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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?

#2
"My takeaways from exploring this topic and advice to other marketers that want to have software people work for them is:

1. Realize that you have the most leverage going from version 0 to 1.0. We're also best suited for software products that are not being sold to other software people.

2. Find out how to get traction without the help of any software person by using free and existing and doing things offline.

3. Have very specific goals for you market tests. Also, relay on something that is more tangible then "readers" or "users". Cash is the best kind of market research. These two posts are great about how to test markets and get pre-sales. Close your Sales Funnel and Sell a Product Before It's Ready

4. Build REAL RELATIONSHIPS within your market."

I think that you are talking more about starting a company rather than running a company.

Re: Why Aren't Salespeople Running Software Companies?

#4
This post gave me a headache. I guess yelling BLACK! WHITE! When something is a drab gray gets page views, but don't people get tired of having the same arguments? Incidentally, I think engineering culture is very important- the trick is to have engineering permeate and bolster strong sales and marketing, not to handicap one in favor of the other.

Re: Why Aren't Salespeople Running Software Companies?

#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 things can't simply be sold from the start. Sometimes they are not even defined. Just an idea.

Re: Why Aren't Salespeople Running Software Companies?

#6
post #4

This post gave me a headache. I guess yelling BLACK! WHITE! When something is a drab gray gets page views, but don't people get tired of having the same arguments? Incidentally, I think engineering culture is very important- the trick is to have engineering permeate and bolster strong sales and marketing, not to handicap one in favor of the other.

Right on with the black and white comment. Many technology/software companies are run by sales people. Check out Cisco or Oracle.

And if anyone wants to start a software company and run it from a sales or marketing perspective, they're free to do so! Nothing special prevents it.

But from my perspective, the author begins to answer his own question with the 'soft skills' musing. When people without measurable skills are in charge of things, you run a much higher risk of incompetence derailing the business. And even one or two average-competence people in leadership positions can make any organization inefficient.

Also, I think his point about quality being a secondary consideration to customers should be explored more. That point is only true when there is a high cost (be it time, money, or fear) to switching products, and thats where you see the sales based companies succeed. Software is often easy to replace, in relative terms.

Re: Why Aren't Salespeople Running Software Companies?

#7

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.

Re: Why Aren't Salespeople Running Software Companies?

#8
Yeah. Well, can all sales people run businesses?

Let's start from the basic questions: 1. How do you know X is more difficult than Y technically. How do you trust somebody who says X or Y? Should they sell you the idea because, ya know, you are a sales person?

2. What makes a sales person? Ability to sell a product A? Is selling A different from B? Do you specialize in A? How are you different from somebody who too can sell A? Do they need a degree to do it? Can our average car sales man do it? Yes or no, please give me your reasons..

3. Can you give me good examples of sales people running any other businesses? Businesses that, ya know, don't suck.

4. Salespeople usually do well in business where the technology is mature. Ya know, not long ago, there was this "fruit" company that was brought to its knees by a "cola" sales guy. And there is a Seattle company that is getting off rails slowly.

Re: Why Aren't Salespeople Running Software Companies?

#9
This article inaccurately lumps all software companies into one bucket. As rohamg points out, he makes a black and white argument about engineering vs. sales politics, while the reality is that this differs a lot by company.

In fact, many of the larger software companies seem to be driven primarily by sales (including, increasingly, Google).

At the smaller companies (incl. startups), it absolutely makes sense for engineering to be of primary importance. At this level, being able to constantly adjust to customers' desires is essential, and an engineering emphasis helps with that.

This also flies in the fact of the supposed arrogance of engineers. If anything, I think sales people are the more arrogant ones: they think customers just need to be sold on a product, while engineers understand iterating on feedback is key to growth.

Re: Why Aren't Salespeople Running Software Companies?

#10

Yeah. Well, can all sales people run businesses? Let's start from the basic questions: 1. How do you know X is more difficult than Y technically. How do you trust somebody who says X or Y? Should they sell you the idea because, ya know, you are a sales person? 2. What makes a sales person? Ability to sell a product A? Is selling A different from B? Do you specialize in A? How are you different from somebody who too c…

Answer to q3. Benioff (salesforce.com), Ellison (oracle), heck probably Ballmer as well, he certainly doesn't seem to get how to run product development.
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