A Salesperson's Guide to Dealing with Salespeople

Though the OpzGuy Blog was primarily started as a place for me to share my thoughts, experiences and learning from the Operations role in a number of different internet startups, occasionally I will take time to share my other interests as well as things I've learned in other roles that don't apply to Operations. This is one of those posts.

I'm a little strange

I actually like going to sales presentations. If there's going to be free food or other goodies, I'll sit through almost any sales pitch, except for multi-level marketing. I realize most people out there would rather punch their eye in the face then attend a sales presentation, no matter what free gift they are promising at the end. However, try as hard as you might to avoid them, we will all end up in sales situations that can be difficult and uncomfortable. So in this post I hope to give some suggestions that have made these situations bearable and even enjoyable for me.

In my last post, I mentioned that I have done a number of commission-based jobs in the past. I wasn't great at sales and found Operations suits me much better, but I have actually tried my hand at selling a lot of different things, including:

• Pest-control door-to-door
• Used and new cars
• BYU Football and Basketball ticket packs door-to-door
• Setting appointments for Wyndham timeshare presentations
• Setting appointments for a financial service company

Not to mention the 2 years I spent knocking on doors in Japan finding people who wanted to learn more about Christianity and the beliefs of the Mormon Church, which I think is very applicable.

A positive experience
A few years back my wife and I were at a Home Show and saw a booth where you could spin to win $5. The booth was busy so we walked past but as we turned the corner to the next aisle I couldn't take it anymore and I went back to spin the wheel. I didn't win the $5 but I did get signed up for a timeshare presentation. A few weeks later, we attended the sales pitch and were really impressed. We didn't end up buying a timeshare and even managed to end the pitch in less time than they'd promised at the beginning. I thought the whole thing was so much fun I ended up working for Wyndham signing people up for the presentations at similar events and on my first day I found out I could buy the timeshare for 50% off as an employee.

Since then, I've purposefully sought out and gone to many other timeshare and other sales presentations. Luckily, my wife is really cool and as long as I do most of the talking she agrees to come with me. The amazing thing is that in the last few years of doing this we haven't had a single bad experience. Maybe we've just been lucky enough to get the only nice and non-pushy salesperson in the room every time. Or maybe there is something about the way we handle these situations that is just better. Here are my suggestions on how to make these situations as painless as possible:

Principle 1: Never Say No.

The first thing every salesperson is taught is how to respond when a potential customer says No. In training, salesreps spend hours practicing exactly how to get around No's. Sales teams often have contests for the rep who can overcome the most No's in one pitch. So just understand, the second you say No to a salesperson, their instincts take over and they can't help but double their efforts. It is their hot button.

Principle 2: Don't Argue.
I understand that salespeople can be the most frustrating people in the world. There are certain salespeople that really bug me, but the worst thing you can do is argue and think the quickest way out of the door is by winning a verbal battle.

Many salespeople are born debaters and love a challenge so this is another way to queue their killer instincts. If there are things you don't like about their product or service, just let it go. Telling them specific things you don't like will only make them fight harder to convince you to buy. No matter what, don't ever let a salesperson think your reason for not buying is due to something you don't like about their product or service. They have been specifically trained to handle every objection you could ever come up with.

Principle 3: Tell Them You Love It.
No matter what they are selling, the easiest way to get out of a sales situation is to tell them how much you love their product. Just tell them, "This is awesome, we would love to get it, but unfortunately there's no way we can do it today." You might think this would give them the smell of blood and signal the kill shot, but in actuality it befuddles most salespeople. They aren't trained on this and have never met someone who loves the product but still won't buy it. They don't know how to handle this situation and it completely disarms them.

If you you feel like you have to give a specific reason, your best option is to explain why you just can't afford it right now due to a new baby, a lost job, major medical or other expenses, etc. However, most salespeople are trained to offer ways you can finance their product and pay little to nothing right now, so just be prepared for this last ditch effort, if you feel the need to give them a financial reason for not buying today.

The best thing to do is just keep it vague and tell them there's just no way you can do it today. 99% of salespeople are only interested in the sale today so if you can convince them there's no way that's happening, due to reasons that are out of their control, they will lose interest quickly and send you on your way. If you happen to get a salesperson who keeps a pipeline and wants to follow up with you in a few months, you can just let them know that you appreciate it but you would prefer to just follow up with them. Then immediately ask them for their card and this will end the conversation in most cases.

Wrap-Up
Last month, my wife and I got a $75 gift card for a very enjoyable timeshare sales presentation. We learned a lot, made a new friend and got free donuts. It was awesome! Now I challenge you to get out there and sign up for a sales pitch and give it a try. Never Say No, Don't Argue and just Tell Them, "This is awesome, we would love to get it, but unfortunately there's no way we can do it today." Let me know how it goes for you or if you have any other tips of peaceful ways to deal with hard sales situations.

Entrepreneur for the Wrong Reasons

We've all heard the startup failure statistics. I hear a different % for this every week, but the most common number I hear is that 90% of entrepreneurial ventures fail. I'm sure there are many reasons for this, but I'm starting to wonder if a big reason might be because many entrepreneurs are doing it for the wrong reasons.

My Entrepreneurial Story
Before I get into that, let me share a little of my history. My dad is an entrepreneur. He worked a corporate job for a few years out of college, but for about the last 25-30 years he's done his own thing. My grandpa could probably be called an entrepreneur. He is a CPA and started his own practice after just a few years of working for other people. Though, the argument could be made that a CPA starting his own firm isn't really an entrepreneurial venture.

From the time I was young, I always wanted to start my own company. During my time at BYU I had a lot of entrepreneurial, commission-based jobs and I really enjoyed them. But a few years ago I got a chance to do my first really entrepreneurial venture. My wife and I both quit our jobs at a mobile software company and started our own company selling mobile phones online. With some close friends joining us to round out the team we started a company called GBT Mobile (Horrible name, but it stands for God Blessed Texas, which I thought was a cool idea at the time).

Our 2nd year in business we ended up doing about $700,000 in sales with just the 4 of us, though we weren't actually making a profit. At the end of that year we were selected as the Fort Worth Chamber's Small Business of the Year, which was a great accomplishment for 4 people who had no idea what we were doing, but before we even received the award our startup was done. My wife and I ended up going for 12 full months without a paycheck and spent all of our savings and more.

We probably could of kept going and tried harder to make our struggling business survive, but the truth is I'd realized after being an entrepreneur for 2 short years that it wasn't really for me after all. I learned a lot of new skills in this venture but most importantly learned a lot about myself. Namely, I'm not cut out to be an entrepreneur or a CEO. I am great at implementing ideas, keeping costs low and growing a business, but prefer to work for someone else, and want someone else to make the final financial decisions and deal with the investors and the bank.

The 2 Types of Entrepreneurs

Since that adventure, I've moved back to Utah, been with a couple more startups, my latest one for the last 3.5 years. I am Employee #2 and it is a perfect fit for me. I've also had the chance to get involved in some entrepreneur and startup groups and meet a lot of people who call themselves entrepreneurs. I've met some incredible people who have proven that they can take an idea from concept to $100 million company over and over again. I've also met a lot of entrepreneurs who are struggling to get their startup off the ground. Some of these people have been struggling for years with this startup and others are on their 10th startup and hoping this is the one that will finally work for them.

It takes a lot of guts, special skills and determination to be an entrepreneur, but I'm starting to wonder if many people become entrepreneurs for the wrong reasons, namely:

1. They don't want to work for and answer to anyone else.
2. They don't like being forced to work and get along with other people.
3. They don't want to work full-time.
4. They don't want to stick with anything for too long.

I believe I've met people who have become an entrepreneur for all of these reasons over the past few months. Some of these people are strong-willed enough that they will still be successful while avoiding these things, but for most people with these biases, is it any wonder why they won't be successful as an entrepreneur?

Now I need to stress again: I think many entrepreneurs are amazing, hard-working people with more determination and resolve than I'll ever have, and I truly hope these people will be successful in their ventures. However, if someone is only an entrepreneur because they hate working for and with other people and want to work their own schedule (or barely work at all), I think they are going to find it really hard to be successful.

One more thing: There's no shame in not being entrepreneurial. I've tried both sides and can admit that starting my own company is not for me. I am not an entrepreneur. I am a startupreneur. I love having someone else worry about how we're going to get paid this month. I love working with other people. I love going to the office every day and working a set schedule. I also enjoy being involved with many of the crucial decisions, being involved in lots of different areas of the business, having more work than I can get done, and working like mad to keep costs low while increasing profits. I am a startupreneur.

If you're currently an entrepreneur or thinking of becoming one, I'd invite you to think about your reasons. Would you still be an entrepreneur if it meant you had to answer to someone else, work with people you may not like, and work a set schedule? Is it a way to avoid the things you don't want to do or is it a burning desire to build something out of nothing? Are the trade-offs worth it? What would your spouse say? If you can honestly say you are an entrepreneur for the right reasons I wish you much success and am confident that your chance of success is much better than the standard 10%.

Off-Topic Thursday - Creative People

A Review of "Crucial Conversations"

It took me a few months but I finally finished reading “Crucial Conversations”. Overall, I didn’t get as much out of this book as I was hoping for, but here are a few things I did learn from and enjoy:

How to Avoid The Sucker’s Choice
If you missed my previous post on Uncomfortable Conversations, you can see the explanation of The Sucker’s Choice here. I really liked learning about this principle and here’s how you avoid it:

1. Clarify what you really want.
2. Clarify what you really don’t want.
3. Present your brain with a more complex problem by combining the first two items into an and question that forces you to search for more creative and productive options. e.g.

• Is there a way to tell your peer your real concerns and not insult or offend him?
• Is there a way to talk to your neighbors about their annoying behavior and not come across as self-righteous or demanding?

Mastering Your Stories
In every crucial conversation whether you realize it or not, you are telling yourself a story about what is happening. You might be inventing reasons for why another person is acting how they are or filling in blanks in your knowledge in other incorrect ways. Particularly, watch out for these three clever stories:

1. Victim Stories – “It’s Not My Fault”
2. Villain Stories – “It’s All Your Fault”
3. Helpless Stories – “There’s Nothing Else I Can Do”

How to Speak Honestly Without Offending

1. Speak with Confidence
2. Speak with Humility
3. 3. Speak with Skill

What to Do When You Still Disagree?
Sometimes despite our best efforts in Crucial Conversations, you might still ended up disagreeing with the other party. In this case, remember your ABCs:

1. Find what you do Agree with.
2. Build on those points.
3. Compare the differences.

The Four Methods of Decision Making
There are four common ways of making decisions:

1. Command
2. Consult
3. Vote
4. Consensus

How to Choose Which Method to Use

1. Who cares?
2. Who knows?
3. Who must agree?
4. How many people is it worth involving?

Has anyone else read “Crucial Conversations? Did you get have any other principles that you really enjoyed? Have you implemented any of these principles in your crucial conversations with any success?

I Don't Always Test My Code...

Hiring family/friends - A review of "Atlas Shrugged"

I just finished reading "Atlas Shrugged" by Ayn Rand. It took me 3 months and the only reason I made it through was because I had the audio version from Audible. There were some long rants, one monologue lasted over 3 hours in the audio version but overall it was a fascinating story with an interesting message. Without spoiling it too much it is about what happens in society when it is ruled by lazy, selfish people.

There were a lot of political and social messages in this book but the main message I took from it was this:

Need should never be the primary reason for giving someone a job or anything else.

The antagonists of the story preached that the world would be a better place if everything was shared among everyone according to their needs. In principle, this sounds like a great idea, but in practice it quickly becomes a disaster.

How does this apply to startups?

And now to my point. I have worked in a number of startups that have hired friends and family members. I've worked at 3 different companies with my wife, I currently work with my bro-in-law and have worked with my closest friends and it has almost always been a good experience.

The trouble with hiring family and friends comes when you hire them based purely on their need, not their qualifications for the job. If I know a person well enough to know I want to work with them, I also have a good idea of whether this person would be a good hire or not. In a startup, every single hire is crucial and every dollar spent on salary is way too important to make this decision lightly based on friendship or kinship.

I've often had close friends ask me to give one of their family or friends a job, "Because they really need it." I am not completely heartless to the importance of need, but I've usually found that if someone desperately needs a job and is unable to find or keep one for a long period of time, there is often a reason. If I don't know them personally, they are going to have to go through a rigorous interview process to make sure they are qualified for the position. I am most likely to be even harder on a distant acquaintance because if things don't work out it will be extremely hard resolve the situation and can harm friendships beyond repair.

If I do know someone well, I know their character well enough to know if they would be a good hire. I personally give preference to someone I know well enough to be sure they are a good employee, even if they may not have as many direct qualifications as other candidates. There are very few things that can't be taught, if I know they are a hard worker and great team player.

Anyone else have experiences working with family or friends that have gone bad? How did you handle the situation and how did it affect the relationship? How about situations that have turned out great? What did you do right in these cases?

Off Topic Thursday - AGT brings Spongetta back for the finale

Platform Horcruxes - Part 2

Last week I laid the foundation by talking about how the Lord Voldemort of your platform has successfully stopped you from moving forward by hiding horcruxes all over the system. Now for the epic conclusion. So, what can you do to prevent Lord Voldemort from rising to power in the first place or to stop him from gaining any more power over your product?

1. Hire a solid IT Manager as soon as you can. It's possible to get things going with an outsourced development firm but long-term this is going to be more expensive and costly due to their lack of ownership. Here are some key traits to look for in this position:
1. No ego (it's crucial that this person puts the long-term success of the product and company ahead of their desire to prove anything)
2. Straight forward, honest manner (you need someone who will tell you all the facts without letting their personal biases get in the way)
3. Realism (I've encountered too many developers who insist on building the Eiffel Tower when all we needed was a hot dog stand. This can't be their pet project or a chance for them to hone their skills in a new language they've been wanting to learn. They need to develop exactly what your business needs and nothing less/nothing more)
2. Make better choices. Early on, you might have to purposefully choose some paths that you will know might hurt you in the long-run just for the immediate demands of the company. But as soon as you can, make every project a chance to improve the underlying infrastructure of your platform. If you have horcruxes that are making development harder today, take the extra time to seek it out and destroy it once you have some breathing room. Every hour you spend destroying horcruxes today will save you hundreds of hours in the next few years, so take the time to do things right as soon as possible.
3. Set realistic expectations internally and externally. Start early setting longer than necessary timelines with your partners. If something is absolutely urgent, then get it done as soon as possible, but otherwise double or triple your time estimate and take the time to destroy some Horcruxes along the way. I currently work with a team of about 10 developers. Recently I sent a project to one of them who reviewed it and reported to me that he could complete this task in 30 minutes. Unless it's a simple text change or something really small, why would you ever give such a low estimate? I knew it would take him 5-10 times that long and would have preferred he would have guessed higher to begin with because it did end up taking him much longer. Of course, I quoted 5 hours to our partner and told them it would take a couple of weeks to complete, and we ended up just barely making it.

If you've been on the technical side of a web startup, you know what I'm talking about. If you've ever been on the sales/marketing side of a web starup, you're probably the cause of the horcruxes. I recently had a developer turn down a job by telling me the "code smell" of our platform was not worth the constant anxiety he knew it would be. This happens and isn't surprising. We may be losing the battle with Lord Voldemort but are still hopeful we can win the war. Can you relate?

Off Topic Thursday - Why I love AGT

How many horcruxes does the Voldemort in your platform have? Part 1

One of the biggest issues facing an internet startup is developing a solid platform that is built right from the beginning. If you've ever tried to build a platform from scratch while building a revenue generating business you know what I mean. Here are just a few of the issues you might run into:

1. When you start, you probably think you have a solid grasp on what your business will need to offer to succeed. However, the truth is you are likely only about 10% right. If your company makes it long-term it will likely be thanks to a lot of pivoting into different areas than where you started.
2. So, without having a complete understanding of the end product from the beginning, your product is likely to have a lot of pieces and features duct-taped onto the sides and not integrated as nicely as they would have been if you'd have planned for them originally.
3. Now, if you're lucky enough to have loyal customers from the beginning, they are going to grow up with you and get into the mindset that it is their personal platform, requesting customizations that your later clients would never expect. This is only going to add to the complexity and the number of features that aren't fully integrated with the system and make it hard for your platform to grow.
4. Being small and cash-strapped, every time you need an update to your platform, you are unlikely to have the time and money needed to do it right. You are going to have customers and investors screaming at you to just get it done quickly, not caring the negative effect cutting corners will have on the long-term sustainability of your product.

These and many other problems facing a new technology business will end up creating a lot of demons in the machine. Or as I like to refer to them in my platform, Horcruxes. If you've seen the Harry Potter movies, you'll understand this analogy; but if not, seriously!? Where have you been the last decade? If you're not a Harry Potter fan, let me apologize right now, because you'll probably hate this post.

In my experience at 4 different internet startups, most technology products/platforms deal with these issues. To help me from crying myself to sleep at night, I find that it helps me to think of myself as Harry Potter fighting Lord Voldemort with horcruxes hidden all over within our platform. My fellow Operations and Development teammates are fellow members of The Order of the Phoenix and we are waging a constant battle with the Death Eaters in our platform that are bent on protecting Voldemort and those darned Horcruxes.

As time passes we are constantly finding parts of the system that were designed to do what we needed it to do 3 years ago and are nearly impossible to update to do what we need in the future. These are the horcruxes and as long as they exist, the evil Lord Voldemort that keeps us from moving forward can't ever truly be destroyed. Sure, with weeks to months of work we can usually destroy a Horcrux, but I often echo Ron Weasley's sentiments in the final movie that we are never going to find them all and are doomed to failure.

Am I the only out there that relates my platform to the world of Harry Potter? Wait until you hear how my job is like the movie, "Inception". Tune in next week for the exciting conclusion and tips on how to win this epic battle for a clean, reliable platform.