Damian Thompson is the founder and chief revenue officer of Demand Genesis, who’s mission is to help 100 service & software firms build the company of their dreams while we build ours. We help companies gain new customers faster, retain existing subscribers longer, and obtain market leadership through Sales & Marketing Automation, Authority Content Creation, and Outbound Lead Generation.
Is your sales organization bringing in a steady stream of new customers? In this episode, I interview Adam Becker from Tinderbox. Adam is the Director of Sales for Tinderbox and his role is making sure that the sales and lead generation teams are productive.
Tinderbox is a SaaS company focused on the sales productivity space. Specifically, they work with the documents sales teams are using on a day-to-day basis. This interview describes how Tinderbox uses a sales driven organization to add 50-60 new deals per month with the average deal size of $12-15K annually.
Tinderbox has a somewhat unique issue in that their customers don’t even know they have a problem until they get an education. Want to know the exact process they are going through to get their prospects attention?
You’ll not only learn that, but also learn in painstaking detail:
How they are finding people for their team
How they are training their team
How they are providing lists to their sales team
How they are compensating them
How the call structure works
How many touches it takes to get a prospect to be interested
If you are looking for insight into how to build a BDR program this interview is going to give you a ton of it.
https://brightideas.co/wp-content/uploads/2014/12/Adam-Becker.jpg7202200Trent Dyrsmidhttps://brightideas.co/wp-content/uploads/2020/06/Bright-Ideas-logo-1030x255.pngTrent Dyrsmid2014-12-15 06:00:362020-09-18 04:50:22Sales Strategy: How Tinderbox’s BDR Program is Generating 60 New Customers a Month
Are you looking for ways to generate more leads? Are you trying to decide if you should allocate more resources to inbound marketing instead of the more traditional outbound marketing that has served you well over the years?
In the last week, as the host of my podcast, I have had the good fortune to interview two ultra successful CEOs. One relies 100% on inbound marketing, and the other, thus far, has relied 100% on outbound marketing.
In today’s post, I’m going to share with you what I believe are the pros and cons of each approach, as well as a hybrid approach that I’ve created.
Inbound or Outbound: That is the Question
As the founder of Groove, I’m always thinking about how to generate more of the right leads for my company.
As a content marketer, I know from personal experience that getting website traffic and leads is pretty easy to do once you understand the process. With that said, I’ll be the first to admit that this approach, while very effective in the long term, doesn’t generally deliver immediate results.
As a veteran sales guy, I know from personal experience that prospecting can deliver meaningful results in a fairly short period of time. Although, I must also admit that thanks to the fact that most people don’t answer their phones any more (they let the call go to voicemail) prospecting in the modern era is a lot harder than it was when I first got started in sales back in 1990.
So which is a better use of time? One-on-one prospecting, or content creation?
It’s not just inbound vs outbound – it’s both.
The Case for Inbound
Last week, I interviewed the CEO of a very successful agency and within two years of launching their blog, traffic has risen to about 35,000 visitors a month. With this amount of traffic, the volume of leads is substantial enough that his sales team can afford to be really choosy about who they invest the time to actually speak to.
To achieve this result, in year one, he published about 560 blog posts. If you figure that each post cost about $200-$300 to produce & promote, that means his cost for content & promotion in year one would have been roughly $112,000 to $168,000.
His firm generated $1.2M in its first year, so it would appear that this was a good investment.
What isn’t immediately obvious to someone not yet familiar with the benefits of content marketing is this: by creating such a large volume of content, he has turned his website into a very valuable asset.
Relative to his competition, his website is now become an incredibly valuable library of helpful information, and Google is rewarding him accordingly. At the time that I interviewed him, approximately 45% of his traffic comes directly from search engines.
With so many posts now published, not only will the traffic keep on flowing (even if he stopped or slowed production of new content), but his competitors will have to work extra hard and create a huge amount of their own content to ever outrank his site.
As you can see, when it comes to digital marketing, content has become an incredibly valuable asset.
Remember what I said earlier though…success wasn’t instant. Creating all this content and building his website into the incredibly valuable asset that it is today took time.
Earlier today I interviewed the CEO of a 3 year old venture-backed startup. Three years ago, the company was considered a failed investment by the VC and the new CEO was brought in to right the ship.
Last year they did $10M and in the first quarter of this year, they did $3M.
How did they get these results? Did content play a role?
Content didn’t play a role at all. In fact, they don’t even have a blog.
Instead, they have relied on a traditional outbound approach and employ a sales team.
With purely outbound marketing, you rely entirely on your sales team.
In the interview, I didn’t ask the cost of the sales team; however, some simple math tells me that it’s probably a lot more expensive for them to generate leads from outbound than it is for the other company that is using the inbound approach.
Here’s what I did learn. To do outbound, each sales rep they hire must already have an established book of business (warm contacts).
Reps that have this aren’t cheap.
Then, for the cold outreach they do (their warm contacts alone aren’t enough), each sales rep relies heavily on LinkedIn to painstakingly research each and every prospect. Once this research has been completed, the outreach begins with up to as many as 10 cold emails per contact. Each email has just 2 sentences in it has only one purpose: to get a face-to-face meeting.
Meetings generally last 15 to 20 minutes plus the time & expense to physically travel back and forth. On average, the sales cycle is 2 to 3 months.
Thanks to a very compelling product, they are closing about 50% of qualified leads. Perhaps this is one of the reasons they can afford the expensive sales reps.
Given their huge increase in revenue, this approach is definitely working for them; however there are three major drawbacks that I see:
Their cost per lead has got to be extremely high. If you take a sales reps salary and divide by the number of leads they can potentially generate using this approach, it’s got to be expensive on a per lead basis
This approach is 100% reliant on highly skilled sales reps and these folks are hard to come by
Unlike the agency I wrote about earlier, because they don’t produce any content at all, they aren’t turning their website into a sustainable competitive asset that will generate leads on autopilot
My Hybrid Approach
In my case, I want a way to generate highly qualified leadsfast and I want to turn my website into a valuable asset that will generate leads on autopilot.
The problem is that my company is not venture-backed, and therefore, I cannot afford a team of writers and a team of sales reps. It’s just not feasible at this point in time.
So, what am I to do? How can I generate highly targeted and highly qualified leads in the short term, without taking away from content production?
For me, the solution is my podcast.
A podcast is an incredible inbound/outbound tool.
By using my podcast as a way to get my foot in the door, I’ve been able to repeatedly establish relationships at the CEO level and since making Groove my focus just 30 days ago, we’ve thus far landed two clients and have a few more conversations now in the works. (The CEO of the venture backed firm is now talking to us about our services as a result of being on the show)
When you use a podcast to get your foot in the door, you are not seen as a salesperson. Instead, you are seen as a journalist.
Rarely, does a CEO turn down the opportunity for exposure, so my ‘close rate’ on invitations to my podcast is quite high.
When you consider how many cold emails it would take for me to get an hour long conversation with a CEO of my choosing, the ROI of the podcaster approach is off the charts.
But there’s more…
Not only does my podcast get me in the door, but it also accomplishes the following additional benefits:
My CEO guest is grateful for my having given them the opportunity for increased exposure
I am seen as an expert (by asking them smart questions)
I get an hour of their time without having to travel
I am able to simultaneously create very high quality content that I can use in a variety of ways
Conclusion
By putting my journalist hat on and using my podcast as a way to get the ear of the CEO, I’m saving a massive amount of time that would have otherwise been wasted sending out hundreds of cold emails. I’m also creating very high quality content that I’ll be able to publish & re-purpose to my hearts content.
Unlike relying purely on content marketing alone, by getting super-specific about the type of company I want to interview (ventured-backed, growing fast, not yet blogging), I can easily generate very high quality leads in a very short period of time.
Want me to help you launch your own podcast? Feel free to contact us directly. If you found this post helpful, please share it on your social networks.
Hey, thanks for the info. Now what?
If you need any help with content creation, we have tons of free resources to get you over the hump. Please subscribe to this blog to ensure that you never miss an article.
If you really enjoyed this post, please help us to spread the word by clicking one of the social media sharing buttons.
Thanks so much!
[xyz-ihs snippet=”BuildGroove”]
https://brightideas.co/wp-content/uploads/2014/05/Create-Content-or-Prospect-via-LinkedIn-Which-is-a-Better-Use-of-Time_0.jpg300690Trent Dyrsmidhttps://brightideas.co/wp-content/uploads/2020/06/Bright-Ideas-logo-1030x255.pngTrent Dyrsmid2014-05-01 06:00:322018-08-01 18:42:52Create Content or Prospect via LinkedIn: Which is a Better Use of Time?
We may request cookies to be set on your device. We use cookies to let us know when you visit our websites, how you interact with us, to enrich your user experience, and to customize your relationship with our website.
Click on the different category headings to find out more. You can also change some of your preferences. Note that blocking some types of cookies may impact your experience on our websites and the services we are able to offer.
Essential Website Cookies
These cookies are strictly necessary to provide you with services available through our website and to use some of its features.
Because these cookies are strictly necessary to deliver the website, refusing them will have impact how our site functions. You always can block or delete cookies by changing your browser settings and force blocking all cookies on this website. But this will always prompt you to accept/refuse cookies when revisiting our site.
We fully respect if you want to refuse cookies but to avoid asking you again and again kindly allow us to store a cookie for that. You are free to opt out any time or opt in for other cookies to get a better experience. If you refuse cookies we will remove all set cookies in our domain.
We provide you with a list of stored cookies on your computer in our domain so you can check what we stored. Due to security reasons we are not able to show or modify cookies from other domains. You can check these in your browser security settings.
Other external services
We also use different external services like Google Webfonts, Google Maps, and external Video providers. Since these providers may collect personal data like your IP address we allow you to block them here. Please be aware that this might heavily reduce the functionality and appearance of our site. Changes will take effect once you reload the page.
Google Webfont Settings:
Google Map Settings:
Google reCaptcha Settings:
Vimeo and Youtube video embeds:
Privacy Policy
You can read about our cookies and privacy settings in detail on our Privacy Policy Page.