Magnus Marketing Blog

This is true story. Recently, I was out there again prospecting to find a replacement client for a client that departed. The departure was under VERY GOOD terms, in fact, not only did they get leads, but thanks to the work I did - realized that they had to go back to the "drawing board" with respect to strategy and sales/marketing tactics.

I had received a call from a sales rep for an HR related solution. He articulated the solution very well and was quite knowledgeable, however, in the course of discussion he indicated that finding the right decision-makers at times (not all the time) was difficult. They marketed a tool designed for job boards. I actually referred this guy to Arbita where I felt there may be some value and mentioned another person I knew who ran a niche job board.

Not long after that, I lost my client. So I thought, the value proposition was very compelling for this solution - why not reach out to the company (which happens to be start-up/small business) and see if I too can help them. Maybe I could support the rep or take a territory or work with them in some capacity. Not only do job boards exist publicly, but within corporations. I am very well versed in talent acquisition thanks to my association with Shally Steckerl and Arbita, boy do I know stuff!

To make a long story short, I had a discussion with the VP of Sales. Even after telling him that I would have zero difficulty quickly getting on the phone, finding the right people, and presenting a compelling value proposition that can SELL their solution. He told me NO. This is what he said.

We already work with Mr. Salesguy who is part of an outsourced company (read: telemarketing firm), this firm has a process, and they have very comprehensive reporting. I give them a list of X number of companies and within 3 calls they convert it. Their reporting is great, they tell me how many connects, voicemails, and dials made down to the detail. They are also providing market feedback on pricing, which has been critical. If I don't provide these detailed reports to the management, boy, my head will roll. Plus, with this firm, I can ramp up and down...in fact, we were thinking of stopping the prospecting because our inside sales people have too much, they need to work on what they have. We are very transactional, this is a transactional sale, 1-2-3 and done. We also don't approach companies directly, a few have come to us, but we won't go after them. But hey, we can keep in touch - my VP of Marketing uses people too, as I do also- maybe in the future. He also mentioned, "I have thirty years in sales".

Do I need to relate the mistakes here?
1. I know why you are experiencing such demand for your tool. This tool or add-on is of value in todays economic climate only. Trust me, as soon as it becomes an employee's market - no one will want your tool. Plus, there could be some liability associated with it. Hm. Today and for the short term, you will have immediate interest and buyers - whatcha gonna do when that shifts?
2. Why can't you add me as a resource? So, you have another company that can ramp up and down, yah - me too. The difference is, I actually really know your industry and can quickly find and convert buyers - that means I pay for myself and can bring a little more info to the table than "pricing". Ya never asked me about my background in detail or why I feel so strongly about selling your solution. Trust me, I know where to go and who to contact. (But they have too much business)
3. Too much to work on? Stopping the prospecting? This is guy who clearly is clueless about lead management, sales management, and management generally. In thirty years, wouldn't you know to only hand off qualified, closeable leads to your team and have them close them? Something is wrong if they aren't closing the leads and "have too much to work on".
4. Too much business? Today you do, for a start-up while you don't want to stretch people to th wall (as my former employer did), there are ways to accommodate more demand. Use commission reps who close and can be equally ramped up and down.
5. Pricing. Why didn't you know this before you went to market or talk to people about what pricing would work? You waited until you built up a team of people to "discover" what pricing would work? Market research is a nice thing to have.
6. Activity reports mean qualified business? Now again, tell me how leaving X voicemails and X connects means revenue? If there are too many leads to work on, doesn't sound like there is tangible revenue. HM.

Well, I didn't call the guy back or send any further information. In about a year, he will be terminated probably because that activity being measured didn't translate into effective dollars or if they do stop the pipeline, it took months and months at a loss to rebuild. Maybe then, if I remember them - I might reach out, maybe then - they will have learned.