Here is a lesson passed onto me by many wise people when I first started learning B2B sales, now I pass it onto you:
The higher you charge, the more you’re valued and respected. The correct price is “complaining about the price but still paying.”
Let me clarify: meaning for the same customer and the same exact damn product, only tweaking the price factor, your product will be respected and valued more at a higher price.
It’s human psychology. We associate money with value, and we also want to actively justify high prices
And it’s more than that, I’m not a psychology expert and haven’t figured it out but I assure you the advice holds truth.
Now apply it to salary.
Stop pretending value is this objective thing easily seen by all. We are human.
Ask for more money.
I’ve been doing a lot of mentoring sessions with early stage entrepreneurs, and I tend to ask the same questions every time. I’ll post them here, in case it helps others.
4. Let’s imagine that you’re unable to make money off your business. How much money do you have in months before you run out and can’t support yourself or the business anymore? This is called your “runway,” the monthly amount is your “burn rate.”
5. If your runway’s low, what will you do to get short term cash? How can you most align that plan with the long term business plan— ie working toward it with paid work, having enough free time?
When we first started the biz, we wondered, how do you sell to a big corp? How do you get an "in?" Here is a thread on what's worked for us.
We've been through the process many times, & it follows a similar pattern with big cos. Keep in mind, each item deserves its own blog post!
Step 1: Get an engineer interested in your product, enough to want to set up a meeting about it.
Current business problem:
We have a "suite" of compressors: cross platform, & ones optimized for each single platform. They're all bundled into one product. Slow to compress, you do that offline before you ship, but provide excellent size savings & a cross platform option
We've developed a new compressor! It's just for one platform (high quality desktop/console), it doesn't get you nearly as good size savings. But you can compress in real time, and max quality is higher
It has very different pros/cons than the rest of the suite
Business problem to solve:
Do we add this to our suite, keep calling it all one product?
If so, does this affect price?
If not, what price do we charge for it? Maybe same price, but depends on how people value those pros/cons
So far, we're bundling it in for current customers
Many people start a business without the intention of paying people poorly, crunching, cramming people into a small space, etc. Then it turns that way because $ pressure
If you want to treat people well you must get realistic about how the way you make money conflicts with that
- If you charge more for your product to big company, you will prioritize their needs over small companies, but if you charge a low price to all you can get distracted by selling all the time to keep head above water
There’s no magic ideal, it’s always about trade offs
Couple downsides of my business model:
- I can’t hire people because I would want them to be equal partners or get paid a lot and I can’t afford that easily
- I prioritize big companies’ needs, or mid-sized companies who say they can pay fast, because we don’t charge a flat rate
Let's have a thread on how I do enterprise price negotiation on my product! Think: "call us for pricing" option on a product page
This only reflects one way to approach it, and it's a complex topic so it probably doesn't even capture that in an ideal way. But I'll do my best!
- Company is interested in using your B2B product commercially and wants to know what it'll cost.
- BE FRIENDLY. This is #1. Even if you are being stubborn and pushy and trying to get your way, you will do that with a smile on your face and compassion for the other person. You're dealing with a human.
Recommended stages for growing a B2B business (thread):
1. Do informational interviews with people who might be customers to get a sense of what’s needed. Network.
2. Talk to other entrepreneurs. Learn from them. Network.
3. Come up with a few ideas. If you’re confident their MVPs are doable with $ within a reasonable timeframe, proceed.
4. Think about a rough business model for each idea. How many customers would you need to be a viable business? How much $ do you need to get the MVP built?
5. Do customer interviews. Come with questions. Ask about how they’d use your product, what biggest pain points are, what they’d be willing to pay, if something else could help more, etc. Be super nice and respectful of their time. Ask if they know anyone else good to talk to.
Good ways to handle misplaced/out of proportion fear and anger pic.twitter.com/bOAotB6ebX
How to handle disgust and envy. These practices are things that would make us all nicer people. pic.twitter.com/2ktBpgWnvk
Handling the feelings of jealousy and love. Love is often seen as positive but we need to recognize when it’s hurting us to hang on. pic.twitter.com/q1Tt5JzHOP
(And plenty who don’t overstructure their lives or work/study too much, yet are still successful.) https://t.co/e0zbgB5XYY
I’ve learned to avoid saying “You need to do X to be successful,” and even though failure’s pretty clear in this example (startup not making any money), I try to avoid talking about “success” in any objective way. We all have different paths and values.
One of the biggest life lessons I’ve learned these past few years is that my definition of “success” in my early 20’s was not really my own, it was very centered around impressing others and making others proud, and it doesn’t have to be that way.
I want to make a thread about a basic overview of some marketing techniques, to help you all understand some concepts and maybe use them to help yourself
Marketing, just like sales, can be good or bad, honest or dishonest. Marketing is *human.* We never have perfect information!
"Content marketing" is something you likely already do. When you write a tweet that talks about something you're proud of that's creating content (the tweet) that promotes yourself. Blog posts, talks, slide decks, technical papers-- all these are forms of content marketing.
Content marketing can be really nice because creating content is so human, it can really help others for instance. Keeping in mind the marketing angle is just about reflecting on how you're portraying yourself when you write and thinking of how others can help you.
Budding entrepreneurs, I urge you not to take too seriously the opinions of high profile investors. They have some grains of truth but often they’re disconnected and toxic. If you want to learn, seek out entrepreneurs living the kind of life you desire and listen to them instead.
There are many, many ways to build a company just as there are many ways to live life. VC investing provides a very narrow view in comparison to hearing a plethora of views from company builders themselves and seeing how they connect to the life each one leads.
People ask me why I still live in a tiny studio & dont have a “real office” if my startup’s doing well. Because the more money I save the more I can use it on things that matter, & the more freedom I have
Early career people, please save money. You need that freedom the most https://t.co/AAEraVebg6
People later in the career, consider if you really need that house or car. Don’t blindly follow a spending path just because that seems like what people do. I know so many people unhappily feeling trapped by their mortgage and high expenses.
What kind of freedom am I talking about?
I recently did a negotiation where a big company lured us in for months, was convinced we needed them and couldn’t walk, then started laying on abuse. It was horrible. I said buh-bye. I loved their shocked reaction. Always be able to walk