Convince Your Clients Doubling Them Is EASY! Use the 80/20 Rule
In the other articles on increasing your sales I said that it is important to promise a target result and value, and the bigger the value, the easier and bigger your sale.
So here is a simple way to confidently shoot for a double with any client. It starts with the 80/20 rule.
Do you KNOW what following the 80/20 rule SHOULD deliver to a client? How about over 16 times. So when we are shooting for a double, that’s a very small part of the possibility of multiplying the client 16 times.
Let’s take a look at some statistics around a $10M company.
This is a $10M company, with about 50 employees, each making $15/hour.
The first section shows that the average production per employee is $200,000 for a salary of $30,000 a year. That is a return on investment of 6.7 times their salary.
Now let’s look at what the 80% low producers deliver. They produce only $50,000 each for a salary of $30,000, in other words they have a return on investment of 1.7 times. NOTE: In smaller companies, you might discover that the 80% low producers actually cost more than they produce.
Looking at the 20% high producers, the average employee in this segment produces $800,000 per employee for a cost of $30,000. And there are only 10 of the 50 employees doing this, while the other 40 barely produce enough to pay for their salaries.
So let’s evaluate how to get the low producers to produce like the high producers.
- One approach, is to learn what the high producers do, or know, that the low producers don’t do or don’t know.
And then we train the low producers to know and do what the high producers do.
- Sometimes the difference is the belief system. The high producers frequently produce more because they believe that they OWE more to their employee, while the low producers often say, “I gave you my eight hours, and I’m not giving you more.” In this case, after training, you hear, “I’m not giving more”, well, we start looking for replacements that have a similar belief system to the higher producers.
I’ve had clients who THOUGHT that what they got out of the AVERAGE employee across the whole country was as good as they could do, yet, they had a very small group (20%) who were producing 80% of their total income. And the other 80% were their problem.
It boils down to training for improvement based on what we now know about the high producers, or learning that their is a psyche among the low producers that we would not be able to eliminate. We train those we can, and replace those who we can’t while looking for the right psyche and training new ones.
I have discovered that even among the new ones there is an 80/20 split. So it may require hiring a few batches, but in each one things go up very quickly.
But here’s an aha moment for you. Show your client that we COULD get a 16 times increase if everything goes perfectly, and we know it won’t. However, if 16 times is POSSIBLE, then getting a double is almost a gi’mme. Therefore, it’s easy to convince a client that you can double his business and an easy sale.