Phone Sales Still Work

Shaan Puri shares his discovery about the effectiveness of phone sales in modern e-commerce, challenging his initial skepticism after interactions with successful businesses using this model.

Key Points:

• Phone Sales Success:

  • 30% of sales close over the phone for some major e-commerce brands
  • Example: Boom by Cindy Joseph (reportedly $80-100M/year revenue)
  • High-ticket items like saunas ($6,000+) often require phone sales

• Sales Rep Structure:

  • Commission-based model
  • American-based sales representatives
  • Flexible hours (taking calls as late as 8 PM)
  • Performance varies:
    • Good day: 4 sales
    • Bad day: 0-1 sales

• Customer Experience:

  • No direct "buy" button on website
  • Must speak with sales representative
  • Builds trust quickly through conversation
  • Helps customers make informed decisions

• Business Model Insights:

  • Commission structure makes it profitable
  • Network of sales representatives
  • Representatives work on availability basis
  • Only get paid when they close sales

• Learning Process:

  • Initially skeptical about phone sales effectiveness
  • Discovered through personal experience buying a sauna
  • Applied learnings to own e-commerce business considerations
  • Questions whether this model could work for lower-priced items