10 Reason Why Most Salespeople Fail Their First Year
Summary
TLDRIn this video, the speaker shares insights on the challenges of a career in sales, emphasizing the importance of self-sufficiency, communication, and long-term commitment. They discuss the differences between salespeople who rely on provided leads and those who must find their own, highlighting the need for adaptability and resilience. The speaker also stresses the significance of relationship-building, proper income management, and the value of creating content to attract and retain clients. With a mix of personal anecdotes and industry advice, the video aims to motivate and guide those in or considering a sales career.
Takeaways
- 😟 Sales is a challenging profession that can be hard, demanding, and frustrating, with high failure rates in the first years.
- 🦁 The difference between W2 salespeople who receive leads and 1099 who find their own is akin to lions in a zoo versus those in the wild.
- 🔍 Long-term success in sales requires the ability to find and generate your own leads, not just rely on provided ones.
- 📞 Salespeople should aim to communicate at higher levels, like video calls and face-to-face meetings, rather than just texting or emailing.
- 💼 Patience is crucial in sales; long-term relationships can lead to significant payoffs, even if they take years to cultivate.
- 🔁 Sales involves repetitive tasks, but the variety comes from engaging with different clients and their unique needs.
- 💔 Treating clients as a 'one-night stand' is detrimental; building long-term relationships is key to success in sales.
- 💼 Income in sales can be unpredictable; it's wise to live off the lowest monthly income to maintain financial stability.
- 💪 Quantify your work in sales by measuring the time spent on activities like calls and presentations to understand true effort.
- 🗣️ Asking for referrals is critical in sales; those who do so effectively can significantly grow their business.
- 🧠 Mental toughness is essential for salespeople to handle constant rejection and maintain a positive outlook.
- 📈 Creating content can provide an edge in sales by attracting leads and building a brand that clients trust and refer.
Q & A
Why do many salespeople feel miserable according to the speaker?
-The speaker suggests that many salespeople feel miserable because the job is hard, demanding, and frustrating. It can be taxing, and many want to quit, especially in the first few years. Additionally, the high failure rate within the first year contributes to this feeling of misery.
What is the difference between W2 salespeople who are fed leads and 1099 who have to find their own leads, as explained by the speaker?
-The speaker uses the analogy of lions to explain the difference. W2 salespeople who are fed leads are like lions in a zoo, fed steak and meat every day, while 1099 salespeople who have to find their own leads are like lions in the jungle, needing to hunt for their food. The implication is that those who rely solely on being fed leads may not be as successful in the long run as those who learn to hunt for their own leads.
Why is it important for salespeople to learn how to find their own leads, according to the speaker?
-The speaker emphasizes that salespeople should learn to find their own leads to ensure long-term success in their careers. Relying solely on provided leads can be risky, as market conditions can change and lead sources can dry up, as illustrated by the example of insurance companies that relied heavily on mortgage leads.
What does the speaker suggest about the level of communication salespeople should have with their clients?
-The speaker suggests that salespeople should aim for higher levels of communication with their clients, such as phone calls, video calls, and face-to-face meetings, rather than just relying on emails or text messages. This approach can help build stronger relationships and set them apart from competitors.
Why does the speaker recommend against getting into sales with a short-term mindset?
-The speaker recommends against a short-term mindset in sales because it can lead to failure. He shares an example of a Goldman Sachs representative who followed up with him for five years before making a sale, illustrating the importance of patience and long-term commitment in sales.
What is the significance of treating clients like more than a one-night stand, as mentioned in the script?
-Treating clients like more than a one-night stand means building long-term relationships through consistent follow-ups, care, and personalized attention. This approach helps in retaining clients and receiving referrals, which are crucial for long-term success in sales.
How does the speaker suggest salespeople should manage their income from sales?
-The speaker advises salespeople to treat their income as their lowest monthly income made in the last six months, rather than living off a high month's earnings. This approach ensures financial stability and realistic expectations in a career with fluctuating incomes.
What is the importance of asking for referrals in sales, as highlighted by the speaker?
-Asking for referrals is crucial in sales because it can significantly expand a salesperson's client base. The speaker points out that only 11% of salespeople ask for referrals, despite 91% of customers being willing to give them. This highlights a missed opportunity for many salespeople.
Why does the speaker emphasize the importance of mental strength in sales?
-The speaker emphasizes mental strength because sales involves constant rejection and 'no's'. Mentally weak individuals may find it difficult to cope with the pressures and challenges of sales, which require resilience and a thick skin.
How does creating content benefit a salesperson's career, according to the speaker?
-Creating content can serve as an x-Factor in a salesperson's career, as it allows them to showcase their knowledge, values, and personality. This can attract leads and provide existing clients with additional reasons to trust and refer the salesperson, ultimately benefiting their long-term success.
Outlines
💼 The Challenges and Realities of Sales Careers
The speaker begins by sharing their 21 years of experience in sales, highlighting the demanding and often frustrating nature of the job. They note that a significant number of salespeople fail within their first year, despite the substantial investment companies make in their sales forces. The speaker emphasizes the importance of salespeople learning to 'hunt' for their own leads rather than relying solely on provided leads, using the analogy of lions in a zoo versus those in the wild. They stress that to succeed in sales, one must be proactive and not just wait for opportunities to come.
📈 Long-Term Commitment and Patience in Sales
The speaker discusses the importance of long-term commitment in sales, using the story of a Goldman Sachs employee who patiently followed up with the speaker for five years without making a sale. They argue that patience and a long-term perspective are crucial for success in sales. The speaker also touches on the need to treat clients well and not just as one-time transactions, suggesting that a client-focused approach leads to better outcomes. They advise against viewing sales as a short-term endeavor and instead advocate for a strategic, long-term approach.
🚫 Overcoming Sales Challenges and Building Relationships
In this paragraph, the speaker addresses several common issues faced by salespeople. They stress the importance of not treating clients as a one-night stand but instead building long-term relationships. The speaker also talks about the need to work hard and be mentally strong, as sales often involve constant rejection. They discuss the importance of creating content to differentiate oneself in the market and build trust with potential clients. The speaker concludes by encouraging salespeople to ask for referrals, which can significantly boost their business, and to create content that adds value and helps in building a strong personal brand.
Mindmap
Keywords
💡Sales
💡Leads
💡Zoo Lions vs. Jungle Lions
💡Communication
💡Long-term mindset
💡Repetition
💡Momentum
💡Referrals
💡Content Creation
💡Mentally Strong
💡Work Ethic
Highlights
Sales is a challenging career that can be hard, demanding, and frustrating, with many wanting to quit in the early years.
Despite sales organizations spending nearly a trillion dollars annually, 75% of salespeople fail within their first year.
The difference between W2 salespeople who are fed leads and 1099 who have to find their own is compared to lions in a zoo versus those in the wild.
Long-term success in sales requires the ability to hunt for leads, not just rely on being fed.
Salespeople who refuse to find their own leads will eventually be replaced, highlighting the importance of self-sufficiency.
The impact of market changes, such as a drop in mortgage leads, can drastically affect sales revenue and individual earnings.
Laziness in communication methods can lead to losing clients, as they may prefer more personal contact like video calls over text.
Salespeople should aim to communicate at a higher level, such as face-to-face or video calls, to stay competitive.
Patience is key in sales, as demonstrated by a Goldman Sachs employee who followed up for 5 years before securing a client.
Long-term thinking is crucial in sales, with the importance of treating clients well and not just as a one-time transaction.
Sales involves repetitive tasks, but the variety comes from engaging with different clients and families.
Momentum is important in sales, and those who don't get bored with repetitive tasks can build significant success.
Many salespeople treat clients as a one-night stand, which is a short-term approach that doesn't foster long-term relationships.
Consistent follow-up and personal touches, like birthday wishes, can differentiate a salesperson and build client loyalty.
Salespeople should not live off their highest monthly income but rather their lowest, to maintain financial stability.
Quantifying work efforts, such as the time taken for specific sales activities, can reveal the true amount of work being done.
Asking for referrals is crucial for long-term success, as most clients are willing to give them but few salespeople ask.
Mental strength is essential in sales due to the constant rejection and 'no's that salespeople face daily.
Creating content can be an x-Factor in sales, as it provides value and builds trust with potential clients.
Consistent content creation over the long term can lead to increased leads and client referrals.
Transcripts
I've been in sales since 21 years old
let me tell you it's very hard it's
demanding it's taxing it's frustrating
there's so many days for the first
couple years three years five years are
going to want to quit it absolutely
sucks there's 15 million of them in
America sales organizations spend nearly
a trillion dollars every year on their
Salesforce yet 75% of sales people fail
their first year and there's a reason
for it why I'm going to give you 10
reasons today why salese feel miserable
if you get value out of this video give
it a thumbs up and subscribe to the
channel let's get right into it I'm on a
flight 6 weeks ago Sam is sitting next
to me we're talking about the difference
between Insurance organization BDC our
Consultants are salespeople some of them
are 1099 some of them we W2 and he says
Pat the the difference between sales
people that are W2 who are fed leads and
those who are $199 that have to find
their own leads is the following both
could be Lions but one lion the W2 that
gets salary and our fed leads there are
lions who live in a zoo who are fed
steak and meat every day you still need
to feed them and then there's the lions
that live in the jungle who have to go
get their own meat their own food
they're both Lions one is fed every day
the other one has to go hunt if you're
planning on making it long-term in sales
I don't care what company you work for
they give you a salary great benefits
great 401K great leads Non-Stop and you
refuse to hunt eventually you'll be
replaced I'm just telling you if you are
watching this and saying saying well
what's wrong with getting the leads and
if you're part of the community that
always about leads not being
good you're not going to have a long
career in sales because in sales there's
certain Seasons that you go through that
leads get back I'll give you an idea
right now there's a lot of insurance
companies that all they relied on was
mortgage leads and they're doing 50
million a year 100 million a year 10
million a year 90% of their revenue was
coming from mortgage lead 95% of refi
drops for 2 years that means 95% of
leads is gone that means you go from
doing $100 million a year in Revenue to
5 to 10 million that means you go from
making $100,000 a year to 1020 Grand a
year making a half a million a year to
50 Grand a year why because they were
just waiting on what on leads if you
want to make it long-term in sales and
you refuse to hunt you refuse to find
your own lead clients forget sales it's
not for you number two this applies to a
lot of people that are selling today so
it's very easy to be lazy and just text
with your client just email your clients
just DM your clients just everything is
audio audio audio audio everything is
that right versus if you want to compete
with the other guys the other guys will
say how you doing Johnny how's
everything I'm going to make the phone
call and even better 74% prefer today
doing video zooms with their clients
lowest level you got email
correspondence then you got text then
you got phone call then you got Zoom
face to face then you got face Toof face
physical those are the tears most sales
guys don't want to go to the higher
level they just want to be like ah I'm
just going to be lazy just text me back
don't pick up text me back don't pick up
text me back just want to communicate
there that person is going to find
another person that's willing to get a
little bit more closer to the client
willing to pick up the call willing to
drop them a jingle willing to talk to
them willing to do video zo and willing
to get with them face to face if you're
too lazy in this area because of there's
so many tools and faster ways to
communicate with them you're going to
lose your best client if you're watching
this and you said I got some questions
for you Pat about sales or maybe you're
developing other sales people you want
to ask me you email me I won't respond
you DM me I will not respond not on
LinkedIn not on Twitter not on Instagram
I only respond on man NE us the place
because shows that you value my time
you're willing to pay for it I'll
respond back to you in audio 100% of my
messages I respond back to you audio and
our response rate anybody you talk to a
man is roughly 94% if you haven't yet
downloaded a man click you to download
the app and start manting today number
three if you're getting into sales cuz
you're like I'm going to give sales a
shot for 6 months don't get into sales
I'm going to try this thing for one year
I'm going to give it two years I'm going
to give it three years really let me
tell you about a guy who's in Dallas
works for a big company called Goldman
he calls me sends me an email saying hey
I found out that you're hiring the most
people in your area and the staffing
company I talk to say you're placing
people more than anybody else do you
mind if we get together I'm like who's
this guy I check the email no it is an
email from them yeah sure let's come
together he comes to the office with his
partner we sit down and we talk I'm like
so what's your outcome here no I'm just
trying to see what your vision is
longterm with your business probably
we're going to sell the business and
we're going to go Xing okay great how
can I
help I said what do you mean how can I
help I don't know how can you help well
do you have kids I do have you looked at
estate planning have you looked at this
have you looked at that can I give you
any kind of contacts and re yes and I
said how do you make money doing this oh
I don't I'm just here to serve I said
okay and what's your plan longterm I
don't know if you have a big
lifechanging events and financially I'd
like to be able to help you by the way
you can't go to Goldman unless if it's a
minimum of $10 million cash so think
about it they have a standard it's not
like hey just give me $600,000 $3
million that's not how this thing works
this is not BFA this is not Morgan this
is not chase this is Goldman right I
don't sell the business for 5 years this
guy followed up with me for 5 years and
made nothing think about that do you
think that long term he eventually got
the client and he's got 50 clients like
me you know what kind of money he makes
very good money do you have that kind of
patience to follow up or no you want it
right now see there's a part about the
sales think that if you think short term
Kiss It Goodbye if you say I'm going to
go longterm 10 years you choose an
industry you love you treat your clients
fairly you take care of them but you
think longterm and you treat them like
that not just looking at them as a one
night stand you're going to do very very
well in sales all right this next one is
weird most people don't like this sales
it's a lot of repetitive stuff
repetitive overcoming objections
repetitive FAQ repetitive things people
are going to tell you repetitive things
you do before you go to your client's
appointment repetitive things you do
while you're there repetitive things you
do when you leave repetitive things that
you do monthly repetitive things that
you got to do annually if it's like oh
my God I'm bored out of my mind the one
thing that I love about the business is
the people are not the same you may be
doing the same tasks you may be using
the same script you may be using the
same software same technology same
followup same everything but the
families are different and the clients
are are different so if you don't get
bored with the same repetitive tasks
long term you'll eventually create a lot
of momentum that help you win but if
you're constantly trying to be way too
creative with the repetitive tasks
you're going to prevent momentum from
being on your side and trust me in sales
you want momentum on your side five this
one's a very obvious one many salese
just treat clients as a one night stand
boom my Soldier hey oh my God great okay
out got my $2,000 check or $300 check or
$800 check everything's good client
calls you you don't call them back
client tries to get them you don't call
them back you don't follow up you don't
say hey following up on you hey happy
birthday hey happy anniversary hey
what's thinking about you hey I'm in the
area can I just stop by and say hi you
don't do any of that stuff and
eventually like ah this guy's just a you
know one night stand type of a guy in
sale type of a girl in sales clients
don't like that it just doesn't work for
you and it's probably not the kind of a
business for you if that's what you want
to do I'm at the Vault conference this
last week one guy asked me a question
about hey how do you guys manage sales
and all this stuff for it to work out I
said here's the one thing you have to
realize what sales I said so many times
it depends on what we recognize and in
sales if you ask somebody so what kind
of money do you make in sales so I make
$50,000 a month what they're telling you
is that's the best month they've had the
last 12 months that's not what they make
the way I finally looked at it is don't
let a big month for you I've seen so
many people in in sales fail because
they make one month $50,000 cuz they got
lucky and they go by $225,000 Rox they
go buy a nice car with a $2,000 payment
and then that 50,000 becomes 6,000 8,000
4,000 10,000 they lose the car they lose
the watch a bad economy they're wiped
out always treat your income as your
lowest monthly income you make in sales
commission in the last 6 months that's
your true income meaning you make six
grand this month 14 Grand 28 grand 32
Grand 5 grand 7 Grand 11 Grand your real
income is five grand that's live off of
that don't live off of the 50 whatever
income that you made here if you can
live off of this longterm and keep
increasing this number you'll be fine
this next one's going to annoy some of
you how hard do you think you work I'm
talking to you how hard do you think to
work I'm the hardest working guy in my
office really let's quantify working
hard is not 60 hours at the office 80
hours at the office here's how I
Quantified it when I realized what it
meant to work hard whatever Behavior you
have identify and quantify how long it
takes to do that behavior for example to
make 50 calls how long does it take you
to make 25 calls you may say 1 hour okay
so now we know what 25 calls equals 1
hour okay how long does it take you to
make your sales presentation to a client
you may say 1 hour great how long does
it take to do a second appointment with
the client 90 minutes cuz it's
recommendation all right how long does
it take you to prospect clients I did
this my sales guys who would always say
they work very hard they told me and
they Quantified oh it takes 1 hour to
make 25 calls it takes 1 hour to this
presentation then I said give me your
schedule book give it to me everybody
hands it over everybody's nervous and I
said based on the number you gave me you
only worked 14 hours last week oh you
only worked 8 hours last week no I
didn't you know I didn't why are you
getting offended this are these what
yeah but I was here and I was working on
this listen you're a salesperson if you
don't do these behaviors if you don't
make the calls if you're not sitting in
front of people that don't own a product
that you're selling or you're sitting
out to get referrals you're wasting your
time and you're delusional you're stuck
on Instagram you're stuck on Tik Tok
you're stuck on YouTube you ain't
working stop telling me you're working
now what would happen if you actually
did 60 hours of this type of activity in
a week you know what would happen You'
be the number one person in your office
if not you'd be competing for the number
one place in your office within 90 days
to 180 days but you know why you won't
do it it's because 75% of sales people
fail they don't want to do that they
just want to be at the office thinking
they're working hard they're not all
they do is they talk to existing clients
cuz those are comfortable calls to make
because they already bought from you
they don't want to talk to people that
didn't buy from them so quantify your
activity your behavior and let's see how
hard you work this next one is the
guarantee success long-term in sales so
if you knew what your clients thought
about you and I as salespeople did you
know 91% of customers said they give a
referral to the client but only 11% of
salespeople ask for referrals that means
only one out of 10 sales people ask for
referrals why cuz like oh I already made
my two grand I'll already made my 1,000
I'll already made my 500 I'll already
made my 250 or 10 grand just oh my god
look how happy am versus the prolific
the professional guys like hey how did
you like the way I treated you the
service what we do here for families oh
loved it perfect the way I grow my
business is through referrals okay and I
noticed earlier you mentioned your
sister and what they do and you
mentioned your best friend and you
mention your cousin and your aunt and
this how comfortable would you be with
me sharing with them what I shared with
you oh very would you be comfortable
sending a group text introducing me to
them we're dropping a phone da d d da
and then next you know I walk away with
19 referrals and you make those phone
calls the guy that does that the guy
that doesn't they're not even the same
league when I tell you're not in the
same league you are not in the same
league it's very very hard to compete
with a salesperson who knows how to ask
for for referrals versus one who doesn't
the one who doesn't sales isn't for you
go or customer service if you don't know
how to ask for referrals this the next
one is basic mentally weak if you're
mentally weak you're going to be
destroyed Every Day sales is very hard
it's constant rejection it's constant no
it's constant I want to think about it's
constant not form it's constant somebody
else came and told me it was cheaper
than yours it's constant it's
nonstop and it will drive you insane if
your skin is thick and you're constantly
offended and if you're constantly
worried I'm rejected all the time till
today you think everybody we ask to be
on the podcast says yes no you think
everybody we consult for does an
engagement with us no you think in every
possible you think everybody I went to
when I wanted to sell my business said
yeah I'd love to buy your business no
you think every investment banker no
it's constant nonstop when we raise the
first 10 million bucks you know how many
people said no to us when I raiseed the
first million you know how many people
said no to us a lot of people but you
got to go through it so the thicker the
skin and you're constantly working on
yourself by reading the right books and
developing your identity increasing your
identity eventually you're like yeah I
got this longterm I'm going to win I'm
going to be fine and your client will
feel how poised and confident you are
and clients generally want to do
business with somebody that's very
poison confident this next thing here
was an edge for us we started creating
content and my content wasn't direct
sales my content was talking about what
I know what I value what I'm about
stories about me my family my background
sharing some knowledge sharing what work
what didn't work and eventually they're
like wait a minute who is this guy
interesting that brought a lot of leads
and it was an x- Factor you don't do it
for shortterm that's purely for
long-term play the moment I started
creating content it wasn't one year I
said I'm going to create create content
for 2 years and then after 2 years I'm
going 10 years and that's exactly what
we did and then next thing you know oh
my God I saw this oh wow oh let me share
this your the clients that buy from you
when somebody ask who is he or who is
she now they can say oh here's the
Instagram look what he said here look
what she said here you don't know behind
closed doors what you what your
customers are doing but they're working
for you because they're sharing the
content of you speaking and they follow
you CU now they're a customer of yours
that's the stuff that happens behind
closed doors but if you don't create
content they're not going to be able to
work for you and share referrals with
you while you're not doing anything
value out of this video give it a thumbs
up and subscribe to the channel and if
you've not seen the video about
improving your sales process and
increasing business I did this8 years
ago it's got a million plus views if
you've never seen it click you to watch
it take care everybody bye-bye bye-bye
[Music]
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