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How Not To Sell Software in 2012

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Re: How Not To Sell Software in 2012

#41
post #38
post #21

Earlier quoted context omitted.

Actually, I know of a number of products that are in the [1K, 75K] range. * Visual Studio 2010 Ultimate * vSphere datacenter edition * TestComplete from SmartBear * > 3 perforce licences

If you are paying list price for those then you are doing it wrong

Sure, but if you get 40% discount on, say, 10K, that's still over 1K.

Re: How Not To Sell Software in 2012

#42
post #14

Don’t automatically sign me up for a newsletter about your company or product when I give you my contact information. Ideally, don’t request my contact information at all until I’m giving you money. I agree with the first part -- always ask people for permission, probably by kicking them a sweetener (e.g. "1 month email course on X"). I have data that I cannot show you which is in you-could-run-your-company-on-just-t…

> "1 month email course on X" What's the advantage of being spammed for a month vs. having the entire month's course on an HTML page that I can peruse at my leisure and at my own pace? Or am I misunderstanding what an e-mail course is?

Yes, you are misunderstanding what an email course is. An email course is a daily or weekly reminder to you to keep using the product so that you'll be primed for the sales process. Given that your viewing of images will be tracked, it will also qualify your level of interest to the sales person that will be following up in person.

Re: How Not To Sell Software in 2012

#43
post #30
post #15

Earlier quoted context omitted.

Thanks, that is a great comment based on experience. Can you say more about your industry and/or path to success? What was most surprising? Do you have salespeople actively soliciting business or do most prospects find you? What advice would you give to startups planning to break into the b2b world?

gladly. i think the single biggest contributor to our success has been the fact that we are in close contact with our customers. if we lose a sale, we have the opportunity to learn why we lost. during a webinar, we hear the reactions of customers. with RFP's we get a list of the features they want. when we win, we stay close to them during implementation. we learn what works/what doesn't work with our products. based…

Would love to get your take on what sorts of online advertising has worked and not worked for you in building your company.

Re: How Not To Sell Software in 2012

#44
post #31
post #18

Earlier quoted context omitted.

Having spent the last year on a procurement project I agree, when it's millions of pounds at stake (much more in potential benefits) the sales process is necessarily protracted. However, I agree about the pricing games. In my experience, companies give a massive list price (but don't answer questions about how many companies actually pay that price - I figure none) and then argue the "discount" percentage. Stoney sil…

Do you know the price point at which purchase orders predominate over credit cards for payment? I'm launching a product soon and I plan to price it at $6k per year. I assume that the software will be paid for by PO but if anyone here has a different view, I'd like to hear from you.

You'll likely need to go the purchase order route. My software is priced around $2.5K and it seems to be the transition zone between credit card & purchase order (at least from my experience).

One interesting thing you'll notice is Amex is much preferred at higher credit card levels (e.g. $3K vs. $1K). If you plan on pricing your product above $1K and want to use credit cards, make sure you support AMEX.

Re: How Not To Sell Software in 2012

#46
post #14

Don’t automatically sign me up for a newsletter about your company or product when I give you my contact information. Ideally, don’t request my contact information at all until I’m giving you money. I agree with the first part -- always ask people for permission, probably by kicking them a sweetener (e.g. "1 month email course on X"). I have data that I cannot show you which is in you-could-run-your-company-on-just-t…

> "1 month email course on X" What's the advantage of being spammed for a month vs. having the entire month's course on an HTML page that I can peruse at my leisure and at my own pace? Or am I misunderstanding what an e-mail course is?

If you ask me for email, by definition sending you the email you asked for is not spam.

The advantages to the software purchaser:

1) You're a busy guy. If we critically hit you with a wall of text right now, you'll bookmark it and never get back to it. If you're honest with yourself, you know this, because you've got a backlog of things to read four miles long already. What's your RSS reader look like? Instapaper? I rest my case. So maybe giving you the highlights in a digestable format is a value add for you.

2) This is not a decision that is going to be made an instant -- there is an entire decisionmaking cycle, including research and shopping the solution you pick to your colleagues and experimenting and you get the general drift, which is likely going to take you real-life weeks. Your expertise on the problem area is currently "Not all that much" since you're only beginning the data gathering process. We can meet you where you are with the lesson for today, and when you're vastly more informed in two weeks (because learning this topic is, after all, your job) we'll send you more advanced information. Sure, we could drop everything we know on you right now, but you're not ready for it and reading it linearly will not make you ready for it.

3) Given that we're both businessmen here, we can both appreciate that we choose from mutually acceptable options, not all possible options. The software company has a lot of stuff available on the web pages for free, but if you want exactly the benefit this course is promising to you, then as a quid pro quo we would like your email address and permission to contact you. You, being a honest businessman just like us, are perfectly free to decline this offer, but if your counteroffer is "Give me all the goodies and I'll get back to you", our answer is "Not interested, thanks."

The advantages to the software company:

See above. No, really, the advantage is not "Score! We get to spam the heck out of Pavel!" We have copious data to prove that the statistical aggregate purchaser is overwhelmingly more likely to consume six emails in a month than he is to actually read a 20,000 word web page. We have surveyed buyers of enterprise software -- we know that many of them do not know what they want right now. We have had our sales reps talk to people, and we know that many of them expect to get handheld through this entire process. The email course gives the market exactly what it wants: information in a digestable, actionable format which will accomplish the goal of educating them and lead to measurable increases of qualified leads asking us to buy our software (or otherwise take the next step in the dance).

Re: How Not To Sell Software in 2012

#48
The truth is, most customers or end users for Big Software aren't capable of handling the process of researching, trying, deciding, convincing higher ups, negotiating, designing, implementing (or finding an integrator), and supporting it themselves.

If they think they are, there is an astronomically high chance something will be wrong. And you know who takes the blame for that? The company with the logo on the software that doesn't work right. That and the guy who did it wrong. The argument scales as the software and customer does, but it's still a truth. Unless your software is dead simple, if you give people enough rope they will cause problems. That prevents the company from more opportunities, makes the customer's life difficult, etc.

The solution to this is to be hands on as much as possible before things are implemented. Properly done, it's mutually beneficial spent time. It would be logical to compare the complexity of the product solution (see steps above) to the amount of pre-sales steps required.

Disclosure: Pre-sales engineer for big software/hardware

Re: How Not To Sell Software in 2012

#49
post #35

The problem with most companies that do this is simply that they want ultra-qualified leads. Truthfully, it's tough to determine whether a sign up is going to be worth $10 or $10K/mo. The other problem is, depending on the product, the sales cycle can be long. It's not that any B2B company wants to spam you, but it's that they want to remind you of their existence as much as possible so that when you start thinking a…

I was searching for a library that does something. I found various options, commercial (approx 7,000 per server)and open-source.

Getting my hands on one commercial library for testing was like pulling teeth.

1. Register for download which requires filling in loads of company information before being given access to a download.

2. Download the trial library (Only allowed to download either windows 32 bit, windows 64 bit, linux 32 bit or linux 64 bit..want more than one? tough)

3. (Wait 2 days) Sales guy sends me licence file (Forwarding the Salesforce "You have a new lead!" email no less which really annoyed me, "I am not a lead, I am a free man!") and I start testing the library

4. Find out the company I downloaded the library from (You can only download from their US based, English site) had partners in my (Non-English speaking) country so I got the sales guy speaking to me in a different language than what I expected (or wanted).

5. Asked to be put in touch with an English speaker because I had some technical questions.

6. (wait 1 days) Get an English speaker, ask some questions, get told they will be passed to technical guys

7. (wait 2 days) Get replies.

8. Ask about how I get the different library versions. Get told I have to re-do the ENTIRE process from step 1 just to get a different version of the library due to "Legal reasons".

So, it took 2 days just to get my hands on the library for testing and being told that I have to jump through more hoops just to get different versions.

Compare with the open source library:

1. go to sourceforge and download the library for any OS and start playing with it in about...oooh, 5 minutes.

2. Want to try a the library on a different OS? another 5 minutes.

3. Questions sent to the developer answered slightly faster due to not having to go through sales guy (although to be honest this was not a huge difference in response time).

The hassle of getting my hands on the commercial library soured me on the whole idea of using that company. If just getting an evaluation license is such an arse I do not see us having a happy relationship with the company had we bought the license.

--

On a side-note. I recently had to bug fusion-io because they had their webinars behind a registration wall. Really? You put your marketing information behind a closed door? I am researching your technology and I don't want to have to sign up to yet another site just to see some information.(Although to be fair they fixed this quite quickly after I had a moan at them on twitter)

Re: How Not To Sell Software in 2012

#50

I can guarantee you SpaceX has a very extensive onboarding stage with their customers, but I love how they have a no-bullshit pricing guide. http://www.spacex.com/falcon1.php#launch_and_placement Want placement on that rocket? 10.9 million regardless of who you are. From there, if you're a serious customer they'll begin the onboarding process. I love it.

Well that just isn't true. Here's what they actually say:

SpaceX offers open and fixed pricing that is the same for all customers, including a best price guarantee. Modest discounts are available for contractually committed, multi-launch purchases. Falcon 1 is the world’s lowest cost per flight to orbit of a production rocket. Falcon 1 Price: $10.9M Current plans are for payloads that would fly on Falcon 1 to be served by flights on the Falcon 9, utilizing excess capacity. This is a very cost-effective solution for small satellite launch needs.

So.. if you commit to using SpaceX more than once, you can negotiate a discount. If you are prepared to use a different launch vehicle, you get a discount. They offer a best price guarantee, so you can play them off against another company.

It's nice they have a list price, but to me that sounds exactly like the list price for Oracle: only suckers pay what is listed.

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