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Sales Strategies for Ambitious EntrepreneursGraham McFarlandAbbreviated PresentationTech Ranch - Austin TX                ...
2
PassionI can judge passion in the first :10• Passion is contagious• Wear it on your sleeve• Never takes a day off         ...
“If people only knew how hard Iwork to gain my mastery, it wouldn’tseem so wonderful at all.”– Michelangelo               ...
Meet Your First VP of Sales                                     You• selling the vision• building a team• establishing the...
Relationships Matter        6
Relationships Matter“Life is relationships; the rest isjust details.”         – Gary Smalley, author                   7
Customer  8
Customer                        •   ConsumerWho gets the most       •   SMB value from the         •   Enterprise    produ...
By the Numbers• Consumers  • 238M over 18  • 50.8% Female  • 16.7% Hispanic or Latino  • 120M Households• SMB  • 10M small...
By the Numbers• Enterprise     • $453B to $4.8B in revenue     • Down to $1.7B in revenue     • Down to $2M in revenue    ...
By the Numbers• Not for Profits    • 1M with $25K+ in fundraising• Government  • City – 30K  • County – 3.1K  • State – 50...
Product                              •   WidgetsAn item that satisfies        •   Subscriptions  what a customer          ...
All Products Have Lifecycles                 14
Price                             •   Neutral    The amount a             •   Penetrationcustomer pays for the        •   ...
Making Money on Apps               •    Paid               •    Free               •    Freemium               •    Advert...
Making Money on Apps        17
Making Money on Apps        18
The Value Proposition1. Make More Money2. Save Money   Cheaper or Saves Time3. Get Smarter   Better data or intelligence  ...
PromotionAll of the methods of        •   PR communication that          •   Advertisingthe marketer may use         •   T...
Place                             •   RetailProviding the product        •   Web  at a place which is        •   Distribut...
Cold CallingInstead of contacting random people who willnever buy your product, create and enact systemsto uncover the peo...
Here’s Where They Go• Search the Web = search advertising, landing  pages, SEO• Trade Shows = exhibit, speak or sponsor• M...
Cold CallingCold calling destroys your status as an equal andmakes you appear needy and desperate. Youmust present your se...
Cold Calling70% of sales were made on the 1st appointment23% of sales were made on the 2nd appointment7% of sales were mad...
Website & Email$100,000 revenue goal                         =   1,000 customers$100 avg. rev per customer   1,000 custome...
How to Get LeadsOne to Many•   Email Campaigns•   Guerilla Blogging•   Speaking Opportunities•   Search Advertising•   Tra...
Guerrilla Blogging• Set up Google alerts  – Competitors, industry    keywords, product    keywords, thought    leaders  – ...
Search Advertising• Google• Bing• Yahoo!Start small, no magic bulletTest, retest and test again!                        29
Trade Shows - Exhibitor• Expensive!• Great way to get qualified  leads• Great way to learn the  industry and get connected...
Social Media1.Blog2. Facebook    MUST HAVES on Day 13. Twitter4. LinkedIn5. Tumblr6. Pinterest   NICE TO HAVES save for la...
How to Get LeadsOne to One• Business Development• “Useful” Networking Events• Tradeshow-Attendee                       32
“When I am getting ready to reason with aman, I spend one-third of my time thinking about myself and what I am going to sa...
Business DevelopmentMake a Hit List• Strategic Partners• Large “Brand” Customers (Whales)Do the Research• Understand their...
Business DevelopmentDon’t Act Desperate• Business by desperation is a losing game• Always come from a position of strength...
“Always look ahead and above yourself.Always try to improve on yourself. Alwaysstrive to elevate your craft. Thats what he...
Sales Process37
Sales ProcessA series of customer-focused steps that your salesteam can use to:   • Substantially build your customer base...
ProspectingGenerating qualified leadsGoal: identify a qualified decision maker, or make anally in the company who can help...
QualifyingYou and the customer are sizing eachother upGoal: convince the decision maker to move aheadwith an in-depth eval...
ProposalCustomer has narrowed down thecompetitionGoal: demonstrate the value your business canprovide the company through ...
DecisionNegotiation is critical – don’t let it turn agood deal to a bad oneGoal: facilitate deals that are beneficial to b...
Repeat BusinessBuild a long-term, profitable relationshipGoal: follow-on sales, referrals and testimonials                ...
Types of Salespeople• Transactional:         those that simply wait for the transaction to                         make th...
Types of Salespeople      45
Key Sales Positions• Founders Must Sell!• VP of Sales ideal to work along with  Founder (develop sales process)• Sales peo...
When to Hire• As soon as you can afford to; and• as soon as you have something to sellA good salesperson will pay for them...
Where to Find Them• Top Talent Knows Top Talent•   Competitors•   Companies You Admire•   Social Media    •   LinkedIn, Tw...
The Posting•   Write a job description•   Require up front:    •       Resume – background    •       Cover Letter – commu...
3X3 Interview GREAT sales people know how to turn an “interview” into a “discussion.”First: Let them sell youSecond: Chall...
3X3 Interview• Meet 3 different times in 3 different locations  – Meet in office  – Meet for coffee  – Meet for a meal  Yo...
Sales Compensation  Base salary (security)                         Your top salesperson may be+ Commission (reward)       ...
Sales Hiring Red Flags•   Salesperson who tries to negotiate their base    salary•   Salesperson who doesn’t try to negoti...
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Coffee is for Closers - Abbreviated

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Sampling of the topics covered as part of the one day intensive Coffee is for Closers sales seminar for entrepreneurs. See www.coffeeclosers.wordpress.com for more information

Published in: Business

Coffee is for Closers - Abbreviated

  1. 1. Sales Strategies for Ambitious EntrepreneursGraham McFarlandAbbreviated PresentationTech Ranch - Austin TX 1
  2. 2. 2
  3. 3. PassionI can judge passion in the first :10• Passion is contagious• Wear it on your sleeve• Never takes a day off 3
  4. 4. “If people only knew how hard Iwork to gain my mastery, it wouldn’tseem so wonderful at all.”– Michelangelo 4
  5. 5. Meet Your First VP of Sales You• selling the vision• building a team• establishing the unique selling/value proposition for the customerYou can’t teach it to others unless you do it yourself 5
  6. 6. Relationships Matter 6
  7. 7. Relationships Matter“Life is relationships; the rest isjust details.” – Gary Smalley, author 7
  8. 8. Customer 8
  9. 9. Customer • ConsumerWho gets the most • SMB value from the • Enterprise product • Not for Profits • Governments 9
  10. 10. By the Numbers• Consumers • 238M over 18 • 50.8% Female • 16.7% Hispanic or Latino • 120M Households• SMB • 10M small and medium size businesses 10
  11. 11. By the Numbers• Enterprise • $453B to $4.8B in revenue • Down to $1.7B in revenue • Down to $2M in revenue 11
  12. 12. By the Numbers• Not for Profits • 1M with $25K+ in fundraising• Government • City – 30K • County – 3.1K • State – 50 • Federal – 1 12
  13. 13. Product • WidgetsAn item that satisfies • Subscriptions what a customer • Licenses needs or wants • Apps • Services 13
  14. 14. All Products Have Lifecycles 14
  15. 15. Price • Neutral The amount a • Penetrationcustomer pays for the • Forward product • Skimming • Cost Plus • Value Based What is the Total Cost of Ownership? 15
  16. 16. Making Money on Apps • Paid • Free • Freemium • Advertising • In App PurchasesPremium pricing only works for established premium brands Going from paid to free will result in a huge bump China is not a market that likes to pay for apps 16
  17. 17. Making Money on Apps 17
  18. 18. Making Money on Apps 18
  19. 19. The Value Proposition1. Make More Money2. Save Money Cheaper or Saves Time3. Get Smarter Better data or intelligence 19
  20. 20. PromotionAll of the methods of • PR communication that • Advertisingthe marketer may use • Trade Shows to provide info to • SEO different parties • Personal Selling about the product • Word of Mouth 20
  21. 21. Place • RetailProviding the product • Web at a place which is • Distribution convenient for • Referral Programs customers to access • Strategic Partnerships 21
  22. 22. Cold CallingInstead of contacting random people who willnever buy your product, create and enact systemsto uncover the people who want to buy yourproductWhen they are looking where do they go? 22
  23. 23. Here’s Where They Go• Search the Web = search advertising, landing pages, SEO• Trade Shows = exhibit, speak or sponsor• Meetups = attend, speak or sponsor• Referrals = join associations, volunteer• Inbound Calls / Emails = contact info clearly on web page 23
  24. 24. Cold CallingCold calling destroys your status as an equal andmakes you appear needy and desperate. Youmust present your self as an equal at the veryminimum and preferably as a superiorEdusales vs. Aggressive sales?A good salesperson never actually sells but just educatesthe customer to the point that they sell themselves 24
  25. 25. Cold Calling70% of sales were made on the 1st appointment23% of sales were made on the 2nd appointment7% of sales were made on the 3rd and afterBut 50% of his time was spent chasing the 7%Don’t waste your time – move along! 25
  26. 26. Website & Email$100,000 revenue goal = 1,000 customers$100 avg. rev per customer 1,000 customers = 20,000 leads 5% conversion rate 20,000 leads = 800,000 website visitors 2.5% conversion rate 26
  27. 27. How to Get LeadsOne to Many• Email Campaigns• Guerilla Blogging• Speaking Opportunities• Search Advertising• Tradeshows-Exhibitor• Social Media 27
  28. 28. Guerrilla Blogging• Set up Google alerts – Competitors, industry keywords, product keywords, thought leaders – Read articles and find related posts – Post comments on blogs and articles cleverly mentioning your product, value proposition, website 28
  29. 29. Search Advertising• Google• Bing• Yahoo!Start small, no magic bulletTest, retest and test again! 29
  30. 30. Trade Shows - Exhibitor• Expensive!• Great way to get qualified leads• Great way to learn the industry and get connected• Good for personal introductions and building long-term relationships• Primarily for finding Whales and establishing credibility 30
  31. 31. Social Media1.Blog2. Facebook MUST HAVES on Day 13. Twitter4. LinkedIn5. Tumblr6. Pinterest NICE TO HAVES save for later7. Google+ SKIP IT 31
  32. 32. How to Get LeadsOne to One• Business Development• “Useful” Networking Events• Tradeshow-Attendee 32
  33. 33. “When I am getting ready to reason with aman, I spend one-third of my time thinking about myself and what I am going to say and two-thirds about him and what he is going to say.” – -Abraham Lincoln 33
  34. 34. Business DevelopmentMake a Hit List• Strategic Partners• Large “Brand” Customers (Whales)Do the Research• Understand their business – do not assume anything• Identify decision makers 34
  35. 35. Business DevelopmentDon’t Act Desperate• Business by desperation is a losing game• Always come from a position of strength • Fast growing • Always busy • On the roadDon’t Rabbit Hole 35
  36. 36. “Always look ahead and above yourself.Always try to improve on yourself. Alwaysstrive to elevate your craft. Thats what hetaught me.” – Yoshikazu Ono, son of Jiro Ono Jiro Dreams of Sushi 36
  37. 37. Sales Process37
  38. 38. Sales ProcessA series of customer-focused steps that your salesteam can use to: • Substantially build your customer base • Generate repeat business • Increase revenue Repeatable and Scalable Requires preparation, rehearsal and practice 38
  39. 39. ProspectingGenerating qualified leadsGoal: identify a qualified decision maker, or make anally in the company who can help you reach thedecision maker 39
  40. 40. QualifyingYou and the customer are sizing eachother upGoal: convince the decision maker to move aheadwith an in-depth evaluation of your solution 40
  41. 41. ProposalCustomer has narrowed down thecompetitionGoal: demonstrate the value your business canprovide the company through successful completionof the evaluation plan 41
  42. 42. DecisionNegotiation is critical – don’t let it turn agood deal to a bad oneGoal: facilitate deals that are beneficial to both yourcompany and the customer 42
  43. 43. Repeat BusinessBuild a long-term, profitable relationshipGoal: follow-on sales, referrals and testimonials 43
  44. 44. Types of Salespeople• Transactional: those that simply wait for the transaction to make their sale AKA Order Takers quickly building rapport with the customer and often gets• Relational: sales because the buyer likes them enough that they become the deciding factor in the sales process AKA Schmoozers• Closers: those who are always trying to close the deal on a sale. AKA Closers genuinely thrive off of the problem-solving aspect• Consultants: of their job, listening to customer needs and helping them find a solution to their problem AKA Experts 44
  45. 45. Types of Salespeople 45
  46. 46. Key Sales Positions• Founders Must Sell!• VP of Sales ideal to work along with Founder (develop sales process)• Sales people (only when process is implemented)• Marketing manager (biz dev role)• Hunters (never good managers)• Farmers (like to cultivate) 46
  47. 47. When to Hire• As soon as you can afford to; and• as soon as you have something to sellA good salesperson will pay for themselvesquickly – if they don’t either too early orwrong salesperson 47
  48. 48. Where to Find Them• Top Talent Knows Top Talent• Competitors• Companies You Admire• Social Media • LinkedIn, Twitter, Facebook• Start-Up Focused Job Posting Sites • Startuphire.com • Hotstartupjobs.com 48
  49. 49. The Posting• Write a job description• Require up front: • Resume – background • Cover Letter – communication skills • Why they would like to work for a startup • Salary Requirements – don’t waste time • 3 References Trash any that are not complete! 49
  50. 50. 3X3 Interview GREAT sales people know how to turn an “interview” into a “discussion.”First: Let them sell youSecond: Challenge them with a taskThird: You sell them, close the deal 50
  51. 51. 3X3 Interview• Meet 3 different times in 3 different locations – Meet in office – Meet for coffee – Meet for a meal You see the potential sales person in 3 unique situations and you see how they respond not only to you but to others waiter, barista, colleague 51
  52. 52. Sales Compensation Base salary (security) Your top salesperson may be+ Commission (reward) the highest paid in the company. Results = Reward+ Benefits (gravy)+ Stock options (fuzzy upside)= Total Compensation the whole package 52
  53. 53. Sales Hiring Red Flags• Salesperson who tries to negotiate their base salary• Salesperson who doesn’t try to negotiate their commission or bonus• Salesperson who doesn’t want the word “Sales” in their title• Salesperson who isn’t willing to include their personal cell phone number on their biz card 53

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