Sales 101 For Your Start Up


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Presentation given by Mark LaRosa, CEO of QuotaCrush and Jeff Stewart, CEO of UrgentCareers on 2/19/2009

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  • Started as a programmer – founded my own start-up – quickly moved into sales Been doing sales for over 15 years for start-ups and other small and growing companies Built sales teams – and never missed quota
  • Sales 101 For Your Start Up

    1. 1. Jeff Stewart / Mark I LaRosa
    2. 2. <ul><li>Type of customer and product drives type(s) of sales functions needed: </li></ul><ul><ul><li>Marketing </li></ul></ul><ul><ul><li>Inside Sales / Telesales </li></ul></ul><ul><ul><li>Outside Sales </li></ul></ul><ul><ul><li>Business Development </li></ul></ul><ul><ul><li>Account managers </li></ul></ul><ul><ul><li>Hunters vs Farmers </li></ul></ul>
    3. 3. <ul><li>Base </li></ul><ul><li>Commissions </li></ul><ul><li>Draw </li></ul><ul><ul><li>Recoverable / Non-recoverable </li></ul></ul><ul><li>Bonus </li></ul><ul><li>Quota / Accelerator </li></ul><ul><li>SPIF (Sales Promotion Incentive Fund) </li></ul><ul><li>OTE (On Target Earnings) </li></ul>
    4. 4. <ul><li>Deals currently being worked in </li></ul><ul><li>various stages </li></ul><ul><li>More calls = more leads = more sales </li></ul><ul><li>PR is best = qualified leads </li></ul><ul><li>Outsourced lead-generation </li></ul><ul><ul><li>Hourly / Success-based </li></ul></ul>
    5. 7. <ul><li>Ask for the sale </li></ul><ul><li>No gives the chance to ask why? </li></ul><ul><li>No can mean: </li></ul><ul><ul><li>Not now </li></ul></ul><ul><ul><li>Not in that way </li></ul></ul><ul><ul><li>Not at that price </li></ul></ul>
    6. 8. <ul><li>If I… will you…. </li></ul><ul><li>Good Cop – Bad Cop </li></ul><ul><li>End of quarter pushes </li></ul>
    7. 9. <ul><li>Manage to metrics </li></ul><ul><li>Ultimately expect results </li></ul><ul><li>Let comp plan do the heavy lifting </li></ul><ul><li>Press on accelerating the close </li></ul><ul><ul><li>Flush out deals that are not real </li></ul></ul><ul><ul><li>Don’t let salespeople trend to the easier conversations </li></ul></ul>
    8. 10. Where is your customer?
    9. 11. Who should you target?
    10. 12. Don't worry, others have blazed this path!
    11. 13. The Problems <ul><li>Who to sell to? (Sniper or shotgun?) </li></ul><ul><li>How do you “cross the chasm” (see: Geoffrey Moore) </li></ul><ul><li>Do you market or sell? (Answer: Both) </li></ul><ul><li>When should you get your first customer? (Answer: Yesterday) </li></ul><ul><li>How do you get your first customers? </li></ul><ul><li>When and how do you hire someone to focus on revenue? </li></ul>
    12. 14. So where is the IP? <ul><li>What to sell </li></ul><ul><li>Who to sell to </li></ul><ul><li>How to sell </li></ul>Your enterprise value should skyrocket once you figure out:
    13. 15. Don't Forget To Call! SEO is great, but there is no substitute for the awesome feedback that comes with rejection.
    14. 16. Observations “ There is a strong correlation between more salespeople, more sales calls, and more sales” “ Scale sales as fast as possible, but don’t scale sales till you know your head from your foot.” “ It is risky to more than double the size of any sales force”
    15. 17. Finding Sales Hires <ul><li>Finding great salespeople is often the biggest bottleneck for a growing company </li></ul><ul><li>Failed salespeople are often the biggest waste of capital </li></ul><ul><li>The right sales team can mean life or death for a startup </li></ul><ul><li>Great sales people are easier to manage </li></ul><ul><li>250 > 25 > 10 > 1 </li></ul>
    16. 18. Growing the Team <ul><li>The first 5 hires are critical (missionary sales) </li></ul><ul><li>The next 50 can be less entrepreneurial </li></ul><ul><li>Most companies find that only half of their sales hires succeed </li></ul><ul><li>In startups, great salespeople often outperform their mediocre peers by at least 150% </li></ul>
    17. 19. Finding Sales Candidates <ul><li>55% of sales professionals are in the wrong occupation 1 </li></ul><ul><li>Sales professionals that are </li></ul><ul><li>job-matched outperform their counterparts by 40% and are twice as likely to stick 2 </li></ul><ul><li>Make sure you know what you are looking for. </li></ul>1. Croner, Christopher and Richard Abraham, Never Hire a Bad Salesperson Again, Inner Workings LLC, 2006. 2. Greenberg, Herbert and Jeanne, ”Job Matching for Better Sales Performance,” Harvard Business Review no.80505 20% 25% 55% C Players Should not be in sales at all A Players Top Performers Account for 80% of Sales B Players Should be selling elsewhere
    18. 20. What To Always Look For: <ul><li>Drive, Motivation, Discipline and Goal Orientation </li></ul><ul><li>Communication skills </li></ul><ul><li>Relationship building skills </li></ul><ul><li>Persuasiveness </li></ul><ul><li>Ability to handle rejection </li></ul><ul><li>Intelligence </li></ul><ul><li>Enthusiasm </li></ul>
    19. 21. How to Source and Screen: <ul><li>Define your requirements upfront, and revisit often </li></ul><ul><li>Look everywhere for candidates </li></ul><ul><li>Get referrals form friends and investors </li></ul><ul><li>Interview within multiple settings and dynamics </li></ul><ul><li>Don’t cut corners </li></ul><ul><li>Always check references </li></ul>
    20. 22. Don't Cap The Upside <ul><li>Sales is not for the faint of heart </li></ul><ul><li>It’s often feast or famine </li></ul><ul><li>Reward your stars handsomely </li></ul><ul><li>Fire underperformers quickly </li></ul>
    21. 23. Strong sales will let you negotiate <ul><li>More sales lets you turn away business </li></ul><ul><li>Customers provide feedback to development </li></ul><ul><li>Reference accounts lead to more business </li></ul><ul><li>Investors and Shareholders value revenue. </li></ul><ul><li>Revenue is a precursor to profit. Profit is society’s way of saying “your business is a success.” </li></ul>