"Why Does a Fully Booked Sales Team Convert Less?" — Transcript

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1. 0:00When you have more sales people,
2. 0:03there's another issue that starts to
3. 0:04come up, which is my sales team's
4. 0:06underutilized or they're booked out. So,
5. 0:08what's the sweet spot?
6. 0:10The reason this is important is because
7. 0:12well, if you miss it, you will
8. 0:16Let me
9. 0:16Let [snorts] me go either extreme. If
10. 0:18you have your sales team completely
11. 0:19booked out, fully utilized, here's two
12. 0:22things that happen as a result that are
13. 0:23bad. Number one is that your total lead
14. 0:25conversion will go down. You will make
15. 0:27more sales because you're they're booked
16. 0:28out, for sure. Absolute will go up, but
17. 0:31your your conversion rates will go down,
18. 0:33meaning your CAC, your cost to acquire
19. 0:35customers, will go up, um which is,
20. 0:37depending on how sensitive your numbers
21. 0:38are, could be very bad for the business.
22. 0:40And so,
23. 0:42that utilization happens, and as a
24. 0:44result, one, people have to start
25. 0:46booking out further and further because
26. 0:48tomorrow, the next day, they're all
27. 0:49booked out. They can't find convenient
28. 0:50times. So, one, it's further out, and
29. 0:53so, show rates on further out
30. 0:54appointments compared to sooner
31. 0:55appointments goes down. Number two, show
32. 0:58rate on appointments that are
33. 0:59inconvenient versus convenient, maybe
34. 1:01they do it a little sooner, but it's
35. 1:02still not the time they'd ideally like,
36. 1:04show rates go down. Number three,
37. 1:07what happens if a sales guy is making
38. 1:09calls all day long? What are they not
39. 1:10doing? They're not doing outbound. What
40. 1:12are they also not doing? They're not
41. 1:14following up on the the calls that they
42. 1:16should just They have 6-in putts, they
43. 1:17have some tippins that they need to do
44. 1:19that they just aren't doing because
45. 1:20they're on calls all day. And rightfully
46. 1:22so, they should be focused on Like, they
47. 1:24should reasonably focus on the leads
48. 1:25that are in front of them. But it is
49. 1:27your job as the entrepreneur to move
50. 1:29their calendar, better utilize their
51. 1:31time so you can maximize conversion,
52. 1:33okay? So, on the other extreme, let's
53. 1:36say that you have 30% utilization. Uh
54. 1:39so, you know, 70% of their calendars uh
55. 1:41empty. The problem with this that I
56. 1:43found is that sales team morale can
57. 1:46start to drop because they're they don't
58. 1:47really ever get in momentum. So, if you
59. 1:49have like two calls a day, like the
60. 1:51calls sometimes mean too much, and so,
61. 1:53guys have kind of commission breath.
62. 1:55They're like, I have to close this sale,
63. 1:56right? I'm not going to get paid. And
64. 1:58so, it's a balance between both those
65. 1:59things. So, I found 70%
66. 2:02is kind of the sweet spot. I don't let
67. 2:03it get above 85, and I try not to let it
68. 2:06drop below 60. And so, that's kind of
69. 2:08give you a range. I'd say 70-75 is right
70. 2:10around the sweet spot for this, and I'll
71. 2:12and I'll explain the reasoning why. When
72. 2:13we see conversion rates, as in we get
73. 2:15100 leads, we want to maximize the
74. 2:17conversion of those leads, which
75. 2:18function functionally is what a sales
76. 2:19team is supposed to do. Why why you have
77. 2:21a sales team rather than just a checkout
78. 2:22page. If we want to maximize that
79. 2:24conversion,
80. 2:25then we want to give the time we want to
81. 2:27give one, enough times for the prospect
82. 2:30to book soon. Two, enough times for that
83. 2:33time to be convenient for them. Both of
84. 2:34these things increase show rates. Number
85. 2:36three, we want to have the salesperson
86. 2:38have enough blank space in their
87. 2:39calendar so they can work their pipeline
88. 2:41and bring people back in. And I remember
89. 2:43the realization I had around this was we
90. 2:45would have high weeks and low weeks with
91. 2:47ads in terms of book calendars, but our
92. 2:50sales remained relatively the same. And
93. 2:52I was like, how does that work? And it
94. 2:54was just because when a big wave came
95. 2:56in, the guys were really inefficient.
96. 2:58And when there was, you know, a famine
97. 2:59if you will, and there was and more
98. 3:01empty calendars, the guys squeezed their
99. 3:02pipelines. And so, I was like, man, if
100. 3:04we just squeezed our pipelines all the
101. 3:06time, we would just make on the high
102. 3:07weeks, we'd make so much more money.
103. 3:08Well, how do you do that? You typically
104. 3:10need to hire more sales people. And I
105. 3:11will say as a as a personal note, I have
106. 3:14yet to make less money by hiring more
107. 3:16sales people.
108. 3:17So, like when in doubt, sales tends to
109. 3:20drive business. And I also have some
110. 3:22belief around the fact, and this is most
111. 3:23cultures, not ours here at Acquisition,
112. 3:25but the vast majority of sales cultures,
113. 3:27guys will get fat and happy. They will
114. 3:29make enough sales to make whatever that
115. 3:31nut is for them that they don't want to
116. 3:32work that hard anymore. And so, I would
117. 3:35rather have the guys just below whatever
118. 3:37that that that amount is, so they're
119. 3:38always striving, they're always
120. 3:39squeezing the pipeline, rather than, you
121. 3:42know, they can sell to their goal within
122. 3:43the first 2 weeks, and then they take
123. 3:45the last 2 weeks of the month off. And
124. 3:46that's where um
125. 3:48you know, entrepreneurs will say, "Hey,
126. 3:49do I need to change my sales
127. 3:50commissions?" Maybe. But more often than
128. 3:52not, it's like you can just add sales
129. 3:54people so that they can squeeze their
130. 3:56opportunities better.
131. 3:57>> If you were the best salesperson in your
132. 3:59company, then your company will be
133. 4:01always capped by you. And this is what
134. 4:04the two-day workshop is for. Now, I'm
135. 4:05going to be clear before I get into what
136. 4:06it is. This is for million-dollar plus
137. 4:08businesses that are trying to scale
138. 4:10their sales team, where you are still
139. 4:12probably vast majority of the
140. 4:14management. Either you're literally
141. 4:15taking calls, or you are a big
142. 4:16percentage of the revenue, or you have
143. 4:18to be constantly on the sales team in
144. 4:20order to get this to work. If you're in
145. 4:21any of those settings, then this is
146. 4:23absolutely for you. And so, if you are
147. 4:24tired of your sales relying on you, and
148. 4:27want a sales system that scales beyond
149. 4:28you, then apply. That's the deal. And
150. 4:30so, if it is a fit, we look forward to
151. 4:32seeing you out here, and it's a great
152. 4:33time. We'll talk about sales. Like, how
153. 4:34could you have a better time? Don't take
154. 4:35my word for it. Here's what other people
155. 4:37are saying about our workshops. They're
156. 4:39premo. And uh yeah, and we get to see
157. 4:40you there.