Selling Your Product andor Service

1
Welcome

• Selling Your Product and/or Service
• Thursday, June 26th, 2008

2
GTB Overview
Developed Payment SaaS Applications
Needed Distribution Directly to the End User
Had Limited Funds to Invest in Direct Sales
Marketing
Chose the ISO to Direct Sales Model
Designed Transition to In-house Direct to End
User Sales
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The Different Rep Networks

• The Independent Sales Office (ISO)
• PRO very inexpensive
• Compensated only for what they achieve.
• CON - totally independent and somewhat
  uncontrollable
• Manufacturer Reps
• PRO more professional, usually good industry
  contacts, silo specific
• CON works on a percentage, will drop your line
  as soon as sales dip
• Tele-Sales Contracted and/or In-House
• PRO massive contact generation (its a numbers
  game)
• CON perception, cost, intensive management
• Employee Sales Force (Direct)
• PRO completely controllable sales force
• CON most expensive to initiate
• Requires 3-6 ramp up with base (35,000 to
  60,000)
• Commission 25,000
• High turnover and lost leads

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Cost Comparison (per person)

• Experienced Salesperson (Most Expensive)
• 30k-80k per year
• Inexperienced Salesperson
• 25k-35k per year
• Longer ramp up to fully understand if you product
  is complex
• Tele-Sales Contracted and/or In-House
• 10k-25k per year
• Can be part-time and very controlled with
  contractors
• The Independent Sales Office (ISO)
• 0 Cost (will cost you Time)
• Trade shows and cost of acquisition
• Do you need an experienced sales person to
  recruit ISOs? (30k-80k per year)

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Creative ISO Concepts!

• Franchise, Dealership, Business Opportunity
• The Revenue generated designed to completely
  offset the cost of recruiting and establishing
  each entity
• GTB charged 2,500-10,000 for private labeling
  of product for ISOs
• Business Opportunity Dedicated local
  representation
• OPM and OPT
• Embedded product
• Your resellers NEED your product/service for the
  success of their product/service
• NCN charged 2,500 or 5,000 plus 500/month
  minimum
• Partner Channel (Embedded or complimentary)
• GTB integration with other software packages
• Web designers and consultants
• Internet affiliate programs
• Be Creative!

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Whats Best For Your Company?
It Depends Entirely On Your Product or Service
Normally a Mix is Best

• Consumer product
• ISO, Direct, Tele-Sales
• Consumer Service
• ISO, Direct, Tele-Sales
• Business Product
• ISO, Direct, Tele-Sales

• Business Service
• ISO, Direct, Manufacturers Rep
• Manufactured Part
• Manufacturers Rep, Direct

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Where Do You Start?

• Understand You Market (Silo) and Customer
• How is your customer sold by the competition
• Is there a different or better way?
• Refine the Message to Your Market (Silo) and
  Customer
• Direct your sales marketing assets to your most
  productive/profitable silo
• Create the Sales Minimum
• Calculate the minimum number of sales necessary
  to cover the salary of your Director of Sales
• Hire a Qualified Executive Director of Sales
  (Investment)
• This position can be more important than IT
  Nothing Happens Until a Sale is Made
• Check References Carefully
• Verify the Accuracy of Career Accomplishments
• Have a series of Interviews
• Define Measurable Benchmarks

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The Steps To A Successful Sales Program

• Evaluate your offering and determine the
  commission that can be paid.
• Interview (take your time here) and hire a
  director of sales
• Establish the minimum sales necessary to cover
  the new sales department
• Determine the best method to sell to your
  industry
• Create a sales mix Approach your sales efforts
  from different angles while concentrating on your
  best method
• Try new sales techniques in small beta tests
  If successful expand and refine the technique
• Dont be afraid to tweak or completely overhaul
  your sales if necessary to achieve the results
  you need.

9
GTB Successes and Failures

• First Director of Sales was a 2.5 year failure
• A lot of smoke but absolutely no production
• High cost No Return
• This was our fault we had no measurements in
  place to gauge success
• The business grew when we got rid of him
  meaning the person was a drain on the entire
  company
• Designed the following sales approach

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GTB Successes and Failures

• We will discontinue our initial ISO relationships
  in the near future.
• We will manage and direct sale internally
• We now have a qualified, experienced and
  motivated National Sales Director
• All marketing efforts are directed at defined
  silos.

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Cautions

• Look at sales as a vital part of your company
  not a necessary evil
• Spend time designing your sales approach it is
  just as important as good code
• Dont be afraid to fail but recognize the failure
  quickly and make changes dont wait 2.5 years.
• Measure twice cut once it applies in
  construction but is more applicable to sales
• Start with the most common sales method for your
  industry and then add additional methods over
  time.
• Make haste slowly

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Indirect Distribution
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Channel Management

• Coverage
• Set points of distribution where people are
  buying.
• Target points were people will buy.
• Relationship Mix-
• Retailers
• LFI
• Direct
• Performance- Marketing returns per channel.
• When do your returns begin to diminish? (Cost Per
  Sale)
• Stock Positions- Adequate supply for all
  channels?
• Perceptions- How do front line sales people see
  your product?

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Retailers- US Average Household income 47,000

• Radio Shack
• 6000 locations Non-Exclusive
• Average household income 33,000
• Wal-Mart
• 3550 locations- Non-Exclusive
• Average customer household income 44,000
• Membership clubs
• Sams Club- average per store 70 million
• 591 locations- Non-Exclusive
• Average customer household income 72,000
• Costco- average per store 120 Million
• 393 location- either Non-Exclusive or Exclusive
• Average customer household income 77,000
• Source Wikipedia

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Sams Club vs Costco 2006
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RadioShack- Post Paid

• 6000 immediate points of distribution
• Nationwide Marketing
• Highly trained aggressive sales representatives
• Money motivated
• Non exclusive environment
• potential for churn
• High cost
• cutting edge equipment
• Demographic- higher credit risk
• Phone subsidy higher- (130 - 150)
• CPGA 450.00

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Radio Shack

• CEO Julian Day "There must be some sort of
  business model that enables this company to make
  money, but I'll be damned if I know what it is

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RadioShack- Prepaid

• Market Matured
• Postpaid will soon be saturated
• 2007 Q3 growth Prepaid outpace Post paid by 21
• Fits demographic- 72 of Prepaid customers make
  less than 35,000 per year.
• Handset subsidy- (0- 45.00)
• Prepaid expected to grow 80 over the next five
  years.
• Source CTIA

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Acquisition Cost- PostPaid

• Costco- 450.00
• Wal-Mart- 450.00
• Sams Club- 450.00
• RadioShack- 450.00
• LFI- 350.00
• Handset subsidy- (130- 150.00)

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Indirect Channel Requirements For Success

• Automate Recruiting
• Streamline Training
• Reduce Channel Conflict
• Focus on value added tasks, not administration
• Personalize Channel Programs
• Create programs for each Partner Tier
• Create Targeted Incentives
• Measure Channel Success
• Make Adoption a priority
• Source SalesForce

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• Question and Answers