Introduction:
In the rapidly evolving energy landscape, solar power has emerged as a game-changing solution, offering households and businesses the opportunity to reduce their carbon footprint while achieving significant cost savings.
As a PIB Solar Agent, you play a pivotal role in driving this transition, empowering customers to embrace sustainable energy solutions that not only benefit the environment but also their bottom line.
However, success in this industry hinges on a numbers-driven approach, where consistent prospecting and effective engagement are paramount.
Sales is a Numbers Game
Sales is indeed a numbers game, and the more potential customers you engage with, the higher your chances of generating leads. The logic behind this statement is simple: the more prospects you interact with, the more likely you are to convert some of them into qualified leads.
To illustrate this concept, let's consider a scenario where you aim to secure 50 leads per month. Assuming you have a lead conversion ratio (the percentage of prospects that convert into leads) of 20%, you would need to speak to 250 potential customers to achieve your target of 50 leads.
Here's how the numbers would play out with different lead conversion ratios:
1. Lead conversion ratio: 5%
- To get 50 leads, you would need to speak to 1,000 potential customers (50 leads / 0.05 conversion ratio = 1,000 prospects).
2. Lead conversion ratio: 10%
- To get 50 leads, you would need to speak to 500 potential customers (50 leads / 0.10 conversion ratio = 500 prospects).
3. Lead conversion ratio: 15%
- To get 50 leads, you would need to speak to 334 potential customers (50 leads / 0.15 conversion ratio = 333.33 prospects, rounded up to 334).
4. Lead conversion ratio: 20%
- To get 50 leads, you would need to speak to 250 potential customers (50 leads / 0.20 conversion ratio = 250 prospects).
As you can see, the higher your lead conversion ratio, the fewer prospects you need to engage with to achieve your target number of leads.
However, it's essential to remember that lead conversion ratios can vary depending on factors such as the quality of your pitch, the effectiveness of your lead qualification process, and the attractiveness of your offering.
The key takeaway is that consistently increasing the number of potential customers you interact with will ultimately lead to more qualified leads, which can then be nurtured and converted into closed deals. By adopting a numbers-driven approach and continuously refining your lead generation techniques, you can improve your lead conversion ratio and maximize your success in the sales process.
Sales Conversion Ratio For your Franchisee
Now lets use those lead numbers from above and apply a closing ratio for the franchisee to convert them into actual sales for you.
Assuming you generated 50 leads per month, and the franchisee has a closing ratio of:
1. 5% closing ratio
- With 50 leads, and a 5% closing ratio, the franchisee would close 2-3 deals (50 leads x 0.05 closing ratio = 2.5 deals, rounded to 2 or 3).
2. 10% closing ratio
- With 50 leads, and a 10% closing ratio, the franchisee would close 5 deals (50 leads x 0.10 closing ratio = 5 deals).
3. 15% closing ratio
- With 50 leads, and a 15% closing ratio, the franchisee would close 7-8 deals (50 leads x 0.15 closing ratio = 7.5 deals, rounded to 7 or 8).
4. 20% closing ratio
- With 50 leads, and a 20% closing ratio, the franchisee would close 10 deals (50 leads x 0.20 closing ratio = 10 deals).
To summarize:
- With 50 leads per month, and a franchisee closing ratio of 5%, you can expect 2-3 sales/deals.
- With 50 leads per month, and a franchisee closing ratio of 10%, you can expect 5 sales/deals.
- With 50 leads per month, and a franchisee closing ratio of 15%, you can expect 7-8 sales/deals.
- With 50 leads per month, and a franchisee closing ratio of 20%, you can expect 10 sales/deals.
The higher the franchisee's closing ratio, the more sales/deals they will be able to close from the same number of leads generated. This illustrates how a numbers-driven approach, combined with an effective sales process, can significantly impact overall sales success.
The logic is simple: the more prospects you interact with, the more opportunities you create to convert them into leads, and the more leads you have, the higher the chances of closing deals.
To illustrate this concept, let's consider a scenario where you aim to secure 10 closed deals per month with a closing ratio (the percentage of leads that convert into actual closed deals) of 20%.
If you only speak to 50 prospects, and your lead conversion ratio (the percentage of prospects that become leads) is 10%, you would only get 5 leads (50 prospects x 0.10 lead conversion ratio = 5 leads). With a 20% closing ratio, you would only close 1 deal (5 leads x 0.20 closing ratio = 1 closed deal).
However, if you increase the number of prospects you engage with, your lead numbers and, consequently, your closed deals will also increase. Here's how the numbers would play out:
1. Speaking to 200 prospects with a 10% lead conversion ratio:
- You would get 20 leads (200 prospects x 0.10 lead conversion ratio = 20 leads).
- With a 20% closing ratio, you would close 4 deals (20 leads x 0.20 closing ratio = 4 closed deals).
2. Speaking to 500 prospects with a 10% lead conversion ratio:
- You would get 50 leads (500 prospects x 0.10 lead conversion ratio = 50 leads).
- With a 20% closing ratio, you would close 10 deals (50 leads x 0.20 closing ratio = 10 closed deals).
Your Daily and Monthly Goal
As a PIB Solar Agent, your income potential is directly tied to the number of prospects you engage with daily. Remember, sales is a numbers game, and the more prospects you speak to, the higher your chances of generating leads and closing deals.
Let's break it down:
Assuming you speak to 50 prospects per day for 22 working days in a month, that's a total of 1,100 prospects (50 x 22 = 1,100).
With a lead generation rate of 10%, you would convert 110 of those 1,100 prospects into leads (1,100 x 0.10 = 110 leads).
Now, with a sales closing rate of 10%, you would successfully close 11 deals from those 110 leads (110 x 0.10 = 11 closed deals).
Based on the commission structure outlined in your training, you earn R5,500 for every deal closed by the franchisee.
Therefore, if the franchisee closes all 11 of your deals, your commission for the month would be:
11 closed deals x R5,500 commission = R60,500
By consistently speaking to 50 prospects per day for 22 working days in a month, with a 10% lead generation rate and a 10% sales closing rate, you would earn a commission of R60,500 for that month.
As you can see, by increasing the number of prospects you engage with, you increase the number of leads you generate, which in turn increases the number of closed deals you can achieve, given the same closing ratio.
The key takeaway is that consistently increasing the number of prospects you interact with is crucial to generating more leads and, ultimately, closing more deals. By adopting a numbers-driven approach and continuously refining your techniques, you can maximize your success in the sales process.
Summary:
This lesson emphasizes that solar sales is a numbers game, where the more potential customers an agent engages with, the higher the chances of closing sales. It outlines a goal of securing a minimum of two appointments per day by engaging with potential customers daily.
The lesson provides a detailed breakdown of the potential commission earnings based on closed sales, highlighting the lucrative opportunities available to agents who consistently meet their goals.