COMPANIES can live and die by the quality of their salesforce. A dazzling sales team can generate tremendous sales for an average product or service, but a clumsy sales team might not be able to do much with even a first-rate offering.

Hire in-house salespeople. You might be tempted to hire outside agents who represent products from different vendors. But an in-house salesforce offers you direct control over your team, and lets you take an active role in planning and executing a sales strategy. In addition, in-house salespeople work for you and only you -- their primary goal is to sell your company's goods or services. Outside agents, by contrast, sell many products from various vendors, and have weaker ties to your firm.

Remember that you'll have to pay 100 percent of the expenses associated with an in-house salesforce, so make sure your company's offerings will sell well enough to support those costs.

Hire carefully. A lot of people think they can sell ice cubes to Eskimos -- but truly great salespeople are few and far between. To find the creme de la creme, look for salespeople with these characteristics:

• Highly motivated by money
• Eager to learn
• Self-confident
• Appreciative of a challenge
• Persistent
• Competitive
• Able to cope with rejection
• Great listening skills
• Physically and mentally energetic

Spell out your expectations. Be sure to discuss sales goals. It might help to draft a contract that lists what your company will do for the salesperson, and vice versa.

Train, train, train. The more you train your salespeople, the better they'll be at answering customers' questions and making sales. Your sales professionals should possess detailed knowledge of your products, the competitors' products, and the market in which those products are sold. They'll also need the training it takes to understand their customers' needs, practices, and concerns. Hold regular training sessions, and encourage your team to attend outside training classes, as well as sales and industry-related seminars.

Motivate your team with a strong compensation system. Design your company's compensation plan before you hire anyone. A commission-based approach usually works best, but it should include a base salary. That way, a salesperson is guaranteed a minimum income -- which can help morale during slow times. You can find compensation standards by contacting your industry's trade association. Be sure to read Compensating Your Salesforce for a good overview of this topic.

Make the most of nonfinancial motivators. Employees like to be recognized for good work, and to feel that their supervisors listen to and act to solve problems. It's also important to make your employees feel as though they're part of a team. And don't forget the power of benefits -- paid holidays, or a good maternity leave package, or medical and dental benefits -- can go a long way toward retaining the best people.

For more advice on how to develop your salesforce into a winning team, be sure to read Managing and Motivating Salespeople.

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