As most of you know, I’ve been blogging for a while, but I’ve been selling my whole life.
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As most of you know, I’ve been blogging for a while, but I’ve been selling my whole life.
Today’s guest blogger is Kelly Ward. Kelly is the owner of Digital K. Digital K is a professional web design company. Kelly loves web design, web development, online marketing and much more. She does not, as you will find out, love sales. You will love this post!
I hate sales. And I loathe salespeople. Like the lawn care technician yacking my ear off about aerating my
lawn. I despise the Best Buy HDTV salesman gauging my reaction to his prattling so he can plan his next
canned line about HDMI cables. I resent the Pottery Barn decorating consultant interrupting my 5-year-
old’s thoughts on My Little Pony hairstyles. And I detest the emails from SEO “gurus” telling me I really
need their service when clearly they have no clue that I offer that same service.
Our guest author is Don Battis, a savvy entrepreneur, businessman and financier that has a great story to tell about experienced salespeople using new technologies. He is currently the CEO and founder of Pawntique, an online pawn shop and serves as a director on the board of Great Island Technologies a Value Added Reseller for Box.net, Hubspot and Shopify.
As you may know, we’ve developed a Special Sales Development Program for Hubspot Partners. They’re kind of a busy group. They’ve got their own LinkedIn group. They talk a lot. Recently, I sent an email to the group and talked about the 80/20 Rule. It started a conversation and I wanted to share some more info with them, but I was surprised that I’d only mentioned it in one post.
So, first, let’s set the stage. One of the partners just closed a $2,500/month retainer. Great. He’s using what he’s learned. He still has 14 customers that pay him $100-200/month. He could get rid of all of them and make the same money as he did before he closed his new deal and save himself a lot of time every month. Or, he could find himself another good customer. If you really want to grow your business, you always need to be replacing your worst with your best yet.
Let’s go back to the 80/20 Rule again and look at some examples of the rule in action.
I remember Bob Jiguere telling me that his employer fired the bottom 20% of division managers every year. Didn’t matter if you grew. Bottom 20%…Gone.
Have you ever noticed that most of your customers just go along. No problems. Pay their invoices. 20% of your customers will give you 80% of your problems. Have problems with your billing. Make up their own payments terms. etc.
How many customers do you have? Look at the biggest customers. Are the top 20% biggest customers responsible for 80% of your revenue? Even if you sell a set price unit, you’ll find that your most important customers give you referrals, buy again, etc and are responsible for more than their share of your business.
So, let me show you how to grow your sales by 1,600% (That’s 20 times today’s sales.) using Dave Kurlan’s 100/0 rule. First, figure out which of your customers make up the top 20% and what they look like. Then replace the bottom 80% with more customers like the top 20%. When you finish that process, your business will be 4 times the size that it was when you started.
Unfortunately, the 80/20 Rule will kick in and you’ll have a new top 20% that will represent 80% of your business. As a matter fact, your top 20% will actually be 4 times the size of your original top 20% and when you replace the bottom 80%, your business will be 16 times where you started. If you want help with the math or the doing, let me know.
Originally, I was thinking about this title.
How to Lose Your Stake Holders, Best Customers and Evangelists
but I realized that some business owners don’t know that they have Stake Holders, Best Customers and Evangelists and they don’t know how important they can be.
So, what’s a Stake Holder? Look at this diagram. That’s a lot of people that depend on you doing a good job. Let’s focus on Customers. Your customers depend on you delivering, staying in business. You may be part of their offering. Your service may keep them up and running. Some of your customers invest their faith in you.
Who are your Best Customers? Are they the ones that buy the most from you? Are they the ones that pay you on time? Are they the ones that don’t complain? That appreciate your efforts? That thank you for being you? Have you thought about who your Best Customers are and what makes them best?
Evangelists: Compare this definition to some of these. Notice the similarities in the biblical and the business definitions. Religion, speading the word, way of life, love the cause, good news. Evangelists use, love and tell the world about what you do for them.
Have you heard of the 80/20 Rule? So, my simple explanation is that if you look at any business, club, association, or any other organization, 80% of the good will come from 20% of the members. 80% of your business will come from 20% of your customers. By the same token, 80% of your problems will come from 20% of your customers. (I try not to sell that 20%. and focus on the good 20%.) In any referral group, 80% of the referrals will be passed by 20% of the members. They get it. They believe. They make it happen. I know who my evangelists are. They believe in me. They do anything that I ask. They work on my behalf without me asking. All associations, whether they’re a chamber of commerce, charitable non-profit, or industry or trade group has members and donors that pay dues and make donations. Some pay big dues or make big donations. They’re important. Some members donate their time. They evangelize. They spread the word. They believe in the cause. They find new members and new donors.
So, you want a great business? Focus on the 20% that bring you the 80%.
You want to go out of business? Focus on the 80% that bring you the 20% and watch the Stake Holders, Best Customers and Evangelists go to your competition.
Although we all know Mark Zuckerberg as the founder of Facebook, Wikipedia also lists Eduardo Saverin, Dustin Moskovitz and Chris Hughes as founders.
One Sunday, we were talking and, before I knew it, the “bet” was on. Being 17 and not particularly bright, I had told them I could sell more than any of them that day. The race was on.
It was busy. I did not stop moving for about five hours. After the store closed, we ran the numbers on the cash register. I, the 17 year old, female, sales inexperienced, naïve, temp won by a respectable margin. I learned a lot that day about sales, myself, customers, and sales people.
Lessons Learned
As the song from the musical Gypsy says, “You gotta have a gimmick.” I was an adorable, slender, energetic, good-natured, smiling girl. The most important adjective is “girl.” That was my gimmick, and they had figured I was too inept to use that to my advantage. I was not flirtatious or suggestive in any way. For heaven’s sake, I was 17 and, for the most part, in the company of much older men. I did not have to be those things. I just had to be a “she.”
The second reason I was successful was far more important. I did not need the money. I was not depending on a paycheck that would reflect my sales success. It was just a game for me. The others in the department ate what they sold. They paid their mortgages, fed their families, and kept their households afloat. It mattered to them, and they were competitive. They needed to make those sales numbers, and they knew it.
That fact was critical. I did not need the money, and they did. That was the all-important, vital, important, essential reason I had succeeded. Being a girl was a gimmick, but not needing the money is what made the difference.
What that experience taught me was that if you want to succeed, you have to convince yourself it will not kill you if you do not. It needs to be a bit of a game. There are many important skills possessed by the successful sales person but that is, perhaps, the most important.
I think it is most closely related to a trait that makes for the most successful golfers. Every stroke has to exist alone. If it stinks, forget it. It is over and done. Do not let it haunt the next shot. If it is great, forget it. You do not want to be over confident. Each shot should stand on its own.
That is how each sale should be. You do not require it. It would be nice, but it is not going to change your life. When you are not desperate, you have a better chance of success.
This was just one of the lessons I learned from that job. If you are looking for real-life experiences that will help you do better at whatever you do, make sure you include a sales job. It will become an important part of who you are, and what could be a better recommendation than that?
Remember the Seinfeld episode about the “bad breaker upper“? Elaine is out with a date and a former girl friend throws coffee in her date’s face and says that he’s a bad breaker upper. Later in the episode, Elaine breaks up with her new beau and he calls her “big head”. Thus proving he’s a bad breaker upper.