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.