What If Your Sales Reps Stop Hunting?

0:00I've been following you for quite a while, so thank you. Um I sell digital marketing services and business management application to home service providers. >> Okay. >> We do 580,000 in MRR. >> Great. >> Um >> Congrats, man. >> 2% monthly churn, 100% uh net retention revenue. I would like to eventually be at 100 million. >> Sure. >> No rush for that. Biggest thing that's stopping us right now is figuring out the best way to scale.

0:28Um my background, I come from an agency. I was a sales rep. >> Sure. >> Very high transactions and honestly it seems like it leads to a lot of burnout for those types of sales reps. It also seems like the goals aren't aligned. The reps are just doing high volume. >> Uh-huh. >> It's not what's best for the client, so what we started at our agency is it's kind of like the insurance model. You sell a client, you work with that client for life. >> Uh-huh.

0:52>> I think it's a lot more fulfilling. Um I'm told the best >> No, so we have a W-2 >> So they just do like they're the account rep. >> Yeah. >> Okay. >> Um but yeah, I'm told like the best way to scale is to differentiate that and just split sales and split account management versus the way we are doing it. Uh wanted to get your thoughts on that if that's necessary or

1:17>> So um given the size and the stuff that you have right now, I almost want to plead the fifth because I would need more information. If you have 2% monthly churn for agency services, that's really good and I really wouldn't want to break that. And so we typically almost always separate customer service from sales, but I would imagine the way that you're running it is that the guys fill up their book and then they're kind of done and then that's all they manage. Is that about right? And they sell if they need to.

1:45>> So our top rep has been with us four years and he's in a total of 100,000 MRR. >> Mhm. >> And we're giving him tools to you know, SDRs so he can continue to grow. >> Uh-huh. >> Uh we haven't seen somebody really tap out yet, so we don't really know where he's going to stop at. >> keeps selling and he's able to keep the customers >> Yeah, and his churn is staying below 5%. >> SEO or what are you selling?

2:10>> SEO and paid ads. >> And paid and then you have some sort of tool? >> Uh >> You said it's apps or applications? >> have some tools to make that very efficient. >> For the sales guys or for the home services? >> Well, we provide the SEO services for very good costs. >> So you provide, right, so you centrally provide the SEO, right? >> Yes.

2:34>> And then the sales guys sell it and then where does the application fit in? >> The what like the business management app? >> Sure. >> That's a optional, so some >> So that's not key to why the churn is low? >> No. >> Okay, so it's really just that the guys just do everything to keep the customers. >> the guys build really good relationships with the clients. >> Yeah, got it. And SEO obviously works if you're going to >> Yeah, it's very it's 200, 300 bucks a month. Like our ARPU the last 6 months is 300, but historically it's 200.

3:03>> No, I'm familiar. Yeah, yeah, I get it now. Uh the price is a big part of it though, just a FYI. That like that's why churn is also so low. Like 300 bucks a month is where SMBs will typically stay. You go up to 1,000, 1,200, uh you've got like another tier of churn and then above that is like the next kind of point is like 2,500 to 3,500 dollars a month. Um and then after that you're not selling SMBs anymore or you're selling them to bigger businesses, right? >> Yeah. >> Um So all that to say, your question is how do I scale?

3:32>> Yeah, do I want to break it out so it's account managers and sales reps? >> think you break the business. >> Yeah. >> I think you do more of what's working. Cool. If you have 100% revenue retention annually, then you just add add more revenue. >> I guess my only question is how do we keep them from getting lazy and becoming turning from hunters to farmers? Is Is we just accept and hire more guys or >> Yeah, I think so. >> Do we add a commission structure? >> Basically, there's problems on either model. Right?

3:58But, if you have 2% monthly churn in a in a business model that typically has way higher than that normally, then you've solved something that many people have struggled to solve. And so, that means you have 50-month average LTVs, right? So, you have a $15,000 LTV on the product. And then, how many customers a month are you selling? >> 150. >> Yeah. So, are you doing outbound? >> Yep. >> Yeah. So, yeah, you just got to scale it up. So, cuz there was a guy I think I told a story about this on a short, but a guy I know well through mutual friend did basically this exact same model. He didn't do the fulfillment piece, but in terms of like it was $299, SEO, and social media management for he just did all small businesses.

4:38And they had a 38-month average LTV. And what he would do is he'd take the first month, he'd spend that on Google Ads just so they saw some quick wins, and then he never spent money on it again, but they decided it worked. And then, that's how he ran it. And he had like a 400-person call floor. He was doing like 12 million a month. And so, I I say that to say I think you just need to do more of a touring. >> Cool. >> Yeah. And then, you'll deal with the problem that you'll have some fat and lazy farmers.

5:05But like, if churn's not really affected, it doesn't really affect you, it affects them. >> one thing we're considering is based on your total book of business. So, if your total book of business is smaller, then we have a quota for you. But once your book of business reaches a certain point, there's no longer a quota. >> Well, that would make fatter and lazier, though. >> I mean, if you could bring in consistently $100,000, I don't care what you do. Like, you're going to have to

5:32>> you've answered it. If you don't care what they do, then who cares? >> Yeah. >> Just bring more guys in. >> Okay. >> Sweet. >> Thank you. >> Yeah, you bet. If you were the best salesperson in your company, then your company will be always capped by you. And this is what the two-day workshop is for. Now, to be clear before I get into what it is, this is for million-dollar-plus businesses that are trying to scale their sales team, where you are still probably vast majority of the magic. Either you're literally taking calls, or you are a big percentage of the revenue, or you have to be constantly on the sales team in order to get us to work. If you're in any of those settings, then this is absolutely for you. And so, if you are tired of your sales relying on you, and want a sales system that scales beyond you, then apply. That's the deal. And so, if it isn't fit, look forward to seeing you out here, and it's a great time. We'll talk about sales stuff.

6:17Like, how could you have a better time? And don't take my word for it. Here's what other people are saying about workshops. They're primo, and uh yeah. Yeah, we'd love to see you out there.