Why Your Sales Team Can't Scale Yet — Transcript

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1. 0:00I am a real estate wholesaler.
2. 0:01>> Okay.
3. 0:02>> We're currently averaging about $450,000
4. 0:06a month
5. 0:06>> Okay.
6. 0:07>> in revenue.
7. 0:08I would like to be at a million.
8. 0:09>> That's your spread? That's what you're
9. 0:11making or is that's like house volume?
10. 0:13>> Uh that's gross.
11. 0:15>> Okay.
12. 0:15>> So gross is
13. 0:16>> your what's what's your spread on that?
14. 0:18What's your take on on that?
15. 0:19>> So we're at 40%.
16. 0:21So right around 250, 240.
17. 0:23>> Interesting.
18. 0:26Weird. That's high.
19. 0:29What kind of what are you
20. 0:30>> wholesaling?
21. 0:31>> [laughter]
22. 0:33>> All right, so here's the um
23. 0:37>> [laughter]
24. 0:38>> He's like, "Have you heard of brothels?"
25. 0:40So imagine a brothel, but now it's all
26. 0:42midgets. Okay, keep going. You're good.
27. 0:44>> Okay, but here's the challenge we run
28. 0:46into. So we're currently at 450 average,
29. 0:49yeah? We've had 700k months this year
30. 0:52already.
31. 0:53>> Okay.
32. 0:53>> The challenge is every time we get to
33. 0:55those numbers and I try to Hey, you know
34. 0:57what? It's time to ramp up. Uh for some
35. 0:59reason we tend to tank to, you know,
36. 1:01200, 250.
37. 1:03>> Okay.
38. 1:03>> Um I'm sick I
39. 1:06I have cause to believe it's the sales
40. 1:08team and just
41. 1:09>> Okay.
42. 1:10>> You know, they have those power months
43. 1:11where everyone you know, takes home 20,
44. 1:1430 grand.
45. 1:15>> Uh-huh.
46. 1:15>> And then the month after it's like
47. 1:17>> Are they pure commission or is it split?
48. 1:19>> So there is a base salary
49. 1:21>> Okay. What's the split between
50. 1:22commission and base?
51. 1:23>> Um so they're at 42 base
52. 1:27>> Okay.
53. 1:28>> uh per annum and then 10% of the
54. 1:30assignment fees.
55. 1:31>> Okay.
56. 1:32>> of the fees is commission.
57. 1:33>> Um all right. This is so
58. 1:38So you have
59. 1:41You have an ops issue.
60. 1:43Which is sales ops.
61. 1:45And so it's go like this is going to be
62. 1:47much more weedy in terms of like tactics
63. 1:49to answer this question. Um but it's
64. 1:51like there's probably like 20 things
65. 1:53that you need to be doing and you're
66. 1:54probably doing like 13 of them and the
67. 1:56other seven are going to be the thing
68. 1:57that make the difference
69. 1:58in creating the consistency of the team.
70. 1:59That's at the surface level. At the at
71. 2:01the at the deep root of this is who's
72. 2:04the leader of the sales team?
73. 2:06>> I do have a sales manager.
74. 2:08>> Okay. So,
75. 2:11he or she
76. 2:12is
77. 2:13the problem.
78. 2:15Because
79. 2:17like sales at the end of the day is a
80. 2:19culture game. Well, everything's a
81. 2:21culture game, but like sales you can
82. 2:22feel it so quickly when things are good
83. 2:24or not good because the performance the
84. 2:26feedback loops are so fast. Um
85. 2:29but for whatever reason you do not have
86. 2:31a culture of consistency within your
87. 2:34team. I would wager that script
88. 2:37adherence is low
89. 2:39because you have such variability in
90. 2:41close rates. Unless there's a change in
91. 2:43lead quality, which would be something
92. 2:45else. But are the leads the same like
93. 2:47this month as last month?
94. 2:48>> Yes, the leads are the same.
95. 2:49>> Yeah, so it's a sales discipline issue,
96. 2:51which then comes down to the training
97. 2:52cadence, the scripting,
98. 2:54um
99. 2:55how people are being managed on a daily
100. 2:57basis and weekly basis in terms of their
101. 2:59career goals, how like you're doing
102. 3:01morning meet like it's it's this is all
103. 3:03sales ops.
104. 3:04Um
105. 3:07I could I could like just start talking
106. 3:09about sales, but
107. 3:10like this is a pure sales ops issue. And
108. 3:12so
109. 3:14at the like this there's a two-step like
110. 3:16I would approach this in two steps. Step
111. 3:18one is we should do all the stuff that
112. 3:20we are not currently doing or we should
113. 3:22be doing. Everyone should be reading the
114. 3:24same script. If they're not reading the
115. 3:26script, why are you on this team? Right?
116. 3:28Uh we need to have training that's every
117. 3:30day to make sure that they are saying
118. 3:32things the right way. We need to make
119. 3:33sure that everyone memorizes the script.
120. 3:34Some of you guys might have seen the
121. 3:35YouTube video I put out like two days
122. 3:36ago about this. But like they have to
123. 3:38breathe the script. If they were not
124. 3:39saying the script word for word, you
125. 3:41cannot be on this team. You cannot take
126. 3:43these calls. I'm getting these leads and
127. 3:45not for you to go cowboy and make
128. 3:47up. And that then if we cannot solve
129. 3:49that problem because for whatever reason
130. 3:51you keep trying it and they don't adhere
131. 3:53and they go off script because they just
132. 3:54want to close the deals, it means you
133. 3:55have a cultural issue, which is a leader
134. 3:57problem. Because it means the leader
135. 3:59is reinforcing behaviors that get people
136. 4:03to go off script, and there's no
137. 4:05consequences for doing it.
138. 4:07And so, if you want to have a consistent
139. 4:11world-class sales team, the process has
140. 4:14to always go above the player.
141. 4:17No one is above the process.
142. 4:19And I do think that 95, maybe 98% of
143. 4:22sales teams have no idea how sales
144. 4:25training, how sales culture, any of this
145. 4:27stuff works. They just hire a bunch of
146. 4:29people, see who closes deals, fire the
147. 4:32rest, and so then you just have a bunch
148. 4:33of mercenaries who work for you. But
149. 4:35there is no culture, there is no team,
150. 4:37and it's every man for himself. And that
151. 4:40is what creates this volatility in
152. 4:41sales, and some guy says something and
153. 4:44he closes a deal, and the other guy's
154. 4:45like, "Oh, I'm going to try that now."
155. 4:47And there's no consistency across the
156. 4:48board, and that also gets you in trouble
157. 4:50long-term because they start promising
158. 4:52things and making deals that you can't
159. 4:53cash.
160. 4:55>> That makes a lot of sense. I um up until
161. 4:57now, I mean, we have scripts, but
162. 4:58they're more of suggestions.
163. 5:00>> Guidelines.
164. 5:01>> Yeah, yeah, I mean
165. 5:02>> No, it's I mean, like
166. 5:04I've done a lot of sales. Um like
167. 5:07this is a straight-out-of-the-book
168. 5:09checklist problem. Like, we have to do
169. 5:11all of these things. If we do this
170. 5:12entire checklist, we will get this
171. 5:14outcome. If we can't do this checklist,
172. 5:15the leader is the problem because they
173. 5:17don't know how to reinforce culture,
174. 5:18which then means that they're not able
175. 5:20to get the right people on and the wrong
176. 5:22people out, which sometimes means we
177. 5:23might have to fire half the team
178. 5:26to get the right people in so that we
179. 5:28can build the culture we need to get to
180. 5:29where we want to go.
181. 5:31Cuz you are in like, I showed the shapes
182. 5:32of businesses, you are in a sales and
183. 5:34marketing business. There's functionally
184. 5:36no delivery. Like, you're just basically
185. 5:38like are you are you guys doing outbound
186. 5:40or like smiling and dialing, or do you
187. 5:42buy leads from setting teams?
188. 5:44>> just Google Ads.
189. 5:45>> Google Ads?
190. 5:46>> Yeah.
191. 5:46>> Okay, so you have inbound leads that are
192. 5:48coming in and then you close. Like,
193. 5:49that's the business. Like, you buy
194. 5:51media, you sell And so, like, this
195. 5:53has to be a core like, you have to be
196. 5:56world-class at this if you want to be
197. 5:58world-class at wholesale.
198. 6:00>> Got you.
199. 6:01>> But, that's the constraint.
200. 6:02>> In the event that I have to, you know,
201. 6:04let go of half the team because they're
202. 6:05just not good enough.
203. 6:07Where do you suggest I look for
204. 6:10um
205. 6:10>> It's not about where, it's about how.
206. 6:13So, it's not like I'm going to find like
207. 6:16the better you get at training sales and
208. 6:18creating consistent sales processes,
209. 6:21the less skill someone can have and
210. 6:23create a consistent outcome within your
211. 6:24team, which becomes the arbitrage of
212. 6:26your business. Just like I said the
213. 6:27cleaning thing before, if the whole
214. 6:29constraint of that business is going to
215. 6:30be finding, you know, basically ticking
216. 6:32human being and then turning them to a
217. 6:33great cleaner that actually shows up on
218. 6:34time, you have to take the raw input of
219. 6:36somebody who has no skill and just has
220. 6:38work ethic, just has energy, and in 14
221. 6:40days you can get them closing deals on
222. 6:41wholesaling. That box is the value that
223. 6:44your company. That is your IP. That is
224. 6:46the trade secret. That's how your
225. 6:47company is valuable.
226. 6:49And so, when I say who versus how, like,
227. 6:51where do I find these people?
228. 6:53You could run
229. 6:54Indeed ads and find like for this
230. 6:56caliber of salesperson, they're
231. 6:58everywhere. Uh the issue is then what is
232. 7:00the process and what are the
233. 7:01expectations we're setting for those
234. 7:02people as they walk in. And so,
235. 7:05typically when you're doing high-volume
236. 7:06sales like you are, how many guys you
237. 7:08have on a team?
238. 7:09>> Um currently 17.
239. 7:10>> Okay. So, when you have that that I
240. 7:13mean, it's, you know, mid-size. Uh
241. 7:15someone comes in, uh
242. 7:16usually you get constrained because the
243. 7:17amount of churn you have and people
244. 7:19quitting leaving is about equal to what
245. 7:21you have to hire and that's what keeps
246. 7:22you stuck, right? And so, it's a process
247. 7:25issue kind of on the demand gen side for
248. 7:27talent. And so,
249. 7:29usually you look at that and say, "Okay,
250. 7:31what part of this can we screen ahead of
251. 7:32time?" So, it's like, let's send them
252. 7:33the script before they even show up. So,
253. 7:35people apply, we send them the script.
254. 7:37And then send us a 60-second video of
255. 7:39you saying the script. And then from the
256. 7:4160-second videos, we're going to invite
257. 7:43people to a group call, not one-on-one
258. 7:44cuz we don't have time for that. And
259. 7:46we're going to go quick drill, say the
260. 7:47script, give a piece of feedback, see
261. 7:49how they do it again. If they could take
262. 7:51the feedback well and they were
263. 7:52prepared, great. It means they're
264. 7:53coachable. They have work ethic.
265. 7:55Awesome. Now we can take you to a job
266. 7:57offer call. Somebody, you know, has
267. 7:59attitude on the coaching, they're out.
268. 8:01If someone doesn't show up prepared,
269. 8:03they're out. Very easy screening. And so
270. 8:05you take 10, you pick two, pick three,
271. 8:07they go to the next one, you make job
272. 8:08offers. And that's the flow. But like
273. 8:11the entire sales process of selling them
274. 8:13on selling for you sets the frame for
275. 8:16how the company operates.
276. 8:19Like how disciplined you are and how
277. 8:21militant you are in terms of how you set
278. 8:23the frame for this is how we do
279. 8:24things here.
280. 8:25Either get in or get out. I do not care,
281. 8:27but we win.
282. 8:29If you can set that frame, you will
283. 8:30attract winners.
284. 8:33And winning's not for everybody.
285. 8:36And so that means that on the team
286. 8:37there's probably some losers.
287. 8:39And it's not for everybody. So that's
288. 8:41the decision you make and that's from
289. 8:42top-down.
290. 8:44So there's the tactics and then there's
291. 8:45the attrition. I would try this first.
292. 8:47If this doesn't work, you have to
293. 8:49probably gut things.
294. 8:51Thank you.
295. 8:52If you were the best salesperson in your
296. 8:54company, then your company will be
297. 8:56always capped by you. And this is what
298. 8:59the two-day workshop is for. Now to be
299. 9:00clear before I get into what it is, this
300. 9:02is for million-dollar plus businesses
301. 9:04that are trying to scale their sales
302. 9:06team where you are still probably vast
303. 9:08majority of the management, either
304. 9:09you're literally taking calls or you are
305. 9:11a big percentage of the revenue or you
306. 9:13have to be constantly on the sales team
307. 9:15in order to get this to work. If you're
308. 9:16in any of those settings, then this is
309. 9:18absolutely for you. And so if you are
310. 9:20tired of your sales relying on you and
311. 9:22want a sales system that scales beyond
312. 9:24you, then apply. That's the deal. And so
313. 9:26if it is a fit, we look forward to
314. 9:27seeing you out here and it's a great
315. 9:28time. We'll talk about sales stuff. Like
316. 9:29how could you have a better time? And
317. 9:30don't take my word for it. Here's what
318. 9:31other people are saying about our
319. 9:32workshops. They're
320. 9:34premo and uh yeah, can't wait to see you
321. 9:36out there.