I was having a discussion with a long time industry friend earlier today and we were discussing the value of the traditional BDM/Sales Person versus the value of a high quality inbound lead generation system like SEO or AdWords.
We both agreed that if you spent $60-80k per year on a traditional BDM that either door knocked or cold called you would get nowhere near the same result than if you paid say $20-25k per year on high quality lead generation and then 60k+ on a Client Manager that had a focus around retention and growth.
We also both agreed that we see it time and time again where a company goes out and dumps bucket loads of cash in to a new business sales person or worse a team with no real ‘lead generation’ strategy in place.
What is the alternative? Think about this for a moment. A famous sales guy Jeffrey Gitomer once said that ‘People don’t like to be sold, but they love to buy’ and I 100% agree with the thought. When a person walks in to a shop, if they are not yet ready to buy they simply answer’ no thanks, I’m just looking’ when asked if they need help.
People are getting more and more sure about what they want and when they are ready to engage they go straight to Dr Google. Are you there in the hearts and minds of people when they search? No? Maybe it’s worthwhile looking at the value.
You can run a campaign in Google at an SEO level and get your website ranked for the phrases that people are searching for when they are ready to buy, you can even pay per click for the phrases straight off the bat with Google AdWords.
With the above in mind, if you set a monthly budget of say $1000-$1500 and that generated qualified sales leads for your business that a sales person could go out and talk with then win, why would you pay for a traditional BDM that in many senses seems to do everything expect what you pay them to do which is lead generation.
So back to the top question, if you could, would you prefer to pay say $20k-$25k per year for lead generation and then employ a sales person/account manager that is busy having sales discussions with people when they are ready to buy or would you prefer to pay as sales person $80k-$85k per year and just hope that they know what they are doing or are truly interested in doing it in the long term? How would you quantify that they are doing a good job? Against what metrics? The reason they are there would be because you don’t want to do it yourself or don’t have the time.
Do yourself a favour and have a think about your go-to-market strategy. If it isn’t currently to be in the hearts and minds of your buyers when they are ready to buy then perhaps it’s time to re-think that strategy. If it is and you want a hand with the marketing side, give me a yell, I’d be happy to help.