Do Leads Really Lead? Or Are We Following Them?

By Scott Plum, Minnesota Sales Institute

The Birth of a Product — and the First “Lead”
Every great product begins with a question: “Who’s going to buy this?”
Before a company ever builds a widget, service, or software, it wants to know who might need it, want it — and why. So, they engage a market research firm to gather prospective buyers, usually called a “focus group.” These participants are asked questions about what would make their life easier, less expensive, more convenient, or more profitable.

The focus group members don’t show up for free. They’re paid generously for their advice, their feedback, and their opinions. But what they’re really being asked to do is lead — to help the company choose the right direction before the first prototype is built.

The irony? From the very beginning, companies are led by potential customers. The first “lead” in the entire process isn’t a contact in a CRM. It’s a human being guiding corporate decision-making before the product even exists.

The Hand-Off — and the Breakdown
Once the research is complete, the marketing team receives a tidy report from the research company. It’s full of preferences, sizes, quantities, colors, features, charts, graphs, projections, all in the spirit of “insights.”  Marketing reviews the findings, turns to company leadership which delegates to R&D and product development and says: “Here’s what our customers said they want — let’s make it!”  So they do.

The product is designed and developed, polished, and packaged. Then, in one of the great organizational mistakes and misfortunes of modern business, it’s tossed over the wall to the sales department with a simple instruction: “Go get ’em.”

Sales takes this shiny new product, adds it to their catalog, updates their PowerPoint, and squeezes it somewhere between last quarter’s leftovers and next quarter’s hopefuls.

Then everyone sits back and waits for the ticker-tape parade that never comes. No early surge. No next-quarter fireworks. Just silence — or worse, a handful of lukewarm inquiries that turn into “no sale” deals while adding to the discouragements of a salesperson’s day. And suddenly, everyone’s looking around the conference room table asking the same question: “Why aren’t the leads converting?”

When the Prospect Becomes the Leader
Let’s imagine how this plays out in real life.  A new product hits the market. A marketing campaign goes out — maybe through social media, a webinar, or an email blast. The phone rings, or an inquiry comes through the website.

The prospect says: “I saw your new service. How does it compare to what I’m using now?” The salesperson, who’s been told almost nothing about the research behind the product, stumbles through a few features and benefits. The prospect follows up with sharper questions — the kind that sound like they were written by a competitor.

By the end of the call, the salesperson is reacting, not directing. The prospect is steering. The lead is leading the leader.  That’s not sales. That’s surrender.

How It Should Work — Turning the Tables
Now, what if we flipped the script? Go back to the market research phase — the focus groups, the questions, the “why” behind every “insight.” Those participants were asked thoughtful questions designed to uncover needs, challenges, motivations, and desired outcomes. What if we gave those same questions to the sales team?

Instead of waiting for the prospect to lead the conversation, sales could use the same discovery framework that created the product in the first place.

Imagine this sequence:

  1. A lead comes in.
    Instead of jumping into features or price, the salesperson begins with questions from the original research — the ones that helped design the product.
  2. Sales leads the dialogue.
    They ask questions like, “What prompted you to explore solutions like this?” or “How would this impact your business if it worked exactly the way you wanted it to?”
  3. The prospect reveals motivation.
    Now, the conversation shifts from curiosity to clarity. The salesperson isn’t guessing — they’re guiding.
  4. Sales connects the dots.
    With insight-driven dialogue, the salesperson can link the product’s purpose to the prospect’s problem.
  5. The lead follows.
    When sales leads the conversation, prospects follow with trust, interest, and commitment.

Leadership in Sales — Not Leads
Leads don’t make sales. Leaders do. Marketing can generate leads. Research can identify needs. But it takes a sales professional — someone willing to lead a conversation with purpose — to turn those leads into loyal customers.

When you lead in sales — by asking better questions, understanding motivation, and guiding the conversation — you create your own momentum. You stop waiting for leads and start leading with valuable solutions and better outcomes.

Scott Plum is the founding president of the Minnesota Sales Institute, where he works with salespeople and leaders to strengthen relationships, improve performance, and increase revenue through authentic conversations. He’s the author of “Taking Off Into the Wind – Creating Lift Out of Life” and co-host of the WINNING AT SELLING podcast globally ranked in the top 1% of all podcasts.

 

Winning at Selling Podcast : Episode #691

Greetings,

Thank you for listening to the episode. Your commitment to developing your selling skills, mindset and techniques is our motivation.

This podcast is dedicated to the overall success in the sales channel.  From the CEO to the front line salespeople, every role must be aligned, trained and committed, every day to achieve the desired outcome.  This is not done without a commitment to ongoing career development in learning market-relevant techniques, overcoming conceptual barriers, applying proactive and productive behaviors and projecting a positive attitude.

One of the most crucial and creative aspects of selling is developing new customers. It is also what separates the farmers from the hunters. Unfortunately, in the current business climate it seems more difficult than ever to find and connect with your ideal client. But there are some strategies you can use.

So, dust off that prospecting list as Scott and I put a stamp on Creative B2B Prospecting Ideas and other novel nuggets on Episode 691 of the Winning at Selling podcast.

Golden Nuggets:

“In a crowded marketplace, fitting in is failing. In a busy marketplace, not standing out is the same as being invisible.” Seth Godin – The Purple Cow

Your Hosts:
Bill Hellkamp See my LinkedIn profile and send me an invite
Visit my website: http://www.reachdev.com/

Scott “Professor Plum” PlumSee my LinkedIn profile and send me an invite
Visit my website: https://www.mnsales.com

Mentions:
Handout: Click here
– Keystone Club Class – https://mnsales.com/keystone/
– Offerings Page – https://mnsales.com/offers
– Next Book: Aligning Strategy and Sales by Frank Cespedes
– Connect with Frank Cespedes on LinkedIn
– Attend a Professional Sales Association (PSA) meeting.  Go to www.psamn.org 
– Bill – Jumpstart Sales Coaching – Introductory Program – (1) 60 min. initial and (5) 30 min ongoing sessions – $495. – Contact me here.
– Bill – Seven Deadly Sins of Selling presentation for the next 2 companies to contact me. 45 min. Live in Minneapolis area – Webcast further away.

Whether you are defending first place in the market or dedicated to fighting for first place, each episode will deliver proven advice you can apply that day to improve your sales results.

Join us every week.  Email us your comments, feedback, real-life challenges in the marketplace and desired topics for us to cover and we will deliver sound advice you can use. ALL comments are welcome.

Feel free to reach out to us via the form below. You can reach either of us by calling 612-789-5700.

The WINNING AT SELLING Podcast is Globally Ranked in the Top 1% of all Podcasts. For some ranking information, check out ListenNotes.com.(https://www.listennotes.com/podcasts/winning-at-selling-bill-hellkamp-and-scott-vi60qX2kYrt/)*

Winning at Selling Podcast : Episode #690

Greetings,

Thank you for listening to the episode. Your commitment to developing your selling skills, mindset and techniques is our motivation.

This podcast is dedicated to the overall success in the sales channel.  From the CEO to the front line salespeople, every role must be aligned, trained and committed, every day to achieve the desired outcome.  This is not done without a commitment to ongoing career development in learning market-relevant techniques, overcoming conceptual barriers, applying proactive and productive behaviors and projecting a positive attitude.

Most companies stumble when launching something new—not because the idea is bad, but because they treat the launch like a one-time event instead of a repeatable discipline.

Whether it’s a product, service, or strategic initiative, success depends on more than development—it hinges on execution. In this episode, we’ll explore why so many launches fall short, why launch success matters, and how a few proven best practices can flip the odds in your favor.

Keep your powder dry and your eyes up as you join Bill and me for Launching Best Practices to Help You Win on Episode 690 of the Winning at Selling Podcast.

Golden Nuggets:

I would rather be the oldest guy at the gym than the youngest guy at the nursing home” – Numerous people on the Internet.

Your Hosts:
Bill Hellkamp See my LinkedIn profile and send me an invite
Visit my website: http://www.reachdev.com/

Scott “Professor Plum” PlumSee my LinkedIn profile and send me an invite
Visit my website: https://www.mnsales.com

Mentions:
Bob Freytag’s company – IntroWorks – https://intro.works/
– Keystone Club Class – https://mnsales.com/keystone/
– Offerings Page – https://mnsales.com/offers
– Next Book: Aligning Strategy and Sales by Frank Cespedes
– Connect with Frank Cespedes on LinkedIn
– Attend a Professional Sales Association (PSA) meeting.  Go to www.psamn.org 
– Bill – Jumpstart Sales Coaching – Introductory Program – (1) 60 min. initial and (5) 30 min ongoing sessions – $495. – Contact me here.
– Bill – Seven Deadly Sins of Selling presentation for the next 2 companies to contact me. 45 min. Live in Minneapolis area – Webcast further away.
– Scott offer’s the DiSC Sales Assessments for $139.00 per person.  See a Sample.

Whether you are defending first place in the market or dedicated to fighting for first place, each episode will deliver proven advice you can apply that day to improve your sales results.

Join us every week.  Email us your comments, feedback, real-life challenges in the marketplace and desired topics for us to cover and we will deliver sound advice you can use. ALL comments are welcome.

Feel free to reach out to us via the form below. You can reach either of us by calling 612-789-5700.

The WINNING AT SELLING Podcast is Globally Ranked in the Top 1% of all Podcasts. For some ranking information, check out ListenNotes.com.(https://www.listennotes.com/podcasts/winning-at-selling-bill-hellkamp-and-scott-vi60qX2kYrt/)*

Rebuilding Bridges: Winning Back Contractors with a Renewed Commitment

Over the past few years, the lumber and building materials industry has faced one of the most volatile stretches in recent memory. Supply chain shortages, unpredictable delivery schedules, and pricing swings forced everyone — dealers, suppliers, and contractors alike — to make fast, sometimes uncomfortable decisions to meet customer demands.

Some long-time customers drifted away, not necessarily because they wanted to, but because they had to. They went where they could get materials when they needed it. And now, as the market stabilizes and inventories normalize, it’s time to rebuild those relationships to start future transactions and orders.

This isn’t about chasing lost business. It’s about demonstrating that our commitment has changed — and improved. Contractors don’t want apologies; they want assurance. They want to know that the next time they place an order, you’re ready to deliver on your promises, create value and serve as an extension of their reputation.

Acknowledge the Past, but Focus on What’s Changed

Reconnecting starts with honesty. Everyone in this industry lived through the chaos — missed and messed-up shipments, backorders, and long lead times. You don’t need to pretend it didn’t happen, but you also shouldn’t stay stuck there.

When you call a former customer, you acknowledge what happened, take responsibility, and immediately pivot yourself to what’s different and better now.

“I know last year was rough with the supply chain and other areas of uncertainty. We’ve made some big changes since then — like improved forecasting when inventories start to become unpredictable, expanded vendor relationships with acceptable substitutes, and tighter delivery windows to prevent disruption and theft. I wanted to reach out and show you how we’ve turned things around.”

This approach communicates respect and progress. It tells the contractor that you’ve not only learned from the challenges but invested in making sure they don’t happen again.

In my experience, most customers don’t leave because of failure — they leave because of silence. If you reach out with transparency and confidence, many will give you the chance to re-earn their trust, if you proactively contact them with an intent to serve them by offering the best value and sell with the best price and terms.

Rediscovering Opportunity in Dormant Accounts

A contractor who hasn’t ordered in six months, when they ordered every week before, isn’t necessarily gone — they’re just quiet. They already know who you are and what you offer; they just need to be given a call and a reason to come back.

Start by identifying your dormant or secondary accounts — those who used to be steady but now only order occasionally, often when their replacement supplier runs short.

Those are the easiest wins because the relationship already exists.

When reaching out, make the conversation about them, not you:
“I wanted to learn more about the market you are focusing on and how your projects are going this season? We’ve improved how we work with contractor orders and deliveries, and I’d love to see if there’s a way to support you better with a new order.”

It’s not about quoting a job or matching a price. It’s about curiosity — showing genuine interest in their business and serving them again.

 Reactivation is the lowest-cost, highest-return form of new business. Most sales teams overlook it because it feels uncomfortable or possibly embarrassing but these are conversations with people who already know your value — they just need a reminder.  Your reengagement shows your strength and commitment to them and the market you serve.

Lead with Your Renewed Commitment

Here’s the truth: price is rarely the reason contractors leave — consistency can be a factor, along with unrecognized outcomes of management decisions without understanding their true impact and consequences.

Today, the biggest differentiator in our industry isn’t product selection or even speed. It’s reliability — the confidence when a contractor calls, you’ll have what they need, when they need it, and in some cases sharing with them a better product and process.  That’s where value is created and claimed.

That’s where your company’s renewed commitment comes in. Based on better leadership decisions, credible customer feedback and updated market trends. Whatever the change, make sure they know about it.  Make a list of them.

“We’ve made a serious investment in improving service and process priorities. We’re committed to making your projects run smoother.  Can we demonstrate it to you with your next order?”

Make Every Call Personal and Purposeful

A call that sounds like “checking-in” or “touching-base” is easy to ignore. A call that feels intentional gets attention.

Before reaching out, review past activity: what did they buy, what type of projects were they doing, and what challenges came up? Use that insight to personalize your approach and message.

Example:
“Last time we worked together, you were framing multifamily projects on the north side. Are you still focused there? We’ve improved some of our systems — that could work well within your process to keep crews moving between sites to meet deadlines.”

This kind of message shows relevance, preparation, and respect for their time. It also demonstrates that your call isn’t random; it’s thoughtful.

Every conversation should have a purpose — to reconnect, rebuild, or reinforce value. Not to ask for a favor, but to offer one.

Turn Second Chances into Long-Term Partnerships

When a contractor gives you another shot, that’s not a free pass — it’s a test. They’re watching to see if things have truly changed. Deliver flawlessly. Then, follow up intentionally:

“I appreciate the chance to work together on that last project. How did it go on your end? How would you rate our performance on a scale from 1 to 10? Anything, we can fine-tune for next time?”

That simple question does more to strengthen relationships than any discount, rebate or promo ever could. It tells them you’re invested in their success, and our relationship — not just your next order.

Consistency builds confidence. Confidence builds loyalty. And loyalty, once restored, is incredibly resilient.

Final Word: Rebuilding with Purpose

The building materials business has always been about relationships. Products may change, prices may swing, but trust — earned and re-earned — remains the real currency.

If the last few years have taught us anything, it’s that customers will forgive disruptions when they see an increased commitment. When you show up with improved systems, renewed energy, and genuine care, you remind them why they partnered with you in the first place.

At the Minnesota Sales Institute, we say: “Same business, different ways, better results.” Reconnecting with lost customers is exactly that — doing the same business, but in a better way. It’s about demonstrating progress, not perfection.

So, start calling those past contractors. Not to apologize — but to prove that this time, you’re ready to deliver better than ever to their expectations of you, because of your increased commitment.

Scott Plum is the founding president of the Minnesota Sales Institute, where he works with salespeople and leaders to strengthen relationships, improve performance, and increase revenue through authentic conversations. He’s the author of “Taking Off Into the Wind – Creating Lift Out of Life” and co-host of the WINNING AT SELLING podcast globally ranked in the top 1% of all podcasts.

 

 

Winning at Selling Podcast : Episode #689

Greetings,

Thank you for listening to the episode. Your commitment to developing your selling skills, mindset and techniques is our motivation.

This podcast is dedicated to the overall success in the sales channel.  From the CEO to the front line salespeople, every role must be aligned, trained and committed, every day to achieve the desired outcome.  This is not done without a commitment to ongoing career development in learning market-relevant techniques, overcoming conceptual barriers, applying proactive and productive behaviors and projecting a positive attitude.

Rejection sucks! At least that how I’ve always seen it. But others that I’ve worked with don’t seem to get affected by it. As a matter of fact it seems to get a fire lit under them. So, what’s the difference in our responses and how can we all get better at dealing with rejection

Grab your smiley face buttons as Scott and I wrestle with Handling Rejection Like a Pro on Episode 689 of the Winning at Selling podcast.

Golden Nuggets:
“Success is walking from failure to failure with no loss of enthusiasm.” – Winston Churchill

Your Hosts:
Bill Hellkamp See my LinkedIn profile and send me an invite
Visit my website: http://www.reachdev.com/

Scott “Professor Plum” PlumSee my LinkedIn profile and send me an invite
Visit my website: https://www.mnsales.com

Mentions:
– Keystone Club Class – https://mnsales.com/keystone/
– Offerings Page – https://mnsales.com/offers
– Next Book: Aligning Strategy and Sales by Frank Cespedes
– Connect with Frank Cespedes on LinkedIn
– Attend a Professional Sales Association (PSA) meeting.  Go to www.psamn.org 
– Bill – Jumpstart Sales Coaching – Introductory Program – (1) 60 min. initial and (5) 30 min ongoing sessions – $495. – Contact me here.
– Bill – Seven Deadly Sins of Selling presentation for the next 2 companies to contact me. 45 min. Live in Minneapolis area – Webcast further away.
– Scott offer’s the DiSC Sales Assessments for $139.00 per person.  See a Sample.

Whether you are defending first place in the market or dedicated to fighting for first place, each episode will deliver proven advice you can apply that day to improve your sales results.

Join us every week.  Email us your comments, feedback, real-life challenges in the marketplace and desired topics for us to cover and we will deliver sound advice you can use. ALL comments are welcome.

Feel free to reach out to us via the form below. You can reach either of us by calling 612-789-5700.

The WINNING AT SELLING Podcast is Globally Ranked in the Top 1% of all Podcasts. For some ranking information, check out ListenNotes.com.(https://www.listennotes.com/podcasts/winning-at-selling-bill-hellkamp-and-scott-vi60qX2kYrt/)*

Winning at Selling Podcast : Episode #688

Greetings,

Thank you for listening to the episode. Your commitment to developing your selling skills, mindset and techniques is our motivation.

This podcast is dedicated to the overall success in the sales channel.  From the CEO to the front line salespeople, every role must be aligned, trained and committed, every day to achieve the desired outcome.  This is not done without a commitment to ongoing career development in learning market-relevant techniques, overcoming conceptual barriers, applying proactive and productive behaviors and projecting a positive attitude.

We often celebrate outcomes — the closed deal, the big win, the promotion. But what if the way we got there says more about us than the result itself? Today, we’ll explore why the means — the process, the behaviors, the discipline — matter just as much as, if not more than, the ends.

So, put on your party hats as Bill and I explore Seven Tips to Goal Setting and other persnickety perceptions on Episode 688 of the Winning at Selling Podcast.

Golden Nuggets:

“None of us can change our yesterdays, but all of us can change our tomorrows.”
Colin Powell

Your Hosts:
Bill Hellkamp See my LinkedIn profile and send me an invite
Visit my website: http://www.reachdev.com/

Scott “Professor Plum” PlumSee my LinkedIn profile and send me an invite
Visit my website: https://www.mnsales.com

Mentions:
– Next Book: Aligning Strategy and Sales by Frank Cespedes
– Connect with Frank Cespedes on LinkedIn
– Attend a Professional Sales Association (PSA) meeting.  Go to www.psamn.org 
– Bill – Jumpstart Sales Coaching – Introductory Program – (1) 60 min. initial and (5) 30 min ongoing sessions – $495. – Contact me here.
– Bill – Seven Deadly Sins of Selling presentation for the next 2 companies to contact me. 45 min. Live in Minneapolis area – Webcast further away.
– Scott offer’s the DiSC Sales Assessments for $139.00 per person.  See a Sample.

Whether you are defending first place in the market or dedicated to fighting for first place, each episode will deliver proven advice you can apply that day to improve your sales results.

Join us every week.  Email us your comments, feedback, real-life challenges in the marketplace and desired topics for us to cover and we will deliver sound advice you can use. ALL comments are welcome.

Feel free to reach out to us via the form below. You can reach either of us by calling 612-789-5700.

The WINNING AT SELLING Podcast is Globally Ranked in the Top 1% of all Podcasts. For some ranking information, check out ListenNotes.com.(https://www.listennotes.com/podcasts/winning-at-selling-bill-hellkamp-and-scott-vi60qX2kYrt/)*

Who Really Pays for Sales Training?

We’ve all seen those late-night infomercials. A company pushes their patented gutter system, flashing special offers like “Call now for 10% off… and if you act today, we’ll give you another bonus!”

But behind the script and urgency, there’s a deeper question: Who actually pays for the sales training that makes those conversions possible?

The truth is, sales training isn’t free. Someone always foots the bill. And depending on who it is, the outcome for the company, the customer, and the sales professional can be very different.

The Three Options

  1. The Company

Some companies invest directly in their salespeople from the start. They provide training when reps are hired and consistently while they’re employed. This is the ideal scenario, but unfortunately, not every business makes that investment.

  1. The Customer (Indirectly)

When training is neglected, the cost often shifts to customers. This shows up as:

  • Rebates and Discount expenses to win back dissatisfied buyers, reducing profitability.
  • Commoditization of products, where price becomes the only selling point, making business sustainability a daily challenge.
  • A damaged reputation in the community, as customers sense they’re being sold on price instead of value.

Over time, this erodes trust—and profitability.

  1. The Salesperson

Finally, the most powerful option: the individual sales professional who takes responsibility for their own growth. These are the reps who:

  • Invest in their sales career across multiple channels and industries.
  • Learn to distinguish between relationships vs. transactions.
  • Understand the difference between cost of goods sold vs. return on investment.

This type of salesperson thinks like a business owner—and as a result, earns the respect (and the deals) of business owners. They don’t just sell products; they build relationships and sell outcomes.

Data That Backs It Up

Here are some eye-opening statistics that underscore why someone must pay for training — and why doing so wisely matters:

  • On average, companies receive $4.53 in return for every $1 invested in sales training (i.e. a 353% ROI).
  • Sales teams that invest in training tend to be 57% more effective than their less-trained counterparts.
  • Around 70% of salespeople lack formal training.
  • Among sales leaders, 72% say training fails because it’s treated as one-size-fits-all (i.e., not customized to role or experience) and unfortunately, 84% of training is forgotten within three months without reinforcement.

Together, these numbers paint a clear picture:

  • Training can deliver massive ROI.
  • But most programs fall short—because they’re generic, lack reinforcement, or aren’t measured.
  • The differentiator is how and by whom the training is funded, designed, and sustained.

The Long-Term Payoff

It’s never too late to start investing in yourself as a sales professional. If you’re in your 20s and just realizing this, congratulations—you’re ahead of where many of us were at that age.

But beyond age, the critical move is this: decide who pays. If your company won’t, make the investment yourself. Cover your own training. Measure the ROI. Prove its value.

That approach isn’t just about personal gain. It shifts the dynamics of how buyers see you: as someone who invests in mastery, outcome, and value. And that is how you win not only deals, but respect.

👉 Takeaway: Sales training has real, measurable impact—but only if someone pays and the program is done well. The best salespeople choose to invest in themselves, and the return pays off—for them, their customers, and their companies.

Ask Yourself: In your experience, who usually ends up paying for sales training — the company, the customer, or the salesperson? Do you believe sales training should be a company’s responsibility, or is self-investment the real differentiator for top performers? What’s the most valuable sales training you’ve ever invested in (time, money, or both) — and how did it pay off?


 

The Missing Piece in Franchising: Developing the People Who Drive Revenue

Franchising is built on proven systems, processes, and operations. Franchisors create playbooks that keep the brand consistent and scalable. But there’s one area that often receives far less attention than it deserves: developing the people who directly define the reputation, lead the customer experience, create and claim value, and generate income.

Operations manuals can tell you how to run the business, but they rarely address how to grow the business through effective, productive and meaningful conversations. Franchisees may be given qualified leads, but if they aren’t equipped to convert conversations into commitments, opportunities are missed, and revenue is left on the table.

Recognizing the Symptoms

Franchise networks often experience predictable challenges when sales development is overlooked:

  • Leads that don’t convert – Money is spent on marketing (FDD – Item 11), yet the incoming calls and website inquiries fail to turn into actual sales. The blame shifts back and forth between franchisee and franchisor, when the real issue is the ability to uncover motivation, establish a decision criterion, timeline and priorities when sales conversations occur.
  • Order takers instead of salespeople – Associates who show up on time, look professional, and follow the script may still miss the most important part: uncovering needs, creating value, and asking for the commitment. Without that, the brand becomes commoditized.
  • Franchisees unprepared to lead sales teams – Many franchise owners come from operational or technical backgrounds. Leading a sales team—or even one salesperson—requires coaching skills they’ve never developed. Without guidance, salespeople drift, become complacent, while revenue and results stagnate.
  • Dependence on “bought” business – Paid leads from Internet scrapping and digital channels once worked well. But as Google becomes more expensive and AI changes the way people search, franchisees that don’t know how to earn business through relationships, referrals, and prospecting fall behind.

 The Impact of Not Solving It

When these issues persist, the entire franchise system feels the consequences. Revenue plateaus, royalties decline, and frustration builds between franchisor and franchisee. In some cases, the lack of sales development even causes high-potential operators to disengage, drop to level of survival or leave the system altogether.

The truth is clear: a franchise network is only as strong as the people driving revenue at the unit level. Without the skills to sell, coach, and lead, even the best operational systems can’t reach their full potential.

A Commitment to People Development

This is where the focus must shift. At Franchise Sales Pro, the commitment is not simply to process, but to people. Supporting the network means:

  • Training sales associates to move past scripts and into real conversations that create and claim value.
  • Equipping franchisees to lead salespeople and teams, even if they’ve never sold before.
  • Embedding weekly coaching and accountability so training doesn’t fade after the webinar or workshop.
  • Building confidence to generate earned business, reducing reliance on expensive lead sources.

When people are developed in these areas, the franchise system doesn’t just grow revenue, it grows stronger relationships, more confident operators, and a healthier network overall.

Final Thought

Franchisors already invest heavily in processes, systems, and compliance. But the future of growth lies in a different kind of investment: developing the people who bring in the revenue. Because in franchising, as in any business, it’s not the system alone that drives results—it’s the people who bring that system to life every day.

Top-Line Thinking: The Power of Understanding Fixed vs. Variable Costs in Sales Growth

Top-Line Thinking: The Power of Understanding Fixed vs. Variable Costs in Sales Growth

In the world of business — especially for franchise operators and self-starting entrepreneurs — understanding your financial structure is key to achieving scalable, sustainable growth. Yet, many overlook how their costs interact with their revenue goals, especially when it comes to aligning those costs with proactive sales activities.

So, let’s break down a deceptively simple concept: the difference between fixed expenses and variable expenses — and why it matters if you want to generate more top-line revenue.

Fixed vs. Variable Costs: What’s the Difference?

At a glance:

  • Fixed expenses are those costs that stay consistent month-to-month. Think rent, lease payments, software subscriptions, base salaries (including benefits and taxes).
  • Variable expenses fluctuate depending on priorities, sales volume, growth efforts, client acquisition and lead generation. These also include commissions, bonuses, incentives and yes — sales training. (Question: Are you still retaining most of the revenue when a sale is made and you pay out commissions?)

Why does this matter?

Because you don’t grow a business by trimming what’s already fixed. You grow by investing in the people, processes, and activities that generate revenue. That’s your variable cost lever — and it’s what moves the needle.

Sales Efforts = Variable Investment

This is the shift in thinking I want to champion: sales expenses are not just costs; they are investments. When you hire and onboard new sales reps, launch a targeted marketing campaign, or invest in sales training, you’re not just spending money — you’re planting seeds. These are investments in revenue growth, not arbitrary expenses. And yes, they’re variable. You control the pace, the volume, and the direction.

The Overlooked Lever: Capacity

Here’s where many franchisees and business owners stall — they think, “I’m making money. I’m paying myself. I must be on the right path.” And yes, you are. You’ve moved beyond survival mode. You’re probably covering your fixed expenses and have begun seeing some consistent take-home pay.

But here’s the truth: you might be operating far below your full capacity.

If your fixed costs are paid and your business has unused capacity — open appointment slots, underutilized staff, or operational bandwidth that’s sitting idle — you’re leaving exponential profit on the table.

Let’s break it down:

  • Fixed costs are already covered.
  • Every new client, order, appointment, or service added from this point forward generates higher profit margin revenue, because there’s no additional fixed cost.
  • That means increasing from 70% to 85% capacity can double or triple your net income, even if top-line revenue only increases modestly.

This is where proactive sales activity fuels profitability. It’s not just about making more sales — it’s about filling your open capacity to maximize the return on fixed infrastructure you’re already paying for.

A Framework for Franchise Operators and Self-Starters

Let’s talk about strategy. Here’s a 3-question diagnostic assessment I encourage every growth-minded business operator to run regularly:

  1. Do you believe there are more opportunities in the marketplace?
    • If yes, great. The market is alive — so the question becomes: are you poised to capture them and fulfill your open capacity?
    • If no, it may be a matter of awareness, a product/service refresh, new approach or repositioning your unique selling proposition (USP), not demand.
  2. Do you have the right people on the bus to convert those opportunities into revenue?
    • Think beyond warm bodies — is your team applying the best selling skills, practicing productive behavior, and maintaining the right attitudes, beliefs and confidence during adversity?
    • Talent is a variable lever, and an investment. And not just in hiring — but in equipping them with tools, training, and process.
  3. Are you prepared to work with your team to capitalize and convert the opportunities you uncovered?
    • If you hesitate, this is your call to action. Sales enablement isn’t optional — it’s essential.
    • This is the point where investing in training becomes a variable expense that has a defined return.

Sales Training as a Revenue Catalyst

Often, business owners hesitate to invest in sales training because it doesn’t feel “urgent.” But here’s the paradox: Training your team to close better, faster, and more frequently is the most direct path to higher top-line revenue. Think of sales training not as a seminar, but as a system upgrade for your revenue engine. You’re teaching your people how to create, pursue, and win more deals — deals that fund everything else. Sales is the engine that pulls the train.

The Proactive Path to Top-Line Revenue

Let’s stop thinking of sales as a passive outcome of having a good product or service. Revenue is the result of intentional, proactive, and consistent sales efforts.

This means:

  • Understanding where your fixed costs cap your profit ceiling monthly. Before you earn a single dollar of profit, you must first cover your fixed costs
  • Embracing and evaluating variable costs that tie directly to your growth goals.
  • Recognizing underused capacity as a missed profit opportunity — and filling it through focused sales execution.

Final Thought: Build for Growth, Not Just Survival

If you’re a franchise operator, a self-starter, or a leader wondering why revenue has stalled — look at your financials. Not just the bottom line, but the top line and what’s feeding it.

Are you fully utilizing your capacity?

Are you spending reactively or investing wisely to increase top-line revenue?

Are you willing to invest one dollar in variable costs to gain three in return?

Because if you believe there are more opportunities in the marketplace, and you’re willing to work with your team to capture them — then the next level of profit isn’t far away.

 

Winning at Selling Podcast : Episode #687

Greetings,

Thank you for listening to the episode. Your commitment to developing your selling skills, mindset and techniques is our motivation.

This podcast is dedicated to the overall success in the sales channel.  From the CEO to the front line salespeople, every role must be aligned, trained and committed, every day to achieve the desired outcome.  This is not done without a commitment to ongoing career development in learning market-relevant techniques, overcoming conceptual barriers, applying proactive and productive behaviors and projecting a positive attitude.

You’ve seen the picture of a bridge being constructed where the two side are supposed to meet and they don’t! Well, that is what misalignment looks like. In most firms, the sales function is the largest lever for executing strategy—yet it’s often misaligned with the choices leaders say they’ve made. Fixing that gap is crucial for organizational success.

So, get yourself straight as Scott and I welcome author and lecturer Frank Cespedes to discuss his book Aligning Strategy and Sales on Episode 687 of the Winning at Selling podcast.

Golden Nuggets:

“Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.” Sun Tzu

Your Hosts:
Bill Hellkamp See my LinkedIn profile and send me an invite
Visit my website: http://www.reachdev.com/

Scott “Professor Plum” PlumSee my LinkedIn profile and send me an invite
Visit my website: https://www.mnsales.com

Mentions:
– Next Book: Aligning Strategy and Sales by Frank Cespedes
– Connect with Frank Cespedes on LinkedIn
– Attend a Professional Sales Association (PSA) meeting.  Go to www.psamn.org 
– Bill – Jumpstart Sales Coaching – Introductory Program – (1) 60 min. initial and (5) 30 min ongoing sessions – $495. – Contact me here.
– Bill – Seven Deadly Sins of Selling presentation for the next 2 companies to contact me. 45 min. Live in Minneapolis area – Webcast further away.
– Scott offer’s the DiSC Sales Assessments for $139.00 per person.  See a Sample.

Whether you are defending first place in the market or dedicated to fighting for first place, each episode will deliver proven advice you can apply that day to improve your sales results.

Join us every week.  Email us your comments, feedback, real-life challenges in the marketplace and desired topics for us to cover and we will deliver sound advice you can use. ALL comments are welcome.

Feel free to reach out to us via the form below. You can reach either of us by calling 612-789-5700.

The WINNING AT SELLING Podcast is Globally Ranked in the Top 1% of all Podcasts. For some ranking information, check out ListenNotes.com.(https://www.listennotes.com/podcasts/winning-at-selling-bill-hellkamp-and-scott-vi60qX2kYrt/)*