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Jimmy Cheng, RE Investor

80/20 Theory - Salespeople vs. Franchise Owners: Why Most Salespeople Fail, and What They Can Learn from Franchise Success


🚀 “You get what you put into something!” 🚀

If you're one of the 80% of salespeople wondering why you haven’t reached the top yet, this blog is for you. Whether you're in real estate, insurance, or any other sales-related field, this isn’t about patting you on the back for trying—this is about why you’re not where you could be. And let me tell you something bluntly: Good money in means good money out.


So why do most franchises, like McDonald’s or Dunkin’ Donuts, succeed while the majority of salespeople struggle to stay afloat? It all boils down to two key elements: investment and systems. Let’s dive in, and don’t worry—I’ll zing a few wake-up calls to get you thinking seriously about your career.


The Franchise Mindset: Why Do They Succeed?

Franchise owners don’t just luck into success. They don’t buy a McDonald's franchise and hope it works out. They follow proven systems, invest in technology, and know exactly what works based on decades of trial and error. And the numbers speak for themselves:


  • McDonald’s: Boasts a 99% success rate among franchises. That’s practically bulletproof in the business world.

  • Dunkin' Donuts: Has over 11,300 locations worldwide, with franchisees operating under structured systems that have been fine-tuned for decades.

  • Burger King: With over 18,700 locations, the franchise's global success comes from its brand, marketing, and streamlined processes.


When you compare that to salespeople, especially in industries like real estate and insurance, you see a stark contrast. According to a study by the National Association of Realtors (NAR), 87% of real estate agents fail within the first five years. For insurance salespeople, the National Alliance of Insurance Education & Research found that 80% leave the industry within the first two years.


What’s the difference between the franchise owners and the salespeople who are struggling?

It’s the mindset. Franchises invest in themselves from day one, whereas most salespeople believe they can succeed just by having a license. That’s the first mistake.


Why Most Salespeople Fail: 🛑 The "License Is Enough" Myth 🛑

Let’s be brutally honest: most salespeople think, "If I get my license, I can build a business." But having a license alone is like buying a McDonald's without following the recipes, systems, and brand guidelines. Would you buy a Big Mac from someone who “kinda” followed the formula? Of course not!

Instead of leveraging tools, systems, and strategies, most salespeople wing it, hoping their charm and product knowledge will close deals. Well, newsflash: Hope is not a business strategy. And let’s face it—your charm won’t save you if you don’t have a plan.

Here’s where salespeople fail:


  • No systems: You need a reliable system for prospecting, following up, and closing deals.

  • No marketing budget: You’re not investing in yourself or your brand.

  • No tech: Do you even have a CRM (Customer Relationship Management) tool in place to track your leads? If you’re still juggling business cards and sticky notes, that’s a problem.

  • No discipline: You’re waiting for business to come to you rather than proactively seeking it out.


CRM
SYSTEMS - PROCESS - DISCIPLINE

Franchises Follow Systems – And You Should, too!

Why do franchises like Burger King, Dunkin’ Donuts, and McDonald’s succeed? They follow systems. Everything is a blueprint, from how to cook the fries to how to clean the counters. In fact, 92% of all franchises are still operating after five years, compared to only 50% of independent businesses.


What can salespeople learn from this?

You need to create systems for your business. Don’t reinvent the wheel every time you make a sale or talk to a prospect. Automate as much as you can, create workflows, and adopt technology that makes you more efficient.


🚨 Real Talk Alert 🚨: You may think you're "saving money" by avoiding tech, but you're actually wasting money by losing deals because you're not organized. Investing in the right CRM can be a game-changer. It helps you manage relationships, track follow-ups, and automate tasks that would otherwise eat into your time.


sales people
Bring it On!

The Salesperson's Excuse Handbook: Where the Mental Attitude Needs to Change

Now, let’s talk about some of the biggest excuses salespeople make:


  • “I don’t have the time.” — If you don’t have time to invest in learning and building systems, you’ll have time to look for a new job soon.

  • “I don’t have the budget.” — Funny how you find the budget for new gadgets or a vacation, but not for your business.

  • “I don’t like using technology.” — That’s like a franchise owner saying, “I don’t like following recipes.” You think the CEO of Burger King gets away with that?


The difference between a failing salesperson and a successful one is mindset. Franchise owners think like business owners. They know their success isn’t just based on their charm or effort; it’s based on leverage. They leverage systems, invest in marketing, and most importantly, they view their business as an investment, not a hobby.


What Salespeople Can Do Today to Succeed Like Franchise Owners

You don’t need to buy a McDonald’s franchise to apply franchise-like principles to your sales career. Here’s what you can do today to start moving in the right direction:


  1. Adopt Technology 💻Get a CRM—like, yesterday. If you don’t know where to start, try affordable options like HubSpot, Zoho, or Salesforce. A CRM helps you manage your clients, stay on top of follow-ups, and track your progress. You need to stop relying on memory and start relying on data.

  2. Set Aside a Marketing Budget 📊Whether it's $100 or $10,000, you need to put some skin in the game. Franchise owners invest heavily in marketing because they know that more visibility equals more business. If you're not willing to spend money on your own marketing, how do you expect to get noticed? Make Facebook ads, Google ads, or even Instagram marketing a part of your monthly budget.

  3. Leverage Social Media 📱Social media is a powerful tool to grow your brand, but too many salespeople treat it like a hobby. Stop posting sporadically and start being intentional. Share valuable content, offer advice, and build a community. It’s free marketing—use it!

  4. Create Repeatable Systems 🛠️Ever notice how your morning coffee at Dunkin' Donuts tastes the same no matter which location you visit? That’s the power of repeatable systems. In your business, this could mean having a set routine for how you handle new leads, a script for your phone calls, and a workflow for follow-ups.

  5. Invest in Education and Training 🧠Franchise owners receive extensive training on how to operate their business. Why should sales be any different? Invest in sales training, attend workshops, and continuously work on your craft. The top 1% of salespeople never stop learning.

  6. Set Goals and Track Results 📈A franchise measures everything—costs, profits, customer satisfaction, you name it. You should be doing the same with your sales efforts. Set daily, weekly, and monthly goals for new leads, follow-ups, and closed sales. Track everything. What gets measured gets improved!


If You’re in the 80%, This Blog is Your Wake-Up Call ☕👀

Most salespeople aren’t planning to fail; they’re failing to plan. Don’t wait until your business is on life support before you make changes. Start investing in yourself today. Success isn’t something you can “luck into,” just like franchise owners don’t cross their fingers and hope their McDonald's turns a profit.


They follow the systems, they invest, and they make it happen.

So, if you're ready to stop coasting and start building a business that lasts, follow the blueprint. Adopt a franchise owner’s mindset, invest in systems, and start treating your sales career like a business, not a gamble.


💥 Zing! 💥 It's time to wake up and get real. You can either be part of the 80% that could do better, or you can take the steps now to join the top 20% who are crushing it. The choice is yours.


Personal Disclaimer:

Hey, before you get insulted or frustrated, just know that everything I’ve shared here is my personal opinion, based on my own experiences and struggles. I’m not here to point fingers or tear anyone down. My hope is that this motivates you the same way I’m constantly challenging myself to live by these beliefs every single day.


Trust me, there are plenty of mornings I wake up feeling like I can’t do this. It’s not easy, but I know that by paying the price now, I’m building something bigger—not just for myself, but to leave a lasting legacy for my family. So, take this as a push in the right direction. If I can keep going, so can you. 💪

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