Communication: or let's put it to B.E.D.
One of my last employment stints was with a Marketing Consulting company. It was probably one of the worst experiences of my life - the story is so outrageous - no one would believe how it started and how it ended. The company ultimately failed - in fact, Magnus Marketing Group outlasted them. A fact I am truly proud of. And I thank them in my mind everyday for destroying me at that time so that I could - like the Pheonix - rise up out of the ashes and turn my talent to help some really good people build their businesses.
One thing I learned in the almost 3 years with the company was a practice they called "putting it to B.E.D." A practice I tried very much to instill with my clients - some of whom followed it, many followed the "E.D." part. The ones who did not - said I did not generate any revenue and stiffed me on my last invoice.
Putting it to B.E.D.
Brief: Before any sales event or meeting have a discussion about the prospect and what they are looking for, what is expected, why they are engaging. Sometimes the brief is a discussion or an email outlining what the meeting or demo is about. I always call my client and email them with an outline of the meeting - who, what, where, when and why. The better clients call me to discuss in more detail.
Execute: The demo, discovery call, or meeting occurs. I usually implore my clients to let me sit in on the discussion and moreso the demo where I listen to everything. I also take notes on what the prospect questioned any feedback they share. I also denote any issues my client encounters - they did not answer questions, came off rude or abrupt, failed to explain something....etc. Observational and opinion oriented, typically.
Debrief: Call my client or my client calls me or emails me with feedback about the sales event. We discuss the prospect....determine whether it was truly qualified (sometimes that is when I learn they lost the business on cost or the client did not have enough assets to justify the solution cost, etc. ), and share mutual feedback on performance.
If this is followed and the appropriate feedback is shared then there should be no surprises, such as when I called the search agency client after six months of hearing nothing and generating a meeting a month - to learn that nothing was closed and nothing had moved forward. That kind of surprise should NEVER occur during any kind of client engagement or employment. Additionally, if followed - fine tuning of target companies, people, and messaging should also occur which should feed into continued sustainable success.
Successful companies - successful salespeople will always - put it to B.E.D.
What Sales Development Is and Is Not by the Experienced Prospecting Agent
A major reason why client engagements fail and I get stiffed on payment is that after a few months or, as in the case of the "executive search firm" a few years I suddenly am told - "I did not get any revenue from you (or your efforts)". And, I keep telling my clients - CLOSING is YOUR responsibility - not mine. I also advise them when a lead is informational or sales oriented - typically well in advance.
My role is use a combination of research, prospecting/outbound calls, and compelling content (emails) to identify and draw out interested parties. An interested party is defined as someone who UNDERSTANDS what is offered, has a NEED, and wants to potentially engage. They are qualified leads. Sometimes they may be qualified for budget - if my client actually tells me what the cost of their solution is or what their rate is. If the client does NOT communicate that or sets price based on multidimensional factors (i.e. number of users, geography, intensity of search, etc.) then a discovery call or introductory call is needed to discuss and qualify further. Many clients want to talk to the prospect and do not let me discuss price or get into technical conversations, therefore, the onus is on them to further qualify the prospect and determine whether they can or want to work with someone who wants to work with them.
A few examples of where the accusation was levied.
- The search firm and a major food company met to discuss a higher level management position. They had the meeting and my client did not indicate that they can do the search on contingency and apparently told them to finish an existing contract before they would engage. The food company WANTED to work with my client and a qualified opportunity existed - but the client essentially put them off. Is this my fault? No.
- Companies indicated a need for a client's services and would provide a information for a quote. I was not informed of current pricing or given any pricing by which to determine qualification on cost. The prospect provided my client the information and his sales manager/account executive would prepare a proposal or cost quote. They repeatedly (not once or twice) were turned down and not engaged with because their cost was quite high. In addition to the cost being high, the SALES MANAGER did NOT JUSTIFY the cost or 'sell it' to the prospect. The value was not communicated. Is this my fault? No.
- A client did demos and repeatedly talked over prospects, did not ask good questions, and failed to focus - at times- on salient features of their software. Not to mention, had no flexibility to actually meet with the prospect at their company location - it was difficult due to the fact my client had a full-time job. Part of the requirement for success in selling to the target industry was the need to shake the hand of the prospect. Feedback I had received was that the software was good, but my client was rude and they did not like them or want to work with them (which I shared). They failed to get into the industry, despite having a great product. Is this my fault? No.
- A client had a interest for a document management solution they were reselling. The prospect wanted a meeting early in the morning. The meeting was scheduled, but the CTO failed to show up for the meeting - it was too early and he had some issue with his kid at the bus stop. A general meeting was done, but the prospect was not impressed and did not move forward. You can't get a critical resource on a call - blow the meeting - and then say you had no opportunity? Is this my fault? No.
- A client had a newer solution for asset tracking. I called a number of target companies, some they had met with before. No one could understand the value of the solution and did not even remember any meetings they had with the client. No revenue was generated, I don't think any meetings were generated. Is this my fault? No.
- A client had a data center solution, I called folks based on a list they had provided. There were about 3 or 4 demos generated over six months. Halfway through they changed gears and launched a new solution which I think had one demo and some leads (interest to see the solution the following year). The company accused me of no revenue and stiffed me on my last invoice claiming my performance was awful and that they never should have gone beyond the trial period. They sure were happy when the demos happened and I think everyone knows it takes at least six months to a year to get traction on a brand new product - everyone except them I guess. Was my performance "awful"? Is this my fault? No.
What is my fault is that I worked with these people and companies. I know it is a risk to work with startups and small businesses and take that risk....I enjoy the challenge of building businesses and developing markets. I know that many clients are engineers and not salespeople. But to not take responsibility for your own shortcomings, to not learn from it, to not adequately communicate issues during the engagement and then stiff me on payment I justifiably earned - is rotten. I admit I have a qualification problem of my own....although as someone told me - how was I to know before working with these people what the outcome would be? But, I take responsibility for working with these people. Some are out of business, some are not....but will probably disappear in the next recession or future when they are obsolete.
I continue on. Hoping my next client will be a good one (and I have worked with some great ones) and there will be success and they will end the engagement by hiring full time people - maybe even making me a job offer....and pay my invoices for all the hard work and effort they recognize that I expend on their behalf.
......And I Terminated a Client Engagement
In October 2019, I terminated a client engagement. I don't usually do that - I wait until the client ends it with me.
I had worked with this client for just about 3 years - my role was more "inside sales" than sales development where I would get leads to follow up on and qualify then close the business. Pretty much every lead I received, I closed - in fact, I did about 20K from January 2019 to September 2019. I generated one or two qualified leads as well. I had worked with this client long ago, very successfully, got commission checks almost every single month on the first go around.
20K may not seem like a lot, but you have to remember, in all cases, I only work 25 - 32 hours per month as a supplemental resource. So - that actually is a lot - relatively speaking.
I had direct deposit with the client. In June, I noticed that they had not paid my invoice (I bill every month for hours worked). I alerted them and was given an apology and was told that "they forgot to include me in payroll". This was not the first time that happened....in late 2018, I realized they neglected to pay me for two months - but when I brought it to their attention - it was quickly rectified.
In September 2019, I realized that it happened again. I had not been paid for two months. With jury duty coming I wanted to be caught up in case I was out for a month or two on a trial. I reached out to my client and informed them I had not been paid and "to stop forgetting to put me in payroll" as it was becoming a problem.
I received a call on a Friday (when I was not home) telling me that "the company hit a cash crunch and that I would be paid, but not now. I could suspend the work until the payment would come". It was a somewhat garbled voicemail. My client had thought I was paid for one invoice (which I wasn't).
I tried to call my client about the situation. Upset, panicked, I reached out - six calls on Monday with two voicemails. No return call. I spoke to my client's colleague who told me to talk to the other guy and assured me "I wasn't terminated" and "that he hadn't been paid either". I tried calling - the other guy - twice on Wednesday and a few times during the week. No return call. I wanted to have some type of guidance as to when I would get paid and could resume the work....is it a month? Two months? Next year? Nothing. No email. No phone call.
I stopped the work. Wrapped up what I needed to the first week of October. Told them I suspended the effort and waited. Two weeks went by. Jury duty loomed. No payment, no communication. I left a voicemail for my client claiming I talked to my lawyer and I would sue them for non-payment. That is when I got a nasty voicemail back - saying "so. I called you".
I ended the relationship right then. I emailed them essentially saying how shocked I was that I did not receive a simple phone call to discuss a very serious situation. I was given an apology. I was told that "they (the management) do not handle payroll" - in essence saying that they had no control over the situation and could not advise me. I had indicated that we not only were done, but were done forever. In the first run with my client, he sold out to another company that screwed me royally and did not pay me for three months. I was lucky to get paid - the company he sold out to went bankrupt and a lot of vendors weren't paid at all. Seems like a deja vu here again.
You run a company and have no handle on your financials? You take no responsibility for the situation? It is payroll's fault that I wasn't paid on time? There was more to this: my client was snippy toward me before this happened, they were shifting all the marketing to another company "they partnered" with, and cut my email off - after I suspended the work. Although they said "I wasn't terminated", it sure seemed as though I was - right? And....I know there was almost zero demand for what my client was offering - the future did not look good. Yeah - and they don't pay people for the work they do...there is that also.
I trusted this person. I had worked with him before. My performance was good, I closed enough business to pay my cost for the year and then some.
And, his colleague couldn't even give me a call.
So, I came back from jury duty and a client terminated their engagement
So - I returned from a 3 day jury duty service (doing my civic and mandated duty) to this email in my inbox:
Hi Rachel