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Systematizing Sales with Software and Processes

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Re: Systematizing Sales with Software and Processes

#41
post #38

Earlier quoted context omitted.

Sometimes you can service both. GitHub, Heroku, New Relic, CircleCI, are all examples that serve 6 and 7 figure contracts while also supporting tiny 1-person contracts too.

Did these companies start doing both or only after getting investment? It's a genuine question, I don't know. I'm guessing you need to reach a certain mass to be able to do real Enterprise sales.

Github self-funded through $9 to ~$250 a month accounts while they were building their behind-the-firewall product which they sell to enterprises.

You need to have a certain mass to be able to sell six figure a year deals to a true Enterprise. I'd ballpark that mass as 90 lbs or so. They'd hire a software engineer who was 110 lbs soaking wet for $100k a year though, right? So clearly that engineer succeeded in an enterprise sales process at least once.

People tell me that that's different, but it is and it isn't. I closed my first (small) enterprise deal for AR, for a consortium of over a dozen hospitals (we got a tiny sliver of their appointments business), back when our run rate was below $2k a month. I felt pretty terrified about being on the phone with a VP they had around just to talk about HIPAA compliance, but no part of that conversation was a blocker to them doing the deal. (Long story short: I had done my homework on HIPAA and demonstrated that I understood what I was promising them. I then delivered it. The end.)

Re: Systematizing Sales with Software and Processes

#42
post #16

Earlier quoted context omitted.

I am happy to give you information (your rough quote) in exchange for information (learning about your need). That is a fair trade because while I can scale my product or service, I cannot scale my time. If I misallocate my time on customers who are not qualified, I starve. You are uncomfortable with this because you are not serious. When you are serious, when there is a real need and real value, this isn't an issue…

He specifically say "I had zero special requirements", so you should be able to give him an answer in less than 2 min. That's a low cost for potentially cultivating a lead.

No, he thinks he has zero special requirements. Outside the geekosphere, there are lots of people who think they have no special requirements, but actually want something that's physically impossible.

(I'm pretty sure there are people who look at (say) a satnav device and think "It should be able to find me the quickest route between all these 50 points in the city" is not a special requirement.)

Re: Systematizing Sales with Software and Processes

#43
post #19

Earlier quoted context omitted.

The eternal high-touch vs low-touch debate... Atlassian's whole sales system is to display the prices upfront and have no rebate. Last time I checked, their competitors (resp. IBM Rational and Microsoft Sharepoint) didn't grow by 35% every year for 10 years in a row. I needed an office for 2 people. With Regus you need to plan a call. I ended up at a coworking space, mildly satisfied with the noise, with a bill 70% h…

And nearly every "high touch" interaction with Microsoft and an enterprise using Confluence ends up converting to SharePoint. Full disclosure: I make my living on SharePoint, and (perhaps ironically in some reader's view) use Confluence and other Atlassian products to manage my business.

| And nearly every "high touch" interaction with Microsoft and an enterprise using Confluence ends up converting to SharePoint.

Converting, or just ending up with both? I've worked for two companies with both and neither product was ever going to replace the other. As your disclosure suggests, the Atlassian suite fulfills a different set of needs than SharePoint.

Re: Systematizing Sales with Software and Processes

#44
post #6

Thanks for the Close.io ( http://close.io/ ) shoutouts Patrick! If anyone needs help doing similar Close.io API integrations, feel free to reach out at phil@close.io - would be happy to help.

OT, but I'm on holiday in Laos at the moment and can't open your page. Other links work fine, albeit slow. Are you blacklisting certain countries?

Do you have a problem loading http://close.io or https://app.close.io/ or both? Shoot an email to support@close.io with details + your IP address please!

Re: Systematizing Sales with Software and Processes

#45
> my sales rep (who is very, very part-time)

Interesting. I'd definitely like to hear more about how this works.

> Ask me if you’re curious about going into depth on that — I might write an essay about it in the new year.

Yeah! Anything that lets me figure out support and sales better would be extremely welcome. I'd be very grateful if you found the time to write about it.

Re: Systematizing Sales with Software and Processes

#46
Personally, I giggle when anyone says that SaaS has changed the way enterprise or b2b software is sold (as opposed to delivered where it has made big changes) - I've been in the business for a while and most deals still require sales people and cocktail hours. This is especially true as the price tag goes up - when you're selling $1m deals, it is just about always done on personal selling basis.

With the exception of Atlassian, most of the low/no-touch companies I've seen are pretty limited in scalability - I don't know many that have reached a $100m in sales without having a traditional sales team. As another example, Mixpanel, which would seem to have a low-touch approach, is building a huge sales team. Zendesk is interesting - but I know they've got salespeople because we just negotiated with them.

I should also differentiate between those that show prices on their website or not - many show pricing - although it is often generalized. Many show pricing up to a certain level and then you have to talk to a rep - Mixpanel goes up to $24k a year and then you have to talk to a rep.

Would love to see more examples other than Atlassian if anyone has them.

Re: Systematizing Sales with Software and Processes

#47
post #5

Earlier quoted context omitted.

I'm on your side here with regards to that, but this story is exactly why your vendor can't do that to you. You know you have no special requirements. They don't know you have no special requirements. They also don't know whether you're serious yet. For better or worse, asking you to put something on your calendar and show up to it is a great way to verify whether you're serious or not: if you're not willing to make…

In the case I mentioned I wasn't serious at all - I was just putting feelers out and trying to gauge pricing across a few different vendors. A call at this point is probably wasting my time and theirs. For me, the stage after finding out a standard price is to perhaps have a call and determine if my requirements match up to the product. I guess it also depends on the size of the company, type of software etc. If the…

This is a clash of cultures: hacker culture and sales culture. patio11 has it exactly right.

The next time you find yourself in the situation of wanting a quick number, try it this way and you might get better results. When you make contact with the sales organization, communicate:

1. You have no idea what these things really cost.

2. You need just a non-binding, ballpark budgetary figure to the nearest $10K (or nearest $1K, or nearest $100) to find out if you can put it up for the budget.

3. You are not the purchasing decision maker, but do have influence (see below for variations).

4. A general idea of scope: how many users, seats, whether you are a DIY shop or you want to retain professional services for those things that need to be deployed, or whatever else you think will help the sales rep give you a rough sizing.

The vast majority of participants at HN do not have budgetary signing authority in the $50K+ USD range for a single purchase, and are not familiar with how the sales process works at this level. Indeed, many simply have no purchasing authority whatsoever, but do have influence ("my boss generally buys whatever I tell him to buy"). No offense, but the sales people don't want to really deal with you; they want to work with the people who can make a purchase decision. If you really do have purchasing authority, spell it out ("I can sign for the purchase", or "I sign for departmental purchases but it has to be approved by my division manager if it is above $X thousand", etc.).

Please don't lie about it if you don't have purchasing decision making power. In these days of ever-improving CRM systems, that simply hurts your co-workers when/if they contact the vendor again. The sales teams everywhere are getting increasingly better at remembering (with the help of CRM) companies who pull this stunt, and some are even remembering who told them; they might not drag their feet helping you, but you can be damn sure they're not going to bust their nuts digging through announcement lists and databases to find promotions or push special consideration to give you the best discount possible.

Re: Systematizing Sales with Software and Processes

#48
post #38

Earlier quoted context omitted.

> If you're going to run AR in a hospital for 1000 emergency surgeons, vs your run a 3 person beauty salon As you state earlier, there's some kind of bracketing going that matches certain service providers (saas or otherwise) to businesses. A 3 person beauty salon won't buy Oracle, but a hospital with 1000 emergency surgeons* would. How can AR fit both audiences then? Even if at its core it's the same service, all th…

Sometimes you can service both. GitHub, Heroku, New Relic, CircleCI, are all examples that serve 6 and 7 figure contracts while also supporting tiny 1-person contracts too.

And not coincidentally, they all target the same person - the developer. You can't generalize about selling to all people based on this specific persona.

Re: Systematizing Sales with Software and Processes

#49
post #28

The article mentioned "and S-1 filings of SaaS companies trying to IPO are, to many people, hilarious for this reason". Being outside of start up circles I was curious why this was hilarious.

Some recent S-1 filings have included numbers that show the company spending as much as two and half times their annual revenue on sales and marketing alone. Some argue that this may demonstrates and unsustainable business model, while others would say it's just an early stage startup and that it'll correct itself.

Splunk's been public for quite a while and is the same way. In fact, even eliminating their entire R&D wouldn't result in them being profitable.

Re: Systematizing Sales with Software and Processes

#50
post #43

Earlier quoted context omitted.

And nearly every "high touch" interaction with Microsoft and an enterprise using Confluence ends up converting to SharePoint. Full disclosure: I make my living on SharePoint, and (perhaps ironically in some reader's view) use Confluence and other Atlassian products to manage my business.

| And nearly every "high touch" interaction with Microsoft and an enterprise using Confluence ends up converting to SharePoint. Converting, or just ending up with both? I've worked for two companies with both and neither product was ever going to replace the other. As your disclosure suggests, the Atlassian suite fulfills a different set of needs than SharePoint.

My disclosure is that operating my business doesn't require SharePoint, that's all. I'm not "enterprise", I'm running a small business with one partner, and SharePoint is overkill for us.

But your point is well taken. To that point: many of our customers bring up migrating their content from Confluence and the like to SharePoint once they begin using SharePoint as a platform for other apps.

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