Sales managers.
Today I want to talk to you about a few things you're doing, YOU, you are doing that's costing
you millions of dollars in commissions.
And I'm going to speak to you from my own personal experience and what I did in sales.
I'm in Orlando right now, at, what is the property called?
This is called what?
Caribe Royale, with top 1100 of our salespeople, and we're sitting here, and I wrote down seven
mistakes sales managers make.
And these are mistakes that I personally made that I'm going to share with you.
Let me give you the first one here.
This probably is about every single one of them that I wrote down on a sheet of paper.
Listen, if you're in a relationship, anybody you're with, if you're constantly afraid of
losing your girl, or losing your man, you've already lost them.
If you are constantly afraid of losing your best salesperson or losing your third best
salesperson that you have in your office, or whatever that person is, you can't lead
them anymore.
You absolutely lost the idea of leading these people.
Biggest mistake I put at number one, is when a sales manager stops leading his people because
he became too soft of wanting to make everybody happy.
That is a very big problem.
If you can't get over the fact that you're going to lose some sales people at times,
you can't lead them better.
Now that's number one.
Let me give you number two.
It kind of goes with number one.
There are three different types of sales managers.
And I'm going to explain it to you in a way where hopefully it will make sense to you.
You got the communistic sales manager, you got the socialistic sales manager, then you
have the capitalist sales manager.
Let me tell you the energy of each one of them.
Because the one thing you got to judge, an economic system on, these three economic systems
on is what they produce.
What types of people are they producing?
In a communistic environment, it's about everybody being treated equally.
Which means, imagine I'm in a real estate office and I get ten leads of somebody that
wants to buy a house.
I give one to him, one to him, one to her, one to her, one to him, it's equally, because
everybody needs to be treated equally.
So your worst closer who hasn't closed since the 70s is getting the same amount of leads
as your best closer that closes 80% of the time.
You're a communistic sales leader.
Socialistic sales leader is about being partly fair, partly equal.
Not fully either.
They're just kind of like, I don't want to ruffle any feathers, but I still want to make
sure my guy makes more money than the other guy.
A capitalistic sales manager does the following.
Who's our biggest closer?
Keep feeding him.
It's an environment where the top builders, top salespeople, top performers are being
fed more than the others because this environment produces a certain energy of competition that
the other two are not going to produce.
And if you're running a sales office, if there are no bickering, there's no fights, there's
no arguments, there's no heated, there's no friction, there's no "I can't believe you
won that.
I can't believe.
. . how dare you!
I'm going to.
. . " if there's none of that really going on in a sales office where there's competition
going on, you have a very boring sales office.
I went to a company a couple of years ago.
This was a multi-billion dollar company that invited me to speak to 64 of their executives,
VP sales.
I went in there and I felt like I was at one of these, nothing wrong with Deepak Chopra,
I felt like I was at a Wayne Dyer or Deepak Chopra event where everybody's holding each
other's hands and I love you so much, we run a harmonious sales environment because no,
we don't talk like that.
And they kept asking, we're trying to figure out why are sales are down 18 months straight.
I'm like, you really need another sign?
No one here is competing.
No one is selling.
Everyone is comfortable.
You're not going to grow a business like this.
What do you think it is in sports when you're in a competitive environment?
You have to fight for that starting lineup.
You have to fight to still be the point guard.
There's a guy that could potentially take your.
. . how many times in football do you see a quarterback to lose their position to somebody
else?
Is that a bad thing?
Is that not harmonious or is that threat making the lead quarterback get better?
That's the whole environment of a capitalistic environment and in sales, that works.
If your business is flat, you're either a communistic sales manager, or a socialistic
sales manager and you need to take a personal inventory of how you're running your business
there.
Let's go to number three, my favorite, but it's not number one.
This is my favorite, peer pressure.
I love peer pressure.
Let me tell you.
There's nothing more that I love in a sales office than peer pressure.
Nothing more.
There's nothing more than Larry brought six sales in today, but Jackie brought seven.
There's nothing more than Bobby made 193 calls today and Larry made 217.
There's nothing more exciting than the peer pressure, and it's Saturday night, Bobby wants
to go home, it's 8:00, he wants to go and kick it and relax and do whatever everybody
else is doing.
Jackie's sitting there saying, "You go home first!
You go home first!
I'm staying a little longer."
He leaves at 8:15, she leaves at 8:30.
This is exciting.
This is peer pressure.
She made him stay two more hours when he was ready to leave at 6:00.
I love peer pressure.
A great sales office with a lot of fire in it, there's a lot of positive peer pressure
in it.
And peer pressure is only in a sales office where the sales manager, the boss, the CEO,
whoever you call yourself, give yourself a title, where that person allows for peer pressure
to be there.
I'm going to go to my point number four which has to do with peer pressure.
Listen, mistakes.
I ran harmonious, I ran communistic/socialistic, I'm the guy that ran.
I know all this stuff because I've ran all that stuff.
It cost me a lot of money, but I adjusted.
Right after two years, I adjusted.
I was 23 years old, I made the adjustment.
Let me tell you this other part here.
I love an honest office.
Now what do I mean by an honest office?
Because you know salespeople, we, I've been a salesperson for a long time.
Oh it was like, "Oh, I made 78 calls."
99 calls, or it was 42 calls.
Whatever.
Oh, I did this much.
I'm going to do this.
It's always a little bit of that lies in the sales business that takes place.
Let me tell you what I mean by honesty.
I used to, back in the day, have every problem come through me.
So we're in the sales office, and every problem came to me.
I said, we're not doing this.
I had no life.
One day a guy comes up to me, and he said, "Hey, Pat, this other person in the office
said this.
And I think it's unfair what they did."
I said, "Did you tell them anything?"
No.
I said, "Why not?"
Well, I just didn't want to.
. . I wanted to bring, you're the sales manager.
I said, "No, you're unhappy with that, you need to call them out."
You want ME to call them out?
"Yes.
Go keep them honest."
"Oh my gosh, I don't know."
And then I would ask, "Did you yet?"
"No, but he's irritating me."
Either call him out, and address him and keep him honest, or two, get over it.
But I don't want to hear about it anymore.
Because I have other things to do.
Which one do you want to do?
Then they go address, friction, friction, friction, boom, problem solved, come out,
they both gain respect for one another.
It needs to be happening.
Honest environment.
Reports keeps everybody honest.
Numbers keeps everybody honest.
Where I can see how many I did here, but I'm doing an accountability and I know what the
numbers are, those things keep everybody honest.
But I want an environment where everybody can call each other out, and everybody keeps
everybody honest.
The numbers keeps everybody honest.
A sales office that doesn't have that and the reports aren't public, you'll generally
see, I'll go to real estate offices and I'll see, that marker is a six-month marker.
Because I know old markers.
I know it.
I say, that's a dying real estate office.
A dying real estate office, a top sales office marker, you go to it and you just smell it.
He just wrote it today.
I like this office because I smell the damn marker.
That's a sales office.
When I can smell the marker, because it's being updated daily.
It fires me up to want to compete with those numbers if I'm a sales guy coming in.
If I'm one of your sales guys, and maybe you're watching this and your sales manager doesn't
do this, ask yourself, do you get fired up?
Do you compete?
When's the last time you worked a little harder than the other guy.
Because there's no competition for you.
You need it.
Honesty.
Number five.
Number five is the 90/10 rule.
Let me tell you what the 90/10 rule is.
Remember how initially I told you I said, stop being afraid of losing your best salesperson
because you can't lead them?
You officially lose the right to lead the person, because I want to lead you.
When I lead you, I want you to understand I'm okay if you decide to go to a different
place.
I'm going to do my best to lead you while you're here with me right now.
Sometimes coaches, oh my gosh, LeBron's on my team.
No!
If you're on my team, I'm leading you until you get traded or go somewhere else.
But I'm going to lead you when you're here.
And if you treat players like that, they stay forever.
Instead of saying, "Oh my gosh, what if. . " he's leaving.
He's going to another place.
Here's the 90/10 rule.
I would much rather take 90% of my time and put it into one guy and teach him what I know.
And then after him the next guy and teach them what I know.
And then the next guy and teach them what I know, than take my 90% and put one here,
10% here, 10%, 10% here, 10% here, 10% here.
. . because I'm not building a killer.
Every office needs a killer.
Every team needs a killer.
Every league needs a killer.
Every industry needs a killer.
I want a killer in my office.
If you've got a killer in your office, and you've got 20 other agents and one's killing
everybody, that killer is firing up the other 19 agents is what it's doing.
You need killers in your office.
the only way you produce killers is by you putting 90% of your time on one killer.
Then you move on to the next killer.
Then you give birth to killers.
Then when your office has a lot of killers, killers only keep killers.
That means that office, it's got so much peer pressure in it that you cannot help but be
in there and be a killer.
Because if you're not a killer in that office, you're getting killed being in that office.
And that's the kind of offices I like to lead.
That's why very few salespeople wanted to be with me initially.
I calmed down a little bit over the years, but when we were hot, listen, you better come
perform when we ran offices.
Now next, let's get to the next one here.
Incentives.
I used to do incentives, and my incentives would be in multiple different ways.
Well, you know I'm going to go out there and I'm going to get this thing here and I'm going
to give one of these things to every guy.
I've given away shark teeth, I've given away the most random things.
One time I went to Canada and I bought a dinosaur tooth for 50 bucks.
It was the coolest thing that I gave away.
It was a dinosaur tooth.
Who wants a dinosaur tooth?
But, you know, I gave that away.
I've done a lot of different things.
But eventually, eventually, this is what I realized.
If I'm spending $1,000 on incentives, instead of doing $100, $100, $100, $100, it goes back
to the 90/10 rule, but this is incentives, do 50% of your budget on one person.
Then go, if you're doing three, 50, 30, 20.
But put some of it, if you're doing $1,000, do 25% to the number one person.
Then take the 750 and put in everybody else.
Make the number one guy get a gift that's above everybody else, what it is.
Make that a sexy gift.
Make that a cool gift.
We ran a Dubai contest one time.
The number one guy, I put him at Burj Al Arab.
Burj Al Arab was 3500 bucks a night.
Everybody else stayed at Atlantis.
Atlantis was still 600 bucks a night, but it ain't 3500 bucks a night, seven-star hotel.
I remember that contest, right?
If I'm running a contest and I'm giving up a Harley or I'm giving up a Rolex, the incentives
at number one for my killers, have to be above everybody else.
The way you incentivize your salespeople will determine how many killers you give birth
to.
Okay?
So don't take your money and chop it up evenly amongst everybody.
And then the last one I'll tell you is this.
Let me tell you what the last one is.
Here's what the last one is.
The last one is is knowing that in the world of sales, man, I used to be so impressed by
talent.
I used to be so impressed by talent [watch, these guys just came in.
I'll give you the perfect story with them.
Sheena, why don't you just, this is not even prepared.
Why don't you come sit right next to me.
Come sit right next to me.
We're in the middle of an episode that you're going to be.
. . sit right next to me.
And you're going to be right in the middle of an episode.
We got your guy as well.
How you doing, baby?
Good seeing you, good seeing you.
How are you?
Good.
Good seeing you.]
So, I'm on my last point with sales.
Now watch this here.
This wasn't planned by the way.
They literally came, their camera guy is there as well.
Point number seven, here's point number seven.
So I run regular accountability calls over the years, and I think you guys will remember
this part here.
We started doing accountability calls years ago, 13 years ago, 12 years ago, 10 years
ago, but in the last two years, I started running these accountability calls.
That's a pretty loud.
. . okay.
In the last two years I started running these accountability calls and we have sales people,
some are more talented than others.
We have some sales people that are overly talented.
When I tell you overly talented, I'm talking OVERLY talented.
And I as a newer sales manager, used to be very impressed with people who were extremely
talented.
This guys' going to kill it.
But it had nothing to do with it.
Let me tell you what happened.
I'd say 9 months ago, let me know if it was nine months ago or eight months ago.
All of a sudden, Rodolfo started putting unbelievable accountability numbers, right?
Because they started putting on, they don't make your kind of money yet, but they started
putting up accountability numbers on how many calls they were making on a week.
They started saying, 560 calls a week, 39 appointments a week, right?
All these bigger activity numbers and here's what it came down to.
I would much rather take a Sheena and Matt, first year they made 200, second they made,
I think they're at 830 now, I don't know the exact number, with us, $830,000 in income
that they take, I would much rather take a person I'm leading and building in sales that
is focused on the efforts, the activity, than the talent.
If I can have somebody that focuses on the efforts and the activity, that annihilates,
annihilates all the talent anybody else may have in the world of sales.
Go and measure up your accountability numbers with behaviors you want.
Is it calls?
Is it dropping off packets?
Is it presentations?
I don't know what your world sales activity and behavior is, measure that.
In the movie, Money Ball, you remember Money Ball, right?
The story of the Red Sox, and they brought this guy named Billy Bean, and Billy Bean
said in baseball, the most important stat, do you remember what it was?
It's not homerun, it's on base percentage.
It's who cares how many home runs a guy hits?
Who cares how many bases a guy gets?
How many times, what percentage of the time does this guy end up on the base?
That's who we want.
So Oakland A's started bringing all these guys that nobody knew about.
I mean they weren't sitting home or nothing.
But people were ending up on base.
You know what happened?
Red Sox come, I think they offer him a massive contract.
What's the number, Paul?
23 million?
[Inaudible].
He turned it down.
Then what happened is the guy took the concept to Boston and they ended up winning two World
Series [Paul: and then that guy went to the Cubs and won.]
That guy went to the Cubs and won.
Really?
Okay, that's the one part I didn't know about.
So now watch this.
Here's the part.
No talent, of course you've got some talent.
But on base percentage.
So sales managers, don't be too impressed with your mostly talented salespeople.
Be impressed with the people that are willing to do the activity that produces results like
the way these two guys have been producing results.
By the way, where an they find you guys?
They can find you on what?
MoneySmartGuy.com.
Money Smart Guy and.
. . Money Smart Guy.
Do you want them to Snap you or want them to go on your website?
Websites fine.
Same thing on Snapchat, Instagram, it's all Money Smart Guy.
Facebook, Twitter, this just kind of happened, I don't want to stop, but since we're already
about to go lunch here together, but so, if you've got any questions, comments, thoughts
about this, make sure you comment on the bottom.
Sales guys, if you watch this, share this with your sales manager and do it in a gentle
way because sometimes sales managers don't like this message, say, "Hey, boss, what do
you think about what this guy has to say?
Do you agree with him or not?"
If your environment changes with this, it's going to make you a lot of money, and your
sales manager's not going to mind either because he's also going to make a lot of money.
So if you've got questions, comments, thoughts, comment on the bottom.
If you haven't subbed to the channel yet, I don't have my pillow with me, but we'll
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Okay?
Take care everybody.
Bye bye.