How To Easily Triple Your Number Of Clients Within 9 Months!

by Fran Piggott

Jay Abraham used an unusual approach to increasing clients for one of his consultancy clients …

One particular client paid its sales staff 10% of the profit. So, if the company made a $1,000 profit on a sale, the sales person would receive $100 and the company would get $900.

He made them calculate …

  1. What the average new client was worth to them in dollars each time they bought
  2. How many times that client will buy from them each year
  3. How many years the average client will be with them

It turned out the first sale, on average, resulted in about a $200 profit for the company. Of that $20 went to the sales person and $180 to the company. On average, the client bought 5 times a year for 3 years. So Basically, each time that company got a new client, they were receiving $3,000 in cumulative profits.

Jay’s solution … Instead of giving the sales staff 10% of the profit for a new, first-time client, he recommended to give them 100% of the profit on the first sale.

Naturally, the company’s management thought he was insane!

But, he went on to explain that by giving the sales staff 100% of the profit on each FIRST sale, they’d be ten times more motivated to sell to NEW clients.

Naturally, to make sure that the sales staff continued to give excellent after-sales service to their clients, you’d continue to give them a percentage of the profit (eg 10%) on follow-up sales.

The company went ahead and implemented this plan … and sales tripled in 9 months!

Source: Extract from Jay Abraham’s best seller … Getting Everything You Can Out Of All You’ve Got

I’d love to have your input and questions … as I’m sure many others would, so let’s have your comments below.


QUOTE OF THE DAY …


“Identify the “fatal flaw” in your sales team’s performance; what is holding them back?
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