How a door to door sales “boiler room” type company is run
How a door to door sales “boiler room” type company is run:
These types of companies are based on a foundation of the creation of value. There are a lot of people in the world who have no aspirations in life and the power of becoming a salesperson can be very inspiring to them. The sales company usually tend to focus on the development of these individuals in order to create wealth for the company and for the individual.
Stage 1
Learning the basics
Cycle of development:
- Office Routine
- Law of Averages
- 5 Steps
- Stop Sign Theory
- Impulse Factors
- 8 Steps
- Impulse Curve
- Rehash
- 3 R’s
- 3 F’s
- Office Pride
Retraining new sales people:
Repetition is a key component to become a great salesman. For this reason retraining is a key ingredient for success. Retraining is the backbone of the business and helps develop people, this is fundamental in order to achieve growth, stability and opportunity.
Step 1: Morning: The morning rituals are the most crucial and are very characteristic, they are intended to raise moral so everybody goes into the field with a positive attitude. It is is also intended to maximize the sales techniques. There is a repetition of all the sales techniques that have been acquired by the sales team in order to engrave them in the daily sales actions.
Step 2: Trip to territory: The trip is used for building the personal relationships between team members and to be able to have open communication.
Step 3: The field: Working the territory is the most crucial step. Seasoned salespeople will work with newer salespeople in order to show them the ropes. The first few doors will be worked by the pair, to show the newer salespeople how to function. After that each person will go on its own, bunny hopping, this is working the same side of the street, never opposites sides. After about 15 houses, the pair will team up again and do some houses together, this time however, the newer sales people will lead. Once the new salesperson is comfortable, the pair shall attempt the dual pitch, where for example one does intro and the other short story, etc.
The more seasoned salesperson will guide the new team member in these areas:
- Voice fluctuation
- Body language
- Enthusiasm
- Sincerity
- Closing the sale
- How to read the buyer’s signs: Field ethics.
Step 4: Trip back to the office: This is the moment for rehash. The more seasoned salesperson will use the build, break, build technique to teach the trainee what they did good and where they need to improve. They will also accentuate the positives and answer opportunity and field questions.
Step 5: Office: The first thing is to ring the bell with the amount of sales in order to create atmosphere. Then they will mark the map of the area that has been covered. The seasoned salesperson will then decide whether to take the person in or not. The idea is always to teach them something.
Boiler rooms are always based on expansion by people development. The organization grows as more people join and therefore this expansion is based on growth cycles where someone will enter at the bottom and will get promoted based on merits. This cycle is based on 6 phases:
Phase 1: Distributor: General sales person.
Phase 2: Corporate trainer: Season salesperson that also develops new distributors.
Phase 3: Team leader: Leads a series of corporate trainers
Phase 4: Account manager: Handles a client as well as a team of team leaders and their sales force.
Phase 5: Junior Partner: Learns how to run the business
Phase 6: Ownership / Managing partner: Becomes part of the business, usually with a new branch in a new territory.
The key idea is to remember sales is not just about selling is about personal growth that allows you to envision that creating and generating value will leak into all aspects of your life. Promotions are based on merits so that hard work is compensated immediately according to one’s personal growth and not a rigid corporate structure.
Phase 1 Distributor: This first phase is all about learning and development. Learning the different steps for a successful sales routine as well as the techniques as well a develop a great attitude that will help with the sales.
Phase 2 Corporate Trainer: Once you have mastered all skills necessary to become a great salesperson out in the field, the next step is to start teaching and creating value in others. This phase is all about the leadership skills and teaching others the skills that you have acquired so that they may also grow.
Phase 3 Team leader: This phase is a step above in the personal growth chart, where once you have mastered the skills yourself and applied leadership to develop those same skills on others you now have a team of corporate trainers whom you develop and create the correct environment for them to bloom.
Phase 4 Account manager: In the previous three phases a salesperson has acquired the skills, has taught the skills to others and has managed a team of people that have been developing others. This fourth phase establishes the relationship between the salesperson and the client while still leading a team of team leaders.
Phase 5 Junior partner:By the time a person reaches this phase, they will have mastered the sales process and the development of a sales team. They will have also managed the relationship with clients. This phase is about learning the ins and outs of the business itself by learning how to manage an office. The junior partner will be responsible for the entire office and must show consistent team and office production. The person in this phase will also organize daily office procedures and administrative work, inventory control and marketing strategy at an office level.
Phase 6 Ownership / Managing partner: By the time a person has completed the entire development cycle, they are ready to successfully launch and operate a new business. It is in this stage that the person will become a partner to the business by opening a new branch in an allocated territory. The company expands this way and the person begins holding equity in the business.
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