i'm jordan belfort and this is sales school if you're a business owner you don't need me to tell you that running a business is tough don't let quickbooks and spreadsheets slow you down anymore now is the time to upgrade to netsuite by oracle the world's number one cloud-based business system schedule your free product tour right now at netsuite.com wolf that's netsuite.com 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 let's say you're doing a straight on the
phone you're gonna lead on the phone now you gotta call them back on the phone right guess what you're not gonna get in touch with everybody twice it sucks it's a reality you just can't get someone on the phone a second time matter how hard you try there's many ways to increase that number but you're not going to get in touch with ever so 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 p for pitch you actually make a sales presentation and of those five let's say your closing rate is forty percent forty percent 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 let's just say let's say in the average um sale yields you 500 in commission that's your sales funnel that's an example
of what a sales funnel and let's just stick with phone calls all late because you see it's all interchangeable right but it'll just make it flow faster here right so watch what happens if you work backwards here and 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 close two sales a day right that's two it's 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 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 works that's to normalize over time before you can use this to start making decisions so one thing is once you really have these numbers they're crucial now even you'll have them because you're working with the crm like a salesforce.com or some other crm that actually helps you keep track of this stuff but if not you've 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 a year 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 going to do a couple things number one it's going gonna bump up this cycle from five to three and also this decision makers might go from this will go up slide but the decision makers 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 even more important than that because that's not really what a sales funnel 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 is made 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 have if that x ratio once you know your ratio say what's dropped and why you could 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 important but most important of all 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 most surefire way all other things be of course you want to enhance your skills you want to learn how to get through more gatekeepers yes yes yes yes yes all that stuff 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 can easily be 200 in a snap it could be 300 just as well and sales is a numbers game no matter what anyone says don't believe any of the sales numbers get the more people you speak to the more you close no times 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 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 two that will stay in good stead [Music] forever you
