For years, salespeople have tried to figure out how to get to the next level of success. Certainly, it takes the Will to Sell, the Sales DNA and the sales competencies identified in the Objective Management Group Sales Evaluation that has 92% predictive validity. But in addition to that, it requires that you have a business model that is built to help you sell more business, more quickly, at better margins.
The model represented here is not new. If you’ve read any sales books in your career you have probably heard of the pareto principle or the 80/20 rule. I’ve taken it one step further.
Focus on the cells in green and plug in your own numbers:
- This book of revenue represents 30,000,000 in loans. Yours could be premium, units, revenue, renewals. It doesn’t matter. Take that number and multiply it by 80%.
- There are 75 clients in the portfolio and we’ve multiplied that number by 20% to get to 15.
- In short 15 clients represent 80% of the entire book of business.
- Go 1 step further and do the math again. You’ll find that 96% of the entire $30,000,000 is;
- Represented by 36% percent of the clients = 27
- The average loan represented by this group is 1,066,667
Here is what takes you over the top:
- Compare the average loan from the top 36% to the loan average of the bottom 64%.
- Who would you rather be selling to?
- Assume that your top 36% of clients know at least 5 other people like them
- Ask your top 36% of clients for an introduction.
- Assume you get 50% to say yes, half of those people qualify, and half of those that qualify do business with you.
- Using the numbers above, that would be 6 new clients at over $1,000,000 in loans.
The closing questions is this: How many sales would you have to make from your bottom 64% of clients to equal one from your best client group? The answer: 40.
STOP selling those that look like your bottom 64%.
Don’t believe me? Look at these results from our clients who have implemented this process: