Sales Experiment

Posted in New by Harsha on July 28, 2006

It is earnings week on the Street. From the time of this post, I’ve had 5, 10, 5 and now 8 shareholders; people that invest their money on this blog. Time = Money. Focused, powerful, relevant "stuff" wins.

In reporting Q2 earnings, Netflix grew 62% in subscriber growth but spends ~$43.95 per new customer. I don’t think Netflix markets the idea that DVDs can be shared with friends/family. It is not canniballistic, especially at $43.695! The lesson here is that the value of cold leads < warm leads. I’m earning new shareholder "investment" in this blog as the existing ones bring them in by sharing the link.

Now the industry my employer’s competes in, is moving into this setup:

Service Providers —> MSP —> End-Client

Sales, at first, marketed to End-Clients to get their MSP door-keeper to let us in. This strategy had birthed our current MSP relationships, so it works. Just that it spread us thin. Now we leverage existing relationships and it works too and very cheaply – this week, in 2 days over email, we signed up a $5M potential End-Client by just talking with a MSP we serve (and love!). I don’t think we’ll let go of the first strategy, but you can imagine where we’re focused now.


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