how to hire your first salesperson, five reasons to start with account management
TRANSCRIPT
How to Hire Your First Salesperson: Five Reasons to Start with Account Management
Ted HulsyVP Marketing, [email protected]/in/tedhulsy
David BirkPartner,Network Doctor
2
Agenda
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Partner Introduction
Five Reasons to Start with Acct. Mgmt.
Questions and Discussion
3 © 2017 eFolder, Inc. All Rights Reserved.
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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5 © 2017 eFolder, Inc. All Rights Reserved.
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
