The Secret To Alex Hormozi's Sales Success

Summary

The video script outlines a 'closure framework' for managing sales conversations and teams, aiming for consistent monthly sales. It emphasizes using only questions in the framework to engage the customer, identifying their problems, and illustrating solutions with '32nd stories.' The script also covers overcoming objections, decision-making processes, and reinforcing decisions. For sales team management, it suggests recording calls, regular communication, cutting underperformers, and fostering competition with leaderboards and incentives.

Takeaways

• 😀 The Closure Framework is divided into two halves: managing the conversation and managing sales teams.
• 💬 Start conversations by clarifying the prospect's goals with questions, not statements, to engage them effectively.
• 🔍 Identify the customer's problem by labeling their pain points and confirming your understanding.
• 📞 Use a pain cycle: ask about past failures, then highlight why previous solutions didn't work.
• 🌟 Sell the vision by telling three short stories that illustrate the solution's key components.
• 🛠 Overcome objections like price, decision maker approval, or stall tactics with practiced responses.
• 🧠 Help prospects through the decision-making process by addressing concerns and ensuring clarity.
• 📹 Reinforce the decision by following up with a personalized video, gifts, or tokens to solidify their choice.
• 🎯 For managing sales teams, regularly review call recordings to maintain accountability and adherence to scripts.
• ✂️ Boost team productivity by consistently cutting the bottom 10% of performers and fostering competition with leaderboards and rewards.

Q & A

What is the main focus of the 'closure framework' discussed in the script?

The 'closure framework' is a method for managing sales conversations effectively. It is divided into two halves: the first half focuses on managing the conversation to ensure it works, and the second half is about managing the sales team to achieve consistent sales.

Why is it important to use questions in the framework rather than statements?

Using questions in the framework allows the person on the call to engage more actively. It enables them to pause and think, ask further questions, and doesn't require them to read paragraphs, which can be overwhelming.

What does the acronym 'SEE' stand for in the context of the script?

In the script, 'SEE' stands for 'Situation, Expectation, and Evaluation.' It is a method to clarify why the person is there and what their goals are.

How does labeling a problem during a sales call benefit the sales process?

Labeling a problem helps to identify the missing link that the customer has not been able to resolve, which positions the salesperson as someone who can provide a solution.

What is the 'pain cycle' mentioned in the script, and why is it important?

The 'pain cycle' is a process where the salesperson explores the customer's past attempts to solve a problem and why they failed. It's important because it helps to establish the salesperson's solution as the next logical step after previous attempts have been exhausted.

Why are '32nd stories' a crucial part of the sales process according to the script?

'32nd stories' are short, illustrative stories that help the customer understand the benefits of the product or service by relating it to common experiences or needs. They are crucial because they make the sales pitch more relatable and persuasive.

What are the three main objections that salespeople should be prepared to overcome according to the script?

The three main objections to overcome are price, stall, and decision maker. Each requires a different approach: explaining value for price, relying on past agreements for decision makers, and addressing the need for immediate action to overcome stalls.

How does the script suggest salespeople should handle concerns about making a decision?

The script suggests that salespeople should guide the customer through a decision-making process by asking a series of yes or no questions to help them confront and make the decision.

What role does recording sales calls play in the sales management strategy outlined in the script?

Recording sales calls is essential for compliance and accountability. It allows managers to review and provide feedback, ensuring that the sales team is following the script and improving their skills.

Why is it beneficial to cut the bottom 10% of sales performers regularly?

Cutting the bottom 10% of sales performers regularly can lead to a significant jump in productivity. It maintains a high-performing team and motivates others to improve their performance.

How does the script suggest maintaining a competitive environment within the sales team?

The script suggests maintaining a competitive environment by having a visible leaderboard, regular updates, and organizing competitions with attractive prizes. This fosters a spirit of healthy competition and motivates salespeople to perform better.

Outlines

00:00

📊 Introduction to the Closure Framework

The speaker introduces a framework for managing sales conversations and sales teams to achieve consistent sales. The framework is divided into two parts: managing the conversation to ensure the customer feels heard and understood, and managing the sales team to maintain efficiency and motivation. The speaker acknowledges common struggles with inconsistent sales and proposes the framework as a solution to these issues.

09:27

🔍 The Art of Managing Sales Conversations

This section delves into the first half of the framework, focusing on managing sales conversations. The speaker emphasizes the importance of asking questions rather than making statements to engage the customer and keep them thinking. The process includes clarifying the customer's goals, identifying their problems, outlining their past attempts and pain points, and selling the solution. The speaker also introduces the concept of '32nd stories' to illustrate the value of the solution and how it addresses the customer's needs.

14:28

🏆 Strategies for Managing Sales Teams

The final paragraph discusses the second half of the framework, which is about managing sales teams. The speaker advises on the importance of recording calls for compliance and accountability, using tools like Gong for call recording. They also stress the need for regular communication with the team through daily huddles, weekly one-on-ones, and monthly reviews. The speaker suggests cutting the bottom 10% of the team regularly to boost productivity and maintaining a competitive environment with leaderboards and sales competitions to keep the team motivated.

Keywords

💡Closure Framework

The 'Closure Framework' refers to a structured approach for managing sales conversations effectively. It is designed to guide salespeople through the process of understanding customer needs, identifying problems, and ultimately closing the sale. In the video, the speaker emphasizes the importance of using questions within this framework to engage the customer and keep the conversation flowing. The framework is broken into two halves: managing the conversation and managing the sales team.

💡Inconsistent Sales

Inconsistent sales refer to the unpredictable and unreliable nature of sales figures, which can fluctuate significantly. The speaker addresses this issue by introducing a framework to help achieve consistent sales performance. The term is used to describe a common problem faced by sales teams where they might experience a sudden drop or rise in sales without a clear reason.

💡Sales Teams

Sales teams are groups of individuals working together to achieve sales targets. The video discusses how to manage these teams effectively to ensure consistent sales. The speaker provides strategies such as regular communication, cutting underperforming members, and fostering a competitive environment to enhance team performance.

💡Call Recordings

Call recordings are audio records of sales calls made by team members. The speaker stresses the importance of recording every call for compliance and to hold team members accountable. They also serve as a tool for training and improvement by analyzing what works and what doesn't in sales conversations.

💡Accountability

Accountability in the context of the video refers to the responsibility and obligation of sales team members to perform their tasks effectively and adhere to the sales framework. The speaker uses the example of brushing teeth, where parents hold children accountable for developing good habits. In sales, accountability ensures that team members follow the script and contribute to consistent sales.

💡Pain Cycle

The 'Pain Cycle' is a concept used to describe the process of identifying and discussing the problems or issues that a customer is facing. It involves asking questions to uncover the depth of the customer's pain points, which helps in tailoring the sales pitch to address those specific needs. The speaker explains that this cycle continues until the customer has no more pain points left to discuss.

💡Decision Making Process

The decision-making process in sales involves guiding the customer through a series of questions to help them evaluate the product or service and make a purchase decision. The speaker outlines a method of asking yes or no questions to simplify the decision-making process for the customer, reducing the fear of making a mistake and increasing the likelihood of a sale.

💡Sales Cadence

Sales cadence refers to the regular and consistent rhythm of sales activities, such as daily huddles, weekly one-on-ones, and monthly reviews. The speaker emphasizes the importance of maintaining this cadence to keep the sales team focused, motivated, and performing at their best. It ensures that the team follows the sales framework and stays on track to meet their targets.

💡Competition

In the context of the video, competition refers to the healthy rivalry among sales team members to outperform each other. The speaker suggests using leaderboards and competitions to motivate the team and drive sales performance. This competitive spirit can lead to increased productivity and a more engaged sales force.

💡Flashcards

Flashcards in this video are used as a metaphor for having prepared responses to common customer objections or concerns. The speaker advises salespeople to be ready with answers to objections such as 'I need to think about it' or 'I have to talk to my partner'. These flashcards symbolize the need for salespeople to be well-prepared and equipped to handle any situation during a sales conversation.

Highlights

Introduction of the 'closure framework' for managing sales conversations.

The framework is divided into managing the conversation and managing the sales team.

Emphasis on the importance of consistency in sales quality and quantity.

Clarification of the customer's purpose and goals through questioning.

Labeling the customer with a problem to establish a clear need.

The 'pain cycle' technique to uncover and discuss past unsuccessful attempts to solve the problem.

Using '32nd stories' to illustrate the solution to the customer's problem.

Addressing and overcoming common customer concerns with prepared responses.

Teaching the decision-making process to guide customers through making a choice.

Reinforcing the decision with personalized touches post-purchase.

The necessity of recording sales calls for compliance and accountability.

Utilizing tools like Gong for call recording and analysis.

Daily huddles and weekly one-on-ones for team communication and performance review.

The practice of cutting the bottom 10% of underperforming salespeople to boost team productivity.

Creating a competitive environment with leaderboards and regular sales competitions.

The psychological impact of competition on sales team performance.

Recap of the key elements for achieving consistent sales: framework, questioning, recording, cadence, cutting, and competition.

Transcripts

This is

like from the streets calling 4000 people one on one sales like weight loss uses

her kids trying to write

permanent marker on the wall and I'm trying to close her credit card.

The name of my lovely talk is going to be the closure framework.

All right.

And so what I'm going to do is break this up into two halves.

The first half is how you actually manage the conversation that should say work.

And then the second half is how you manage the sales teams.

You can get wicked consistent sales on a monthly basis.

First things first.

Who here has ever struggled with inconsistently quality, inconsistent calc?

Right.

You're like, I thought I was at a thousand and now I'm at 3000.

My leads are shit.

Actually, my leads are amazing.

My sales team is under work now.

They're overworked.

They said there's too many, there's too few, they're not being efficient, etc..

So anyone with any of that stuff,

okay, this is the governing framework for how you make the conversation.

See is you clarify why the person is there.

Now when you use this framework, everything that's in your framework

has to be a question only do not four paragraphs, do not put statements

because they will start reading them.

They can't think that way, only put questions because they can pause.

They can ask another question, they can pause, they can ask another question.

They need no intelligence to do that. Well means you get on the call.

What's your goal? Why is that important to you?

What would it look like?

12 months from now if this ideal outcome were to be achieved next?

You label them with a problem.

So what I'm hearing is you've done X, Y and Z

and the missing link has been X, whatever.

Is that right?

Yes. Got it.

I now have a problem. You know, I have cancer. I can cure it.

All right.

Next is oh, we're going to overview the pain.

Okay.

So I'm assuming I'm not the first person

you've come to to try and solve this problem.

So what are you doing in the past?

All right, I've done X, Y and Z.

Why did that not work for you?

Obviously didn't work because on the phone with you.

All right.

So you always have that advantage because they're on the phone with you right now.

So over game pass pain, we call the pain cycle.

You do that until they have nothing left and you're like, awesome.

And then you recap the pain.

Then s you sell the vacation.

This is the only thing

that your salespeople have to actually know.

This can be three stories that you're going to tell them.

They're going to be illustrative of the thing

that you were helping them solve.

So an example would be fitness, nutrition and accountability.

If I tried to sell weight loss, right?

You're usually missing one or two or all three of these things.

That's why you weren't successful, right?

You couldn't consistently work out.

You couldn't consistently eat the right way

or no one was there to hold you accountable.

So make sense. Yes.

If you're selling leads, it would be like you need your leads to be exclusive.

You need them to be timely, you need them to be

geographic, whatever.

Like you're going to find three things

and you have to give a short 30 seconds snippet.

Why? That's important, right?

First, try to illustrate accountability, to be like, hey,

did your parents ever tell you to brush your teeth? Me grow up.

You probably hated it. You're like, No, I don't want to.

And they can do it over time and I'll bet you brush your teeth now, right?

You need someone to hold you accountable to create the habit. So make sense.

32nd story. They understand it.

That's he's still a vacation. All right.

He explain away their concerns.

That's where you're doing all your option overcomes all right crazy people by

without obstacle nor people have concerns you overcome them.

These have to be drilled, all right?

They have to be drilled.

So that means that you have flashcards, like, I need to think about it.

I have to talk to my husband. I have to check with my partner.

I have to.

So there's only three, by the way, if you don't know what they are,

it's price, it's stall, it's decision maker.

All right, so all you have to do is understand what each of those three are.

If it's price, it's a description, a discrepancy in value.

They don't understand the value.

If it's decision maker, what you have to do is rely on past agreements

that are implied that that person has already communicated to the partner.

So your partner knows that you're struggling with these things

already, right?

They know that you're looking for a solution. Right.

So what do you think they'd be a post with you

solving the problem that you have that they don't agree with?

Right. Overcoming.

Okay, this have to be drilled.

All you're doing is teaching someone to make a decision

because people don't like making them because they fear making mistake.

So what you got to do is walk them through decision making process.

So how do we make decisions?

Either do you do you like me, yes or no?

Do you like the product? Yes or no?

Do you think that we'll be able to help you achieve this outcome?

Yes or no?

Do you have access to this amount of money in your bank account

or know someone who does? Yes or no? Yes.

What card you would use?

Right.

Overcome you make them confront the decision.

Right?

What's your main concern then?

They tell the main concern. Do you ever come close?

All right.

Last one is reinforce the decision.

And I like doing this and we included it

after time is that people back out, right?

So how can we slam slam it on them?

How can we get them super pumped?

So immediately afterwards, that's the 32nd video from the founder.

Be like, hey, just so you signed up for a sophomore, super excited to have you

by name, personalized ID card, t shirt.

Any of those things reinforce the decision, make their feet nice and hot.

Makes sense.

That's the closer framework.

Every single

one of these buckets has to be questions that are simple for them to ask.

All right, so when you're organizing your script,

this is the conversation we're going through that makes sense to everybody.

Okay.

That is the first of the five she used or the other ones are our fast.

It's about how you manage your sales team. Okay.

Call recordings, comms cut competition.

This is like from the streets closing 4000 people,

one on one sales like weight loss.

Suzy's her kids trying to write permanent

marker on the wall and I'm trying to close her credit card.

All right.

So close the sequence is how you manage the framework call recordings.

If you're not recording every single fucking call

that your people are on one, you're not compliant.

Two, you should do it

because then they become more accountable to following the script.

All right.

You also overview this.

The tool that you need to use is gong.

If you

if you guys saw via zoom the fucking best it's all I can say use gong it's amazing.

All right comes you need to talk to your team on a regular basis.

All right?

The cadence there is daily huddles, weekly one on ones,

and when you do the and then obviously monthly but the

the daily huddles are quick all you do is you share testimonials.

So they remember why they're selling.

So they get beat up every single day with knows

they need to remember why they're still doing it.

All right.

From the one on ones that you're doing when you're meeting with them,

you're going to report.

You're going to have them tell you in three calls, their best call.

The worst call on their average call.

When you go over in the one on ones, you're going to ask them to show you

where they clarify the problem, where they outline the pain,

and then where they asked for the sale and where they overcame objections.

If they never clarify the pain and they ask for the sale, you'll make money.

So that way they always know that every fucking call you always ask for the sale.

You can never make a sale. You never ask for it. All right,

that's a do from the communication cadence cut.

You got to cut the bottom. Right.

It's the number one thing that will drive sales teams is by cutting the bottom 10%.

You do it on a regular basis.

It has to be on a regular basis. All right.

Even if the team is going okay, when you cut the bottom, you'll see

a 30% jump in productivity every time.

So if you can have a persistent 30% jump, why would you not do that?

That makes sense.

Okay. Competition last point.

Salespeople are competitive.

You have to have a leaderboard that is published that they can see

every single day that they get notified when every other guy is making a sale.

If it's super high volume at the end of day,

when you've got a bell, if you're in person,

if you're not a person, you have a thread that should be all the sales guys dig in.

They can literally send it imagery, guess of a bell.

So it's like ring the bell, right?

So that they know and this is volume, they can see it.

There's activity, there's action, right?

That's all of momentum.

So leaderboard that has to be checked every day has to be updated regularly.

It has to be on point and then competitions.

We found that six weeks works best in terms of sending them on

like closers, go to Vegas or go to Bahamas or whatever it is.

And so we put them in three man teams and that tends to work really well

because they they share best practices.

They continue to work with each other, they root for each other.

So it's not as cutthroat. It's just always having top dog.

And in terms of how much

to spend on that, 25% of one month check

is usually the amount per person that a prize like that would be, right?

So if you guys make 70, you might spend 5000 bucks to send

a guy for like a three day or like a two day weekend.

It's not expensive five grand, but it is worth every dollar.

So to recap, if you want really, really consistent sales, use a closer framework.

Everything has to be questions.

Do not have statements, have 32nd stories, record your calls,

make sure you're sticking to the comp cadence, cut the bottom percentage

and keep it competitive so they stay in it. Thank you.