If you are going to sell then commit 100% – don’t waste your time “cleaning your apartment”

Adding the job of sales to the CEO or founder’s role is common for startups that are exiting the gates of customer discovery. Now they’ll sell the product for 50% of their time and continue with their other responsibilities for the remainder of the time.  

This almost never works. If you are going sell, then sell with 100% of your time and effort and find someone else to deal with your other responsibilities. Anything less than this requires a mythical level of willpower and dooms most people to failure.

It’s like that time you were meant to be studying for exams and you found yourself cleaning your bedroom, then doing the dishes. Studying was hard and uncomfortable and you’d search for any reason to avoid starting. You’d search for any activity that you could define as ‘productive’.  You wouldn’t play video games, or go to the pub. You’d clean your bedroom because you could fool yourself into thinking you were still being productive and therefore feel like less of a waster.

It’s the same thing with sales. Sales is uncomfortable and full of rejection. If the “salesperson” can do anything else and still feel like they are being productive then they will do that instead of selling. This is particularly the case with non commissioned salespeople such as founders.

Almost no one wants to pick up the phone and start to navigate a large organization, dealing with rejection every step of the way.  Good sales people do it because there is no other way to achieve their goals. As soon as you give them multiple goals then you’ve given them a way out.

Remove all other activities and responsibilities from your salesperson – even if that’s you.  Give them exactly one way in which they can feel good about themselves. Selling, not cleaning their bedroom.

Sales – it’s about Getting to No

Trying to sell something?

Well the answer’s no. Get used to it.

Stop looking for ‘yes’. It’s never yes. It’s always no.  If it  was yes then they’d already be your customer.

Your goal should be discover why it is no. Once you know why, you can work to overcome the objection. Maybe it’s price (it’s never price), credibility, risk, timing, authority, budget. You are dead in the water if you don’t know why.

If you go in looking for yes, then the best case is you find out that it’s not a ‘yes’. The worst case is you don’t even get that and the prospect stays in your pipeline like a ship becalmed. Your job is to force the issue, to question, to probe and to discover why they won’t do business with you NOW

Why I Hate A/B Tests

I hate A/B tests that are recommended to startups when they don’t have the volume to run them. I hate when they are used to avoid being courageous. I hate the false lessons they teach. I hate the illusion of certainty they give. In short I hate nearly everything anyone says about them and nearly every application of them.  So yes, I hate A/B tests.

They Provide No Insights and Generate False Narratives

A well executed A/B test will tell you which side performed better but it won’t tell you why. At the end of the day you may know that “Sign Up” works better than “Create Account”. Is it because the word “Account” has a very specific meaning for your target audience? Did “Sign Up” simply fit the button better? There are any number of possible explanations and you have no idea what the real answer is.  

The worst thing is that humans need narratives and when presented with a fact that is unsupported by a narrative we invent one. That invented narrative will spread further and be remembered longer than the original ‘fact’. But you have no idea if that narrative is actually true – someone just made it up. Try it yourself, go along to Optimizely and try not to create a narrative in your own mind.

They require a LOT of traffic

Split tests require a lot more traffic than most people who are running them have. If you have a page converting at 5% then on average you need about 30,000 visitors to that page to run an A/B test with 95% confidence. With the random walk inherent in your results you might sometimes need triple that. How long is that test going to take to run?  Are you happy standing still during that time?

Even then, the test is going to be wrong 5% of the time – statistically significant does not equal true.

The moment anything changes it invalidates your result

An A/B test requires both sides of the test to be identical except for the item being tested.  So what happens when something changes after the test? A soon as anything changes then the test needs to be rerun because the change invalidates the test. NO-ONE does this.

  • If you change a word on the page, a colour, a button, then the test is invalid
  • If your audience changes then your test is invalid
  • If the damn time of the year changes then your test is invalid
  • Even if significant time passes, your test is invalid as consumers tastes and views evolve over time

Most things aren’t worth split testing

Most of the time the cost of testing is going to far outweigh the potential benefit of the change. Your page probably has thousands of variables. The vast majority aren’t going to be worth the cost of testing.  Don’t expect minor changes to have major results.

On what basis are you choosing your test and what is your rationale?  Fear of being wrong, fear of being caught out, fear of being seen as rash or just because you think you should? Stop covering your ass and have the courage to plough forward and trust your own judgement.

P.S. A/B tests have their place and that place is where you are making fundamental changes that could radically impact performance and where you have large scale.

Adwords is like poker: If you can’t see the sucker, you’re it

When it comes to effective advertising methods Google Adwords rules the roost. You get to display your advert at exactly the right time to exactly the right prospect – the moment your potential customer is looking for it. This is astonishingly powerful and will generate over $100 billion in revenue for Google in 2018. However, all that revenue comes at the expense of the advertiser.  Most categories are now so competitive, making the cost of advertising very high, and when the costs are so high, advertisers need to live and breathe the figures in order to turn a profit.

In a competitive space Google will eventually take all the profit. Imagine:

  • There are four identical competitors
  • Each sell a digital book for $10 which they have written with no associated cost of sales
  • 10 clicks from Google Adwords are required to generate a sale
  • There are only 3 advertising slots available from Google.

How much will each advertiser bid per click?

Game theory tells us they will bid up to $0.99 cents. Any further and they won’t turn a profit. Any less and the other three competitors will out compete for the three slots and revenue goes to zero. So in for $10 sales, Google will take $9.96 – all but $0.04. In effect, Google takes all the money!

But it’s much worse than that. In the above example we limited the number of competitors to 4 and assumed they were all logical actors with complete knowledge and skills. Unfortunately this is rarely the case.

Most competitive markets have a few ill-informed actors. These actors will frequently outbid all the competition in order to maximise their traffic and resulting revenue. Imagine the above scenario with a couple of these ill-informed actors. Each bid $1.05 a click, resulting in Google taking $10.50 for each $10 sale. Google takes more than all the money!

But won’t the ill-informed actor eventually exhaust their budget, realise the error of their ways and either amend their bidding strategy or exit the market? Well yes, but there is an ample supply of ill-information actors ready to take their place.

So if you’re newish to advertising on Google, take a good look around at what your competitors are doing and if you can’t spot the one who is over bidding then chances are it’s you.   

Feedback Easily Given is Nearly Worthless

Ever received a cold call? Ever said the first thing that came into your mind to get rid of the person? Now imagine that salesperson meticulously compiling that feedback into a report. 42% of people are too busy, 30% already have a solution, 15% are driving and about to go into a tunnel and 13% of people are rude. Further imagine a company actually making business decisions on this data, confident in the knowledge that they are doing so on the basis of real market knowledge.

Ridiculous isn’t it? Yet we all do this.

No one likes to give difficult feedback. That’s why employee reviews are hard. It’s the same for customers. They don’t want to tell you that your baby is ugly – so they make something up – just so you go away.

You should always view feedback through the lens of how difficult it was to give.  If the feedback was easy to give you should regard it warily and probe for more. Conversely if the feedback was difficult you should really value it. Someone just went through an emotionally difficult time to give it to you. It has real value – do something with it.

When a prospect decides not to proceed with you, they will typically respond to your request for feedback. However, for the most part they just want to get rid of you and will tell you whatever is easy and end the conversation, not the real reason.

Be suspicious of:

  • You were too expensive
  • We decided not proceed with any vendor
  • Our budget got pulled
  • Corporate rules only allow us to do business with companies in business for over 5 years

Your job is to delve deeper and force feedback that’s difficult to give – that’s where the value is.  

Feedback Gold

  • We don’t think you can do the job
  • Your product sucks
  • Your lack of sales process worried us
  • We think you are going to go bust
  • Our engineering team hates your engineering team