Law of Averages in Sales Definition

People in sales, especially people in direct selling, talk a lot about the law of the average. You`ll hear that people attribute their successes to the law of the average and are less likely to blame it for their setbacks. Still, understanding the average law can have a valuable impact on your sales. You`ll start to wonder if sales is the right career for you, start looking for other jobs and maybe even think about coming back. If there was one secret that really helped me make more sales, it would be this one. This led me to many doubts and I almost decided to give up selling and crawl into the fetal position and breastfeed. For example, if you don`t make presentations one day, the law of the average says you won`t make sales. If you give ten presentations per week (with an average completion rate of 50%), the law of the average says you have an average of five sales! The law of the mean does NOT guarantee a result for a small sample, but states that over time you will see a very consistent result with a sufficiently large sample. In this example, you try to increase the probability of a rare event occurring at least once by performing more experiments. For example, a job seeker might argue, “If I send my resume to enough places, the law of average says someone will eventually hire me.” Assuming a non-zero probability, it is true that conducting more studies increases the overall probability of the desired outcome.

However, there is no specific number of studies that guarantee this outcome; On the contrary, the probability that it has already happened, but never quite reaches 100%. If you practice the law of average, you can make more money and close more transactions. This secret has helped me through tough times, especially when I`m in crisis and can`t generate sales. You see, the law of the average is your friend. He is your guide, he is your bearer of hope in a sea of sadness and frustration in sales. There are many strategies that can be used to make sales, especially if you have to do it in person and have little to no budget for ads. One strategy I learned from Jim Rohn that you can apply just about anything, from sales to marketing to life in general to be more successful, is the law of the average. If you want to learn more about how to increase your sales, read my free book here. Personally, I think you need a philosophy, strategy, or guide to navigate the treacherous waters of sales. Once you understand how the law of the average works, you can start making it work for you.

Here are three simple steps to start the law of the average to improve your sales: Here is an illustration that shows an example of the law of the average for a new (less qualified) seller versus the curve for an advanced (better qualified) salesperson. Using a “bell-shaped curve,” you can see that the novice salesperson who has made eight sales presentations closes an average of three deals (in this example). If the novice seller sells EXACTLY the same way for two or three years, they should expect to close three out of eight for a closing rate of 37.5%. The law of average can be applied to almost every area of life where you can track your average success down to the failure rate. The first step, as mentioned earlier, is to find out what that rate is and develop better skills through continuous trial and error to improve your success rate. If you want to make 2 more sales, you only have to talk to 20 people and so on. The law of averages is a strategy you can apply to cases where failure is not only possible, but likely, and your skill level is not high enough for the context to reach a consistent level of success. The other benefit of believing in the law of the average teaches us to ACCEPT that bad things would happen that we can`t control, even if we were very well prepared and had everything in order.

Like the story of the Sower and the Grim Reaper Now that you know your average personal law, you can get to work to achieve your sales goals. The more doors you see, the more sales you`ll make – you now have a clearer idea of how many doors you need to see to reach your numbers. Finding people who are willing to invest their money in your business idea is another area that can benefit a lot from the law of the average. Presenting an idea is very similar to the sales process. When we present an idea to potential investors, we are actually trying to sell them the idea that the product we hold in our hands will bring them great rewards. So, as in the sales example, there is also an ability to present an idea to potential investors, and if done incorrectly, it can lead to the death of a potentially good idea.