The Instant Success Trap

Statistics show that 80% of the people who win large lotteries (over a million dollars) are actually worse off financially 5 years later. One of the reasons is that they have acquired instant financial success without understanding the principles of accumulating and maintaining wealth. Inside they often feel that they will have yet another windfall. High risk investments, poorly chosen financial advisors, over generosity with family and friends often leads them to financial ruin. Sound investment strategies, the ability to manage cash flow and healthy levels of caution and even mild paranoia are tools we all need to succeed financially yet often after a big win people are overoptimistic about how soon the next one is coming.

The same stands true for Casinos, the people who get the “gambling bug” are often the ones who at some time had a big winning streak. A friend of mine used to go gamble at the Casino while he went to college, he would go in with a couple hundred dollars and usually make and additional $150 playing Spanish 21. Then one night he made $15,000 playing Spanish 21 and he only started with $500.00. For many months after that he would return and lose as much as $4000.00 a night waiting for another big win. What he soon realized was he was hedging his bets on a deal that wasn’t easy to duplicate, in fact he was rather unskilled at the game. The debt he racked up gambling was almost the size of his student loan by the time he got his degree. Beginners Luck!

I had a sales manager when I began my sales career sit me down with a very gloomy look on his face within three months of working there. His concern was my relatively instant success. My monthly sales quota was $25,000 in advertising sales, and within a two week period I closed one deal for $210,000.00 within three calls and another deal for $50,000 within two calls on the client.

His concern was that I hadn’t really even developed a strong routine or sales process, and both deals came from people I had previous relationships with. He warned me that the next couple of deals may not just land in my lap and that it takes a plan and the discipline to follow that plan that will create long term success. I looked at him as if he had three heads, and explained to him my background and ability to network into these deals using skill of persuasion and in-depth knowledge of the advertising industry (all 90 days of it)!

My next month I landed a deal for $20,000.00 and the following I battled to hit $10,000.00; he was right. My motivation plummeted, and so did my credibility. Once my ego was deflated back to mortal proportions, I emotionally limped back into his office and meekly asked about that sales process he mentioned.

It took me several months to begin busting quotas again. This time it was with a sound process and with less stress on me. I had learned the true process of not just hitting the big numbers but how to maintain them. When those large deals came in again, I didn’t look at them as the mainstay of my commissioned income but a bonus, realizing that I have to actually eat between those large deals that come every three months.

Sometimes instant success also comes out of acute situations or circumstances that can’t be predicted. My large advertising deals came about as a result of a sudden flurry of Venture Capital investments in a certain industry sector, once the investing slowed so did the ad dollars. All of us have many opportunities like this in our career, and big wins are healthy, as long as we don’t base our business model or long term sales strategy on it. When the well dries up, do we have a strategy in place to replace these revenues?

Here’s a few quick questions to ask ourselves to ensure that we aren’t headed into the Instant Success Trap:

1. Is the majority of my sales coming as a result of an acute or short term circumstance that could shift or change in the near future?

2. If I have been winning big lately do I understand how I did it? Is this something that can’t be duplicated in the future?

3. Am I just hoping that the business will keep rolling in like it has been, even though I am relatively undisciplined in my sales process?

4. Is my business highly profitable yet has little to no competition in the marketplace?

5. Do I consider myself luckier than I am talented or disciplined?

If you answered yes to two or more of these questions your long term success may be in jeopardy. Here are a few ideas to ensure that you continue to succeed:

1. Firstly short term success is great, as long as we see it for what it is. If you know the economy is extra hot, and what you have to offer is selling like crazy I have two pieces of advice:

a. Keep your expenses at pre-boom levels, that way you can bank your new found windfall and be ahead of the game when the market returns to normal.

b. When you’re hot and those deals of rolling in with little work it’s not time to coast, take advantage of this finite boom time and sell harder and longer. I’ve seen people experience great success in business and right in the middle of the gold-rush they go on a well deserved holiday, only to return and find the rush is over. You’ll have lots of time to rest, plan, and holiday when the flurry of selling slows. When your on a roll, go faster and harder!

2. Often these unexpected successes come from places we didn’t expect. Firstly keep selling in your traditional sectors and client groups in case this new niche has a short life, also see if you can use this as a learning experience to help you identify other niches or hidden opportunities in the future

3. Understand the difference between a “Business Model” and a “Deal.” A Business Model is a long term profitable offering of a product or service to a specific market or markets, and long term success is assured by having a unique and competitive offering. A Deal, is just that, someone or a group of people need something you have, it may not be unique but opportunity has met preparedness and you fulfilled the order, putting some cash in your pocket. This is not a business model, resist the temptation to build a business around the deal.

4. Lastly if you’ve been flying by the seat of your pants and succeeding, you may want to take a step back, put a strategy in place and get to know your market better to ensure your long term success.