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From $5.6 Million to $21.6 Million: How Creating an In-House Sales Team Can Boost Profitability

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Reading Time: 2 min read

Introduction:

  • The speaker discusses how they were able to add $21.6 million in profit to one of their portfolio companies by implementing an in-house sales team.

Problem 1: Outsourced Sales Team:

  • The company had an outsourced sales team that was costing them 20% of revenue.
  • The speakers wanted to reduce this cost and increase the company's profitability.

Step 1: Hiring a Director:

  • The company hired an experienced sales director to lead the in-house sales team.
  • The director was tasked with rebuilding the incentive and compensation structure.

Step 2: Rebuilding the Incentive and Compensation Structure:

  • The company reduced the commission structure from 20% to 9%.
  • The speaker emphasized the importance of Alignment of incentives with the company's goals.

Step 3: Rebuilding the Sales Process:

  • The company implemented daily training, gam-tape reviews, and one-on-one coaching to improve sales team performance.
  • The speaker highlighted the importance of role-playing and scripting in the sales process.

Step 4: Scaling the Sales Team:

  • The company hired 40 new sales reps and automated the sales training process.
  • The speaker emphasized the importance of automating training to reduce costs and increase efficiency.

Step 5: Getting Rid of Outsourced Team:

  • The company was able to reduce the outsourced sales team's commission from 1.4millionto1.4 million to 1.08 million per quarter.
  • The speaker emphasized the importance of keeping the in-house sales team and reducing costs.

Results:

  • The company was able to increase its profit from 5.6 million to 21.6 million per year.
  • The speaker emphasized the importance of having a strong sales team and aligning incentives with company goals.

Lessons Learned:

  • The speaker emphasized the importance of having a clear direction and vision for the sales team.
  • The speaker also emphasized the importance of continuous improvement and iterating on the sales process to optimize results.

Source: I Made $21 Million In 120 Days To Show It'S Not Luck, Alex Hormozi

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