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Why Aren't Salespeople Running Software Companies?

bostinno.streetwise.co

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Re: Why Aren't Salespeople Running Software Companies?

#21

Post by thetrumanshow »

It is a fairly recent development that the tech industry has acquired ways to make building a v1.0 easier. And the salespeople are looking around now, clearly able to tell the extent to which you can execute v1.0 with C-Level talent, and wondering why so many companies are still run by software people.

The answer I believe is: because this all used to be much harder, and you had to rely on your engineers to pull you through some tough moments. I'm afraid this is becoming less true over time. The pendulum is swinging back from technical implementation, back through design, and the power is returning to sales and marketing, IMO.

HOWEVER, people who can engineer marketing outcomes... those guys will keep the power.

TLDR; Hie thee thither to up-market positions ye men of valor!

Re: Why Aren't Salespeople Running Software Companies?

#24

Post by nhebb »

I was given some advice 10 years into my career that I wish I'd heard fresh out of college. When you are interviewing with a company, learn as much as you can about the career backgrounds of the executives. It often dictates how much influence your department has on operations. Not surprisingly, the worst places I've worked had the biggest disparities between the president and the primary skill group needed to create the product.

It wasn't that these companies weren't profitable - some were, some weren't. They just weren't enjoyable places to work. When you have to explain or justify things that shouldn't need explaining or justifying, it really drains morale.

Re: Why Aren't Salespeople Running Software Companies?

#25

Post by chriswilliams »

magicarp wrote: post #12

> I'm brand new to the software industry and while I know nothing about software... Then why are you giving advice on how to run software companies?

Hey Magic Carp,

Chris Williams here, I wrote the article :) The reason that I feel I can provide advice is because I started a software company that has been profitable every step of the way, and now have ~400k in revenue in year 1.

The fact that I did not come from the software industry was A HUGE advantage, because most of the advice given is horrible.

Chris

Re: Why Aren't Salespeople Running Software Companies?

#26

Post by chriswilliams »

Hey Guys, My name is Chris Williams. I wrote the post :) If anyone wants to connect, I would love to. My email is chris@cammpus.com

My buddy just let me know that this post was picked up ~6 month late.

I'm looking forward to addressing everyone's comments.

The reason I'm qualified to talk about this is because I started a software company and have grown it to ~$400k in revenue and profitable in 18 months. Why? Largely, not listening to "startup" advice, and SELLING. It's key that this is a B2B company not selling to other software people (B2C and software-to-software sales are much different than B2B and software-to-outside-world sales)

Again, I'm my intent is not to insult the software industry, just say the most of the advice seems incomplete from my perspective.

Chris

Re: Why Aren't Salespeople Running Software Companies?

#27

Post by chriswilliams »

richardjordan wrote: post #14

We tried this before, as an industry. It didn't work. There's a reason investors pattern match away from sales people as founder & CEO of a startup. Sales people are often too good at selling themselves and not so good at getting product out the door. Selling ahead of the curve right up until the point you've burned your market with missed ship dates. Having done both sales (taken product to market leading position f…

Hey Richard,

I disagree. "Lean startup" (I've only skimmed, not read) is all about teaching coders to sell. Correct me if I'm wrong, no code should be written unless there is market demand.

The challenge is not selling ONCE you have a solid product, it's going from NOTHING to something.

Chris

Re: Why Aren't Salespeople Running Software Companies?

#28

Post by chriswilliams »

apapli wrote: post #18

Seriously, this article made front page from someone who openly admits he is not from the software industry yet questions how it operates? Simply put: Software companies aren't all the same. Some sell to consumers (B2C), others to businesses (B2B), and others sell to both. You won't find many B2C companies with sales people, due to the cost of sale outweighing the return from one customer. Oppositely you won't find m…

Apapi,

Agreed, all software companies are different. There is also a huge distinction between software-to-software sales (where the product design is more important) and software-to-outside-world sales. Most of our customers pay with CHECKS, yes, checks. They aren't software people so the design doesn't need to as good in the beginning.

Chris

Re: Why Aren't Salespeople Running Software Companies?

#29

Post by chriswilliams »

nbouscal wrote: post #7
orangethirty wrote: post #5

Yes, you should launch without a product. Yes, you should get orders. Yes to all of that. But you are missing an important thing. A lot of world changing companies out there started without a business plan, much less a sale. It was about trying to see what could be done with X. Sales people don't get this. Tech is not only about making a quick buck, but about creating new things altogether. Sometimes, those new thing…

Exactly. Salespeople fundamentally do not create. For those of us who are in technology not to build a 'successful' company or pad our bank accounts, but rather to create new things, none of what this guy is talking about really has any relevance.

Disagree. I have bills to pay, and this means selling.

Re: Why Aren't Salespeople Running Software Companies?

#30

Post by chriswilliams »

giffc wrote: post #17
magicarp wrote: post #12

> I'm brand new to the software industry and while I know nothing about software... Then why are you giving advice on how to run software companies?

agreed. It is pretty silly. When one has no experience, one should be willing to do a little more research first and talk to a few more experienced folks. There are many sales & marketing driven software companies. Sometimes it works, sometimes it is a disaster. Personally, I think that the trick is usually about finding the right balance between business, design and engineering, not putting one on a pedestal above t…

Giffc,

I agree it's about balance. I'm talking about ONE SPECIFIC time. That's going from $0 in revenue to $50k, without investment.

Chris

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