i'm jordan belfort and this is sales school all right so if you're a business owner do not let quickbooks and spreadsheets slow you down anymore now it's time to upgrade to netsuite by oracle the world's number one cloud-based business system network gives you the visibility and control over your financials inventory and more schedule your free product tour right now at com netsuite. com school look at this beautiful picture this picture has a story it's always a story about a picture right it tells a thousand words well here's a story so i actually was gonna do this training for you guys today which is a really important one sales funnels not marketing funnels sales posting marketing phones is a totally different thing when we hear the word funnel nowadays it's gotten so you know um unlimited it's not a word all right but it's all about your funnels funnels when people think oh i'll build your follow-up list i'll drive you crazy that funnels funnels but that's marketing funnels meaning how you essentially have an online funnel that collects that has page views and they read the headline there's a video there's a fricking click on this button either buying something or getting a lead that's an online sales funnel i'm not talking about that remember you have marketing on one side of the equation and sales on the other marketing is the process by which you identify who your best buyers are either locally or geographically mean country around the world or okay and then you can sorry and then you take those buyers and bring them into your sales funnel in a cost effective manner meaning it's not going to work very well for you as a business owner or a salesman who's trying to bring in leads if it costs you let's say uh a thousand dollars a day to advertise and the revenue you generate off of those incoming leads is five hundred dollars you lose half your money every day now that being said there are businesses around i'll do this all day long and make a ton of money by spending a thousand dollars or ten thousand dollars a day in advertising and the opening sale makes them only five hundred dollars how very simply life of the customer so while they only might make five hundred dollars in the opening transaction and lose half their money if they have a great product and at least the future business then they can make ten thousand dollars over the first year or twenty or a hundred thousand for the life of the customer so it's a great exchange but remember cash flow wise you're going to be very very careful that your marketing activities are at least somewhat offset by short-term income or else you could have all the long-term profits grow but you're broke you're constantly broke because you're negative cash flow the big companies yeah you can finance it with money raised on wall street but the average person here which you are okay success rate person who wants to get rich remember you you know you're gonna be recognizing that marketing is not just about bringing leads in it's bringing leads in a cost-effective manner end of discussion because this is not a marketing session i will cover marketing funnels because i'm an expert at i got one of the top performing funnels in the world right now so i know everything about it i'm going to give you a great training this is not about that this is about just for today a daily motivation understanding of what you should be doing as a sales person how you're supposed to organize your day and how you can use a very simple technique for sales funnel to spot out where the problems might be if you're having a dry spell what's causing that dry spell and also how do you essentially motivate yourself or work backwards meaning say hey i want to make x number of dollars a year how do i ensure that outcome well one of the easiest ways to ensure that outcome is by the use of a sales funnel working backwards let me explain so watch this is your typical sales funnel here sales funnel not blocking photo right and the funnel obviously has a cone shape right it goes from you from the wide end to the narrow end and what that represents is the obvious situation the reality that when you call people now remember immediately stop i'm going to use dials okay so you imagine you're on the phone you're dialing the phone but just as easily as dials there's no difference it could be door knocks it could be people walking into your retail store it doesn't matter it's how many people enter into your sphere of influence that you could possibly have a chance to pitch okay now for instance let's stick with dials and i'll go back and forth just to show you the equivalences right so imagine if you're sitting behind this or a telemarketer and your salesman you're looking to dial the phone to eventually close sales now i'm going to use a very round number here of 100 dials per day some of you might think that's a lot for those who are really in the business of using the phone to make sales it's not a lot at all you should know it could be two to three hundred day easily but we'll use 100 to round up right now when you make 100 dials you're not going to speak to let's let's assume you're calling businesses right of those of those um dials you might only actually speak to 50 people 50 people right because there's answer machines there's um wrong numbers phones will ring off this normal answer okay so you just you're gonna find that every dial does not result in a connection okay same thing goes to be knocking on homes you might knock on the door and no one answers right so it's not just because you're not does not mean that you actually get someone in front of you right so we have doors dials whatever it might be or people might walk in your store that doesn't mean they might not actually look around and bounce and walk right back out of your store before you ever have a chance to even talk to them you get it so while that's the case while you can consider people walking into that top line remember that next step is how many people how many live human beings do you speak to how many live human beings do you speak to from there we then go down to the next level which would be decision makers how many decision makers do you speak to because remember you might want somebody to shut my phone up guys here you guys look at that thanks for sharing okay i'll find myself ten dollars right how many decisions decision makes now you get 50 connections at a cooperation right you might get screened out 40 or 50 of the time you might only speak to 25 decision makers the numbers go down again you might knock on a hundred doors 50 people answer 25 or maids or kids under the age of 18 that can't make it home it's not the decision maker so you don't actually get to the decision making number drops again then of those 25 decision makers maybe you have a 40 success rate of taking them saying yes i'm interested i'd like to get interested in speaking to you again assuming this is just like a two-call system meaning where you might knock on their door and they like what you see and you leave information you set up a return phone call or return visit to the home it could be you are on a phone where you speak to a business owner or a homeowner and they say yup let's set up another call next week to send me the information i'll close you then or you can actually do a hybrid where you call a business owner or a homeowner on the phone then they say hey i'll come to your house next week and the next appointment will be in person or on the phone it doesn't matter so it's all the same okay so watch so you have 25 that would now come if only 40 are people you speak to okay a decision makes only 40 actually become leads that becomes 10. so you have 10 actual leads per day okay then what happens is here's the problem whether it's in person or over the phone if you have 10 leads and you go so you're doing a straight on the phone you got to lead on the phone now you're calling back on the phone right guess what you're not going to get in touch with everybody twice it sucks it's a reality just can't get someone on the phone a second time matter how high you try there's many ways to increase that number but you're not going to get in touch with evidence let's say at the end of the day your the reality is that if you write up 10 people you're only getting five of them on the phone or when you go to the home they're not there they don't answer the door just it doesn't work out so you actually have five appointments individual pitch will be for pitch you actually make a sales presentation and of those five let's say your closing rate is 40 40 buy that means that you are closing two sales per day that's your average daily closing rate two sales per day okay so let's say your goal you want to make a let's just say let's say in the average um sale it yields you 500 in commission that's your sales that's an example of what a sales funnel and let's just stick with phone calls all the way because you see it's all interchangeable right but it'll just make it flow faster right so watch what happens if you work backwards here this is the power of this you work backwards so in other words if i make 500 on average every sale i close and i've closed two sales a day right it's two sets a thousand dollars a day and let's say a five day week so make it a thousand bucks a day in commission five that's five thousand a week that's two months it'll take a 50 week year two weeks vacation that's a quarter million dollars a year annual income so let's say your goal was to make a quarter million dollars a year that would be a great way of doing it right but let's say it's not let's say you want to make double that how do you do that well the power of the sales funnel is that once you have these numbers worked out and the key is it takes time you have to make sure that you have enough data collected over a couple of weeks to make these numbers statistically significant if you have just one day it just gets that way it's to normalize over time before you can use this to start making decisions so one thing is once you really have these notes they're crucial now even you'll have them because you've worked with the crm like a salesforce.
com or some other that actually helps you keep track of this stuff but if not you got to keep track of yourself this is very important data to have so let's say you say you know i want to make more of this i want to make half a million dollars here what do you do what's the most sure fire way to take what you're doing right now and double your income well for sure you can become an expert at the straight line system you become a better closer what's that going to do well it's gonna do a couple things number one it's gonna bump up this cycle from five to three and also this decision makings might go from this will go upside the decision makings might go from 25 to 18 or 20. so you can raise those numbers by becoming better at what you do and also once you actually have these numbers and even more important than that because that's not really what sales file is about it's not what's helpful what's more helpful is that if you find yourself in a slump and you say what the is wrong well go back and say wait a second what's deviated on my funnel if i'm not closing as many sales what's the problem is the problem that my i'm not speaking to as many decision makers because if that's the case well maybe i have a bad lead source or maybe i'm not very good at getting through the screen i'm going to work on that if also that dropped if you're going to x ratio once you know your ratio say what's dropped and why you can actually analyze the problem if you notice that all of a sudden you're having a lot of points with no close sales your pitch needs work so you can use this to identify what the problems are in your business but most important of all in my book that's a call but most important is that once you really have this number this whole thing this whole chart and you say i want to double my income this year you know what the most surefire way to do it is simple right here increase the number of dials you make that's how you make more money the quickest for sure fire like all other things be of course you want to enhance your skills you want to learn to get through more game keepers yes yes yes yes yes awesome but the key is that once you know these numbers you can set a goal and work backwards because let me tell you something i promise you this this number could easily be 200 in a snap it could be 300 just as well and sales is a numbers game matter what anyone says don't believe any of the sales this is numbers get the more people you speak to the more you close those ones you cast into the ocean the more fish you're going to catch yeah you can become a better fisherman you can use better bait but at the end of the day all things be equal you cast more you make more bottom line make your sales funnel keep track of your numbers and use it like that guys and i promise you that will stay in good stead forever all right i know everyone's talking about cbd these days but there's really only one brain you know about and that is lord jones see if you know me then you know that i won't even touch something unless it's the absolute top product of its kind fast cars big houses a boat it's not the best i don't want it anywhere near me that's why whenever i want cbd i go to lord jones lord jones is the gold standard let me get the gold standard of cbd and you know that means a lot when it comes from me for years lord jones has been changing people's lives with their premium cbd products from world-class skin care to tinctures and gel capsules to decadent gumdrop confections if you're curious about what cbd can do for you trust me you want to start with the absolute best lord jones is crafted with the highest quality ingredients and premium hemp derived cb it's lab tested for purity strength and consistency in fact lord jones has been featured in new york times people vogue vanity fair and more and now they're inviting you to experience the finest cbd products available and i'm telling you you're gonna love it so here's how you get started go to lord jones dot com slash school to get 25 off your first order that's lord jones dot com slash school for 25 off your first order lordjones.
