March | 2012 | Dave Stelzl's Blog

Archive for March, 2012

Mar

70 Attendees and a 90% Response Rate – David Stelzl Speaks to Business Owners

Categories: Demand Generation
Tags: David Stelzl, educational marketing, lunch & Learn, Managed Services, security speaker, Technology Sales, var

Back from South Dakota – we had about 70 attendees last night, mostly business owners and leaders from the local community. About 90% of the companies represented signed up to have their security assessed…why?

Because the event was focused on their business and a growing need every attendee had in common. This event had nothing to do with products, or the WHAT Golden West Technologies (The sponsoring VAR) sells. It had everything to do with educating those who have worked hard to build businesses, and who want to keep those businesses going in the future.

This is the time to be talking about security…just this week government representatives and consultants have made statements in the Wall Street Journal saying things like, “Consider every one of our networks to be compromised”, “All we can do now is focus on preserving the data”, “We are losing the war with cyber criminals.” I also read in Wall Street this week that business leaders tend to shy away from knowing too much…but with a compelling campaign encouraging them to take action, we had over 70 responses in just a couple of weeks. 5 or 6 had to cancel, but consider some of the average attrition rates at lunch & learn programs and you’ll see numbers like 50 and 60 percent. This was a great event and more are needed just like it. The business leaders need the education, and the solution providers need to take a more active role in helping business leaders understand the issues and why they need to be involved personally. Last night was a perfect example of this in action.

Mar

Speaking to Business Owners in South Dakota; An Educational Security Event

By Dave Stelzl's Blog 1 Comment

Categories: Demand Generation and Opportunities
Tags: David Stelzl, joint marketing funds, Managed Services, marketing campaign, marketing event, security, speaker, Technology, var

Note: Here’s my Hertz rental car at the Rapid City Airport – If they had known that I have seven kids, they would have also known that I only know how to drive big vehicles…

It’s a great day in Rapid City, SD – I love this job because I love events like the one we are doing today. Every business owner out there is working hard to build a successful company, and today is no different. 72 of these business owners and leaders are meeting today to gain insights on how to deal with information security as their business grows, and the threats increase. As they focus on their customers and offerings, someone has to sort out the technology, and figure out how to maintain it – keeping it secure, up, and running smoothly.

A local solution provider in town is sponsoring this event – we’ve been preparing for this over the past few weeks, looking at who should attend, who will benefit, and how to best address the issues businesses are facing. The exciting thing is, we have answers. We have an understanding of what these companies are facing, and we’ve put together a plan to address it. We have a way to show them the problem, a way to measure the effects it is having on their businesses, and a way to bring managed remediation to any issues that may exist. It’s simple to do, compelling, and valuable to both the sponsor and the attendee.

This is what we do – the technology business is not about selling the next widget, or even maximizing profits – it’s about the people you are serving through it; in this case, small and medium business owners and managers. The profit is a measure of your success in carrying out the mission. At the end of the day it’s a win/win proposition.

Mar

Accelerating Managed Services Sales: FREE Webinar

By Dave Stelzl's Blog Leave a Comment

Categories: Marketing and Opportunities
Tags: David Stelzl, selling firewalls, selling managed services, selling security, technology speaker

FREE Webinar: Accelerating Managed Services Sales, April 3, 2012 3:00 PM ET.

Yes, I am repeating this webinar – the waiting list from last week was big, and few cancelled, so if you missed it, I apologize. You can sign up here:

http://stelzlmrr2.eventbrite.com/

Tomorrow morning I am headed out west to speak to business owners on major threats closing in on their business. Most of the them have no idea how vulnerable they are – yet their data is their most important asset. Some of them are working on new inventions that will take their business to the next level, others are handling sensitive medical information protected by HIPAA and highly guarded by their patients, and still others are processing financial transactions, managing debt, and overseeing investments and bank accounts. These are the owners and business leaders of a city’s small business community – and they all have one thing in common; Data@Risk.

As someone who has sold security solutions, developed methodology, and overseen some very large security/risk assessments, I know first hand that it is easy to get in. I also know that most of these companies think they have it covered because they sit behind a firewall and run anti-virus software. Meanwhile we have companies like Nortel written up in the Wall Street Journal, having had hackers in the bowels of their company for over a decade, siphoning off, who knows what kind of data? It’s epidemic, and it’s urgent.

Attending our event we have over 60 decision makers – all from companies who would benefit from a managed services solution that includes security management. They need a way to detect problems before they get big, and a way to effectively respond…All of this points to managed services…on April 3rd, my goal is to show you what these people need, how to tell them about it, and how to justify the expense, making this a win/win for you and your clients. If you want to know how to build this side of your business, join me on the 4rd – we have limited seating, so sign up soon. Here’s the link again:

http://stelzlmrr2.eventbrite.com/

David Stelzl has a fresh perspective on the high-tech consulting business – he’s taken resellers from selling point products to providing high-end technology solutions, significantly increased company profits through the addition of consultative offerings and managed service programs, and has had the privilege of speaking to and training marketing and sales teams all over the world. As an example, he developed material and trained Cisco’s North American, Australia/New Zealand, and Asian sales forces on how to reach executive managers with a compelling value proposition; a message that grew Cisco’s advanced technology security sales by 38% in 2006, according to internal reports.

Visit us at http://www.stelzl.us to learn more.

Mar

Answering the “Why” Question

By Dave Stelzl's Blog Leave a Comment

Categories: Marketing
Tags: apple computers, apples success, simon sinek, Start with the why

At least one astute reader asked the question…”Why?” after he read my post on Simon Sinek’s video, Starting with the Why (click to view it) yesterday. I would hope more people are asking, “Why to I do what I do?” – it makes all the difference.

This reader writes me with the question, “Okay, so why do I sell security solutions?” From Simon’s point of view, if we don’t ask the question “Why”? we are never going to see real success. He points to companies like Apple, and people like the Wright Brothers and Martin Luther King, to show that these people and organizations have more than a product; they are selling what they believe in. In other words, they are selling their passion. So how do you answer the question?

What is The Why Question We Should Be Asking?

When I first read the question, “Why do I sell security?” I started thinking of some good answers…but now, I think it’s the wrong question to be asking.

When Simon kicks off his 18 minute video, he doesn’t ask, why does Apple sell computers. He talks about doing things differently – that is what Apple believes in. The “WHY?” question answers why you exist, not why do you sell what you sell – it asks “What is your organization’s purpose or passion?” (and the purpose isn’t profit – that is simply the result of doing what you do, according to Simon)? In his Apple example he states, “In everything we do, we challenge the status-quo, we think differently”. Apple does this by making simple, user-friendly, beautiful products – this is the HOW, the second question that must be answered. Then comes the WHAT – “We make computers”. Security is the product…the WHY question has more to do with WHY you exist…not WHAT you make.

Interpretation/Application

So how does this translate into the reseller’s business – how is the reader’s question answered according to Simon? Well, I am not Simon, but I have listened to his video more than once and have put some serious thought into my own business, as I think through what he is saying. I have a passion, a belief system, and a people group I am working to serve. I focus on helping people with entrepreneurial exuberance get somewhere with their business. I love to see people create something out of nothing, or build a business where others have failed. The business owner, the sales person, the inventor – these are my people group. Some are students who I encourage to take a new route to business – I encourage them to avoid the status quo route so many people take, landing them in some J.O.B.; one I know they will grow to hate after doing it for 40 years, every day, all day. I work with the student and the sales person – I believe they have gifts and talents to give which can be used to do something fantastic. The business owner is the same. This person has stepped out in faith, believing they can do it – they can be one of the 4% who will actually stay in business over 10 years. They are risk takers and embrace the freedom and responsibility that comes with owning and running a business, or living on a highly leveraged compensation plan that promises a reward to those who make it.

In Apple’s case, the HOW comes through the simple, easy-to-use product. Mine comes through developing great messaging, sales and speaking skills, and consulting that can truly transform a business. I believe there is a better way than the average sales methodology. The people my clients serve need help, and my clients have a way to help them – they just need a way to articulate their value clearly.

The WHAT with Apple is the computer – they make and sell computers – great computers I might add. I have the desktop, a notebook, and the phone…I’m a fan. My WHAT comes through my coaching, my teaching, and my speaking and writing. I am a communicator of truth, using whatever skills I have, or can build, to reach my people group with my passion for their success. To equip them to succeed.

So my reader with his security practice, who happens to be an entrepreneur – someone with a passion for his client, has something to give. He’s passionate – but security is still his WHAT. He has a people group, which I have heard him speak about. It’s the business owners of the SMB market he serves…he should be looking at his people group and asking, “Why do I love serving these people – what am I passionate about that will help them?” If it’s just about security products, he won’t succeed – but if he has a vision involving their success, then he has something; something he believes in. Now, how will he do it – he believes they need help keeping their systems up and running, safe from security threats, and performing every day of the year to enable their business. He believes this can be done better by a central program, that offloads the responsibility of daily maintenance and oversight from those working in that company he serves. My read has put together a unique offering that happens to be security focused. Why? Because he saw this as a way to carry out his passion. It may change one day, but if he really embraces his passion, and his people group, he will likely still be doing something for those he calls on today – just replacing the “WHAT”.

Mar

Simon Sinek on the “Why” We Do Business

By Dave Stelzl's Blog 4 Comments

Categories: Video
Tags: apples success, simon sinek, Why you do what you do

Not a brand new video, but worth taking a look – if you want success in your messaging, Sinek has some points that really are worth embracing. I often ask, “What people group are you serving?” It you don’t know and understand your people group, it will be very hard to meet their core needs.

Mar

The Services Compensation Deception

By Dave Stelzl's Blog Leave a Comment

Categories: Leadership
Tags: changing compensation plans, finanicial planning, gross profit, pay plan, sales compensation

Resellers can’t compensate sales people on revenue…

Chances are you compensate on gross profit (GP) if you manage a reseller sales team – and it goes without saying, if you are in sales, your compensation is based on GP. But there is a bit of deception here that will take a business from profitable to unprofitable very quickly. There are two places where money continues to leak from retained earnings – 2 holes in the bottom of the ship.

The one I am concerned about here deals with services compensation.

Speaking to Business Owners and Managers

Speaking to owners, VAR presidents, and sales management, are your sales people really paid on GP when it comes to services? If you pay out based on services revenue, you are killing your company. If you pay based on projected GP: (sale price) – burden, you may still be paying on revenue. Here is what I see happening…

The deal is sold for $1600 (as an example). If the project is estimated to take 8 hours, the burden might approximate to $800 (using round numbers – yours will vary). So the GP on the deal is simply $800, and the rep gets a percentage of this. But what if the actual project time spent on the project is 2 hours over? Is the cost of the project recalculated, raising the burden to $1000, and leaving only $600 in GP? It should be. If you keep the rep whole – by paying them on their estimate, this is actually still a revenue based payout, just at a different percentage than you pay on other things. It’s revenue because you are not actually counting the true cost.

The Sales Person’s Perspective

The sales person at this point might argue, “But I don’t control the efficiencies of the delivery team, therefore I cannot be held responsible for the loss of GP.” This is a valid point, but neither can the rep control the street price on product, yet GP is still the metric used for compensation. When the sales person is compensated without taking the actual invoiced services into account, the company suffers financially. My advice is to move your compensation to actual GP, and train sales people to value price their deals (meaning you are using fixed prices). Chances are you can’t bill any significant overage anyway, so why fight this. Sales managers should also be reporting GP by project on a regular basis to see which reps are accurately quoting services deals. In most cases I find there is a pattern here. One group will be on target, and this change won’t really affect them. Another group will likely have a track record of under-quoting. This group will resist the change, but the change is necessary.

But First

Before doing anything, make sure your top sales people’s projects are reviewed, and that you have a way to make sure they continue to make good money. You don’t want to lose them. Those who are mediocre or poor in performance, may leave – that’s actually good. Redistribute your territories, rebuild your profits, and when the time is right, replace those who have left. Your financial picture can be turned around in a matter of a few months.

Mar

Doorway to Profit

By Dave Stelzl's Blog Leave a Comment

Categories: Wise Counsel
Tags: acquiring a var, profit, selling your company, valuation

Tomorrow’s webinar is fast approaching. If you didn’t see my announcement a few weeks ago, I am covering the topic of accelerating managed services sales (click the link to be added to the the waiting list) – this webinar filled up in just two days…why? I believe it is because company owners are seeing the need to build more recurring revenue as margins continue to shrink. A little over a decade ago your company (speaking to VARs here) was worth a fortune if you had anything going on. Just before 2000, VARs were being acquired for multiples of revenue! Looking around, it seems like M&A activity is on the rise again for the first time in 10 years. However, if you don’t have recurring contracts in place, don’t expect to get much. Recurring revenue is the key to financial stability and strong valuation. As an aside, debt does exactly the opposite.

Mar

The Incompetent Adviser

By Dave Stelzl's Blog Leave a Comment

Categories: Leadership
Tags: David Stelzl, event marketing, executive coach, new sales job

Micheal Bosworth, back in his 1995 publication of Solution Selling, wrote, “Power buys from power.” He goes on to explain that executives (people with decision making power) are looking for someone to advise them, and that person must be competent (a person commands authority with advisory power). But how do they know you are that powerful person before they buy? Over time it will become evident, but what about right now while you are working your way into the account.

A problem arises here – the typical sales person gets a new job, feels great about the new position, and goes out with a new brand behind them, hoping to conquer new and bigger accounts. It feels great at first. But, regardless of what the recruiter told you, the job is always harder than you expect. Sale is hard work! Weeks go by, calls are not returned, emails are deleted, and your ego starts to deflate. At some point you start second guessing just how great of an adviser you really are. Your message goes from abounding confidence to a gentler, softer sell. You are starting to wonder if anyone will ever talk to you.

This often leads to steeper discounts, desperate measures, and pleading with the prospect to do something. Anything!

I was on a coaching call the other day discussing this very dilemma. In fact I spoke with two sales people back to back sharing similar stories. It’s common for this to happen to anyone working a new region, or to a rep in new with a new company having a lesser brand in that territory. So what should you do?

There are many factors here, and of course, the right marketing strategy is going to be important. It’s clear to me that pure cold calling, brute force tactics, won’t do it in this market. But that is not my focus here…my focus has more to do with the self-talk that takes us from feeling confident and able, to subdued and defeated. A couple of words to keep you going are in order:

It’s tempting to sell everything, but the trusted adviser is a specialist. You can’t advise on something you don’t know – that means picking an area and becoming the best in it. Jim Collins gives us this advice in his book, Good to Great. Collins is talking to companies, but the same applies to the rep. You can expand later, but don’t be all things to all people – you’re just not big enough. Instead, pick a hot area and learn how to sell it. Lead with it, and learn to expand your presence once in the account. If you pick an area that is much needed in today’s business economy, you can be sure that most of the people you call need what you sell. The secret here is knowing how to apply educational marketing strategies to drive your offering.

Stop listening to the local rock station while driving to appointments. Instead, buy some of the great educational MP3s available today. I’ve mentioned various titles in the past, but the point here is, stop wasting your drive time on empty entertainment. Rock music actually puts your brain into a sort of trans that eases the pain, but does nothing productive for you (other than, perhaps keeping you awake after staying up too late). Teaching tapes (MP3s) by successful people bring encouragement and structure to your sales call. You want to enter these meetings with confidence, even if your numbers are terrible.

Use your downtime wisely. The temptation is to thrash from email to email, reacting to anything that comes along. Don’t be deceived – wise planning is better. Take time to study. Learn about the needs of the people you are calling on, write, read, plan out your calls, and make every thing you do into a quality effort. When a call comes, plan and execute. Build marketing materials, build your social brand online, and carefully plan out marketing efforts.

Don’t waste time networking over long lunches with people who can’t really help you. Do reach out by phone to people who bring encouragement and perhaps sound input. Consider using a coach. Coaches consistently show a strong return on investment because they do encourage and bring accountability to the process. I know many people shy away from spending the money, yet often the coach’s six month fee is completely covered in one good sale. That’s pretty strong if you ask me.

Mar

Looking at Google+

By Dave Stelzl's Blog 1 Comment

Categories: Marketing
Tags: David Stelzl, google, Marketing, social media

I’ve been looking at Google+ this week…why? Because it seems like everyone is on Google for something, and that means Google+ will likely gain a strong following. I have a Facebook company page, and of course, everyone is on Facebook too – so what should we do with Google+?

First – click the g+ and connect with me on this page!

Well to start with – you need a way to connect with clients and prospects – Linkedin is a great networking tool for me, but are your clients using it actively? I suspect they have a profile set up – but are they paying attention to the posts? Probably not. In my own experience, Linkedin is a great way to keep track of where people are as they move from job to job. If you call on the larger enterprise, this can be useful – IT people leave every 18 months on average, so keeping track can be an important part of territory management. On the SMB side, hopefully you call on business owners – they are probably not moving around. If they are, their credit is probably not very good…

Facebook has a strong following – and the business side is growing, but for the average sales person, you probably don’t have your own corporate page – so now you are somehow mixing your personal friends, high school and college contacts, and business contacts all in one. This just doesn’t do it for me. I don’t think my clients are interested in old fraternity pictures taken several decades ago.

Google+ seems to have a friendlier interface for this type of thing. The circle thing works for me, but the “Create pages” feature is really powerful. You can now set up your profile, and then create a special page – which, unlike Facebook (at least from what I see here), you can create a unique landing page in a matter of minutes. You can post pictures and bio info specific to what you do, add daily info and insight, and begin building connections that center around your professional side, without getting caught up in the personal side. 80/20 was recommended somewhere – 80% professional, with about 20% personal to give this a personal feel without going overboard. If you are involved in other leadership activities with outside organizations you might consider building more pages for these things. Unlike Facebook, they are unique pages with no connection between them – other than you manage them from a central place. The people who connect to you don’t see a bunch of unrelated tabs and posts.

I am now exploring how I might use this to create landing pages for books I’ve written, and more. Check it out – and see if this might be a way to set up your personal web landing page to communicate your value to those you call on.

Mar

Finding New Business a New Way

By Dave Stelzl's Blog Leave a Comment

Categories: Demand Generation
Tags: cold calling, David Stelzl, event marketing, marketing campaign, speaker, technology conference

Setting up a New Event

Will they come? Just this week I was working with one of my clients in the northwest on filling seats for their first major marketing event. This is their first “asset owner” facing event, and like most, there was some uneasiness as to whether they would actually be able to attract buyers to their event; there always is when planning a first event. Just one week into their marketing campaign, 18 had already signed up (18 qualified asset owners). Within two weeks, 39 were signed up! How did this happen?

Well it wasn’t luck…Marketing doesn’t always work, but good marketing does. We didn’t just send out a bunch of emails last minute to do this. We started this process weeks ago, working out the wording, the format, and media that would most appeal to our target audience. We chose a topic that resonated with this target group of prospects, and we planned a phone campaign with scripts and timing to match the overall campaign theme and mailing.

Building a New Territory – Will it Work?

I was talking with a sales person yesterday from another company in the northeast. He is just a few months into a new position, trying to establish a new territory. In the past four months he has found it extremely difficult to penetrate the market he is in. He’s tried calling, emailing, and sending letters, but as you might have guessed, it’s slow, and people are unresponsive. Will an event work for him? The answer is yes! Events do work. When they don’t, it simply means they have been set up incorrectly. The topic is wrong, the marketing poorly planned, and the invite process, flawed. Events are the best way because they are based on educating, not selling. And smart people love knowledge.

What’s The Secret?

There are a few things that must come together with absolute perfect timing:

The topic must be newsworthy. What are we seeing in the Wall Street Journal? Nortel’s recent hacking incidents, Anonymous threatening governments, subscribers of a large porn site exposed online by hackers, and alarming cautions from our government leaders on the threats of hackers taking down power grids, stock markets, and other vital infrastructure (all new this month). This is not about products – so don’t let your vendor partners steer you in the name of funding. I have seen more companies this year follow their vendors for funding, rather than demanding their vendors fund what works. VARS – If your vendors aren’t going to cooperate here, find new ones. You can’t build a solution provider company using hardware vendor strategies.
The initial marketing plan must target the right people. That means the message is written to asset owners – people running a business. They don’t care about computers, networks, or firewalls. The owner of the company that does metal stamping, is thinking about metal stamping all day. The law firm senior partner is thinking about the law, court cases, case law, and winning an important case. What right do we have to demand that they stop and focus on a new virtualization technology or data center consolidation project? Send them something that matters to their business.
The calling can’t be done by amateurs – or professionals that make calls on contract. You sell technology solutions and you’re good at it. When you contract with an outside calling firm, you are contracting with someone who makes calls on anything from insurance policies to upgrading cell phone service. These firms cannot connect with asset owners – they are there to reach the mass market – consumer market, with a mass message. If they get a .2% response from their list of 10,000, they are happy. You can’t afford this kind of campaign. You don’t have a list of 10,000 asset owners.