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The Agony & Ecstasy
of Building & Scaling
    Inside Sales
       Isaac Garcia
     CEO / Co-Founder
      Central Desktop
    May 17, 2010 / MESHU
Purpose of This Session

To Understand What It Takes to Build
  and Scale an Inside Sales Team and
    Whether or Not the Inside Sales
   Model is Right For Your Business
In This Session We Will…..

•   Answer “What is Inside Sales?” and “Who Needs it?”
•   Examine Different Types of Sales Models
•   Study the Profile of Successful Inside Sales
    •   What does one look like?
•   Look at the People Behind Successful Inside Sales
•   Understand the Metrics That Matter
•   Provide a Framework for Getting Started
First of All, Who The Heck am I?
•   First “Tech Job” Was B2B Inside Sales
    •    First Sales Rep / Inbound / Outbound / Demos / Learned from Founder

•   Software Consulting Firm
    •    Rookie of the Year!

•   Founded Enterprise Data Services Company
    •    Price Points Were $50k - $400k

•   Founded B2B Marketplace
    •    Inside Telesales Team / Low Price Point High Volume
First of All, Who The Heck am I?
•   CNET Networks
    •    Inside Sales ($200/mo - $3k/mo)
    •    Enterprise Sales ($100k - $3 million)
    •    Landed Google, Ebay, BestBuy, Microsoft
•   Central Desktop
    •    Self-Service / Ecommerce Model ($25 - $249/mo)
    •    Inside Sales Model ($4k/year - $25k/year)
    •    Currently in “Scale Mode”
First of All, Who The Heck am I?

•   Never Sold Anything Before In My Life!
•   BA and Masters in English Literature!
•   Never Took a Business or Accounting Class in my Life!


           ANYONE CAN DO THIS!
What Is Inside Sales?




Its Not a Boiler Room!
What Is Inside Sales?




Inside Sales is a Progression
Wise Nugget #1

As Your Business (Product)
Evolves, So Will Your Sales
          Model
Types of Sales Models
Types of Sales Models
It Depends On Your Market
       Consumers            SMB                      Mid-Market                Large Companies
B2C




                      B2B




                                               B2B




                                                                         B2B
         SOHO               “Small Business”         “Medium Business”         Enterprise
          VSB               Departments              Departments               Fortune 5000


      1-5 Employees                                  100-1000 Employee
                            5-100 Employees                                    1000+ Employees




            E Commerce

                                    Phone / Inside Sales

                                                                     Face to Face
Don’t Forget The Cost!
Don’t Forget The Cost!
Tale of Two Companies
        Upgradebase                Vendorbase
1. $100k+                  1. $25 - $149/month
2. 180+ Days Sales Cycle   2. <30 Days Sales Cycle
3. Face to Face            3. Phone
4. Expensive Reps          4. Ecommerce / Telesales
5. Few Customers           5. LOTS of Customers
6. Net Terms               6. Credit Card!
7. Integration             7. 100% Web Based
8. We Raised Capital       8. We Bootstrapped
Dot Com Crash
• 2001
• Cash Crunch
• Customer Crunch
• Business Crunch
• Upgradebase Hurt
• Vendorbase Did Well
Wise Nugget #2

It is Possible to Bootstrap
 Inside Sales To Success!
Inside Sales: What Does It Look Like?
Inside Sales: Simplified
               Leads
        (Inbound/Outbound)
             “Potential”
            Opportunity
             “Accepted”
            Opportunity
              Pipeline
Measure at                  Close!
Each Stage!
                 $
Inside Sales: What Does It Look Like?
Lead Gen: Inbound
•   Reps Qualify Inbound Leads
    •   Trials, Whitepapers, Email, Chat, Phone, Tradeshows

•   First line of defense / Sift Sand
•   SCORE Leads To Be Efficient!
•   Create “Potential” Opportunities
•   Comp’ed on Qualified Opps & Closed Won
•   Collaborate with the Account Executive (Closer)
•   Ratio is 1 Rep to 3-4 Closers
•   SF.com Gives ~250 Leads Per Month / CD 1000 Leads
Wise Nugget #3

The Secret to Inbound Lead
Qualifying is to Listen to Your
  Customer’s Needs – and
      Solve a Problem.
Lead Gen: Outbound
•   Sales 2.0 / Cold Calling /
    Prospecting
•   Proactive Outbounding
•   Find New Opps for Closers
•   Target Higher $$$ Prospects
•   Target Ratio is 1:3
•   This is NOT Calling the Phone
    Book!
•   Segments with Higher
    Propensity to Buy
Wise Nugget #4

The Secret to Outbound Lead
Development is to Respect &
 Care about the Prospect!
    You Have No Right!
        Date Them!
Closers: Account Executives
•   Focused on New Business
•   “Accept” Opportunities
•   Manage a Territory / Patch
•   Develop Territory Plans
•   Carry a Quota ~5x Total Comp
•   Might Manage 10-30 Key Accts
•   Incentivized to Close Deals
    Monthly / Collect Cash Up Front
Wise Nugget #5

The Secret to Closing a Sale
  is to Not Sell To them!
Nurturers: Acct Management
•   Focused on Adoption
•   Customer Success
•   Nurtures Accounts
•   Be Trusted Advisors
•   Find Referrals / Upsells
•   Manage Renewals
•   Collaborate with Sales Closely
•   Comp’ed on Retention / Renewal Rates
•   This Could Be Two Teams
    Upsell / Acct Management
Wise Nugget #6

 You Don’t Do All of this at
Once – You Iterate Your Way
     Into Inside Sales!
Who & How To Hire / And When?
Hiring Leadership
Hiring Leadership
Hiring Leadership
Hiring Leadership
Hiring Leadership
Your Sales Leader Needs To:
•   Sell
•   Manage
•   Coach
•   Lead
•   Schedule
•   Report
•   Present
•   Prospect
•   Hire
•   Close
Be Careful When Hiring Managers!
•   Sales People Are Good At Selling Themselves!
•   Are They Precise With Their #s?
•   Take EXTRA Time When Hiring
•   SF.com Managers Spend 50% of Their Time Hiring
•   Unanimous Hiring (With Multiple Interviewers)
•   Ask Them To Present!
•   Make Them Give You A Plan!
•   Check Their W2s!
•   Did They Try to Close You In The Interview?
Hiring Reps
•   Develop a Training System (Starts w/Founder)
•   Give Them the Equipment They Need
    •   Good Phones
    •   Headsets (w/long battery life!)
    •   Good Chairs
    •   Good Computers
•   Give Them the Tools They Need
    •   Linkedin / Jigsaw / Hoovers / Insideview
•   Give Them Career Paths
What About The Profile of Reps?
•    Finished College
•    Competitive (Sports)
•    Driven / Leaders
•    Extra-Curricular Activity (Music, Sport, Hacking, etc.)
•    Can Relate to Others
•    Quick On Their Feet
•    Organized / Professional (Did they followup? Try to close you?)
•    Sense of Urgency
•    Likes / Wants to Win
Sales Culture Musts
•   Ethical
•   Fair
•   Professional
•   Competitive
•   Supportive
•   Driving
•   Fun
•   Money-Centric

           Sales Is Not For Everyone
What About The Metrics?
•   CAC (Customer Acquisition Cost)
•   Churn
•   Life Time Value (LTV)
•   MRR / CMRR
•   Renewal Rates
•   ACV (Average Contract Value)
•   Cash Collected


            Notice These Are Business Metrics?
So, Where Should You Start?
•   YOU (the Founder) are the BEST Sales Person!
•   Learn, Learn, Learn!
•   Listen, Listen, Listen!
•   Iterate, Iterate, Iterate!
•   Your Involvement Will Influence the Company
    Forever!
•   You Can’t Outsource Passion
•   If You Can’t Sell Your Own Product – You Have No
    Passion
•   No Passion – No Sales – No Success
Start Slowly
•   Founder’s Should Always Sell In the Early Days
    (Especially if Bootstrapped)
•   Learn How To Train Others
•   Hire a “Whale Hunter” once you’ve got something
    repeatable (multiple sales). Bring In Cash!
•   Separate the Job Functions / Don’t Expect Your Hires
    to all be like you!
•   Focus on Market Fit! This is who you Outbound too!
•   Measure / Iterate
•   Manage to Results (Not Behavior)
Most Importantly
•   YOU CAN DO THIS!
•   This isn’t just for “other people”
•   YOU CAN DO THIS!
•   Building a Product Isn’t Good Enough!
•   You Need To Go To Market With Your Product
•   Inside Sales Can Be One of the Most Effective
    Ways to Bring Your Product to Market
“Go and Do Likewise!”
Resources & Special Thanks:
•   The Central Desktop Sales Team
•   @isaacgarcia / igarcia@centraldesktop.com
•   www.Balsamiq.com for mockups
•   David Skok @ www.forentrepreneurs.com
•   Mark Suster @ www.bothsidesofthetable.com
•   Aaron Ross @ www.pebblestorm.com
•   Salesforce.com for Inspiration
•   Alec Baldwin Cameo in Glen Garry Glen Ross

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The Agony & Ecstasy of Building and Scaling Inside Sales

  • 1. The Agony & Ecstasy of Building & Scaling Inside Sales Isaac Garcia CEO / Co-Founder Central Desktop May 17, 2010 / MESHU
  • 2. Purpose of This Session To Understand What It Takes to Build and Scale an Inside Sales Team and Whether or Not the Inside Sales Model is Right For Your Business
  • 3. In This Session We Will….. • Answer “What is Inside Sales?” and “Who Needs it?” • Examine Different Types of Sales Models • Study the Profile of Successful Inside Sales • What does one look like? • Look at the People Behind Successful Inside Sales • Understand the Metrics That Matter • Provide a Framework for Getting Started
  • 4. First of All, Who The Heck am I? • First “Tech Job” Was B2B Inside Sales • First Sales Rep / Inbound / Outbound / Demos / Learned from Founder • Software Consulting Firm • Rookie of the Year! • Founded Enterprise Data Services Company • Price Points Were $50k - $400k • Founded B2B Marketplace • Inside Telesales Team / Low Price Point High Volume
  • 5. First of All, Who The Heck am I? • CNET Networks • Inside Sales ($200/mo - $3k/mo) • Enterprise Sales ($100k - $3 million) • Landed Google, Ebay, BestBuy, Microsoft • Central Desktop • Self-Service / Ecommerce Model ($25 - $249/mo) • Inside Sales Model ($4k/year - $25k/year) • Currently in “Scale Mode”
  • 6. First of All, Who The Heck am I? • Never Sold Anything Before In My Life! • BA and Masters in English Literature! • Never Took a Business or Accounting Class in my Life! ANYONE CAN DO THIS!
  • 7. What Is Inside Sales? Its Not a Boiler Room!
  • 8. What Is Inside Sales? Inside Sales is a Progression
  • 9. Wise Nugget #1 As Your Business (Product) Evolves, So Will Your Sales Model
  • 10. Types of Sales Models
  • 11. Types of Sales Models
  • 12. It Depends On Your Market Consumers SMB Mid-Market Large Companies B2C B2B B2B B2B SOHO “Small Business” “Medium Business” Enterprise VSB Departments Departments Fortune 5000 1-5 Employees 100-1000 Employee 5-100 Employees 1000+ Employees E Commerce Phone / Inside Sales Face to Face
  • 15. Tale of Two Companies Upgradebase Vendorbase 1. $100k+ 1. $25 - $149/month 2. 180+ Days Sales Cycle 2. <30 Days Sales Cycle 3. Face to Face 3. Phone 4. Expensive Reps 4. Ecommerce / Telesales 5. Few Customers 5. LOTS of Customers 6. Net Terms 6. Credit Card! 7. Integration 7. 100% Web Based 8. We Raised Capital 8. We Bootstrapped
  • 16. Dot Com Crash • 2001 • Cash Crunch • Customer Crunch • Business Crunch • Upgradebase Hurt • Vendorbase Did Well
  • 17. Wise Nugget #2 It is Possible to Bootstrap Inside Sales To Success!
  • 18. Inside Sales: What Does It Look Like?
  • 19. Inside Sales: Simplified Leads (Inbound/Outbound) “Potential” Opportunity “Accepted” Opportunity Pipeline Measure at Close! Each Stage! $
  • 20. Inside Sales: What Does It Look Like?
  • 21. Lead Gen: Inbound • Reps Qualify Inbound Leads • Trials, Whitepapers, Email, Chat, Phone, Tradeshows • First line of defense / Sift Sand • SCORE Leads To Be Efficient! • Create “Potential” Opportunities • Comp’ed on Qualified Opps & Closed Won • Collaborate with the Account Executive (Closer) • Ratio is 1 Rep to 3-4 Closers • SF.com Gives ~250 Leads Per Month / CD 1000 Leads
  • 22. Wise Nugget #3 The Secret to Inbound Lead Qualifying is to Listen to Your Customer’s Needs – and Solve a Problem.
  • 23. Lead Gen: Outbound • Sales 2.0 / Cold Calling / Prospecting • Proactive Outbounding • Find New Opps for Closers • Target Higher $$$ Prospects • Target Ratio is 1:3 • This is NOT Calling the Phone Book! • Segments with Higher Propensity to Buy
  • 24. Wise Nugget #4 The Secret to Outbound Lead Development is to Respect & Care about the Prospect! You Have No Right! Date Them!
  • 25. Closers: Account Executives • Focused on New Business • “Accept” Opportunities • Manage a Territory / Patch • Develop Territory Plans • Carry a Quota ~5x Total Comp • Might Manage 10-30 Key Accts • Incentivized to Close Deals Monthly / Collect Cash Up Front
  • 26. Wise Nugget #5 The Secret to Closing a Sale is to Not Sell To them!
  • 27. Nurturers: Acct Management • Focused on Adoption • Customer Success • Nurtures Accounts • Be Trusted Advisors • Find Referrals / Upsells • Manage Renewals • Collaborate with Sales Closely • Comp’ed on Retention / Renewal Rates • This Could Be Two Teams Upsell / Acct Management
  • 28. Wise Nugget #6 You Don’t Do All of this at Once – You Iterate Your Way Into Inside Sales!
  • 29. Who & How To Hire / And When?
  • 35. Your Sales Leader Needs To: • Sell • Manage • Coach • Lead • Schedule • Report • Present • Prospect • Hire • Close
  • 36. Be Careful When Hiring Managers! • Sales People Are Good At Selling Themselves! • Are They Precise With Their #s? • Take EXTRA Time When Hiring • SF.com Managers Spend 50% of Their Time Hiring • Unanimous Hiring (With Multiple Interviewers) • Ask Them To Present! • Make Them Give You A Plan! • Check Their W2s! • Did They Try to Close You In The Interview?
  • 37. Hiring Reps • Develop a Training System (Starts w/Founder) • Give Them the Equipment They Need • Good Phones • Headsets (w/long battery life!) • Good Chairs • Good Computers • Give Them the Tools They Need • Linkedin / Jigsaw / Hoovers / Insideview • Give Them Career Paths
  • 38. What About The Profile of Reps? • Finished College • Competitive (Sports) • Driven / Leaders • Extra-Curricular Activity (Music, Sport, Hacking, etc.) • Can Relate to Others • Quick On Their Feet • Organized / Professional (Did they followup? Try to close you?) • Sense of Urgency • Likes / Wants to Win
  • 39. Sales Culture Musts • Ethical • Fair • Professional • Competitive • Supportive • Driving • Fun • Money-Centric Sales Is Not For Everyone
  • 40. What About The Metrics? • CAC (Customer Acquisition Cost) • Churn • Life Time Value (LTV) • MRR / CMRR • Renewal Rates • ACV (Average Contract Value) • Cash Collected Notice These Are Business Metrics?
  • 41. So, Where Should You Start? • YOU (the Founder) are the BEST Sales Person! • Learn, Learn, Learn! • Listen, Listen, Listen! • Iterate, Iterate, Iterate! • Your Involvement Will Influence the Company Forever! • You Can’t Outsource Passion • If You Can’t Sell Your Own Product – You Have No Passion • No Passion – No Sales – No Success
  • 42. Start Slowly • Founder’s Should Always Sell In the Early Days (Especially if Bootstrapped) • Learn How To Train Others • Hire a “Whale Hunter” once you’ve got something repeatable (multiple sales). Bring In Cash! • Separate the Job Functions / Don’t Expect Your Hires to all be like you! • Focus on Market Fit! This is who you Outbound too! • Measure / Iterate • Manage to Results (Not Behavior)
  • 43. Most Importantly • YOU CAN DO THIS! • This isn’t just for “other people” • YOU CAN DO THIS! • Building a Product Isn’t Good Enough! • You Need To Go To Market With Your Product • Inside Sales Can Be One of the Most Effective Ways to Bring Your Product to Market
  • 44. “Go and Do Likewise!”
  • 45. Resources & Special Thanks: • The Central Desktop Sales Team • @isaacgarcia / igarcia@centraldesktop.com • www.Balsamiq.com for mockups • David Skok @ www.forentrepreneurs.com • Mark Suster @ www.bothsidesofthetable.com • Aaron Ross @ www.pebblestorm.com • Salesforce.com for Inspiration • Alec Baldwin Cameo in Glen Garry Glen Ross

Notes de l'éditeur

  1. Freemium = Opensource Products, Dropbox, Google Apps No Touch SS = Balsamiq, Basecamp, YouSendIt Light Touch = Constant Contact, Logmein, High Touch = Salesforce.com, Netsuite, Omniture Field Sales = Oracle, BEA, SAP
  2. Freemium = Opensource Products, Dropbox, Google Apps No Touch SS = Balsamiq, Basecamp, YouSendIt Light Touch = Constant Contact, Logmein, High Touch = Salesforce.com, Netsuite, Omniture Field Sales = Oracle, BEA, SAP
  3. Freemium = Opensource Products, Dropbox, Google Apps No Touch SS = Balsamiq, Basecamp, YouSendIt Light Touch = Constant Contact, Logmein, High Touch = Salesforce.com, Netsuite, Omniture Field Sales = Oracle, BEA, SAP