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danwood

  • Dan Wood

  • Toronto

  • http://salesways.com

  • Helping organizations perform better by changing the way people think about sales.

Insights by danwood

  • How can I find a good sales person for my company when we can't afford to pay them until we start getting sales?

    Answered by Dan Martell – Founder & Investor.     Posted in Sales

    Great sales people eat what they kill. You shouldn't have to pay them - they should live of commissions. To hire this type of person you need to pitch the vision and the ... (more)
    Dan Wood
    In the earliest days of a start-up do you really need a high-paid sales person? No doubt you'll want dedicated and talented sales people soon, but in the earliest stages of a start-up--before you start getting sales as you say--you *are* the sales team. If you and your start-up are unable to get customers initially, is lack of a full-time salesperson really the roadblock to growth?
  • When drafting a business plan for a social network startup, how do you estimate revenue from advertising? How do you estimate the total size of the market (being that it s...

    Answered by Mark MacLeod – Partner, Real Ventures     Posted in Sales

    Don Dodge has a good post on estimating ad revenues (http://dondodge.typepad.com/the_next_big_thing/2009/07/page-views-required-to-generate-1m-in-ad-revenue.html). This is ... (more)
    Dan Wood
    Unless your network appeals to a very strong niche market that might pay top dollar for access to your members' attention you'll be getting $5 per 1,000 impressions of Google Adsense, like everyone else. If your network is the #1 hub for, say WPF developers, then you might be able to charge $900/month for job postings. But if your site is just general interest then you won't get much in the way of ad revenue until you have a huge number of active members. And with the networks that already exist, it's tough going unless you have a killer approach. Litmus test: if your network was just a facebook app, would your business idea still work? At some point you could get some bigger sponsors. Until then, take a look at shinyads.com Remember, people generally go to social networking sites to network and socialize, not to shop. Facebook ads have click rates often < 1 click per 10,000 impressions. Google AdSense is more in the ballpark of 1 click per 200 impressions.
  • You advised that startups should concentrate on "optimizing their funnel" before looking at customer acquisition tactics; can you explain what that means and what it entails?

    Answered by April Dunford – Product Marketing Expert.     Posted in Sales

    The funnel is how a prospect moves from not knowing about you at all to paying you money. For an online B2C product the funnel might look like this: X people see your Googl... (more)
    Dan Wood
    Well put, April. Just wanted to add that measurement is key and in the example above you can measure most of this in Google Analytics for free.
  • We sell a product. At the beginning, we want to offer the product to a very low price to attract early adopters and thanks them to be the first to test and gradually (for e...

    Answered by Mark MacLeod – Partner, Real Ventures     Posted in Sales

    It makes sense only if it is clear that this is a limited time offer. You may also consider grandfathering that price (i.e. keeping it forever or an extended period of time... (more)
    Dan Wood
    Be careful in how you present your pricing. If it costs $100 today and you aren't adding new features (making it at least 2% better) then it's hard for people to justify paying $102 next week. Knowing that it'll be $104.04 the week after that might just be discouraging. Why can't you sell it at full price now? If it's a useful product then it should be useful at it's full value now. If you have to lower the price just to get sales now, what will change in the future that will make people want to pay more for it? Pricing is funny. Consider the consumer electronics industry: early adopters pay *way more* to be early adopters. When the first iPhones came out everyone knew that the first version was only half as good as later versions of the product would be and cost twice what they will next year. Over-paying for earlier versions is part of the cache of being an early adopter in Apple's case. Or, in the sponsorship model (think redbull), give it free to a few key people.
  • Our team lacks sales ability but we need to actively sell our product and we can't afford to bring someone on. What can we do?

    Answered by Mark MacLeod – Partner, Real Ventures     Posted in Sales

    Raise some capital. There are some sales agents out there who work for free and take a bit cut on sales they make. But as with everything in life, you get what you pay for.... (more)
    Dan Wood
    You can learn to sell. And here's why: the key ingredients in selling include: 1. passion for the company and its products (no one has this more than you do) 2. knowledge of the product and its competition (again, this is your area of expertise) 3. presentation skills (which can be learned, but if you're speaking from the heart about what you know and are passionate about, you've probably got this one covered). 4. fundamental sales skills, which can be learned Selling is a process, not a performance. Work to understand your customer's pains. Listen. Ask open questions. Then you can position your solution to *help them solve their* problems. Then agree on a price. Take each step one at a time. There are courses you can take and apps that can help you. Our Sales Cycle Manager product at salesways can help coach you through the sales cycle. (Shameless self-promotion http://salesways.com/sales-cycle-manager-on-demand.php)
  • What's your advice for becoming a better sales person?

    Answered by Dan Martell – Founder & Investor.     Posted in Sales

    Everyday for a week, anytime you buy something ask for a discount. No matter what .. Starbucks, mechanic, utility bills, go for the ask. You'll get over your fear of reje... (more)
    Dan Wood
    Learn how to prioritize your time most effectively. Get a good tool to help with that. Avoid overly-complex CRM data-entry nightmares. Ask the right questions at the right time in the sales cycle (probing in early stage, then proving later, then closing at the end). Empathize. Find a good sales methodology and understand how it applies to your industry.
  • I started a business approximately 6-8 mos ago. I have nailed down target market, business model, value proposition, sales process, etc. People 'get it', understand it in...

    Answered by Andrew Patricio – Founder, BizLaunch     Posted in Sales

    If people get it they usually buy it. I am concerned that given what you say people don't buy it. Assuming all the above is true maybe you need a sales guy either an em... (more)
    Dan Wood
    So, reading your question, you have identified a market--you've found the people who have the problem that your product solves. You have a value proposition--your product costs less or saves more money than the problem it addresses does. And you have a sales process--I'm curious what that is, exactly. What's missing? It might be a silly question, but have you directly asked for the order? Have you specifically asked them to buy? If you have, what did they say? I'm not sure if this applies to your situation, but it may be that your sales cycle is longer than you've been selling for. Are your customers ready to buy, or are they still evaluating their options or looking for alternative ways to solve the problems that your product solves? You can't close a customer who is not ready to buy.