What Entrepreneur Mark Organ repeated and revisited from his success at Eloqua as he builds his sales team at his new venture Influitive
Successful entrepreneur Mark Organ may have just landed his first Sales VP at his second company, but his story started more than ten years ago, when he and his two partners founded their first start-up, Eloqua. The journey from start-upâthree guys sharing the weight of getting their new company off the groundâto being bought by Oracle for $871 million taught Mark a lot about what works for him when building a sales teamâand what doesnât.
So, when he started Influitive he was able to bring forward a lot of the things that had made the sales team at Eloqua great, but also identify the things he would do differently.
Sales Rep number oneâthe CEO
In Eloquaâs early days the three founders had to do everything themselves. That meant, although Mark was President and CEO, he was also sales rep number one. A position he wasnât entirely suited for or comfortable with at first. But he persevered.
As Mark says, âThose early door-to-door sales and cold-calling experiences were extremely valuable. They made me really tough and willing to accept rejection.â But when he hit a rough patch at Eloqua and struggled with sales, he was lucky enough to have an investor who was also a mentor and professional sales trainer. Mark says he got the sales problems solved only when his mentor said, ââMark, you need to go back to school.ââ He enrolled in the trainerâs sales course and got a real taste for the skills involved. From there he devoured every book and article on sales he could find. He made sales a strength rather than a liability. For that, Mark says, âI owe him a real debt of gratitude for forcing me to learn how to sell professionally.â
In fact, being forced to, not just sell, but become good at it, had pay-offs for Mark and the company even when Eloqua had grown to over 150 employees. And it continues to be a strength at Influitive. What started as a necessity borne out of desperation has become a key to Influitiveâs sales team and culture.
Mark says, âAt Influitive I make quite a lot of sales calls, just like in the early days at Eloqua. And itâs not to generate revenue, but I think that itâs really important to listen to exactly what the customer wants.â
He has found that selling is the best way to get to know what kinds of sales reps he will need to hire. And having ongoing sales experience makes him a better sales manager and coach. If his reps get stuck with a certain client, Mark can usually call on experiences he had when he was selling to similar clients, and say, âHey, hereâs what worked for me.â
A CEO who makes salesâmakes better
sales team hires
In fact, Mark has found that not picking up the phone or getting in front of customers can create problems for owners and managers. CEOs who donât have enough understanding of the sales function and their customers run the risk of not making good sales executive hires. Heâs seen CEOs go through three heads of sales in a year, thinking all the time that the problem is that they hired bad candidates. The real problem is that too often, the CEO does not understand how, and why, their customers buy.
Markâs sales transformation led him to see sales as a core skill set every CEO needs to master. âYou donât just sell products to people or to companies,â he says. âYouâre also selling people a vision on why they should join your company, and investors on why they should buy your stock, and partners on why they should lend you their reputation and their sales force. You have to sell your wife on why youâre not going to be home for two weeks.â
Good sales reps in the early days are
different animals
Eventually, Eloqua grew to a point where they were ready to hire their first sales people, but, as Mark says, âSales rep number one is very, very difficult.â
There can be a huge cost to getting it wrong. If you make a hire who doesnât work out youâve invested time and resources you really couldnât afford to wasteâbut even worse, youâve lost out on months of potential sales growth at a crucial time in the development of your company.
Plus the chaotic nature of a young, growing company makes finding the right kind of rep even harder.
At Eloqua Mark saw that it takes a different and special kind of person to thrive as a sales rep in a businessâ hectic early daysâwhen everything in your company is in flux and poorly defined, and products are half-built or donât have features the client youâre sitting across from is looking for. Reps that can succeed in a dynamic environment like that are a very different animal than the âregularâ rep who needs structure and a process, and everything to be buttoned-down and defined.
The sales people that work well in the early days are entrepreneurial. They tend to be generalists, even âcowboysâ, who feel comfortable selling a little bit of a road map to the future versus pitching the product or company as it exists today.
In the beginning at Eloqua a lot of sales were made when reps told clients, âYeah, we got that,â or âThatâs coming in our next release in a month,â when it really was planned for six months out. It forced the company to change priorities and get the changes done ahead of schedule to satisfy the new client.
âLying is never cool,â Mark says. âBut selling a bit of a visionâI think thatâs actually okay. Entrepreneurs are typically very comfortable and often live in an alternate reality anyway, so they actually do believe or convince themselves that itâs coming out in a month.â
And his Eloqua journey showed that you can hire sales reps that donât have extremely good closing skills in the early days because theyâre not going to be closing deals anyway. Someone senior is going to be doing the closing. What you need are sales reps that have a good understanding of where the company is going, with strong relationship-building skills, and who are smart. Theyâre able to position a product in the right way that really fits the needs of the customer. Theyâre able to show the customer that they have needs that they didnât think they had.
In fact, the best stage one sales reps can help you build your vision of your companyâs future because they have such a great understanding of your customers and what they want. Plus, they have the passion to inspire those customers to follow you into that future.
The do-over
When Mark started Influitive he had a chance for a redo. He learned a lot from all the trial and error he had done at Eloqua, and in the new company he made sure to replicate all the things that had worked. But he also had a chance to change things he had been frustrated by the first time around. In particular he was determined not to repeat the biggest mistake he made at Eloqua.
As he says, âI held on to sales management too long. And it cost me a lot of growth.â He learned the hard way that the first thing the founder needs to do as the company and sales team grows is to hire a great VP of sales. In Markâs opinion the founder should run the sales team until he or she has six sales reps, and then itâs time to typically bring in a VP of sales.
In hindsight Mark believes he waited six to eight months too long to hire an SVP at Eloqua. But starting Influitive gives him a mulligan, and as he says, âI brought in a head of sales much earlier this timeâŠweâll see if I made the right call.â
The last word
Thatâs the beauty of starting your second businessâyou have the chance for a do-over. You get to revisit everything you tried the first time around, cherry pick the things that worked and apply them in the new company. But you also have the chance to right wrongs.
As Mark says, âI think repeat entrepreneurs are successfulâbecause we screw up so much. A lot of this stuff is gut feel, and talking to people, and trying to learn patternsâbut if you hadnât seen the pattern before, you wonât necessarily know when itâs the right time to do it.â
Mark learned a lot from his Eloqua experience, and itâs helped him build his sales team on his second go round at Influitive. The rest of us may not be starting our second businesses, but we can give ourselves a do-over with our current companies. Like Mark, we can learn from all the things weâve tried in the past and make sure we repeat what worked and try to change what didnât.
What would you differently with your sales team if you had a do-over?
About Mark and Influitive
Mark Organ is the Founder and CEO of Influitive, the advocate marketing experts. Influitive helps B2B marketers mobilize their advocates and fans to share their positive experiences across the social web in order to influence buyers. Influitive is headquartered in Toronto with offices in Boston and Palo Alto. To learn how to get your advocates working with you, visit www.influitive.com.