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Syndication

The Pipeline Hoax

The American dream or the pipeline hoax? The American dream is about owning a home or a piece of property that belongs to you. But homes are expensive and not everyone can afford the American dream. In the year 2000, people who shouldn’t have qualified for home-ownership started owning homes and this occurrence caused a worldwide crisis. 

The housing crisis connects to sales in two ways: greed and improper qualification. Bankers wanted to get more mortgages so they could sell these mortgages to the secondary market. The problem with this is that people who were getting houses were not qualified for the mortgages they got. The bankers did whatever it took to get people through the door. When prices went up, these homeowners fell short and eventually lost their homes. 

Sales pressure

As sales leaders, you face this situation often. You need to bring in the dollars, and you’re judged based on how much money you can help the company make. Sales reps are expected to have as many deals as possible in the pipeline. This is where the hoax comes in. 

Salespeople sometimes mask leads in later stages of the pipeline as opportunities. These deals don’t close because the people were never truly qualified. They don’t have the money or the time frame. 

Sellers are marking leads who are investigating, doing research, and window shopping as though they are opportunities. The sales reps may have 50 of these deals but only 10 truly qualified people. The sales reps keep adding these people to the pipeline because they’re told to add opportunities. The quality decreases because they’re adding leads instead of real opportunities. 

Similar to the housing crisis, the sales reps report these numbers to you. As the sales leader, you present it to the VPs and they make decisions based on the potential revenue sources. When the time comes for the revenue to start coming in, you look bad, the VPs look bad, and the company looks bad. As a result, someone is getting fired. 

This situation causes a crisis within the organization. Sales leaders take the fall because they’ve been deceived by the sales reps who try to sell leads as opportunities. 

Consistent education 

As sales leaders, it’s your responsibility to make sure that the pipeline hoax doesn’t happen again. Yelling at your sales reps won’t solve the problem. What you need is consistent education. 

One-on-one coaching time 

One-on-one coaching time with your sales reps is critical. Make sure to establish a distinct definition of a lead versus an opportunity. Don’t assume that sales reps know this because it’s in the sales handbook or in the orientation. Play it safe by reiterating it to the sales reps so that the quality of your leads won’t deteriorate. 

Watch the internal culture. Numbers are good but they must be the right numbers. Teach them that a proper lead is someone who shows interest, has the budget, and has a specific timeframe. Sales reps must be able to gauge this information in their business conversations. 

Give the sales reps a rundown of the important steps in the process. Print them and put them on their desks to keep the culture focused on quality. 

Sales leaders can talk about all these things with their sales reps in one-on-one meetings. Discuss these subjects with them, see how they take on deals, and don’t be afraid to identify and fix the problems. 

Role-playing 

Role-playing is another excellent method for educating your sales reps. 

  • Have your sales reps do a role-play of how they talk to their clients
  • Have your senior sellers who excel in their jobs demonstrate how they qualify their leads properly
  • Point out how and what should happen or how they go about getting the proper information. 

Doing all these things protects you from falling into the hoax. 

Re-education is the answer to an organization’s problem. When the sales reps aren’t asking the right questions and when they don’t understand what leads and opportunities are, they’ll bring in numbers that look crazy at the end of the quarter. 

Stop assuming that your team knows everything. Re-educate your sales team to the basics of the selling process. #BacktoBasic

Foster the proper culture in the organization so your sales reps will bring in the right numbers and close more deals. 

“The Pipeline Hoax” episode resources 

Take care of your sales team and help them improve. Learn more about that with The Sales Evangelist Certifies Sales Training Program. It’s a helpful tool for salespeople and sales leaders to help them improve their skills and abilities in finding the right customers, asking the right questions, and closing a great deal. There are 12 modules in all but you can get the first two modules for free.

If you’re a sales rep looking to hone your craft and learn from the top 1% of sellers, make plans to attend the Sales Success Summit in Austin, Tx, October 14-15. Scheduled on a Monday and Tuesday to limit the impact to the sales week, the Sales Success Summit connects sellers with top-level performers who have appeared on the podcast. Visit Top1Summit.com to learn more and register! 

Check out Audible as well and its thousands of books. Try it now to get a 30-day free trial and a free book. Go to audibletrial.com/tse

For my birthday, I’d love for you to share a rating or review for the podcast. It helps more people find our content so we can help more people do big things. If you like this episode, then do let us know by dropping us some comments and reviews on Apple podcast. We are also on Google Podcast, Stitcher, Spotify

Audio provided by Free SFX and Bensound.

Direct download: TSE_1157.mp3
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