I Made $21 Million in 120 Days To Show It's Not Luck

Recent questions

• How did the implementation of a sales team impact the profit of a portfolio company?

  The implementation of a sales team in a portfolio company resulted in an additional $21.6 million in profit in just one quarter. This transition involved moving from zero to 40 sales representatives within 120 days. Initially, an outsourced sales team, referred to as mercenaries, was brought in to boost sales. However, issues such as a 20% revenue share, low conversion rates, and negative impact on business value led to the decision to transition to an in-house sales team.

• What were the key steps involved in transitioning from an outsourced to an in-house sales team?

  The transition from an outsourced to an in-house sales team involved five key steps. The process began with hiring a sales director who possessed specific criteria such as experience, being metrics-driven, having the right demeanor, and utilizing effective recruitment strategies. It was crucial to rebuild the compensation structure after hiring the sales director to address previous issues with revenue sharing. The target was to keep sales costs below 10%, depending on whether leads were self-generated or provided by the marketing team.

• How were compensation structures adjusted to improve sales performance after hiring an in-house sales director?

  After hiring an in-house sales director, the compensation structure was adjusted to address previous issues with revenue sharing. Compensation could be monetary or non-monetary, including recognition, perks, and status. Both Setters and Closers were compensated differently based on the rarity of their skills. Winners were rewarded more for higher performance, creating an incentive for increased sales productivity.

• What strategies were implemented to improve show rates for scheduled calls and close calls?

  To improve show rates for scheduled calls and close calls, several strategies were implemented. Adjustments were made to messaging, booking times, and personalized reminders, resulting in a show-up rate for calls increasing to 91%. Incentives were aligned, prospects were qualified effectively, and prices were not revealed too early, leading to a scheduled close call rate of 94%. Daily training, gam tape reviews, one-on-one role plays, and end-of-day reports helped maintain a show rate of 94% for scheduled calls.

• How did adjustments in the sales process lead to increased sales volume and higher closing rates?

  Adjustments in the sales process, such as adding a video sales letter between calls, role-playing common objections, and focusing on post-experience benefits in the sales script, resulted in a significant increase in sales volume and higher closing rates. By recruiting 40 sales representatives in 12 weeks through various methods and automating sales training with internal courses, the company maximized practice and minimized risk, emphasizing continuous improvement and role-playing to enhance sales performance.