For those of you who don’t remember high-school chemistry, or didn’t major in electrical engineering in college like my buddy Mike, let’s quickly define these terms.

ATOMS - An atom is the smallest, fundamental unit of ordinary matter that retains the chemical properties of an element. Atoms are incredibly small, make up all physical substances, and consist of three main subatomic particles: protons (positive) and neutrons (no charge) in the nucleus, surrounded by electrons (negative).

AKA, atoms are the building blocks of everything we see & touch.

ELECTRONS - An electron is a stable, negatively charged elementary subatomic particle that orbits the nucleus of an atom. As a fundamental constituent of matter, it is not composed of smaller particles and carries a charge. As I remember from high school, electrons are the part of the atom that move around a lot and effectively create a negative electric charge… I think.

For this conversation, let’s just know that electrons are the building blocks of technology. Every electrical system, microchip, and computer fundamentally operates on the flow and control of electrons.

*** And yes, for the nerds who read my newsletter, I know that electrons are part of atoms, but I think you’ll get where I’m going here in a moment.

I’m going to use these terms to categorize the difference between us humans, who are atoms, versus computers & technology, which are electrons. My friend, author, and brilliant thinker Christopher Lochhead, more about him in a future newsletter, describes this a different way when comparing our current societal dynamics.

He classifies people into two categories, ‘Analog Natives,’ versus those of us who are ‘Digital Natives!’

He argues that most people over 40 years of age are ‘Analog’ or ‘in-real-life’ first, while many Americans under 40 are ‘digital natives,’ or value their ‘on-line life’ more!

As I discussed in Newsletter #3, ‘How to Combat a Contactless Society’ I talked about how technology companies are making the push to make the human experience, and in-person connection, a BUG, and not a FEATURE.

Especially when it comes to sales jobs, the financial services industry, and the push towards digital-first FinTech companies, we humans are just so last century.

Human interaction, meeting face-to-face, being out in public, interacting with prospects in person, and doing sales training in person are frequently frowned upon in the current business environment in which we find ourselves.

I wholeheartedly disagree with this thesis. But many sales professionals, and the companies they work for, have fallen for this trap. I call it the…

“SaaS Trap”

The exponential rise in enterprise value of Software-as-a-Service (SaaS) businesses over the last few decades has, sadly, distorted the strategic focus of sales professionals, sales leaders, and the companies they work for.

Consequently, many companies, like the ones I’ve worked for in the mortgage, real-estate, and financial planning industries, have felt compelled to try and replicate this high-valuation SaaS model. Sales organizations that have traditionally relied on ‘atoms,’ that human connection, great customer service, & long-term relationships, have pushed towards a more ‘digital-first’ business model!

The desire to try to replicate the success of SaaS companies is rooted in an understandable frustration! Consider a bank or mortgage company.

These are organizations instrumental in helping millions of clients accomplish major life goals like homeownership and financial independence, while managing thousands of employees and complying with extensive government regulations.

And…

This same company is valued at less than a software company that allows you to schedule TikTok posts or manage your OnlyFans account!!! I can see how that would be infuriating for business leaders, and create some desire to move your business from atoms (personal connections) to electrons (more and more digital connections & processes).

Thinking from the perspective of a company that sells financial services, why invest time and money into personal relationships, face-to-face meetings, and humans… when the big winners in business are the companies who have turned everything into an online portal, often with no way to even talk to a human!

Trust me, get locked out of your Facebook, Google account, or CRM, and let me know how long it takes you to get a human involved to try to fix the problem!

But recently, there are major cracks in the foundation of these SaaS companies, and I believe we sales professionals need to start reevaluating how we do business. Many of these SaaS companies are having a moment of financial reckoning due to..