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Recently I was asked by a successful door-to-door sales rep if he should start his own company. Obviously, this isn’t a simplistic decision as there are many questions that need to be answered such as:

Do I want to shoulder the responsibilities that come with owning my own business?

Am I looking to build long-term financial wealth, or do I need money now?

Am I willing to take on the risks (financial, legal, reputational, etc.) associated with a failed attempt?

Am I prepared to sacrifice time away from family and fun to start my working days early, end them late, and be at the constant mercy of employees, vendors and customers?

Once these questions (and many others) are answered, then it’s important to thoroughly review the numbers. Here’s what I gathered from this sales rep:

Number of accounts serviced the past 3 years – 1,850

Average contract value of these accounts – $445

Revenue generated – $823,250

Commissions earned – $450,000+

He’s clearly done well for himself earning quick cash! However, as he’s getting older, his objectives are set on building long-term, sustainable income and he’s realizing that working for somebody else may not be the best way to accomplish his overall goals.

So let’s play out the scenario.

Hypothetically, let’s assume he starts his own company and runs a 20% profit margin. Over the course of the 3 year period he generated over $800k in revenue as a sales rep, his company would generate $1.3M in recurring revenue (assuming a typical cancellation rate) and would profit $265k. This is a far cry from the $450k he earned as a sales rep. However, he could potentially make up the difference in just over 2 years without having to knock another door.

This being noted, if he continued selling accounts, even on a part-time basis, the $185k difference could be made up in as little as 1 year.

In this scenario, the primary benefit for him, as he concluded, was the opportunity to earn money from sales he made years ago instead of having to start from zero each year as he’s been doing as a sales rep.

Granted, this is a simplified model, and there are many other factors that need to be determined before starting your own business. Nonetheless, this provides a baseline for you to determine if it makes more sense to further explore becoming a business owner or continue as a sales rep.

Did This Blog Help You? If so, I would greatly appreciate if you could comment below and share on Facebook

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Lenny Gray

Facebook: www.facebook.com/D2DMillionaire

Email: [email protected]

P.S. If you are thinking about starting a Door-to-Door Sales Program, or looking to improve your current program, be sure to check out my FREE Video Training – How to Run an Effective Door-to-Door Sales Training Camp for your Sales Team by clicking HERE.

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This summer marked my 19th year in the door-to-door sales industry.

I’ve now knocked doors with over 400 sales reps!

Although it seems as though I’ve seen and heard it all, there are still valuable lessons I take from each selling season.

Top 5 Lessons of 2016

  1. Training is Vital: Sales reps who receive inferior training can expect an inferior experience.
  2. Repetition is Key: The more time on the doors, the better the sales rep. Reps who put in the time, reap the rewards.
  3. Integrity Matters: Sales reps who accept and practice unethical behavior on the doors are shameful.
  4. Competition Sharpens the Sword: Reps can achieve amazing results through healthy competitions among their peers.
  5. I Love What I Do: I find it extremely rewarding to see sales reps work hard and achieve their goals.

Door-to-door sales is not for the faint of heart. It’s difficult, demanding and downright discouraging. However, those who cross the finish line having given their best effort throughout the entire race, can take courage knowing whatever challenges they face in life can be overcome.

Did This Blog Help You? If so, I would greatly appreciate if you could comment below and share on Facebook

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Lenny Gray

Facebook: www.facebook.com/D2DMillionaire

Email: [email protected]

P.S. If you are thinking about starting a Door-to-Door Sales Program, or looking to improve your current program, be sure to check out my FREE Video Training – How to Run an Effective Door-to-Door Sales Training Camp for your Sales Team by clicking HERE.

If you enjoyed this post, Another Summer, 5 Lessons Learned, please retweet and comment below.

 
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food

Have you ever eaten an entire meal only to find that once the last bite has been taken you are still hungry? Selling accounts and not getting paid because your customer didn’t follow through on their commitment is a similar feeling.

You generate interest with a carefully crafted initial approach, you thoughtfully customize an explanation of your service to perfectly fit the customer’s needs, and then painstakingly go through each detail of the service agreement only to find out that when services are to be performed your customer has changed their mind despite all of your best efforts and there is nothing you can do or say that will change their mind.

For a salesperson, this has to be the worst feeling EVER! You are helpless, hopeless and you’ve wasted time that could have been spent with more promising prospects. The thought of my customers changing their minds used to keep me up at nights during my first summer as a door-to-door salesman. Through trial and error I found 3 techniques that helped me to solidify my sales and limited my cancellations.

  1. Talk with both spouses. Unless I had no doubt that the spouse I was talking to was the ultimate decision maker, I would make a return appointment to meet with the other spouse to ensure both decision makers were on board. I was certain that I would make a far better sales pitch to the other spouse than their counterpart would.
  2. Forecast the forecast. Make a habit of knowing the weather forecast for the coming days so you can explain to your customers the challenges that the weather could create. For example, “Because my service technician will be installing equipment on the exterior of your home and there is rain in the forecast, understand that unless it is an absolute downpour, he will be able to install all of your equipment tomorrow as planned.” Or, “As I’m sure you are aware there have been some high wind warnings for tomorrow so I want you to know that if the winds are extremely gusty during the time of your appointment we will just focus on servicing the interior of your home and then make arrangements to take care of the exterior service another day.”
  3. Encourage your customer by reminding them of the great deal they are getting. While wrapping up a sale you could simply state, “I appreciate your time and know you will be pleased with our services, especially with the fantastic offer you are taking advantage of today.” By concluding your conversation the same way you started it…think Black Friday…you will tie a nice bow on the entire experience for the customer making them less likely to change their mind.

By implementing these 3 techniques during my 3rd summer as a door-to-door salesman I was able to sell 674 accounts and 668 of them were serviced. That’s less than a 1% cancel rate! These techniques assisted me in minimizing cancels and maximizing earnings. Just as it makes no sense to eat and not get full, it makes no sense to sell and not get paid. Make each sale count!

 

Did This Blog Help You? If so, I would greatly appreciate if you could comment below and share on Facebook

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Lenny Gray

Facebook: www.facebook.com/D2DMillionaire

Email: [email protected]

P.S. If you are thinking about starting a Door-to-Door Sales Program, or looking to improve your current program, be sure to check out my FREE Video Training – How to Run an Effective Door-to-Door Sales Training Camp for your Sales Team by clicking HERE.

If you enjoyed this post, 3 Tips for Selling Solid Accounts, please retweet and comment below.

 
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Whether you like it or not, your days of knocking doors this summer are quickly coming to an end. Although you may be telling yourself there is no way you’ll ever knock another door, inevitably the company you work for will encourage you to sign with them for next summer.

So how do you know if you should do it?

I suggest asking yourself these 3 questions before deciding if it’s in your best interest to resign with the same company:

  1. Did the company live up to the promises made during the recruiting process? Were you promised an apartment complex with a swimming pool, only to find out that the swimming pool was being used a skate park? Choose a company that keeps its commitments.
  2. Will the company help you to progress as a sales rep? Sometimes great sales reps work for companies with mediocre sales training. Work for a company that offers quality training to ensure you make improvements from year to year.
  3. What’s your conscience telling you? If you don’t feel good about the sales practices or character of the people at your current company, consider alternative options for next summer.

The good news is nowadays there is no shortage of companies hiring door-to-door sales reps.

You have options…plenty of them.

Find a company that fits you best. Company culture, longevity and leadership are some of the factors you should weigh before determining your best option.

For more advice on choosing a summer sales company, email me at: [email protected]

 
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A few weeks ago, the fate of a 70-person sales team hung in the balance as two recruiting giants in the door-to-door sales industry battled to earn the sales team’s services.

Although Company A had already signed the sales team, Company Z felt it could provide this group with a better opportunity. When the dust settled, the sales team abandoned its commitment with Company A and signed with Company Z.

What a travesty for Company A.

Days later, still reeling in disappointment, Company A contacted Company Z pleading for them to relinquish the sales team. Company A claimed the loss of the sales team would be detrimental as it had hired technicians and office staff as well as purchased vehicles and equipment to support the sales team’s production. The consequences of not having the sales team would result in lost jobs, damaged reputation, and countless hours of time and energy wasted in preparation to accommodate the sales team’s efforts.

In an unprecedented move, Company Z relinquished the group of sales reps but only if Company A agreed to sign a non-compete which prohibited them from recruiting Company Z’s signed sales reps.

Company A begged for mercy and it was granted.

So here’s where the hypocrisy comes in…

For the past several weeks Company A has relentlessly pursued my company’s sales reps and customers. In fact, a couple of weeks ago the text message shown below took place between my sales manager (in blue) and Company A’s divisional sales manager (in grey).

Aptive text

Really? Paying for your competitor’s customer list!

This low blow makes Draymond Green’s nut punch (pictured above) look like child’s play.

And, if this strategy isn’t pathetic enough, Company A’s divisional sales manager has also attempted to recruit my sales reps by offering them cash.

So let’s get this straight…Company A is doing the very thing it begged Company Z not to do, recruit sales reps that were already signed.

Company A has to realize that my company also hires technicians and office staff, as well as purchases vehicles and equipment to prepare for our summer sales teams, and with every customer lost, my technician’s routes are diminished, thus affecting their compensation and potentially their jobs.

Fortunately, Company A’s witch hunt for my sales reps and customers has resulted in little success. Cancel rates are below average and my sales reps aren’t taking the bait.

Executives at Company A will likely plead ignorance to the behavior of this divisional sales manager, but what if other managers, recruiters and sales reps at Company A use these same tactics?

Is Company A so delusional that it teaches devious tactics targeting other company’s reps and customers yet supplicates others not to do the same thing?

Figurative punches below the belt to business competitors may not result in a 1-game suspension as it did in the NBA Finals, but low blows and hypocritical tactics don’t go unnoticed and necessarily unpunished. I don’t think it’s too much to ask Company A to play by the same rules it desires to be played.

Let’s keep it clean gentlemen!

Did This Blog Help You? If so, I would greatly appreciate if you could comment below and share on Facebook

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Lenny Gray

Facebook: www.facebook.com/D2DMillionaire

Email: [email protected]

P.S. If you are thinking about starting a Door-to-Door Sales Program, or looking to improve your current program, be sure to check out my FREE Video Training – How to Run an Effective Door-to-Door Sales Training Camp for your Sales Team by clicking HERE.

If you enjoyed this post, Low Blows in Door to Door, please retweet and comment below.

 
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