The sales guy in a Startup has the most difficult job in the world. You have to convince the prospective customers to buy from a company, which is new in the market.
Every customer you pitch your service/product to has their own set of apprehensions.
They do not want to buy from a company which might shut its office tomorrow. Add to it, the possibility of your company’s information getting misused in the market.
Do customers overreact at times?
No, they don’t. Do a little research. You will read stories of client’s losing money, time to the “game changer” startups.
These are the startups, who wrapped up their operations within a year of starting.
the challenge of selling to the new customers at times leads to desperation.
The desperation might lead to the salesperson (Most of the times, it is the startup owner) trying very hard to sell.
I have no issue with trying hard to sell.
The problem creeps in when you instead of selling try to oversell.
Here is how overselling can literally kill your business:
- Overselling means desperation. Anyone in the state of desperation in sales forgets to listen to the customer. The only discussion the salesperson does is around their offering. You can forget the sales to happen if you follow the route.
- You forget to educate your customer on your product. Since sales are so important, every discussion is around selling your product.
- You can kiss goodbye to future references. I have had instances in past, where clients (despite not buying our product) have referred us to other, clients. You annoy the existing customer by overselling and he/she might ensure, you do not get any references.
- Even if you make the sales via over-selling, you will end up with heavy baggage. You would have made promises, your delivery team won’t be able to meet. You will again end up losing the client at some later stage. I know your sales numbers will look good but the company will end up suffering for your over commitments.
Last year, in one of the events I attended. I met a guy who went around striking a conversation with everyone with the sole intent of selling the product of their startup.
Nothing wrong in it. Right? We all go to conferences to get some leads.
The issue was, how he made it look – so obvious.
And then, he went on “over-selling” drive.
I think it did him more harm than benefit.
I would never do business with him as he only started a conversation when it suited his agenda.
Over-selling at times happens without us knowing about it. Call the challenge of sales. The quarter is closing. Numbers are not good. You have to make that last-ditch attempt to close sales.
You ultimately end up overselling.
Startups, especially need to be wary of overselling.
They will end up losing a lot more than gaining. They are an unknown entity trying to make sales in a world, where sales guys do not have a good reputation.
They should rely a lot on educating the customers. I speak a lot on customer’s business than our product. The sales pitch is always a small part of the discussion I have with clients.
It has worked for us till date.
Startups need to understand. Even during times of desperation, Over-selling is a strict No.