Wednesday, May 26, 2004
What Does it Take to Sell Successfully to Enterprises?
Very few firms get venture funding. In fact many VCs want to see that you can generate sales BEFORE they invest. This creates a catch 22. If you need VC money to get sales and need sales to get VC money. (Talk to Venlogic to evaluate your preparation and likelihood of receiving VC funding.) You have a better chance if you focus on your sales and marketing issues instead.
The most important issue in pitching a big company is why they are buying. In the last 15 years I have started four start up companies and sold over $50M in services to large companies. I have closed sales from seminars, cold calls, alliances, RFQs, trade shows, alliances and field sales. Only one thing really matters: your impact on their business performance. This and this alone will ultimately determine not only whether they buy, but the price they pay. This is the core of your value proposition.
Whether or not you have VC funding is more about you than about them. Which is more powerful: "Hi, you should buy from us because we are venture funded." Hi, we can improve your return on assets, reduce bad debt, increase revenue per customer, etc." You have to link your message directly to something that they give a damn about.
A separate issue in selling to big companies is getting access to a decision maker and getting that decision maker to discuss his or her business performance issues with you. To do this you need to be knowledgeable (if not expert) about the market, the industry and the company.
Your marketing objective ought to be to create this type of visibility and reputation in the market. Alliances, channels, seminars, articles, blogs, publications, studies, trade shows, etc. All can be effective if you change the conversation in both your sales and marketing approach.
Scott Karren, The Channel Pro
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Very few firms get venture funding. In fact many VCs want to see that you can generate sales BEFORE they invest. This creates a catch 22. If you need VC money to get sales and need sales to get VC money. (Talk to Venlogic to evaluate your preparation and likelihood of receiving VC funding.) You have a better chance if you focus on your sales and marketing issues instead.
The most important issue in pitching a big company is why they are buying. In the last 15 years I have started four start up companies and sold over $50M in services to large companies. I have closed sales from seminars, cold calls, alliances, RFQs, trade shows, alliances and field sales. Only one thing really matters: your impact on their business performance. This and this alone will ultimately determine not only whether they buy, but the price they pay. This is the core of your value proposition.
Whether or not you have VC funding is more about you than about them. Which is more powerful: "Hi, you should buy from us because we are venture funded." Hi, we can improve your return on assets, reduce bad debt, increase revenue per customer, etc." You have to link your message directly to something that they give a damn about.
A separate issue in selling to big companies is getting access to a decision maker and getting that decision maker to discuss his or her business performance issues with you. To do this you need to be knowledgeable (if not expert) about the market, the industry and the company.
Your marketing objective ought to be to create this type of visibility and reputation in the market. Alliances, channels, seminars, articles, blogs, publications, studies, trade shows, etc. All can be effective if you change the conversation in both your sales and marketing approach.
Scott Karren, The Channel Pro
0 comments
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