The Game with Alex Hormozi - You're Managing Your Sales Team Wrong | Ep 173

Episode Date: January 27, 2020

"Normal people have concerns. You need to overcome them." Today, Alex (@AlexHormozi) shares with us how to manage sales conversations and sales teams using the Closer framework, regular communication cadence, call recordings, cutting the bottom 10% of sales team, and keeping the team competitive through leaderboards and competitions.Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned on his path from $100M to $1B in net worth.Timestamps:(1:51) - The C-L-O-S-E-R framework(7:57) - Use Gong for call recordings. Suggested communication cadence.(9:10) - Cut bottom 10% of sales team regularly to increase productivity.(9:37) - Use leaderboards and competitions to keep the sales team competitive.Follow Alex Hormozi’s Socials:LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition

Welcome to the Jim Secrets podcast where you talk about how to get more customers, how to make more per customer, and how to keep them longer, and the many failures and lessons that we have learned along the way. I hope you enjoy and subscribe. Next up, we have Alex Hermosie, the other half of the dynamic duo at Jim Launch. They went from zero to 50 million in 20 months and he's going to share his thoughts in 10 minutes and Alex, three, two, one. All right. Who's pumped about sales? Sort of pumped about. Okay, so quick question so I can cater this to you guys. As I try and tell my team sometimes, I'm going to talk fast. You can just listen fast. So, who here has one person or less?

That would mean if you are selling, doing the majority of the sales in your company. Can you get hand raised? Okay, so like half. Okay, that's perfect. And the other half of you have a sales team multiple two or more, right? Okay. So the name of my lovely talk is going to be the closer 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. You get the idea. Closer framework. And then the second half is how you manage the sales team so you can get wicked consistent sales on a monthly basis. So first things first. Who here has ever struggled with inconsistent lead quality, inconsistent cack?

You're like, I thought I was at 1,000, and now I'm at 3,000. My leads are shit. Actually, my leads are amazing. My sales team is underwork. Now they're overworked. They said there's too many. There's too few. They're not being efficient, et cetera.

Is anyone done with any of that stuff? Okay, cool. So I've run a lot of sales teams B2B. We did outsource sales company. We would fly two gyms. Actually sell for them. So we'd fill them up in 30 days with us actually flying people out and selling. So we've done a lot of sales.

And this is the simplest framework that you can use. And so this is the first of the five C. So I try to use markets as five C. So when you go home, you've got 10 C's. Okay? So the first one it governs the conversation. So that's kind of for everyone who was raised, there's kind of more of you over here. We're raising your hands about I've got one person or it's me. This is the governing framework for how you make the conversation. See is you clarify why the person is there. All right? Now, when you use this framework, everything

that's in your framework has to be a question only. Do not put 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, and they need no intelligence to do that, which means it's scalable, okay? So when you're asking, so all of these buckets are the buckets

under which you want to create the framework that you're making your sale. So it's like, what made 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 would be achieved, right? Those are the clarification questions.

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 now have cancer. I can cure it.

Next is O. We're going to overview the pain. Okay. So I'm assuming not the first person you've come to to try and solve this problem. So what have you done in the past? All right? I've done X, Y, and Z. Why did that not work for you?

Obviously it didn't work because they're on the phone with you. All right. So you always have that advantage because they are on the phone with you right now. So you're overviewing past pain. We call it 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. There's going to 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 was trying 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. Does that 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 then you have to give a short 30-second snippet of why that's important, right? If I was trying to illustrate accountability, I'd be like, hey, did your parents ever tell you to brush your teeth when you grew up? You probably hated it. You're like, no, I don't want to, and they kept doing it over time, and I'll bet you brush your teeth now, right? You need someone to hold you accountable so you can create the habit. Does it make sense?

30 second story, they understand it. That's how you sell a vacation. E, explain away their concerns. Away concerns, blah, blah, blah. You get the point. That's where you're doing all of your obstacle overcomes. Crazy people buy without obstacles. Normal people have concerns.

You need to overcome them. These have to be drilled. 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 discrepancy and 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 why do you think they'd be opposed with you solving the problem that you already know you have that they don't agree with? Hey, guys, love that you're listening to the podcast. If you ever want to have the video version of this,

which usually has more effects, more visuals, more graphs, you know, drawn out stuff. Sometimes it can help hit the brain centers in different ways. You can check on my YouTube channel. It's absolutely free. Go check that out if that's what you are into. And if not, keep enjoying the show. Right?

Overcoming. Okay? This has to be drilled. Next one is a decision maker. We did price and stall, right? All you're doing is teaching someone to make a decision because people don't like making them because they fear making mistake.

Right? Perfect. Halfway through. Okay. So what you're going to do is walk them through a decision-making process. So, how do we make decisions?

Either, 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 car do you want to use? Right? Overcome. You confront the decision. What's your main concern?

Then they tell them in concern, you overcome it, 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 it on them? How can we get them super pumped? So immediately afterwards, that's the 30-second video from the founder, be like, hey, just saw you sign up for our software.

Super excited to have you by name, personalized, headwritten card, t-shirt, any of those things. Reinforced the decision, make their feet nice and hot. Make 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. Does that make sense to everybody?

Okay. That is the first of the five Cs. Don't worry, the other ones are fast. It's about how you manage your sales team. Okay? Don't worry, I'll be fast. So that's closer. The next one is, don't worry, I'm rocking.

We're good. Okay. The next one, who, I should know these. That's okay. Okay. Call recordings, and then I'm just going to write these down real quick for you, so you can write them down, comms, cut, competition. Okay?

So Marcos is much smarter than me. I think he's like the really classy, classy person. This is like from the streets closing 4,000 people, one-on-one sales, like weight loss, Susie's writing with, you know, 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 those. The tool that you need to use is gong. If you guys sell via Zoom, it's the fucking best. That's all I can say. Use gong. It's amazing. All right.

Coms. 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 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 nose. They need to remember why they're still doing it.

From the 101s that you're doing, when you're meeting with them, you're going to have them tag you in three calls. Their best call, their worst call, and their average call. When you go over in the 101s, you're going to ask them to show you where they clarified the problem, where they outlined the paint, and then where they asked for the sale and where they overcame. objections. If they never clarify the pain and never ask for the sale, you don't make money. So that way they always know that on every fucking call, you always ask for the

sale. You can never make a sale if you never ask for it. All right? That's what you from the communication cadence. Cut. You got to cut the bottom. 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? Does that make sense? Okay. Competition. Last point. Woo. I'm good. I got a minute 20. Okay. So, competition. 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, it could be end of day. But when they, you've got a bell if you're in person. If you're not in person, you have a thread that should be all the sales guys digging. They can literally send an image or a gift. of a bell, so it's like ring the bell, right? So that they know, and it's just volume. They can see it. There's activity. There's action, right? It's all of momentum.

So leaderboard, that has to be checked every day. It has to be updated regularly. Like, that 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 the Bahamas or whatever it is. And so we put them in three-man teams, and that tends to work really well because that 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. So if you guys make 70, you might spend $1,500 to send per 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 30 second stories. Record your calls.

Make sure you're sticking to the com cadence. Cut the bottom percentage and keep it competitive so they stay in it. Thank you.