How to demand more commissions as an inbound closer

Hey, guys, what's up? Matt here. I'm in a different studio at the moment. I'm in an extended holiday because of COVID so I hope you enjoy the temporary studio, but we're having a new one built, so it should be all good. All right, so today what I'm going to go over, guys, is inbound closing, you know, closer, phone salesman, savage, whatever you want to call yourselves. It's how you can demand more commissions. I'm going to go over, like, how you can work with your influencer, with the business that you work with, to be able to get more money out of each account. I've been an inbound closer now for roughly just under two years, and last 12 months made about $1.2 million in commissions. So what I'm going to do today is tell you what I do differently than most sales reps, which is why I was able to have a slightly different result. I'm going to teach you can leverage each client that you have to get more commissions. All right, cue the intro. All right, guys, so how do we make more cashis as a sales rep without, I guess, just making more and more and more and more sales? Which is obviously a great way to do it as it is. But there's essentially four things that I think need to happen in order to make you a very, very successful, financially successful sales rep. The first thing is you need to become indispensable. Okay? So in order to negotiate, you require leverage, right? So whenever. Whenever I take on a coaching client, the first thing I do is we create a plan to make them more money, right? So I'm going to teach them how to get better at sales, but I need to teach them how to make more sales. So that's, you know, all that kind of stuff. And we need to create a plan where they have leverage, where they can get a higher commission or higher amount of money per month from the client with that through commissions or a few other structures, right? But the first thing you need to be do is become a really good closer that's really consistent. Okay? And consistency is key because you need to be able to come at this from a numbers based perspective, right? Be good, be consistent. And you need to become indispensable in the. The best way to do that is to create your own leads, okay? And I don't mean that you need to go out there and need to start doing Facebook, ads, courses, all that kind of stuff. That's not really what I mean. Okay. So, you know, for example, referrals, calling the no Sales from the old reps, calling old leads that no showed, calling the client list, whether it's cold calling, door knocking, whatever it may be. You need to find a way to generate your own sales. Because the first step that you can do is go to that business and say, hey, listen, I would like a higher commission for self generated leads. Now that makes total sense for the business owner because if you're out there hustling and you're out there finding sales, there's no marketing cost attached to that lead, right? So if it takes, let's say it takes $500 usually in AD spend to create a client, there's no reason why you can't ask for an extra 350 on that commission because you've generated yourself. So that's step number one, become indispensable, be good, be consistent and generate your own needs. Step number two is understanding the numbers of the business. Okay? The worst thing that you can do is ask for more money when you don't really understand what the margins of the business are, right? So let's say that you're asking for 20% commissions, which I think is too high, right? Ask for the 20% commissions. Right now you're on 15 and you're like, yeah, I want 20% comms because I'm a fucking savage and all this kind of stuff. But the net margin is like 32. Then you're bringing that person's margin down by 5% gross, right? Which is going to significantly affect the net. And the business owner isn't going to make any money. The business owner has to make more money than you. In the long term they have to. In the short term it's okay. Salespeople are usually some of the highest paid people in the entire company. But the owner of the business is the one who is leveraging all the risk. They're the one paying for everything. They're the one paying for the ads. Like they're relying on you to provide a service. Yes. But like they are the ones taking the ultimate risk, so they need to have the ultimate reward. So what you can't do is come in and kamikaze a fucking business through you just demanding more and more and more commas because the person is just going to say, well, it's not worth it to me. Even though you're good at what you do, I have to let you go because you're destroying my margins. And I actually did a video on this which I'll link down below as to why you're not worth 20% commissions. But what I'll say is on this is like, you know, especially something in the coaching and consulting space. Let's say you're selling a $30,000 program, that's $2,500 a month for 12 months. It might cost 500, 1,000, 2,000, maybe even $3,000 for that lead to become a sale. Right? Because it might take 30 leads to get to a sales call. And then if you close one in three, which isn't very good, right? One in three, then it could be costing, you know, three or four or $5,000 to get that client based off your close rate. And that's just an ad spend and there's deliverables and back end costs and that kind of stuff. And so if you just go in and try and gouge the front end, like you know, that 12 month contract, that person might be paying out on a 12 month contract, but they might only get nine months out of them. And then you're not going to ask, they're not going to claw back those comms if they don't stay. So you know, there's a lot of things that need to be involved. So you need to understand the numbers of the business that you working with so that what you're asking for is reasonable. So to take an active interest in that. Right? And don't use percentages as a metric that you want for your commissions. Use like just a rate like I would like right Now I'm getting 500, which is X percentage, but I don't want, I want 650, right? So it's like, okay, so how can I add that up? If I make 10 sales a month, that's you know, $1500, right? So how do I make an extra $1500, right? So there are a lot of ways to look at that, but essentially you don't just want to go off percent percentages. And we really want to understand the numbers of the business so that we don't gouge the business. Because all that's going to do is destroy the, the actual ability for that person to invest back in marketing and get you more leads, which is going to make you more money anyway. The next one is number three, which is getting your bonuses on cash collection. I touched on it briefly, but contract value doesn't really mean anything. It's a little bit of a myth, right? No, not a myth, but it's just a little bit of a, it's a fake statistic, right? If you saw a $30,000 program, like, you know, maybe 1 in 10 of those people just pays initial down payment and ghosts, right? And then maybe 5 and 10 go all the way to the end, and then maybe three and 10 go six months, and two and 10 go eight months. So like, the average might be nine months or like eight months. So, like, you know, even though you think you're selling a $30,000 program and chances you're probably selling a $20,000 program, but that person's paying commissions on 30K, right? So they're paying ad spend and all that kind of stuff. So unless you want to be intimately involved in the delivery, you want to get your cash, your comms. As cash is collected over the 12 months, which most salespeople don't want, then, you know, don't use that as a metric of success. Use cash collection, let's say. So what I would recommend to you is you go to your influencer, your business owner, and you say, listen, I usually collect 50k a month in cash, and you've probably just been putting everyone on payment plans because it's the easiest way to do it. There's no incentive for you to take more cash, right? But if you're like, I want to collect a minimum $80,000 a month in cash. If I can collect $80,000 a month in Cash, I would like a 5% cash collection bonus if I hit over 80%. So that means if you were to hit 100k, you would get a $5,000 bonus for the month. And the business owner is going to be far more likely to do that, especially if you've done step one, which is like you're creating your own. You are creating your own leads and sales. You've done step two, which is that you've taken an active role and understand the numbers of the business, and then you've come to them with a. With a bonus that is just based on, like, cash section. So there's no. In theory, you're coming at it based on something that's real. So that's cash in hand. So there's minimal risk attached to actually doing it that way. It's a much better way to ask for a bonus. Cash collection, bonuses. All right, guys, number four, which is the last one, which is a very lucrative one, but it's very difficult. And a lot of people probably wouldn't. You wouldn't want to go this way, but it's one way that I went, which is a revenue share. Now, when I say revenue share, I don't mean equity. I do have equity in some of the businesses that I work with. But Essentially it's like a net revenue, so it's a profit share. Right now you want to be very careful because profit can go in a lot of places. So usually you do a revenue share minus agreed upon expenses. And you wouldn't want to go after this unless you brought something more to the table rather than just your ability to close deals. Because really, you know, I hate to break it to you, but you are replaceable as everybody is. Okay? So you want to have some sort of X factor, bring something to the table. And you probably only want to do this if you really had a good connection with the business owner or the influencer and you wanted to be involved in that business long term. Right? Because revenue shares are not usually going to pay off in the short term, but they will pay off in the long term, especially if you, you help grow that team, you help grow that business from 100k month to a million dollars. But again, you really want to have some sort of X factor and something you can really bring to the table to make the business owner even want to consider it. All right, guys, those are my four ways to make more commissions, make more money and leverage, I guess, like the accounts that you have or the account that you have into producing more income for you without just kind of making more saves or gouging the guy for a higher percentage of commissions. Because to me that's kind of a short sighted way of looking at it. I hope, like this video, make sure you slap, like, make sure that you subscribe, make sure you check out, you know, the stuff in the description which is going to have a closing code, it's going to have a, you know, all that kind of good stuff that it usually has. I hope you enjoyed the video. Have a great day, guys. Goodbye.