In this episode of Sharpen Your Axe, Mike Hardwick, Churchill Mortgage founder and president, and Matt Clarke, COO/CFO of Churchill, discuss how Mike gained his entrepreneurial spirit and learned the importance of being positive during the sales process.
The “40-10-5-2” RuleHave you ever heard of the “40-10-5-2 Rule?” It originates from Bill Cochran, a one-time general manager for Northwestern Mutual Life Insurance in Nashville, Tennessee. Bill tried to recruit Mike to join him in the life insurance business and Mike was racking his brain trying to figure out why. At the time, Mike worked at First American Bank and knew very little about insurance. After listing several great qualities Bill saw in Mike and flattering him, Bill explained that he believed Mike would listen to him and taught him all about this valuable rule.
Begin your week with a list of 40 people who you’re expected to make a verbal connection over that coming work week.
After making those connections, 10 of those people will allow you to take it a step further and share a presentation (in person).
Out of those 10 people, 5 of them will allow you to follow-up with another presentation.
And out of those 5 people, 2 of them would buy your product.
To boil it down, Bill explained that Mike would have to make 40 calls to get 2 sales, which means you’ll hear 38 no’s or objections along the way! This rule was a turning point in Mike’s career and helped teach him the importance of positivity during the sales process.
Part of learning how to sell something is figuring out how to deal with the many “no’s” along the way and then be able to see them in a positive light. Each “no” gets you closer and closer to a “yes!” With that attitude, you can be successful in sales and endure when others quit.