The Benefits And Challenges Of Sales In Real Estate Investing
No matter what kind of business you have, sales is one of the most fundamental aspects that must be mastered. Regardless of what you are selling, having the right sales team can make or break your bottom line, which is why you must bring the best people on board whenever possible.
Today I’m talking about the benefits and challenges of sales with Ali from Rose Garden Consulting. Ali has his own sales-based podcast called “For the Close”, on which I was recently featured. You can check out the video below.
Ali is an expert at sales. Not only does he have a podcast and his own company, but he is also a co-founder of WMC, which is a SaaS platform, and a mentor at Propellant Labs. On top of everything else, he has also written a few books about sales.
Ali and I talked about the importance of getting the right sales team together. Here are some of the most valuable tidbits:
3:06 – Business Owners are Having a Hard Time Finding Someone With Decades of Experience
I have a pretty extensive background in sales. I have worked for enterprise companies selling various technology and software products and I have also been selling in the real estate industry for over a decade.
In short, I am precisely the kind of person that business owners want on their team. Not only are these people looking for experience, but they also want someone who can create a sales team and help build the business from the ground up.
Unfortunately, people like me are not interested.
When Ali asked me if I would take a full-time sales job with a six-figure salary and full benefits, I quickly told him “no”. I have been there, done that, and I have moved on with my life and my career.
Realistically, a majority of the best and most experienced salespeople feel the same way, which makes it challenging to find people interested in coming on board.
9:15 – Sales can be the Best and the Worst Job in the World
For a time, I was making enterprise sales. Although that standard may have shifted from my tenure during the ‘90s dot-com boom, what that really meant was selling at the “C” level. I was selling solutions for ROIs to senior level executives like CEOs, CFOs and COOs.
On the low end of the spectrum, I was selling software and services that had a price tag ranging from about a half a million to over five million dollars. Sales offers flexibility and significant commissions, which makes it appealing and alluring. However, because these were long sales cycles, there was also a lot of stress.
These highs and lows can make or break your sales team, which is why you need to find people who thrive in that kind of environment. If not, then you are going to run into some significant issues down the line.
11:46 – Your Sales Team is Going to Be a Revolving Door
In enterprise sales, if you miss your numbers, you are gone the next day. While I do not personally agree with that kind of mentality, I do try to follow the mantra of “hire fast and fire fast.” Adopting that mindset means that you must take ownership of your salespeople and understand when they are performing and when they are not. If a salesperson is not hitting the right numbers, it is probably time to let that person go.
So, it is safe to assume that your sales team is going to have a certain amount of turnover on a regular basis. Even if you do not like to fire anyone, you have to be able to remove the bottom performers and retain your best salespeople. Otherwise, your ROI is not going to be ideal. Overall, you should look at your sales team as an investment, not a sunk cost.
On the other hand, assessing whether someone needs to be either fired or get additional training is a bit of a process. So. do not be too quick to pull the trigger just because of a bad run. There is always room for improvement. If your sales team is up to the challenge, it is probably better to keep them than to rehire a whole new staff.
Watch the Rest of the Video, and Contact REIvault
The rest of my interview with Ali has plenty of other gems, so be sure to check it out here. If you are interested in getting sales as a service in the real estate industry, then REIvault may be the right option for you. We have a dedicated sales team that can help you find the properties you want so that your bottom line gets to where it needs to be. Contact us to find out more.