41st Dare—Simplicity of the Fundamentals

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June 2, 2010

sales training developmentSome say 40 Day Sales Dare is nothing new, while others say it’s groundbreaking.

Those in the former category say they have nothing to gain from 40 Day and those in the latter say it’s dramatically changed their careers for the better. Funny thing about it, though, is that when I ask the “it’s too simple” crowd if they’ve actually tried it, they say they haven’t.

Don’t complicate things. It is simple. That’s the beauty of the whole thing. Successful athletes don’t have tricks or gimmicks; they have discipline and good coaching. 40 Day Sales Dare is not magic, it’s not a get-rich-quick scheme. It’s just a process that provides discipline and if you follow it, you will have results. If you don’t believe me, maybe you’ll believe these folks.

With the success so many have had with the book, I decided to start a new segment on this blog and am calling it the 41st Dare. Here, I’ll expand on what you’ve learned from 40 Day as well as provide new examples, personal experiences, and success stories.

Stay tuned, folks, for the 41st Dare.

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Article on HousingZone.com

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March 22, 2010

new home sales coachI have been recently featured in the article New-Home Salespeople Need Training to Close Today’s Buyers on HousingZone.com. Please check it out and leave your comments!

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NAHB Posts Article “Builders Fear Slower Housing Market as Tax Credit Fades”

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September 17, 2009

new home sales techniquesI recently read an article from the NAHB that headlines, “Builders Fear Slower Housing Market as Tax Credit Fades.” (Click here to read the actual article.) Please read this article and ask yourself if this is what you believe.  If it is, then please don’t act by asking the government to give more, but instead, change your sales team’s behaviors to be equipped to handle the situation when it happens.

In a recent coaching call I asked a sales person, “How much of the selling conversation with your prospects emphasizes that the best reason to purchase is the tax credit, vs. that the home will improve their life and the life of their family?”

He said, “65% of my conversation is focused on incentive and tax credit and only 35% is focused on the customer’s need and the desire to improve their life.”

That salesperson is like many that I have coached that are creating their entire sales presentation around the deal rather than the emotional reasons a person needs to buy.  The problem is that when the tax credit (only a circumstantial urgency) goes away, these salespeople are not equipped to start selling based on the customer’s needs and their emotional desire to improve their life!

As home builders, you have two choices: one, put your efforts into asking the government to extend the tax credit, or two, put your efforts into teaching your salespeople how to sell emotionally regardless of the circumstances.

Poll your sales team and ask them, “What percentage of your sales the last 3 months have been a result of the tax credit?”  If the answer is more than 20%, then please email me to set up a conference call to discuss preparation for the future.

I want to encourage you to take ownership over your sales results by being prepared to handle what happens when the tax credit does go away.

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Author Jason Forrest Speaks At Southwest Suburban Chicago Home Builders Association

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September 14, 2009

new home sales training

Read this article posted today about Jason in Chicago Land Real Estate Forum.

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The Perfect Storm for Sales Management Demise

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May 22, 2009

home sales trainingThis October I was on a coaching call with a Regional Sales Manager who is not making his region’s monthly sales goal for his company. Let’s call him James. James was managing about 30 community salespeople, and he had three specific problems he was dealing with:

  1. He was not making his monthly sales goal;
  2. His boss was not convinced that he was doing everything he needed to be doing in order to make his sales goal;
  3. He is in the 2008 housing market.

This is what I call the Perfect Storm for Sales Management Demise. If you are in sales management, you can’t have all of these forces against you. One of the forces is troubling enough, but when you have all three, you’re faced with a ticking time bomb for needing to dust off that resume and hit the streets.

What I have observed is that it’s what you do about the situation that is most important. You see, even though James might not be the only one in 2008 that isn’t meeting his monthly sales goal, the higher-ups may not give him much grace if he doesn’t handle this situation properly. So here is my advice if you’re also falling short of your sales goals as a sales manager.  You can’t change the market, so you need to either A) meet your goals, or B) convince your boss you are doing everything you need to be doing to make your goal.

Here are ways to convince your boss you are doing everything you can:

  1. Ask your boss what he/she believes are the most strategic activities you could be doing to generate sales. Don’t wait for your boss to tell you-just ask.I am not saying to go into your boss’s office looking defeated. Go in saying what you have been doing up to this point, and then ask him or her if theyhave any suggestions. (If you are a boss reading this, then have your salesmanager read this article.) Then implement those suggestions.
  2. Create a monthly, weekly, and daily plan of what you are doing to reach your sales goals. (I know it seems like a lot of work, but you need to stay focused to get through the slump.)
  3. Each week, submit an end-of-the-week report that lays out what you did that week to generate sales. Don’t worry about making the report look pretty. Just list out in bullet points what you did each day that week.
  4. Review your weekly report with your boss at least every two weeks.  In this meeting, share what you think is working and what needs to be adjusted. Be specific and offer solutions to the problems, not just a list of the problems. For example, don’t just say that the salesperson at Pine Ridge just won’t make it. Instead you might say, “The salesperson at Pine Ridge is not making his numbers. This is what I have had him do to correct it, and he did not do it. I decided to find a replacement for him so I had HR set up four interviews for sales candidates tomorrow. I commit to having a replacement within 14 days.”
  5. Promote victories, no matter how small, as often as they happen. These victories can consist of your salespeople’s actions and improvements as well as the positive results themselves. You might feel awkward, like you’re bragging, but when you’re behind in your sales numbers it’s not bragging-it’s
    reporting progress.

One final thought-in whichever plan you commit to executing, go all out!! Be confident, not arrogant, that you are doing what you need to do in order to be successful. In many cases, if people around you don’t feel that you are confident in what you are doing, then they will also lose confidence in you as a leader. So don’t let the perfect storm rob you of your confidence. Be the sales leader who can help your team weather this storm.

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Tough Market: More Training, or Less?

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May 15, 2009

new home sales consultantMore training, or less? That is the question. Conventional wisdom says that the answer depends upon market conditions: in a good market you spend more money on training, and in a bad market you tighten the budget and spend less, or even none at all, until things pick up. While most builders would agree that this is a rational way to operate, it is a recipe for mediocre performance and poor return on investment. Here’s why.

Many companies consider training to be a luxury. Therefore, they treat it as a gift to be given to their teams when there’s enough money to justify the expense. The problem is, in a good market, the recipients of this gift don’t always see the necessity for it, and therefore they don’t put it to good use. Why? Well, in a good market, when customers are urgent to buy, salespeople can have success regardless of how well they do their job. They don’t have to execute the right behaviors or exercise any discipline to win a sale. Improvement is not a necessity. In their mind, training is only a nice thing to have, and not something that they perceive to be necessary for their success.

When the market takes a downturn, sales teams find themselves in a bind. Before, they could get by without training, but now they need it more than ever. The “build it and they will come” philosophy of the good years doesn’t work anymore. Buyers do not walk
into sales offices with an urgency to buy. Sales don’t just happen-they must be earned, and they cannot be earned if a sales team is not trained or equipped to win them.

When a salesperson faces a tough market without proper training, they feel the negative impact not only in their bank accounts, but also in their mind and emotions. Anxiety builds as they fail to reach their sales goals. Family relationships struggle because of the
financial strain. What does this mean? It means that now is the time when they are hungry for improvement. Now is the time when they are ready to apply new strategies and techniques for winning sales and bettering their situations.

Do you see the irony? When the market is good, and sales are easy to come by, companies provide training. But when the market is tough, and it becomes more important than ever to earn sales, training falls by the wayside. Successful builders are the ones who go
against convention, and realize that a tough market is a great time to train and build for the future. While everyone else is riding it out, cutting costs and downsizing, you can invest in your people and your processes, improve the way you treat your customers, and strengthen the foundation of your company. There are sales out there to be made, and they will be made by the salespeople who execute more of the right behaviors with their prospects than the competition will. That’s true in any market. So in any market, if your
salespeople are not maximizing every prospect who walks in the door, the answer is always “more training.”

In a tough market, you have a choice: follow the crowd, ride out the storm, and wait until everyone else does better, or rise from the pack and separate yourself from everyone else by adopting new strategies and techniques to create your own success. If you train
and coach your sales team to maximize every sales conversation and be successful in a tough market, then imagine the success they will achieve when better times are here. So forget conventional wisdom. Train your team now, and you will be miles ahead of the competition when they wake up and decide to get back in the game.

This article appeared  first in the Shore Select Sales Strategy Journal. Click here to subscribe.

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What Kind of American Idol Judge are You?

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May 14, 2009

Every Tuesday and Wednesday night, I watch the greatest show on television right now. You guessed it: American Idol.

new home sales and marketing

The other night, as I fast-forwarded through Paula Abdul’s comments so that I could hear Simon’s, I came to a realization: most people aren’t concerned with what Paula has to say. Why is that? Most of her comments consist of generic praise (e.g. “All you can do is the best you can do”). The advice she gives the contestants will not make them better. (The same can be said of Randy. He may say that someone’s performance was ‘pitchy,’ but rarely is his advice constructive or helpful.)

Not only do many home viewers tune out Paula, but the contestants seem to wish they had a fast-forward button, too. They stand and nod politely while Paula speaks, but they’re more concerned with what Simon Cowell is about to say. Simon is the one who will give them specific advice that will improve them. His entire goal is to shoot straight with them. The contestants know that if they listen to Simon, and take his advice seriously, they will probably have the best shot of advancing to the next week. His opinion is the one that carries the most weight, and it’s the one that determines their fate in the competition.

If you could only coach like Simon, or only coach like Paula, whom would you choose as your model? I know what you might be thinking. “But Jason, Simon is so mean, and I can’t imagine myself belittling people like that.” I agree that Simon is harsh. His stinging, degrading comments have driven many auditioners and contestants to tears. As a coach, it’s not a good strategy to act like Simon and make people cry. At the same time, you shouldn’t be a “Paula-style” coach who just tells people that they’re doing great, when you know in your heart that they aren’t going to survive the next round of layoffs with their current performance. Your job as a coach is to help people achieve their goals in life, and the only way to do that is to give them advice on how to become better. Now, if Simon’s coaching style is too harsh, and Paula’s style is too gracious, whose style should you model? Neither one. I say, be like Kara.

Kara DioGuardi is the new addition to American Idol’s judging panel. She’s not a perfect coach, but she is a very strong one — one of the strongest I have seen. Even if you are not a fan of American Idol, or a fan of Kara, I challenge you to tune in next week and observe the way she critiques the contestants. Notice how she gives the contestants specific praise, not general praise. Notice how she gives them specific advice on how to improve, and does so without belittling them. More often than not, she is the judge who provides honest, useful criticism without tearing someone down. That is the healthy way to motivate someone, and to build a productive, effective coaching relationship based upon mutual respect.

Strike a Balance Between Grit and Grace
To coach like Kara, you must achieve a balance between the amount of toughness, or grit, that you exhibit, and the amount of grace you give. Coaches with too much grit will tend to coach like Simon. Motivating with fear may work with some salespeople, but it doesn’t lay the foundation for a healthy long-term relationship with your team. On the flip side, if a coach gives too much grace, he or she will end up coaching like Paula. Being everyone’s cheerleader may help you to make friends, but it won’t challenge your team or create consistent results. Successful coaches are the ones who learn to achieve a balance between grit and grace. When you achieve this balance, you will increase the probability that your salespeople:

  • Will respect you.
  • Will want to listen to you.
  • Will have the desire to follow your advice and improve.

On the diagram below, draw an ‘X’ on the blue line to represent your current balance of grit to grace in your coaching style.

american_idol_1.gif

Do you have too much grit? Take steps to tone down the toughness of your delivery. Having your salespeople fear you is not the same as having them respect you. Encourage them, and remember to praise them when they get something right.

Do you have too much grace? Embrace your role as a manager, and don’t be afraid to critique your salespeople. If you truly respect your salespeople, you will have their best interests in mind, and you will want to help them do everything it takes to improve and be successful. That includes giving them specific, useful criticism. Remember: giving someone direction doesn’t mean you have to act like a ‘Simon.’

Be Specific, Specific, Specific
To coach like Kara, you must also provide your team with specific, constructive criticism and praise that will lead to their improvement. Think about your coaching tendencies for a moment. Would you say that you’re specific when you correct someone, or would you say that you’re pretty generic with your words? Generic criticism sounds like this: “I don’t know what it was, you just weren’t ‘on’ today.” Specific criticism sounds like this: “I noticed that you froze up when the customer objected to the steep slope on lot #1200 — let’s brainstorm some ways that you could overcome that objection next time.” Likewise, generic praise would sound like, “Keep up the good work,” while specific praise would sound like, “Instead of giving incentives away at the beginning of the conversation, you’ve learned to save them for the end when you can use them as a bargaining tool — I’m really proud of you!” On a scale of 1-10, how specific are you when you deliver criticism and praise to your salespeople? Circle the number below that best describes you.

american_idol_2.gif

Each day, you can take the following actions in order to make your criticism more specific and effective:

  1. For each salesperson, write down the parts of their presentation/areas of their performance, where they need to improve.
  2. Choose the area that is most important, and then outline specific steps that the salesperson can take to improve in that area.
  3. In your coaching session, use your notes to help them create a plan for improvement.
  4. Keep this question at the forefront of your mind: How can I make this person better, and take them one step closer to achieving success with the customers who are walking in the door?

You can also take the following steps to increase the power of your praise:

  • Don’t just focus on what’s wrong — be on the lookout for what they’re doing right.
  • Take notes of the improvements and victories that you witness.
  • If you lean towards having too much grace, remind yourself daily that you do not have to dish out praise all of the time. Only praise people when it is deserved. By doing this, your praise becomes more meaningful and valuable.

When you’re a coach, you don’t have to chose between being a Simon or a Paula — you can be a Kara. Today, commit to balancing grit with grace, and to leading your team with specific, valuable criticism and praise. Above all, you need to remember this: your ultimate goal is to help the people you’re coaching to achieve success. In the end, you want them to be better because of what you’ve said.

Real Work
Think of a problem that you recently had to address with one of your sales counselors. Now, imagine that the American Idol judges are sales managers, and they are going to offer their advice/critique to the sales counselor.

What would Paula or Randy say?
What would Simon say?
What would Kara say?
What would you say?

This article appeared first in the Shore Select Sales Strategy Journal. Click here to subscribe.

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Are You Wasting Your Very Important Marketing Dollars?

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May 14, 2009

new home sales managementRecently I teamed up with a sales manager to coach one of his salespeople, who we’ll call George. Our goal that day was to coach George towards overcoming his yielding tendency. Just to give you a little background information, yielding occurs when a salesperson fears that he or she will come across as too pushy. This fear causes the salesperson to yield their position of strength to the customer. Prior to our coaching session, George had already taken our assessment test, which determined that he had a high yielding tendency – he often hands control over to the customer. Our next step was to conduct our post-test coaching session with him, in which we get him to buy into the results and the underlying reasons behind them, and help him to chart a plan for his improvement.

After asking several questions to build a foundation of trust between us, I decided to ask George to describe his sales process to me. His response revealed that yielding to a customer costs a company more than sales.

Jason Forrest: “Describe your sales process to me.”

George: “Well, I start off by trying to see if they’re interested in being left alone, or having me tour the homes with them. If they don’t want me to go with them, then I stand in a central location, trying to warm up to them as they move from room to room.”

Jason Forrest: “How do you know if they don’t want you to give them a tour?”

George: “You can tell by their body language. If their body language shows me that they’re not interested in a sales presentation, then I leave them alone.”

Jason Forrest: “How many people do you see per month?”

George: “Forty.”

Jason Forrest: “Of those 40, how many of those customers give you body language that tells you they want to be left alone?”

George: “Twenty.”

I went on to give him some advice on how to overcome his yielding tendency, but that is not the point that I am trying to make in this article. I want to show you one of the repercussions that his yielding has had upon the company. During the month I coached George, his company had spent $5200 on marketing and advertising to bring in those 40 people. So, each prospect he met was worth $130. He left 20 of those customers alone, and 20 times $130 is $2600. That’s a total of $2600 in marketing costs that were completely wasted. George allowed $2600 to walk right out the door because he didn’t want to come across as pushy.

The purpose of marketing and advertising is to generate prospects who will come in and spend time with a salesperson in order to determine if there is a home and community that meets their admitted needs. The problem is, if you’re not spending time with the customer, then you’re not finding out what their needs are, and you’re not showing them how your home and community could fulfill those needs. So, here is the message, and it is an important one: The next time you spend money to bring in more prospects, you must ensure that you are executing the other side of the equation, which is to execute the sale and provide a solid sales experience for those prospects. If this doesn’t happen, it’s like throwing your money away.

Yielding is not the only thing that will prevent a salesperson from winning a sale, but it is a major culprit. If you are wondering if your salespeople have yielding tendencies, please contact me  for information on our testing to determine if your marketing dollars are not being maximized. Salespeople with a high tendency to yield are not beyond help. Proper coaching can transform them into confident salespeople who serve their customers to the best of their ability, and who turn your marketing dollars into sales.

This article appeared first in the Shore Select Sales Strategy Journal. Click here to subscribe.

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“You’re an excellent speaker! Thank you for coming out to train us!”

Susie Aboulhosn
Adams Homes, FL