10 Reason Why Most Salespeople Fail Their First Year

Summary

In 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

00:00

💼 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.

05:01

📈 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.

10:02

🚫 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.

Keywords

💡Sales

Sales refers to the process of selling products or services to customers. In the video, the speaker discusses the challenges and realities of a career in sales, emphasizing the need for resilience and adaptability. The script mentions that 75% of salespeople fail in their first year, highlighting the demanding nature of the profession.

💡Leads

Leads in sales are potential customers or clients who might be interested in a product or service. The script discusses the difference between salespeople who are given leads (like lions in a zoo) and those who must find their own leads (like lions in the jungle). It stresses the importance of salespeople learning to 'hunt' for their own leads to ensure long-term success.

💡Zoo Lions vs. Jungle Lions

This metaphor from the script contrasts salespeople who rely on provided leads (zoo lions) with those who must find their own leads (jungle lions). It illustrates the importance of self-sufficiency and initiative in sales, suggesting that those who can 'hunt' for their own leads are more likely to succeed in the long run.

💡Communication

Communication in sales involves reaching out to clients through various channels such as email, text, phone calls, and video calls. The script emphasizes that salespeople should not be 'lazy' and stick to lower-level communication methods like texting when higher-level interactions like phone calls or video calls could build stronger relationships and lead to better results.

💡Long-term mindset

A long-term mindset in sales involves focusing on building lasting relationships with clients rather than seeking quick wins. The script mentions that salespeople who think short-term and treat clients as 'one-night stands' are less likely to succeed. Instead, the speaker advocates for a patient and client-centric approach.

💡Repetition

Repetition in sales refers to the consistent and routine tasks that salespeople perform, such as following up with clients, overcoming objections, and using sales scripts. The script warns against the boredom that can come from repetitive tasks and encourages salespeople to see the value in these activities for building momentum and success.

💡Momentum

Momentum in sales is the gradual buildup of energy and progress that can lead to increased success. The script suggests that salespeople who can maintain momentum through consistent effort and repetition are more likely to achieve long-term success. It contrasts this with the approach of those who resist repetitive tasks and thus fail to build momentum.

💡Referrals

Referrals are recommendations from satisfied customers that can lead to new business. The script points out that only 11% of salespeople ask for referrals, despite the fact that many customers are willing to give them. It emphasizes the importance of asking for referrals as a key strategy for long-term success in sales.

💡Content Creation

Content creation in the context of sales involves producing valuable and engaging material (like videos or articles) to attract potential customers. The script describes how the speaker started creating content to share knowledge and insights, which eventually led to more leads and business. It highlights content creation as a long-term strategy for success in sales.

💡Mentally Strong

Being mentally strong in sales means having the resilience to handle constant rejection and challenges. The script discusses how salespeople must develop a thick skin and not be easily offended or discouraged by the daily rejections that are part of the job. It suggests that mental strength is crucial for long-term success in sales.

💡Work Ethic

A strong work ethic in sales involves putting in the effort and time required to achieve success. The script challenges the common misconception of working hard, suggesting that it's not just about the hours spent in the office but about the quality and effectiveness of the work done. It encourages salespeople to quantify their activities to truly understand how hard they are working.

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]