My experience suggests all companies do have some form of revenue system (heart) in place today. The reality is most are the “open loop” intermittent variety meaning the core revenue tasks of selling, forecasting, rewarding performance and staffing operate as standalone events with minimal process accountability. They may be done by one individual but that person addresses these as independent – sometimes even burdensome – tasks.

All companies have revenue stimulators (cold call Fridays, end of quarter discount promotions, etc.) that are used to keep the vision alive – and the doors open – but these are best described as tactical adrenalin, not a revenue system.  When these no longer produce the results needed, the quick-fix option is lowering the revenue bar to align with current ‘system’ capabilities assuming the financial structure can accommodate the reductions. This is the drug of choice for sustaining most ‘open loop’ based revenue models…and the number one reason why companies prefer a ‘closed loop’ revenue system (heart).

However, some sales teams are seeing higher numbers of UFO’s (Un- Funded Opportunities) such that starting with the Money discussion to confirm a budget does exist or funds can be allocated for the transaction is just a good strategy in today’s economy. There is a lot of stress in parts of our economy and it is not the first time we have seen prospects trying to identify new projects that could become their job savers.

The old rule – no money, no prospect – still applies.

Well, I have observed the same apathy towards treadmill sales campaigns in business. As a sports fan, I respect the skill needed to compete in any world class athletic event. As such, I do not share the boredom profile recently expressed by some Wimbledon viewers. I do however support my business colleagues’ frustration with marathon sales campaigns. My experience is that these lengthy and expensive endeavors are not based on skill. They are based on feature/benefit selling tactics with no qualifying process involved so the treadmill platform becomes the only option available.

Those who have been there know this is not a revenue system. If the only data changing on forecast updates is the projected close date, you are already on the treadmill.

What we sell and how we get paid are two different things!

Your Differentiating Value is what separates you from the competition and goes beyond core competencies like the typical quality, service and support platforms most companies promote. The Sales Revenue System 2.0 book example of the cinnamon sales rep is a typical illustration of this discovery. He was actually selling ‘time to market’ for new products but got paid in shipments of cinnamon and other spices.

The first step in our Revenue System implementation always starts with defining your Differentiating Value…and the discoveries that follow.

My first sales role was during my college years selling cutlery door-to-door. Can you imagine standing on someone’s front porch today with two demo cases of kitchen knives saying to a total stranger that you would like to come into their home for a couple hours and demonstrate what amounted to enough cutting tools to outfit a small slaughter house? Today those products would be classified as ‘edged weapons’ based on blade length and the call to 911 would go out as soon you started talking.

Rejection in that sales model ranged from having the door slammed in your face to the prospect telling you in loud 4 letter words to get off their porch. When that happened, you only hoped the door did not reopen as that was the early indication they were about to exercise the family dog at your expense under a much older version of the ‘fair chase’ concept.

Out running the canine to the car while carrying two steel-laden demo cases was real rejection (and some good evening entertainment for the prospect), but the commission plan made it all work. The electronic rejections we receive today while working 8-5 in environmentally-controlled offices with never-ending supplies of coffee, water, snacks etc. aren’t even worth mentioning.

Coaching – 80% focus on the communication techniques for delivering the Critical Qualifying Questions. Sales reps are not born knowing how to do this.

Accountability – 80% focus on the 4 Aces audit trail and drill-down questions to maintain the “up or out” prospect flow. Nothing stays welded to the forecast.

Motivation – 80% focus on performance incentive creativity to recognize the major thresholds of contribution to the business and enable reps to skillfully navigate their own success.

Selection – 80% focus on defining the job first and keeping multiple qualified candidates in the pipeline at all times.

Revenue is only hard if you don’t have a systems-level approach for making it happen.

1. Discounting is our primary closing strategy
2. All sales and marketing related promotional materials are feature / benefit focused.
3. Every sales presentation starts and ends with the company plaque in the lobby promoting the company’s on-going commitment to quality, service and support.
4. Forecast updates only require moving out the projected close dates.
5. New account business is on everyone’s goal sheet but we are not closing any new accounts.
6. Sales expense is the only number above plan.
7. Everyone in sales works a 40 hr. week as an account manager.
8. Reps say the sales cycle is getting longer due to all the new technology they have to explain first.
9. The names change on the forecast but the bottom line numbers don’t.
10. The only turnover in sales is with existing accounts.

If any of these look familiar, contact us immediately.

If you are not clear about what makes you worth more, you will always compete on price.

The article provides a cursory explanation of how to define your Differentiating Value.  For a more in-depth study, please consider Sales Revenue System 2.0 and the new, accompanying workbook in the CRO store.

I cannot recall the last time a ‘confused’ prospect bought the higher-priced option.

• You can have an additional 10% discount if I can leave with an order today.
• We can extend warranty coverage at no charge.
• Call me at home if you need anything special.
• So, what do we have to give you to get the order today?
• You really don’t understand how great our products are.
• No one would buy our old design.
• You need to understand we have a lot of engineering costs to recover.
• Maybe we should just buy your company.
• Our product is patented so you can’t get it anywhere else.
• This was a great call – I got to say everything I planned to say.

The post-call reviews were all about how to protect the remaining opportunity and recover the prospect based on this CEO-level disruption. Sales reps have called this the equivalent of performing a “do-it-yourself heart valve” meaning you never let the CEO operate on your revenue stream unless you are ready to hemorrhage out.

I realize some CEO’s can be a real asset on a sales call, especially those CEO’s with a sales background.  However, the majority of CEO’s come from financial or operational background which brings a level of danger to any prospect call.

The CRO needs to get in front of this potential train wreck and make sure the CEO knows the questions you want him or her to ask at the start of the meeting. The “glad to be here, how can we help you” dialog to get a discussion started is the best. After that, the CEO needs to wait to be called on by the members of the sales team and speak briefly to the topic requested.

I find compliance to be quite easy.  I have always notified CEO’s they will get to walk back to the airport if they misbehave. So far that approach has always worked.