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The Sales Podcast

Jun 12, 2018

  • He had a graphic design small business and was doing everything on his own without leveraging content marketing or systems
  • He was told his business was worthless because it was dependent upon him (25 years ago)
  • For your business to be valuable it must be valuable without you
  • We think top-line / bottom-line are key, which keeps us on the hamster wheel
  • You need to narrow your focus so you can create training programs for your staff and remove yourself from the equation
  • Use TVR
    • Teachable—can I teach it to my team?
    • Valuable—is it valuable coming from me?
      • Commodities are not valuable
    • Repeatable—how often do customers need to buy it?
    • Find one with the ability to sell
Ask your customers "why do you buy from us?"
  • Companies make a "build vs buy" decision when they look at buying you
  • When you have all the money in the world like McDonald's you can add another revenue stream
  • It's not easy to build a subscription but it's worth it
  • Recurring revenue drives value
    • Security companies have installation and monitoring revenue
    • You'll get 75 cents on the dollar for every installation dollar of revenue but you'll get $2 per every monitoring dollar
  • How a chiropractor can create a subscription model
  • Stop thinking "I'll make my money when I sell" only to find out they created a job for themselves. Pull your money out as you go.
  • Moved to a syndicated research model and sold it to what is now Gartner
  • Six different forms of recurring revenue
    • Simple consumables like coffee
    • Sunk money consumables like a Keurig machine
    • Subscription revenue
    • Sunk money subscriptions like the Bloomberg terminal for traders who also pay for the subscripption
    • Auto-renewal—in perpetuity with a storage facility like Iron Mountain
    • Contract revenue is the best—CRM HubSpot subscriptions, etc.