I Made $21 Million in 120 Days To Prove It’s Not Luck
Summary
- Generated an additional $21.6 million in profit by expanding from 0 to 40 sales reps in 120 days for a portfolio business.
- Initially hired an outsourced sales team, known as "mercenaries," due to the founder's lack of sales experience.
- Faced three key issues with the outsourced team: high commission rate (20% of revenue), poor upsell rate (below 30% ascension), and concerns about business sellability with external sales dependency.
- Transitioned to an in-house team to address these issues and began by hiring a director with industry experience, metrics-driven approach, and the right demeanor for sales leadership.
- Rebuilt the compensation plan for sales reps with a target of sub-10%, incorporating tiered structures to reward top performers and acknowledging non-monetary incentives.
- Enhanced the sales process by improving call show-up rates, call scheduling, and sales conversion through personalized reminders, training, and strategic sales scripting.
- Scaled the sales team rapidly with aggressive hiring strategies and thorough training and onboarding, including daily training and gametape reviews.
- Automated the sales training as much as possible and established a no-tolerance policy for underperformers.
- After stabilizing the in-house team, the outsourced team was dismissed, leading to increased revenue and reduced commissions for better profitability.
- Emphasized the importance of hiring wisely, training persistently, compensating fairly, and not tolerating negative influences on the team culture.
Video
https://www.youtube.com/watch?v=urVR5oXx31s
How To Take Action
I would suggest starting by hiring a skilled sales director. Look for someone with a track record in your industry who knows how to build and train a sales team. Use your network to find this person, and don't be shy to reach out to a lot of potential candidates.
Next, create a compensation plan for your team that motivates them without giving away too much. Think about tiered commissions that reward top performers, and don't forget about non-monetary perks like recognition and status symbols within the team.
Improve the sales process to increase show rates for calls and conversions. Make reminders for calls more personal, reduce the time between scheduling and the call itself, and be sure your team is well-trained, using role-play and daily practice to achieve this.
Scale your team by hiring aggressively. Use recruiters if needed, save your sales director's time for final interviews, and implement as much automated training as possible.
Lastly, keep the team culture strong by setting a no-tolerance policy for underperformers and negative influences. When your team is strong and well-trained, you can consider letting go of any outsourced help to keep more profit within the business.
These steps will help you build a strong sales team, improve your sales process, and save on costs, which are key to growing your profit.
Quotes
"Winners win all right which also means losers lose"
– Alex Hormozi
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"Sales team six let's go"
– Alex Hormozi
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"Sell the vacation not the plane flight"
– Alex Hormozi
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"If you require work ethic you require practice require people show up early work late work weekends"
– Alex Hormozi
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"It's that you roleplay with your team and that you you get really really narrow on the things that you want them to improve"
– Alex Hormozi
