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How Not To Sell Software in 2012

al3x.net

121–130 of 142 posts

Re: How Not To Sell Software in 2012

#121
Sales guy here. Here's my response.

Don’t require that I waste my time on a sales call – or, worse, in a “webinar” – before I can give you my money. Instead, provide all the information I need about your product on your website.

We'd love to. The truth is it is the customers who ask for demonstrations, walk-thoughs and tours of the software. I spent weeks training to learn how this software works, who it is a good fit for and who it is not a good fit for. It's simply not realistic to think every product can be explained on a website and comprehended without misconceptions. Also, a robust software suite has many, many user needs. Creating a web site which is custom tailored to each need type is a very high permutation.

Don’t make it hard for me to try your software. If I can’t play with a trial version or sandbox immediately, I’m moving on.

Don't assume you know how to use it and can make an adequate evaluation in that 2 - 10 minutes you will spend on the trial version. Also, the purchaser is often not the same person as the user. I want them on the phone as well to make sure they have the need and skills to utilize what I have to sell. If you buy something that is a poor fit, I may have your money now but you will bury me with support and complaints later on. That's not worth it.

Don’t hide your pricing behind a sales process, and don’t play pricing games. I can find and talk to your other customers basically instantly in order to determine what they paid for your product and if they’re getting the value they expected from it. I will do this. So just put the price of what you’re selling on your site and skip the games.

How much is a website? Just tell me how much it costs to build a web site and skip the games. /snark. How much is a house? It depends on if you are talking about an outhouse or the White House. I don't know what kind house you want when you are looking at our site. Also, if you could teach everyone to do that competitive research you claim to be able to do, I would appreciate it. If all customers could become as educated as you claim you can become before buying my stuff, I'd be printing money.

Don’t make me read a whitepaper in order to get essential information about your product. Put it on your website. In HTML. Not in a PDF, not in Flash, not in Silverlight or ActiveX or whatever. What your product does, on your website, in HTML.

That's just a way to collect your contact info to follow up. It is a poor method. I am in sales and I am not giving anyone my contact info for a white paper either. But if you are getting something of value from me, I want something from you.

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.

If you went through the white paper form mentioned above, you probably never read the text next to the submit button saying "okay to contact me". Businesses should not use this method, consumers should not patronize it.

Don’t make it hard for me to talk to a technical person at your company about the nitty gritty details of how your product works. If you don’t provide a forum for those discussions, someone else will, and you won’t control it.

Sure, you can speak with my development folks. You and everyone else who wants to know how we built what we built before spending a single dollar with us. Also, don’t assume that your sales person doesn’t know. Ask them. If they can’t answer your question, they should be able to find the answer quickly. If they can't, you just learned you shouldn't buy their product. Move on.

Don’t make it hard for me to pay for your product. I have a credit card. I also have a PayPal account, a Google payments account, and an Amazon payments account. Any of those are fine (although PayPal is not ideal). Any other billing process is not.

If I charge $10,000 for something, I'm not going to give PayPal a cut of that as well. Also, you having access to those payment methods doesn't mean you have the authority to use them. I've been burned by that quite a bit.

This should go without saying, but don’t cold call or spam me. If your product is good and meets my needs, I promise that I’ll find out about it.

This is just a pollyanna way of looking at it. Spam is wrong, nothing to debate with on that. But yes, I will cold call you if I identify you as someone who may need what I have. If you don't want my product, don't ask me to call later, don't refer me to the intern to while away the hours with pointless questions. Just say no, you are not interested. I will listen and be happy to move on to the next customer.

Re: How Not To Sell Software in 2012

#122
post #101

There's no software priced between $1000 and $75,000. I'll tell you why. The minute you charge more than $1000 you need to get serious corporate signoffs. You need a line item in their budget. You need purchasing managers and CEO approval and competitive bids and paperwork. So you need to send a salesperson out to the customer to do PowerPoint, with his airfare, golf course memberships, and $19.95 porn movies at the…

This was even untrue when Joel wrote it in 2004. If you're a small to medium sized business either in 2004 or in 2012 you pay in this price range for: - Site-wide MS Office licenses - Site-wide Adobe licenses (around 3000 a pop, I believe, so that's a LOT of licenses before you hit 75,000) - SAP Business One - or another ERP package aimed at small to medium sized business (AFAS comes to mind, but I'm sure there are o…

Joel is using a tool called "exaggeration" in this piece to make it more poignant and funny. You might have heard of that ;-)

Seriously though: many of those software licenses are still below say $5000 per license/head/..., and they are very standardized run of the mill software. The article still holds: if you're running a dev shop on MS technology, you won't need manager approval and a sales process to buy Visual Studio or MS SQL, and the same goes for MS Office or Adobe products in a design company.

Re: How Not To Sell Software in 2012

#123
post #13
post #9

There is this space between "personal" and "enterprise" where this model works. Call it "startup" or "small business". I want something, I have a credit card, I buy, I move on. The less hassle the better. But in real enterprises, I don't have a credit card. I don't even have authority to purchase. (There is a whole department named "procurement" for that.) But I need to see "sales decks", do webinars, talk to salesme…

Spot on. As an example of just how ridiculous it gets, we recently drafted an RFP for a solution for licensing our custom-made software to our customers and had a vendor come in with their solution. When it came time to discuss pricing, their response was "we charge based on the amount of revenue you'll be getting from the software...so just tell us how much money you're going to make from your software and we'll get…

I don't see what's wrong with this. If I have something that can make you $100M, why shouldn't I sell it to you for more money than if it would make you $100k?

Re: How Not To Sell Software in 2012

#124
I've once worked in a company on the other side of this. I needed a particular piece of software for work that was ~$50 on Amazon, with a $10 rebate, and something like $60 when bought from their website directly. They had a trial, and buying it was as easy as giving them your credit card number.

Now the company I worked for had a policy to only obtain computery things through a supplier, which would be a local vendor or shop selling this software. The trick is, nobody does that for some random software on the interwebs that's only $50. The purchasing process itself also cost something like $700 for any individual invoice.

So two minions and a purchasing manager set off on a journey to find a supplier for this software, with my boss, my office manager, and me constantly nagging them, as it was urgent. After two weeks they came back and said it was sadly impossible to buy this software. We ended up shipping our software late due to the delay, and buying the tool from Amazon, expensing it as a book.

Moral of the story: the old BigCos indeed force this behaviour out of suppliers.

Re: How Not To Sell Software in 2012

#125
post #75

There's no software priced between $1000 and $75,000. I'll tell you why. The minute you charge more than $1000 you need to get serious corporate signoffs. You need a line item in their budget. You need purchasing managers and CEO approval and competitive bids and paperwork. So you need to send a salesperson out to the customer to do PowerPoint, with his airfare, golf course memberships, and $19.95 porn movies at the…

"There's no software priced between $1000 and $75,000." Although there are annual licences sold within this range (nearly all of our contracts are). Companies grok SaaS, whereas they probably wouldn'y have in 2004. We do all of his wrongs, but we don't sell to small companies.

>We do all of his wrongs, but we don't sell to small companies.

I have no real experience with big companies. Could you educate me on a few points? In particular, it strikes me as odd that these would be any different from consumer to small company to big company:

Don’t hide your pricing behind a sales process

Do people shopping for solutions for big companies not have any idea what their budget is? I understand there are always details to work out in the sales process on deals like these, but it seems to me that immediately knowing that your product costs five times what I'm supposed to spend would save your sales people some time.

Don’t make me read a whitepaper in order to get essential information about your product. Put it on your website. In HTML.

A web page with a URL that isn't a mile long seems like about the easiest way there could be to read about a product and share what you've read with other people in your company. Why would you not do this in 2012?

Don’t make it hard for me to talk to a technical person at your company about the nitty gritty details of how your product works.

I know a lot of times, technical people aren't the ones making the buying decisions, but is it rare for them to be involved? It seems like some easily accessible technical information could really speed things up when the purchasing guy asks the tech guy "will this actually work for us?", or is that not how things are done?

I can think of sensible reasons people would violate the author's other demands when smaller companies aren't the target market, but these seem universal. Since I might some day make things I want to sell to bigger companies, I'd really like to understand what I'm missing.

Re: How Not To Sell Software in 2012

#126
post #95

Earlier quoted context omitted.

Gasoline is a poor choice of benchmark. Energy prices aren't really a proxy for inflation. http://www.wolframalpha.com/input/?i=core+inflation+from+200...

> Gasoline is a poor choice of benchmark. Energy prices aren't really a proxy for inflation. Core inflation is also a poor choice. My housing costs are fixed, so the variation that I see is in the things that core inflation excludes.

I am not sure that I understand your mention of housing costs. Doesn't core inflation exclude housing costs as well?

Re: How Not To Sell Software in 2012

#127
post #125
post #75

Earlier quoted context omitted.

"There's no software priced between $1000 and $75,000." Although there are annual licences sold within this range (nearly all of our contracts are). Companies grok SaaS, whereas they probably wouldn'y have in 2004. We do all of his wrongs, but we don't sell to small companies.

>We do all of his wrongs, but we don't sell to small companies. I have no real experience with big companies. Could you educate me on a few points? In particular, it strikes me as odd that these would be any different from consumer to small company to big company: Don’t hide your pricing behind a sales process Do people shopping for solutions for big companies not have any idea what their budget is? I understand ther…

You're thinking about buying "big business" enterprise software like buying a cell phone or any other off-the-shelf commodity. Don't do that.

It's more akin to buying a house. You've got to find one of many that satisfies your unique needs. You've got due diligence to do. You've got negotiations. You've got an entire purchasing process to follow that is externally imposed. You may have renovations to make before you can move in and need estimates on that.

A website can cover generalities, but the reality is that enterprise products are big, complicated, and (generally) are not purchased by technical people, although technical people may be involved in part of the review process or requirements analysis.

The only process more complicated is selling to the government.

Re: How Not To Sell Software in 2012

#128

Earlier quoted context omitted.

You sure seem to know a lot about how busy I am and where my priorities lie.

He knows a lot about how busy people feel and where the priorities of most people lie, as expressed by their actions, as measured, rather than their words. He doesn't know a thing about you in particular and doesn't care, because he needs to get it right for most of his customers. Not every single one of his customers. If you don't accept these facts about email marketing, as annoying as the situation may be, you are…

He knows a lot about how busy people feel and where the priorities of most people lie, as expressed by their actions, as measured, rather than their words.

So he's able to "measure" how many people don't buy from his company because they make it too difficult to evaluate their products? That sounds like a highly marketable skill in itself.

Re: How Not To Sell Software in 2012

#129
post #125

Earlier quoted context omitted.

>We do all of his wrongs, but we don't sell to small companies. I have no real experience with big companies. Could you educate me on a few points? In particular, it strikes me as odd that these would be any different from consumer to small company to big company: Don’t hide your pricing behind a sales process Do people shopping for solutions for big companies not have any idea what their budget is? I understand ther…

You're thinking about buying "big business" enterprise software like buying a cell phone or any other off-the-shelf commodity. Don't do that. It's more akin to buying a house. You've got to find one of many that satisfies your unique needs. You've got due diligence to do. You've got negotiations. You've got an entire purchasing process to follow that is externally imposed. You may have renovations to make before you…

I don't think I'm missing that point. To use your analogy, if I was buying a house:

1. I want to see prices when I browse listings. This is fairly normal in real estate, even though prices end up being somewhat negotiable. Why not in enterprise software?

2. I want a decent amount of information before I even pick up the phone or write an email. If you were listing houses for sale, it would be foolish not to include some photos, the location, the size and number of rooms, etc.... I don't want this information in a mixture of PDFs, MS Office files, flash animations and such. I want HTML pages that are easy to read, copy data from and email to others.

3. If I'm buying a house, I probably want to see such things as inspection reports and maintenance records. These things should be fairly easy for me to get even if they're not on the public website.

Someone explained to me that one reason companies selling enterprise software are so eager to get someone on the phone to sales rather than browsing the website is that they then feel they have something invested in the process and are less likely to back out[0]. Having always been the nerdy type, this idea was very foreign to me, but it seems to be true from what I know of the average person. I also learned from an early age how to recognize and respond appropriately to salespeople trying to use emotional and psychological tricks to manipulate me. I sometimes have an unreasonable expectation that others will do the same.

[0]This is a variation of the sunk cost fallacy.

Re: How Not To Sell Software in 2012

#130

There's no software priced between $1000 and $75,000. I'll tell you why. The minute you charge more than $1000 you need to get serious corporate signoffs. You need a line item in their budget. You need purchasing managers and CEO approval and competitive bids and paperwork. So you need to send a salesperson out to the customer to do PowerPoint, with his airfare, golf course memberships, and $19.95 porn movies at the…

Are you kidding me? SFDC is $125 a month per user. Even a small company is paying $15K a year for their licenses. Salesforce is doing okay.

Yes, but their pricing is published and you can easily sign up online.
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