At FindThatLead, we are always trying to discover new ways to innovate on the traditional sales process. We try to think about what helps salespeople, and how our lead generation tools can help them find great sales prospects as quickly as possible.
This is why we love Aaron Ross, the author of the bestselling novel Predictable Revenue. Ross previously worked at Salesforce.com, where he created a new inside sales process that helped Salesforce to increase their revenues by $100 million. In his book, he shares the sales process that he created, so others could apply his sales process and see their revenues increase too. In this post, we will summarize a chat Ross gave, speaking about his theory.
Ross’s methods were created in order to help companies in the “B” section, from the image above. This is the point in which a company has begun to grow, and is looking for new ways to expand quickly. But at this stage, they may be struggling. It’s not always clear what sorts of sales methods and tactics will work. A method that works one day for one customer may fall flat for another customer on another day. How can you ever know what works?
The goal for all companies is to arrive to the “C” place: exponential growth with a clear knowledge of the necessary actions and their results (ex: if you invest X in Marketing or Sales, you should be getting Z back). This is what he calls “Predictable Revenue”.
How can your startup get Predictable Revenue?
Ross says it’s easy for any company, large or small, to get to this happy place of Predictable Revenue. His secret? Lead Generation! The truth is that lead generation, not more sales people, is what drives new growth. It is the most reliable and repeatable action in any sales process, and it will help you to better predict and rely on your revenue.
Developing a sales process can be difficult and complicated, and for this reason are difficult to replicate. While of course you need salespeople to close deals, hiring 40 new salespeople does not necessarily mean you will be increasing your revenue forty-fold. What will increase your revenue is increasing your pipeline. And you can increase your pipeline by hiring more lead generators, or prospectors, who Ross recommends work only on researching quality leads and building up the pipeline.
We couldn’t agree more with Ross that the true key to increasing revenue is spending more time building up your pipeline, rather than doing demo after demo. Using the best lead generation tools like FindThatLead will help prospectors find all the email addresses for their leads within seconds. This means an exponential increase in productivity for prospectors, leading to an even greater increase in revenue!
3 Types of Leads
Ross also says that another fatal mistakes companies make is treating all the different types of sales leads alike. In reality, you should be dividing your leads into 3 categories:
Seeds are the best types of leads; these are your first customers who you’re able to reach easily and organically. They discover your product through word of mouth, oftentimes from another customer of yours. However, these types of leads aren’t predictable,as you can’t create a process in order to reliably multiply them and track their growth.
Spears are the types of leads you should spend the majority of your time trying to develop and build up. They’re your prospective clients. They respond best to outbound sales, they are your target customers and just need to discover your tool or product. Your business developers or prospectors will spend most of their time trying to find them and contact them. Once you’ve discovered what works, it’s the best way to expand and to grow.
Lastly, Nets are the types of leads who find you through inbound marketing. These leads fall into a broad category and generally prefer to come to you, rather than receive direct communication from salespeople. These types of leads take the longest to develop, as building a solid inbound marketing strategy that works takes time.
You should try to reach all three types of leads, but focus most of your efforts on the “Spears”.
What´s the key takeaway from today´s post?
Predictable Lead Generation Can Get You Predictable Revenue
The best and fastest way to get predictable revenue, is lead generation! Help your prospectors to find more leads and faster by using tools such as FindThatLead → download it for free here. Thanks to Aaron Ross for his great insights — now let´s get prospecting!