how to hire your first salesperson, five reasons to start with account management

How to Hire Your First Salesperson: Five Reasons to Start with Account Management

Ted HulsyVP Marketing, eFolderehulsy@efolder.netlinkedin.com/in/tedhulsy

David BirkPartner,Network Doctor

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Agenda

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Partner Introduction

Five Reasons to Start with Acct. Mgmt.

Questions and Discussion

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Partner Introduction

Five Reasons to Start with Acct. Mgmt.

Questions and Discussion

Agenda

David BirkPartner,

Network Doctor

Partner Introduction

Founded in 2003

40 employees serving the New York City and Los Angeles metro areas

150 clients, between 20 and 200 users

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Partner Introduction

Five Reasons to Start with Acct. Mgmt.

Questions and Discussion

Agenda

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#1 Clients are like icebergs

Initial agreement

Projects, upsell, cross-sell andtechnology innovation

Best Practice: thoroughly document all products, services, and SLAs before hiring any quota carrying sales staff

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#2 Farming is easier than hunting

“70% of companies say it’s cheaper to retain a customer than acquire one…”*

* http://oursocialtimes.com/70-of-companies-say-its-cheaper-to-retain-a-customer-than-acquire-one/

Best Practice: hire Account Managers as your first quota carrying, non-owner staff; have principals keep hunting new accounts

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#3 Client retention is the key to value

Best Practice: MSP AM Comp Plan:• $40k base $40k base• 2% of MRR $60k variable ($250k

MRR)• 10% GM of product $8k ($80k product

GM)• 20% GM of project labor $12k ($60k labor GM)

^ http://www.slideshare.net/500startups/institutional-venture-partners-jules-maltz/30-30Cohort_Revenue_Negative_ChurnSource_Model

^

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#4 Client satisfaction needs sales process

QBRs must be quarterly to be called “QBRs.”

Best Practice: Account Managers quarterback the whole client relationship and are responsible for coordinating QBRs and vCIO engagements; satisfaction needs process

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#5 Master sales management first

Sales management must be learned and perfected by the business principal; it is easiest with account management.

Best Practice: hire a sales hunter only after you have one year of success managing an account manager who achieved 100% of plan

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Partner Introduction

Five Reasons to Start with Acct. Mgmt.

Questions and Discussion

Agenda

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Questions and Discussion

Thank you!

Ted HulsyVP Marketing, eFolderehulsy@efolder.netlinkedin.com/in/tedhulsy