- Investor Cheat Code
- Posts
- The sales cheat code
AI won’t take your job, but a person using AI might. That’s why 500,000+ professionals read The Rundown – the free newsletter that keeps you updated on the latest AI news and teaches you how to apply it in just 5 minutes a day.
Good afternoon! The goal Investor Cheat Code is to blow your mind with amazing, useful content and bribe you into loving us at the end with a free download 👇🏻
/0
Give me 5 minutes or less and you’ll learn…
How to hire, train, and manage sales
How investors can maximize car related tax deductions
Free download of my contractor agreement contract
Did someone forward you this email? Sign up here
WHAT I’M THINKING ABOUT THIS WEEK
Mastering Acquisitions: A Guide to Hiring, Training, and Managing Salespeople
Hiring the right salespeople for your team can make or break your business. Acquisitions are not just about making a sale; they are about building relationships, establishing rapport, and finding solutions for your clients.
This article is a bit long, but it's not fluff. This is an A-Z guide for hiring and managing great sales people.
As someone who has experienced the challenges of hiring and managing salespeople, I can attest to the importance of getting it right from the start. In this guide, I will share insights and strategies on how to master acquisitions by effectively hiring, training, and managing salespeople.
From understanding the role of acquisitions to mastering the art of negotiation, this guide will provide you with practical tips and techniques to help you build a successful sales team.
Below you will see me make references to attributes found on the DISC assessment. The disk is used to help better understand the innate characteristics and trait of an employee. For more information or explanation about the DISC assessment go to this link
The Importance of Acquisitions in Sales
Acquisitions play a crucial role in any company, especially in sales. Hiring the right salespeople can significantly impact your business success. Here are some key points to consider:
Acquisitions are about building relationships and finding solutions for clients.
Mastering acquisitions involves effectively hiring, training, and managing salespeople.
Understanding the role of acquisitions and negotiation is essential.
Practical tips and techniques can help build a successful sales team.
As someone who has experienced the challenges of hiring and managing salespeople, I know the importance of getting it right from the start. Acquisitions are a critical component of sales, and hiring the right team can make a significant difference in your business success.
Challenges of Hiring Acquisitions Personnel
When it comes to hiring acquisitions personnel, there are several challenges that companies may face. As someone who has experienced these challenges firsthand, I can attest to the importance of carefully selecting the right individuals for this critical role. Here are some common challenges:
Acquisitions personnel are hard to hire, especially for those who are not experienced in sales.
Identifying a true rockstar acquisitions person can be tricky and may require luck.
Opportunity costs can be significant if the wrong person is hired and leads are wasted.
Acquisitions personnel need to be high D types (competitive, driven) but also have strong social skills (I trait).
Urgency(low S) is also crucial for acquisitions personnel to move deals along quickly.
These challenges highlight the importance of hiring acquisitions personnel carefully and ensuring they possess the necessary traits to succeed in this role. By understanding these challenges, companies can take proactive steps to overcome them and build a strong acquisitions team.
Qualities of a Great Salesperson (High D, High I, Low S)
Being a successful salesperson requires a unique set of qualities to excel in the role. Here are the key characteristics of a great salesperson with a high D (dominance), high I (influence), and low S (steadiness):
Key Characteristics:
Competitive: A great salesperson with a high D trait is driven by the desire to win. They are competitive and strive for success in every deal.
Driven: The high D trait also means they are motivated and compelled to achieve their goals. They have a strong desire to succeed in their sales endeavors.
Socially Skilled: A high I trait reflects a person's social ability. Great salespeople with high I traits are outgoing, enjoy interacting with others, and can establish rapport easily.
Empathetic: Despite being competitive, successful salespeople with high D traits also possess empathy. They understand their clients' needs and concerns, creating a deeper connection.
Fast-Paced: The low S trait signifies a person's impatience and preference for quick results. Great salespeople with low S traits are proactive and efficient in moving deals along swiftly.
Why These Qualities Matter:
Having a combination of high D, high I, and low S traits can make a salesperson highly effective in their role. These qualities enable them to connect with clients, drive results, and navigate negotiations successfully.
By embodying these characteristics, a great salesperson can excel in building relationships, closing deals, and ultimately driving business success. Understanding and leveraging these qualities can help you identify and cultivate top-performing sales talent for your team.
Roles and Responsibilities of Acquisitions
As an Acquisitions professional, my role is to secure purchase agreements from sellers. This involves understanding the needs of the seller, providing solutions, and negotiating terms that benefit both parties.
Key Responsibilities:
Secure purchase agreements by building rapport and trust with sellers.
Qualify leads and confirm appointments to ensure efficiency.
Run comps and analyze market data to make informed decisions.
Process paperwork accurately and efficiently through to the transaction coordinator.
Communicate effectively with sellers and provide updates throughout the process.
By fulfilling these responsibilities effectively, I can ensure a smooth transaction process, build strong relationships with sellers, and ultimately contribute to the success of the business.
Compensation for Acquisitions Personnel
When it comes to compensating acquisitions personnel, it's crucial to find a balance that motivates them while also being sustainable for your business. Here are some key points to consider:
Base Salary vs. Commission:
Consider a combination of base salary and commission for acquisitions personnel.
A base salary provides stability, while commission incentivizes performance.
Straight commission can work for high performers but may cause financial stress for others.
Base Salary Amount:
Base salary should cover basic living expenses to provide financial security for acquisitions personnel.
Aim for a base salary of a couple of thousand dollars per month to ensure a comfortable income.
Commission Structure:
Commission rates typically range from 10% to 15% for acquisitions personnel.
Consider adjusting the commission rate based on performance and business growth.
Avoid paying more than 15% commission to prevent potential financial strain on the business.
Adapting Compensation Over Time:
Regularly evaluate and adjust compensation based on business growth and acquisitions personnel performance.
Stress-test different compensation models to ensure they remain effective as the business scales.
Effective Communication:
Clearly communicate the compensation structure to acquisitions personnel to set clear expectations.
Address any questions or concerns regarding compensation promptly to maintain motivation.
Ensuring Fair Compensation:
Strive to provide fair and competitive compensation to retain top acquisitions talent.
Regularly benchmark compensation against industry standards to ensure competitiveness.
Best Practices for Pay Structure
Compensating acquisitions personnel effectively is crucial for motivating them and ensuring the sustainability of your business. Here are some best practices to consider:
Base Salary vs. Commission:
Strike a balance between base salary and commission for acquisitions personnel.
Base salary provides stability, while commission incentivizes performance.
Straight commission may work for high performers, but consider financial stress for others.
Base Salary Amount:
Base salary should cover basic living expenses for acquisitions personnel to ensure financial security.
Aim for a base salary of a couple of thousand dollars per month for comfortable income.
Commission Structure:
Commission rates typically range from 10% to 15% for acquisitions personnel.
Adjust the commission rate based on performance and business growth.
Avoid paying more than 15% commission to prevent financial strain on the business.
Adapting Compensation Over Time:
Regularly evaluate and adjust compensation based on business growth and acquisitions personnel performance.
Stress-test different compensation models to ensure effectiveness as the business scales.
Effective Communication:
Clearly communicate the compensation structure to acquisitions personnel to set clear expectations.
Promptly address any questions or concerns regarding compensation to maintain motivation.
Ensuring Fair Compensation:
Provide fair and competitive compensation to retain top acquisitions talent within your business.
Benchmark compensation regularly against industry standards to ensure competitiveness and retention.
Getting the Contract Signed in the First Appointment
When it comes to Acquisitions, getting the contract signed in the first appointment is crucial. Here are some strategies to make it happen:
Factors to Consider:
Always bring a purchase agreement to the appointment to be prepared.
Try to pace with the seller's energy to build rapport effectively.
Listen more than you talk to understand the seller's needs and concerns.
Remember, 80-90% of the appointment should focus on the seller and their problems, not the price.
Addressing Seller Objections:
If the seller has objections like needing to consult someone or discussing a higher price, address them by offering a voidable contract.
Ensure the sellers understand the terms clearly and feel comfortable signing the agreement.
Post-Contract Communication:
Read through the contract with the seller to ensure they understand everything.
Follow up with a call within 48 hours to address any concerns and provide updates.
Regularly communicate with the sellers to keep them informed throughout the process.
By following these steps, you can increase the likelihood of getting the contract signed in the first appointment and building a strong relationship with the sellers.
Tips for Successful Appointments
As an acquisitions professional, ensuring successful appointments is crucial for building rapport with sellers and ultimately closing deals. Here are some tips to help you make the most out of your appointments:
Be Prepared:
Always bring a purchase agreement to the appointment to be ready to close the deal.
Run comps and analyze market data beforehand to have an informed discussion with the seller.
Establish Rapport:
Try to match the seller's energy level to build effective rapport during the appointment.
Listen more than you talk to understand the seller's needs and concerns deeply.
Focus on the Seller:
Keep 80-90% of the conversation centered around the seller, their problems, and how you can help them.
Avoid discussing price early on and redirect the conversation to their motivations for selling.
Get the Contract Signed:
Always aim to get the contract signed on the first appointment to save time and build trust.
If the seller hesitates, offer a voidable contract within 48 hours for them to review and cancel if needed.
Follow-Up:
Read through the contract with the seller to ensure they understand all terms and conditions.
Call the seller within 48 hours after signing the contract to provide updates and address any concerns.
Regularly communicate with the seller to keep them informed throughout the process and maintain a strong relationship.
By following these tips, you can increase the likelihood of successful appointments, close more deals, and build lasting relationships with sellers.
Maintaining Communication with Sellers
As an acquisitions professional, it is crucial to maintain open and consistent communication with sellers throughout the entire process. Here are some key strategies to ensure effective communication:
Importance of Communication:
Regular communication builds trust and rapport with sellers.
Providing updates keeps sellers informed and reassured about the process.
Addressing concerns promptly shows sellers that their needs are a priority.
Timely Updates:
Reach out to sellers within 48 hours of signing the contract to provide an update.
Keep sellers informed about the progress of the transaction and any developments.
Ensure sellers are aware of the next steps in the process to set clear expectations.
Clear Communication:
Explain complex processes or terms in simple language to avoid confusion.
Encourage sellers to ask questions and address any concerns they may have.
Use a friendly and professional tone to maintain a positive relationship with sellers.
By maintaining open communication channels with sellers, you can build trust, address concerns, and ensure a smooth transaction process for all parties involved.
NEWS YOU SHOULD KNOW
Unlock Tax Deductions:A CPA Answers: How Can Investors Maximize Car-Related Tax Deductions?
Have you ever considered your car could be one of your most valuable tools in real estate investing, especially when it comes to taxes? Let's dive deep and find out how.
- Maximizing tax deductions through car-related expenses
- Understanding the nuances of business-related mileage
- The ongoing debate: to keep or not to keep receipts
Exploring how a simple vehicle can lead to significant tax savings, this conversation with a CPA unveils tips every real estate investor should know.
**Is Your Car in the Business?**
The common misconception that only company-owned cars or those expensed by the company are deductible is just that—a misconception. Whether you're a sole proprietor or running a legal entity, your car expenses incurred for real estate activities are eligible for deductions. Imagine you drove 2,000 miles last year scouting properties and meeting clients—part of those expenses could potentially reduce your taxable income.
**Navigating the Work-Travel Maze**
The daily journey to your broker's office isn't deductible, as it falls under commuting. But the miles from your office to properties, client meetings, or showing homes? That's where tax deductions come alive. Even more interesting, if you operate from a home office, almost every mile driven to work-related locations can count towards deductions. And yes, those 200-mile trips to Los Angeles can drastically slash your tax bill if your home doubles as an office!
**Keep Those Receipts?**
Tracking expenses is as thrilling as watching paint dry, but it could be the difference between a good year and a great one, tax-wise. Though it can seem tempting to opt for the standard mileage deduction for convenience, doing the homework on your actual expenses might yield higher deductions. Keep a record of your miles and expenses. That way, you're not unknowingly gifting extra dollars to Uncle Sam.
With these insights, real estate investors can navigate car-related expenses like a pro. Your vehicle is more than just a means of transportation—it's a powerful tool for tax savings when used strategically. Remember, knowing the rules of the road can keep more money in your pocket and fuel your investment journey.
Original article here
LINKS TO CHECK OUT
DOWNLOAD - TOOLS OF THE TRADE
I was a house flipper for six years. So, I've dealt with a lot of contractors over the years. Dealing with contractors can be challenging for sure. But just like when you borrow money from an investor or lender you should always have good paperwork.
Even as a wholesaler, from time to time I will do what's called a wholetail. Which means we actually take possession of a property. Clean it out and put it on the MLS as is period from time to time we'll also do minor repairs and renovations if we think it will really move the needle. Not a full on renovation but still we need contractors.
So, this week the free download is an example contractor agreement that you can use in your business. As with any document that I give you from my company, please always consult a real estate attorney to make sure that this contract is suitable for your market.
With that disclaimer on record, here is 👉🏻 my contractor agreement that you can use as you wish in your company
How did I do?Tell me what you thought of this edition of Investor Cheat Code |
If you have specific feedback or anything interesting you’d like to share, please let us know by replying to this email.
Earn A FREE Gift 🎁
If you love this newsletter, tell a friend ... if you hate it, tell an enemy
1000 referrals - Apple - 10.9-Inch iPad (Latest Model)
100 referrals -1 on 1 Strategy Call
25 referrals - Winning Direct Mail Course
10 Referrals - Investor Cheat Code T-shirt
You currently have 0 referrals, only 10 away from receiving A Investor Cheat Code T-shirt.
Copy & paste this link: https://www.investorcheatcode.co/subscribe?ref=PLACEHOLDER
DISCLAIMER: This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.