They brainwashed the sales team

Published: Wed, 02/28/24

February 28, 2024

TOGETHER WITH

Welcome back to The Quota, the best thing that’s happened to the sales world since ibuprofen was invented. In this week’s issue, we’ll take a look at the increasingly difficult task of selling insurance in California, share a Sales Fail about banging the gong, and give some advice to an aspiring rep looking to choose an industry. Let’s go.

NUMBER OF THE WEEK

Hybrid sales pros are 28% more likely to be performing better than their sales goals this year than in-person and fully remote sales pros.

Source: HubSpot

SALES ROUNDUP

Here’s what’s happening in the sales world this week:

Sales is one of middle America’s five most common jobs, according to a recent article in Yahoo Finance. Surprisingly, however, it’s not the one that makes an average of six-figures for employees (that title goes to general and operations managers). Still, sales is extremely common, with reps making between $64k and $81k a year. You can read more about it here.
A Chinese cosmetics company that spent 900,000 yuan (US$126,000) hiring a firm to “brainwash” its staff to boost sales, sought a refund after the initiative failed. The training methods were unconventional and included encouraging sales staff to adopt “shameless” tactics in their approach and encouraging them to clap and dance as motivation for their sales work. Needless to say, it did not work. You can read more about it here.

FEATURE

Image: michaeljung/shutterstock.com

Selling insurance in California is becoming increasingly more difficult

A recent article in the Wall Street Journal covered the state of the Insurance industry in California. Brian Harper, a Californian insurance agency owner who has been selling for 18+ years, called the job “soul-crushingly tough.”

What was once a profession filled with the satisfaction of securing people's futures has transformed into a daily grind of delivering bad news — rising rates, restricted coverage, and policy cancellations are now the norm.

This shift is emblematic of a larger crisis facing the home and auto insurance sectors across the United States, with California at the epicenter. The state has been particularly battered by the dual forces of nature and economics — wildfires fueled by drought and, more recently, flooding have led to significant losses for insurers, prompting many to exit the market or drastically adjust their offerings.

For Harper, the job's emotional toll is palpable. Gone are the days when a family would walk into his office and leave with peace of mind, replaced by interactions fraught with frustration and disappointment. This sentiment is echoed by insurance agents nationwide as they grapple with explaining steep rate increases and navigating the complexities of a market under strain. In states like Texas, Arizona, and Utah, homeowners have seen their insurance premiums soar by more than 20%.

The underlying causes of this upheaval are multifaceted. Inflation and catastrophic events have led to immense financial losses for insurers, necessitating rate increases. However, in California, the situation is compounded by regulatory hurdles that limit how quickly and effectively companies can adjust their rates in response to changing risk landscapes.

The challenges extend beyond the negotiation of rates and coverage. Agents like Harper face logistical nightmares in finding suitable policies for their clients, with processes that once took minutes now stretching into days or even weeks. The frustration is mutual among policyholders, who often feel let down by an industry they believed would protect them in times of need.

While his agency is still financially viable, Harper voices a sentiment likely shared by many in his profession (and all salespeople): the desire for less stress and a more stable market environment, not just for his own sake but for the well-being of his staff. The personal toll of the job, the constant burden of navigating an industry in crisis, weighs heavily on agents committed to serving their communities.

The plight of insurance agents like Harper highlights a critical juncture for the industry. As natural disasters become more frequent and severe, the need for adaptive strategies and regulatory reforms has never been more urgent. Insurance agents, often the first point of contact for people in distress, find themselves on the front lines of a battle between preserving their livelihoods and meeting the needs of their clients in a rapidly changing world.

It’s unclear what the future of the industry holds, and many of those who have paid out large sums of money to join the business are having second thoughts and are worried about their livelihoods.

From the Journal: Harper feels locked into his business, which he bought for $325,000 a decade ago. “I basically spent my life savings buying this agency from my predecessor, but it would be next to impossible to sell now because of the hard market,” he said. “I’ve weighed all my options,” he added. “There isn’t an out.”

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MEME OF THE WEEK

Source: Instagram -- Sales Humor

QUIZ

What is the median total pay for a Tesla salesperson?

A. $90k
B. $110k
C. $118k
D. $1.2m

SALES FAILS

Each week, we bring you the most cringe-worthy sales moments from across the web. To submit your sales fail story for consideration, click here. (Don't worry, you'll remain completely anonymous).

This I was interviewing for a new SDR role at a tech company. I made it past the first round of interviews and went to the company offices for an in-person interview with the sales manager.

The interview went well, and afterwards he took me on a tour around the office and to the sales floor. There was this big gong on the sales floor, and the manager told me to go ahead and give it a ring. So I went up to it and gave it a loud smack. The entire sales team stopped what they were doing and stared at me. The room got so quiet you could hear a pin drop and I realized I was getting weird looks.

I glanced at the sales manager and he was smirking, I realized he was messing with me, maybe to see how I handled the situation. It was extremely awkward. He looked over at me with the same smirk and said "we take the gong very seriously here."

Anyway, I ended up getting the job and got to ring the gong for real a few weeks later. Every time a new potential hire came to the office the sales manager would do the same trick, and I always made sure to play along and give the sucker who rang the gong a dirty look.

Anonymous Location withheld

GRAPH OF THE WEEK

Source: LinkedIn Poll -- February 2024

WORTH A PEEK

What are some things in sales that we should stop normalizing? Absurd comp plan changes are a big one, but there are many more. A recent thread on reddit tackled this very subject, with lots of relatable answers. Check it out here.

ASK THE QUOTA

Want to submit a question and be featured in our advice column? Click here. (Don't worry, you'll remain completely anonymous).

Dear Quota Team

I’m a year out of college and am looking to get into my first sales role. For the last year I’ve been working with my dad, who owns a plumbing business, but we both agree that I’m not going to take over the business, and instead will be going into the more “professional” world.

My question is this: should I focus on getting a sales job in an industry that I’m passionate about, or should my focus be on a position that has good upside potential?

For instance, I really like sports. Should I try to get a job with a baseball team or something similar? On the other hand, I could try to get a job in tech sales or medical device sales, where I know you can build a lucrative long-term sales career.

I think I am leaning toward doing something more “professional” but I’d rather go down the right path to begin with. Sales is my favorite part of working with my dad, which is why I want to make it my career. Any advice would be appreciated. Thanks in advance.

Wondering in New York

Dear Wondering,

Our reflexive answer would be to follow the path with more options, which is the path with more “upside potential.” Niche sales jobs can be great, but if you go into a big industry, you’ll have more job security, opportunity for advancement, and (probably) a more lucrative career.

That being said, there are some people who can only get excited about their job if they are already passionate about the industry. You might not know whether this is you until you actually start selling.

You absolutely have to care about what you’re doing, otherwise you’ll never develop to your full potential. But if you care about your career, and if becoming a success is important to you, then you’ll find that it drives you to become a great rep, no matter what you’re selling. So pick the right mountain to climb and make sure you’re always thinking about getting to the top. Good luck.

Quiz Answer: A. The median total pay for a Tesla salesperson is $90k — (you can read the source article here)

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Today's email was written by Ken Kupchik, Erica Furgiuele, Steve Rado, and Emily Hill.

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