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Avoiding pain with basic sales math
When in doubt, volume negates luck
Hey there, it’s Isaac from Leads to Earnings. Welcome to the newsletter.
(est. 2.5 minute read)
Today I will be going over:
The more, better, new framework
The top 3 skill that cannot be taught
I will also share a few cold email links and tips.
Hopefully you enjoy it.
Actionable Cold Email Tip
When in doubt, volume negates luck.
I can’t take credit for this insight. I first heard it from internet marketing GOAT Alex Hormozi.
That doesn’t mean I can’t apply its learnings, right?
So let me explain what I mean and how this is relevant to you…
Let’s say you’re trying to scale up your sales process.
Assume you have two sales reps.
The first rep is a machine and is focused on getting the most inputs.
The second rep is a perfectionist and is focused on maximizing his close rate.
The first rep gets on 100 calls in the first month and closes at a rate of 10%.
The second rep gets on 10 calls and closes at a 20% rate.
Who has a better month?
If you’re focused only on close rate, you’d say the second rep because they can close at 2x the level of rep #1.
But because we’re business people and want to maximize our revenue, let’s take a deeper look.
If you do basic sales math, the first rep will close 10 new deals at a 10% close rate.
The second rep will only close 2 deals at 20% despite having double the close rate.
This means the first rep outsells the second rep by 8 total sales.
If you’re selling a 5k/mo service, that’s an extra 40k/mo you’re missing out on.
So even if the first rep is newer, worse at sales or simply ‘lucky’, the sheer volume of their inputs has a substantially bigger impact on the business than rep #2.
So today’s lesson is simple, don’t get precious about maximizing your close rate.
First focus on maximizing your volume, before you maximize your close rate.
An easy way to think about this is the more, better, new framework.
First make sure you’ve maxed your volume.
Then improve the results of your process.
And finally move onto a completely new process.
If you can do this, you’ll be able to solve the constraint in any system across your sales, marketing and fulfilment.
Cheers.
Isaac
PS - watch this video. It will give you the fundamental skills you need to run a successful outbound process.
Useful Bits
Tweet of the Day: (link)
Quote of the week: Most people fail for the simple reason that they don’t learn the right skills necessary to succeed. — Jeremy Miner
Quick bite-sized pointer: Love of the game is a top 3 skill that can't be taught. In entrepreneurship, there's always a new problem to solve. Solve one, then the next pops up. If you don't find the game you're playing fun, then you should probably find a different game.
How I Can Help You
If you like this newsletter and want to work with me, there are a few ways we can do so:
I have a ton of free content that will help you get more clients on my YouTube channel. I post insights from operating high converting cold email campaigns for dozens of B2B companies that have added hundreds of thousands in recurring revenue.
If you are looking to improve your cold outbound skills but don’t want to hire anyone, I have a free 71-page course that teaches everything you need to know about cold email.
If you want a custom cold email campaign specifically designed for your business & ideal target audience, I have a few slots available to show you how it works. Book in here and on the call I will deliver a full 5-angle cold email campaign for you to use to bring on more high paying clients.
If you’d like to hear about how I can help you and your company grow, you can book a call with me here. I might be able to help you grow faster, or I might be able to refer you to someone who can.
Share this with 3 people and get a free training showing you how to convert more cold prospects into warm leads with cold email.
I hope you enjoyed this brief email.
Talk later,
Isaac
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