rep

This past Thursday I went golfing with a new friend of mine who happens to be in Pharmaceutical Sales for Bristol Myers Squibb (BMY).  We probably had one of the last great days to play golf of the year because it hit 70 degrees despite being in November.  I decided to take advantage of my new contact and pick his brain about his role as a sales rep for one of the biggest pharmaceutical companies in the world.  Little did he know that I was doing research for my sales management blog.

My friend, David, sells one drug to psychiatrists in the mental health field.  He really enjoys being in sales because he views it as an extension of his personality.  He enjoys getting to know his customers and many end up becoming his friends.  One of the interesting facts I learned about his position is that BMY sells based on the product specialization sales structure.  After reviewing BMY's website they list well over 50 different kinds of pharmaceuticals that they manufacture and sell to help patients with a variety of sicknesses.  This broad diversified group of medicine lends itself well to the product specialization set up.

One interesting thing about David's position is that his pay structure is 75% salary and 25% incentive compensation.  He is the #4 sales rep for his mental health drug that he sells and his territory is southwestern PA.  One of the most interesting facts that I learned about his pay structure is that his incentives are paid based on how well he can grow his business for the region in percentage terms.  For example, if his mental health drug currently holds 15% oft eh SW PA market and he grows it to 17% in one year, that is a 13% improvement from the prior period and his payout would be significant.  Another item I found interesting is that a lot of success in his field is based on the success of the drug.  Some drugs that come out and are assigned to sales reps sometimes enter an industry that is laden with tough competitors.  These drugs can be difficult to sell and very difficult to improve market share in different regions.  

My conversations with David on the golf course helped me to see firsthand how a full time sales professional puts his method into practice.  David viewed sales as an extension of his personality and it certainly helped that he had a great personality.  In addition, it also helped me to appreciate that to be in sales requires constant communication with customers and associates.  Despite being on the golf course, David was constantly on the phone setting up meetings and corresponding with colleagues.  This may have played to my advantage because despite being a successful sales rep, his talent didn't translate to the golf links.  I shot an 83, David shot a 100.