It's a beautiful story - Aaron Ross transformed the Salesforce.com sales team without any traditional cold calling and scaled the business into a $100 million sales machine.
But the truth is that most sales reps still don't have time to sit and read the best practices he developed in his award-winning book, Predictable Revenue.
That's why I read and summarized Aaron and Marylou Tyler's best-selling book for sales reps with limited time to spare, but still want to sound like they've kept up with the latest sales reading list.
We define Predictable Revenue (and five other terms) in this post, while the complete book summary can be downloaded here.
Fundamentally, Predictable Revenue is a framework to create consistency year-over-year and provide business growth based on a formulaic process - not last-minute hustling and guessing. That way, you're "predicting" how much "revenue" your business is constantly generating.
To achieve predictable revenue, Aaron and Marylou say you must:
Understand your funnel
Determine the acceptable average deal size
Define time frames
They also make it clear that everything must become a system. Without it, you have no predictability.
The authors repeatedly uses a few key terms throughout their book. Understand these, and you'll have a basic overview of the thinking behind Predictable Revenue. Feel free to share them on LinkedIn to show off your latest reading, too ;-)
1. Cold Calling 2.0
Prospecting into cold accounts to generate new business without using “cold calls” -- most predictable and controllable source of new pipeline.
2. Hot Coals
The uneasy period of the sales cycle caused by a shift from organic growth to proactive growth.
3. Layers of the Onion
An analogy to help teams think through layering out their product / offers. Goal is to make it easier for prospects to choose how they get to know a company and it’s products, step-by-step.
4. Market Response Representative
A rep that qualifies incoming leads that reach the company through website or phone. They route qualified opportunities to the appropriate quota-carrying salesperson.
5. Sales Development Representative
A Cold Calling 2.0 or “outbound” sales rep specialized in generating outbound leads; don’t close deals or qualify inbound leads.
Originally published Jun 25, 2014 8:30:00 AM, updated August 31 2017