How I Built A 20+ Sales Team [The Process]

Alex Hormozi
3 Dec 202010:30

Summary

TLDRThe speaker introduces the 'Closer Framework' for effective sales management, dividing it into two parts: managing sales conversations and team management. The framework emphasizes asking clarifying questions, identifying problems, addressing past pain, selling solutions with illustrative stories, and overcoming objections. For team management, the speaker suggests recording calls for compliance and accountability, maintaining communication through daily huddles and one-on-ones, cutting the bottom performers to boost productivity, and fostering healthy competition with leaderboards and team-based incentives.

Takeaways

  • 📈 The Closer Framework is a method to manage sales conversations and teams for consistent results.
  • 🔍 The framework is divided into two parts: managing the sales conversation and managing the sales team.
  • 🙌 The first part focuses on a five-step process: Clarify, Label, Overview, Sell, and Explain away concerns.
  • 🗣️ Clarify the customer's reason for the interaction and their goals to set the stage for the sales conversation.
  • 🔑 Label the customer's problem by summarizing their issues to establish a clear understanding of their needs.
  • 🤔 Overview the customer's past attempts to solve their problem to identify why previous solutions failed.
  • 🛍️ Sell by using three illustrative stories to connect with the customer's needs and explain the benefits of the product or service.
  • 🚫 Explain away concerns by addressing potential objections and providing solutions to overcome them.
  • 🏆 The second part of the framework involves managing the sales team with strategies like call recordings, communication, cutting the bottom performers, and fostering competition.
  • 🎙️ Call recordings are crucial for compliance, accountability, and as a tool for training and improvement.
  • 📆 Establish a communication cadence with daily huddles, weekly one-on-ones, and regular check-ins to keep the team aligned and motivated.
  • ✂️ Regularly cut the bottom 10% of underperforming salespeople to boost overall team productivity.
  • 🥇 Foster healthy competition among the sales team with leaderboards, notifications, and team-based incentives to drive performance.

Q & A

  • What is the main topic of the speaker's talk?

    -The main topic of the speaker's talk is the 'Closer Framework,' which is a method to manage sales conversations and sales teams for consistent monthly sales.

  • What are the two halves of the 'Closer Framework'?

    -The two halves of the 'Closer Framework' are managing the sales conversation effectively and managing the sales team to ensure consistent sales.

  • Why is it important to have questions instead of statements in the sales framework?

    -Questions are important in the sales framework because they allow the customer to engage in the conversation, pause, think, and ask further questions without needing to read paragraphs of information.

  • What does the speaker suggest as the first step in the sales conversation?

    -The first step in the sales conversation, according to the speaker, is to clarify why the person is there and what their goals are.

  • What is the purpose of labeling the customer with a problem during the sales conversation?

    -Labeling the customer with a problem helps to identify and acknowledge the specific issue they are facing, which the salesperson can then address with a solution.

  • What is the 'pain cycle' mentioned in the script?

    -The 'pain cycle' refers to the process of discussing past attempts and failures to solve a problem, which helps to emphasize the customer's need for a solution.

  • What are the three stories the salespeople need to know according to the 'Closer Framework'?

    -The three stories salespeople need to know are illustrative examples that help the customer understand the benefits of the product or service in relation to the problem they are trying to solve.

  • Why is it crucial to record sales calls?

    -Recording sales calls is crucial for compliance and to ensure that salespeople are following the script and maintaining accountability in their interactions with customers.

  • What is the recommended communication cadence for a sales team?

    -The recommended communication cadence includes daily huddles, weekly one-on-ones, and monthly reviews to keep the team aligned and motivated.

  • How does the speaker suggest managing the bottom performers on a sales team?

    -The speaker suggests regularly cutting the bottom 10 percent of the sales team to drive productivity and maintain a high-performing team.

  • What role does competition play in motivating a sales team?

    -Competition plays a significant role in motivating a sales team by creating a leaderboard, encouraging a sense of rivalry, and rewarding top performers with incentives.

Outlines

00:00

🗣️ The Closer Framework Introduction

The speaker begins by engaging the audience with a question about their sales team composition and introduces the 'Closer Framework', a two-part strategy for managing sales conversations and teams. The first half focuses on guiding the sales conversation, while the second half addresses maintaining consistent monthly sales. The speaker acknowledges common sales challenges such as inconsistent lead quality and workload imbalances. Drawing from experience in B2B sales, the speaker outlines the '5 Cs' as a foundational framework for sales conversations, emphasizing the importance of questions over statements to facilitate scalable and efficient sales processes.

05:02

📝 Implementing the Closer Framework

This paragraph delves into the specifics of the Closer Framework, detailing the '5 Cs' method for managing sales conversations. The approach starts with clarifying the customer's needs and objectives, followed by identifying and labeling their problems. The framework continues with an overview of past pain points and ineffective solutions, leading to a 'pain cycle'. The salesperson is then tasked with selling the solution through illustrative stories that resonate with the customer's situation. Addressing and overcoming concerns is a critical step, where the salesperson must be well-drilled in handling objections related to price, decision-making, and timing. The framework concludes with reinforcing the customer's decision post-sale to solidify their choice and prevent backsliding.

10:03

🏆 Enhancing Sales Team Performance

The final paragraph shifts focus to optimizing sales team performance. It emphasizes the importance of recording calls for compliance and accountability, using tools like Gong for call recording. Regular communication with the team through daily huddles, weekly one-on-ones, and monthly reviews is highlighted as essential. The speaker stresses the need for a communication cadence that includes sharing testimonials to remind salespeople of their purpose. The 'cut' strategy involves regularly trimming the bottom 10 percent of underperforming team members to boost overall productivity. Lastly, fostering a competitive environment through leaderboards and regular competitions is presented as a key driver for sales team motivation and performance.

Mindmap

Keywords

💡Sales Team

A sales team is a group of individuals working together to achieve sales targets for a company. In the video's context, the speaker discusses the importance of having a sales team for consistent sales performance, contrasting it with companies where one person is doing the majority of the selling. The script mentions managing a sales team and the challenges faced when there is only one person responsible for sales.

💡Closer Framework

The Closer Framework is a sales methodology introduced in the video, aimed at managing sales conversations effectively. It is structured around a series of steps, each beginning with the letter 'C', to guide salespeople through the process of understanding customer needs, addressing pain points, and ultimately closing sales. The framework is central to the video's theme of improving sales consistency.

💡Inconsistent Lead Quality

Inconsistent lead quality refers to the variability in the suitability or potential of prospective customers for a product or service. The speaker mentions this issue as a common struggle for sales teams, where leads might be unpredictable in terms of their readiness to convert, affecting the team's efficiency and workload.

💡CAC (Customer Acquisition Cost)

Customer Acquisition Cost (CAC) is the cost associated with convincing a customer to buy a product/service. The script discusses the fluctuation in CAC as a problem for sales teams, where the cost can unexpectedly spike, causing stress on the sales process and potentially leading to inefficiencies.

💡5 C's

The 5 C's mentioned in the video are a set of principles or steps within the Closer Framework, each starting with the letter 'C'. They include Clarify, Label, Overview, Sell, and Explain, which are used to structure the sales conversation. The 5 C's are integral to the video's message on how to effectively manage sales conversations.

💡Accountability

Accountability in the script refers to the need for someone to ensure that actions are taken and habits are formed. The speaker uses the example of brushing teeth to illustrate how accountability can lead to the formation of beneficial habits. In the context of sales, it might refer to the need for someone to hold the sales team accountable for their performance.

💡Call Recordings

Call recordings are used in the video as a tool for training and compliance within sales teams. The speaker emphasizes the importance of recording every call for accountability and to provide a reference for coaching salespeople on their performance. It is a practical aspect of sales management discussed in the script.

💡Communication Cadence

Communication cadence refers to the frequency and regularity of interactions within a sales team. The video script mentions daily huddles, weekly one-on-ones, and monthly meetings as part of maintaining effective communication. This cadence is crucial for aligning the team's efforts and ensuring everyone is on the same page.

💡Cut the Bottom

Cutting the bottom refers to the practice of removing the lowest-performing members from a sales team to improve overall productivity. The speaker suggests that this should be done regularly and is a key strategy for driving sales team performance, as it can result in a significant increase in productivity.

💡Competition

Competition in the sales context refers to fostering a sense of rivalry among team members to drive performance. The video script discusses the use of leaderboards and team competitions to create a competitive environment that motivates salespeople to excel. It is presented as a strategy to keep the sales team engaged and striving for better results.

💡Decision-Making Process

The decision-making process in the script is part of the Closer Framework, where salespeople are taught to guide potential customers through a series of yes-or-no questions to help them make a purchase decision. It is a method to confront and overcome hesitations, leading to a successful sale.

Highlights

Introduction of the 'Closer Framework' for managing sales conversations and teams.

Differentiation between companies with single salespeople and those with multiple sales team members.

The importance of managing inconsistent lead quality and sales capacity.

The '5 C's' framework for structuring sales conversations.

Clarification questions as the foundation for understanding customer needs.

Labeling customer issues to establish a problem-solving narrative.

Overviewing past pain points to build rapport and identify customer needs.

The use of storytelling in sales to illustrate product benefits.

Addressing and overcoming customer concerns as part of the sales process.

The significance of decision-making in sales and how to guide customers through it.

Reinforcing the sales decision to prevent buyers from backing out.

The necessity of recording sales calls for compliance and training purposes.

Establishing communication cadence with daily huddles and one-on-ones.

Cutting the bottom 10 percent of sales performers to boost team productivity.

Utilizing competition to motivate sales teams and maintain high performance levels.

Setting up a leaderboard to foster a competitive environment among salespeople.

Organizing sales team competitions to encourage collaboration and best practice sharing.

Allocating a percentage of sales revenue for team incentives and competitions.

The final summary of the 'Closer Framework' emphasizing the importance of questions, call recording, communication, and competition.

Transcripts

play00:00

who's pumped about sales

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sort of pumped about okay so quick

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question so i can cater this to you guys

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um as i try and tell my team sometimes

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i'm gonna talk fast you can just listen

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fast so um who here has one person or

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less that would mean if you are selling

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um doing the majority of the sales in

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your company can i get hand raised

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okay so like half okay that's perfect

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and the other half of you have a sales

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team multiple two or more right okay

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so

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the name of my lovely talk um is going

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to be the closer framework all right

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and so what i'm going to do

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is break this up

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into two halves the first half is how

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you actually manage the conversation

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that should say work

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you get the idea

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close the framework

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and then the second half is how you

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manage the sales team so you can get

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wicked consistent sales on a monthly

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basis um

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so

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first things first who here has ever

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struggled with uh inconsistent lead

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quality inconsistent cac right you're

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like i thought i was at a thousand and

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now i'm at three thousand my leads are

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actually my leads are amazing uh my

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sales team is under work now they're

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overworked they said there's too many

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there's too few they're not being

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efficient at setters anyone done with

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any of that stuff

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okay cool so um i've run a lot of sales

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teams uh b2b we did outsource sales

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company we would fly two gyms actually

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sell for them so we'd fill them up in 30

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days um with us actually flying people

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out and selling so we've done a lot of

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sales and this is the simplest framework

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that you can use um and so this is the

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first of the five c's so i try to use

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markets as 5c so when you go home you've

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got 10 c's okay so um the first one it

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governs the conversation so that's kind

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of for everyone who was raised there's

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kind of more of you over here we're

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raising your hands about i've got one

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person or it's me this is the governing

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framework for how you make the

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conversation

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c is you clarify

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why the person is there all right now

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when you use this framework everything

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that's in your framework has to be a

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question only do not put paragraphs do

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not put statements because they will

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start reading them they can't think that

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way only put questions because they can

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pause they can ask another question they

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can pause they can ask another question

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and they need no intelligence to do that

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which means it's scalable okay so when

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you're asking so all of these buckets

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are the buckets under which you want to

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create the framework that you're making

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your sale so it's like what made you get

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on the call

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what's your goal why is that important

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to you what would it look like 12 months

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from now if this ideal outcome were to

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be achieved right those are the

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clarification questions next you label

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them with a problem

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so what i'm hearing is

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you've done x y and z and the missing

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link has been

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x whatever is that right

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yes got it i now have a problem you know

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i have cancer i can cure it all right

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next is oh we're going to overview the

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pain okay so i'm assuming i'm not the

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first person you've come to to try and

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solve this problem so what have you done

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in the past all right i've done x y and

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z why did that not work for you

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obviously it didn't work because they're

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on the phone with you all right so you

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always have that advantage because they

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are on the phone with you right now so

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you're overviewing past pain

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we call the pain cycle you do that until

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they have nothing left and you're like

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awesome and then you recap the pain

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then s you sell the vacation

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this is the only thing

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that your

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sales people have to actually know

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there's going to be three stories that

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you're going to tell them they're going

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to be illustrative of the thing that you

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were helping them solve so an example

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would be fitness nutrition fitness

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nutrition and accountability if i was

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trying to sell weight loss right you're

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usually missing one or two or all three

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of these things that's why you weren't

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successful right you couldn't

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consistently work out you couldn't

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consistently eat the right way or no one

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was there to hold you accountable does

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that make sense

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yes if you're selling leads it would be

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like you need your leads to be exclusive

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you need them to be timely you need them

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to be

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geographic whatever like you're going to

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find three things and you have to give a

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short 30 second snippet of why that's

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important right if i was trying to

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illustrate accountability i'd be like

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hey

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did your parents ever tell you to brush

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your teeth when you grew up you probably

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hated it you're like no i don't want to

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and they kept doing it over time and

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i'll bet you brush your teeth now right

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you need someone to hold you accountable

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so you can create the habit does it make

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sense 30 second story they understand it

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that's how you sell a vacation all right

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e explain away their concerns

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away

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concerns blah blah blah you get the

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point all right that's where you're

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doing all of your optional overcomes all

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right crazy people buy without obstacles

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normal people have concerns you need to

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overcome them these have to be drilled

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all right they have to be drilled so

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that means that you have flash cards

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like i need to think about it i have to

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talk to my husband i have to check with

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my partner i have to so there's only

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three by the way if you don't know what

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they are it's price it's stall it's

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decision maker all right so all you have

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to do is understand what each of those

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three are if it's price it's a

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description discrepancy in value they

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don't understand the value if it's

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decision maker what you have to do is

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rely on past agreements that are implied

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that that person has

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already communicated to the partner so

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your partner knows that you're

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struggling with these things already

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right they know that you're looking for

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a solution right so why do you think

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they'd be opposed with you solving the

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problem that you already know you have

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that they don't agree with

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right

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overcoming okay those have to be drilled

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next one um is uh so we decision maker

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we did price and stall right

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all you're doing is teaching someone to

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make a decision because people don't

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like making them because they fear

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making mistake right perfect halfway

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through

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okay

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so what you're gonna do is walk them

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through the decision-making process so

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how do we make decisions

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either do you do you like me yes or no

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do you like the product yes or no do you

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think that will be able to help you

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achieve this outcome yes or no do you

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have access to this amount of money in

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your bank account or know someone who

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does yes or no yes

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what card you want to use right

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overcome you make them confront the

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decision all right what's your main

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concern

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then they tell you main concern you

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overcome it close all right last one is

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reinforce the decision

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and i like doing this and we included it

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after time is that people back out right

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so how can we slam slam it on them how

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can we get them super pumped so

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immediately afterwards that's the 30

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second video from the founder be like

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hey just saw you sign up for our

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software super excited to have you by

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name personalized head written card

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t-shirt any of those things reinforce

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the decision make their feet nice and

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hot make sense that's the closer

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framework every single one of these

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buckets has to be questions that are

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simple for them to ask

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all right so when you're organizing your

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script this is the conversation we're

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going through that makes sense to

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everybody okay that is the first of the

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five c's don't worry the other ones are

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are fast and about how you manage your

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sales team okay

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don't worry i'll be fast so that's

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closer

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the next one is

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don't worry i'm rocking we're good

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okay

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the next one

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i should know these

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that's okay

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okay call recordings

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and then i'm just going to write these

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down real quick for you so you can write

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them down

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comms

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cut

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competition

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okay

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so marcos is much smarter than me i

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think he's like the really classy classy

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person um this is like from the streets

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closing four thousand people one-on-one

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sales like weight loss susie's riding

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with you know her kids trying to write

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permanent marker on the wall and i'm

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trying to close your credit card all

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right so close your sequence is how you

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manage the framework

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call recordings if you're not recording

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every single call that your your

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people are on one you're not compliant

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two you should do it because then they

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become more accountable to following the

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script all right you also overview those

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the tool that you need to use is gong if

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you if you guys sell it via zoom it's

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the best it's all i can say use

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gong it's amazing all right comms

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you need to talk to your team on a

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regular basis all right the cadence

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there is daily huddles

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weekly one-on-ones

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and when you do the and then obviously

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monthly but the um the daily huddles are

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quick all you do is you share

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testimonials so they remember why

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they're selling so they get beat up

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every single day with no's they need to

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remember why they're still doing it all

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right from the one-on-ones that you're

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doing when you're meeting with them

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you're gonna record you're gonna have

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them tag you in three calls their best

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call their worst call on their average

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call when you go over in the 101s you're

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going to ask them to show you where they

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clarified the problem

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where they outlined the paint

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and then where they asked for the sale

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and where they overcame objections

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if they never clarify the pain and

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they've asked for the sale you don't

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make money so that way they always know

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that on every call you always

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ask for the sale you can never make a

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sale if you never ask for it all right

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that's what you from the communication

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cadence cut you got to cut the bottom

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all right it's the number one thing that

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will drive sales teams is by cutting the

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bottom 10 percent you do it on a regular

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basis it has to be on a regular basis

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all right even if the team is going okay

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when you cut the bottom you'll see a 30

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jump in productivity

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every time so if you can have a

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persistent 30 jump why would you not do

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that

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that make sense

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okay

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competition last point

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i'm good i got a minute 20.

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okay

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so competition

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sales people are competitive you have to

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have a leaderboard that is published

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that they can see every single day that

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they get notified when every other guy

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is making a sale if it's super high

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volume it could be end of day but when

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they you've got a bell if you're in

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person if you're not in person you have

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a thread that should be all the sales

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guys digging they can literally send an

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image or a gif of a bell so it's like

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ring the bell right so that they know

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and it says volume they can see it

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there's activity there's action right

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it's all of momentum

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so leaderboard that has to be checked

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every day has to be updated regularly

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like that has to be on point

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and then competitions we found that six

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weeks works best

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um in terms of

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sending them on like closers go to vegas

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or go to the bahamas or whatever it is

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and so we put them in three men teams

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and that tends to work really well

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because they they share best practices

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they continue to work with each other

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they root for each other so it's not as

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cutthroat it's just always having top

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dog

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and in terms of how much to spend on

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that uh 25 percent of one month check

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um is usually the amount per person that

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a prize like that would be right so if

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you guys make 70 you might spend 1500

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bucks to send per guy for like a three

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day or like a two day weekend it's not

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expensive five grand but it is worth

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every dollar so to recap if you want

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really really consistent sales

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use the closer framework everything has

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to be questions do not have statements

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have 30-second stories record your calls

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make sure you're sticking to the comp

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cadence cut the bottom percentage and

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keep it competitive so they stay in it

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thank you

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[Music]

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[Music]

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[Applause]

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you

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Étiquettes Connexes
Sales FrameworkConversation ManagementSales TeamInconsistent LeadsLead QualitySales ConsistencyB2B SalesSales StrategyPerformance MetricsCompetitive Sales
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