A salesperson doubled new client acquisition from five to twelve per month, but six months later churn spiked because he overpromised what the company could deliver. Sales incentives need to reward keeping clients, not just signing them.
There was a time when we were trying to grow the sales, and so we hired a salesperson and we hired someone that was a killer. Like, this was just an aggressive sales guy, and he actually really increased our sales. Like, we went from an average of 5 new clients per month to like 12 new clients per month, which was a big difference. And we were like, wow, this is amazing. Imagine where we're gonna be a couple years from now. And it was like 6 or 7 months in, we started to see a massive increase in our churn. It was like, well, what's going on? Like, we were doing so good, now we're like churning all these clients. And it was because that really aggressive sales guy was just selling the promise. He was selling the dream. He wasn't selling the reality. He wasn't selling what we could necessarily deliver on. And so that's why I think you really want to be careful as you choose salespeople, as you choose compensation structures. You want them to be incentivized, you know, not just for the quick sale but for the long-term relationship.
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