Last week I introduced you to a very important sales reality.
"Sales, all sales is a critical evaluation of results versus resources"
While doing a great sales seminar with a sales team in south Florida last week, we delved further into this powerful equation. You have a certain amount of resources. Let's say your sales resources are:
1. Sales rep time
2. Marketing materials
3. Educational programs
5. Marketing budget
In every account you are going to "spend" some of these resources in order to get some result. The key is to make sure that your result matches or exceeds the resources you put into the account.
Early Stage Referral Relationships - Resources High, Results Low
In "Early Stage Referral Relationships" you almost always have to put a significant amount of resources into the account to get little to no result. You'll spend a lot of time and energy to position your agency as worthy of receiving referrals. This stage can last weeks to months (and in some unfortunate cases, forever). The better the sales plan, the shorter the amount of time you spend here. This stage is costing your agency money. The outlay of resources costs you significantly more than the return generated.
Mid Stage Referral Relationships - Resources Balanced with Results
Once you've graduated to our Top 20 ideal of getting regular monthly referrals, you have achieved Mid Stage status. In this stage, you are putting an equal amount of resources into the account as the result you get out of it. In this stage you are generally profitable with these accounts, but the amount of work required per referral remains high, and it's difficult to scale an agency for growth if most referral sources stay at this level. Interestingly, most reps prefer to stay at this stage because they feel "needed" by the account, and therefore guarantee themselves some job security.