Predictable sales formula
Not only is an acquirer going to want to know how big your business could become,” Ted continued, “they will also want to know that you have a predictable sales formula that allows you to estimate how many sales you can make. For example, you started with forty—four leads, and after two weeks you made two sales. That’s one logo for each week you were selling. If the average salesperson has fifty productive weeks per year, each salesperson you hire should be able to sell ?fty logos. From there we can project out various scenarios. For example, if you want to achieve $1 million in revenue next year, then you need two salespeople. If you think you can handle $2 million in revenue, or design two hundred logos, then you need four salespeople.
A note on client meeting
At the meeting when you make your presentation, don’t sit the client’s team on one side of the table and your team opposite, like adversaries. Mix everybody up. Rehearse before the meeting, but never speak from a prepared text; it locks you into a position which may become irrelevant during the meeting. Above all, listen. The more you get the prospective client to talk, the easier it will be to decide whether you really want his account. A former head of Magnavox treated me to a two-hour lecture on advertising, about which he knew nothing. I gave him a cup of tea and showed him out. Tell your prospective client what your weak points are, before he notices them. This will make you more credible when you boast about your strong points. Don’t get bogged down in case histories or research numbers. They put prospects to sleep. No manufacturer ever hired an agency because it increased market-share for somebody else. The day after a new business presentation, send the prospect a three-page letter summarizing the reasons why he should pick your agency. This will help him make the right decision.