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Guest Author | March 10, 2014 at 7:14 pm
Sales tips for startup entrepreneurs
I dont run a product start-up, my friends do. I run software testing services start-up. There are some challenges that
are common and some different between running a product and services business.
My company works with plentyof entrepreneurs and their start-ups(if 27, so far, is plenty) through our start-up test
lab.
I interact closely (as in sitting next to them over a coffee or beer) with my friends and other entrepreneurs who build
products in the B2B and B2C segment. Most of the discussion the ones in B2B segment have had with me revolves
around one problem yes only one. How do we make that signed up for trial customer to pay?

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They are taking forever to pay
We have been doing so many customization for them and yet they are not paying
We still have to pay for our infrastructure cost
Our burn rate is increasing with more sign ups happening. We wont have money to keep this running
We are bootstrapped? When will these customers pay?
We may run out of steam trying to keep these trial customers alive
Those were the words I heard in addition to
We have a self-service model, why dont our customers understand it? They still want someone to talk
to them. Why?
What is the problem with people in SMBnot being able to understand SaaS model?
Our product is great, they use it but still they dont want to pay. Why?
Our customer asks when Gmail is free why should I pay for you?
Given a chance, I wont do the freemium model again
Our product is unique yet our customers compare it to others
Here is something common across all entrepreneurs who have said the above none of them came from a sales
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Building a product and selling a product are two different things not that you didnt know it but you lost it because
you lost it from your muscle memory. You lost it from your muscle memory because you were focusing only on the
product. Sales require a different brain wiring and constant muscle memory of the wiring. For instance, it becomes
hard to say to a potential million dollar worth customer, We cant go for free beyond this point but that is exactly
what sales requires you to do.
Sales tips (heuristics) that comes from my experience and I am no business guru but a gnikcuf sales guy.
Your desperation kills your sales
If you are too desperate to win THAT customer you would obviously allow the customer to take maximum
advantage of you (or you would start seeing that way although they dont intend to)
As long as you understand they need you as much as you need them you would get into healthy business
discussions and close the deal. If the million dollar customer rejects paying you so be it. You didnt do your start-up
for THAT customer. Thats not the end of your start-up or your life as an entrepreneur.I think you would be fine
losing a customer but not motivation.
Pricing, discounts and working for free
Work for free, only if it is a strategy to make more money than make them your customer.Testimonials are outcomes
not strategy. If you trade revenues for testimonials, you would have testimonials and no revenues.
Discounts, oh that is for customers who want to work with you but dont have the budget you would have loved
them to have. If your product is selling because of the discount then you need a drink and think session.
Theres this start-up we worked with who offered their product for 80% discount weeks after launch and no good
sales. What is right pricing? You dont know that and that is okay but discounts are not the way to figure out right
pricing.
If people buy your product just because they are getting it at throw away price they will throw away. Note the words
just because in the previous sentence.
You have a gnikcuf attitude and thats what made you start-up
If your product is great that should reflect in your body language during sales. If you have built great product and act
like a snake oil salesman, youd be treated like someone selling snake oil. Dont get disappointed.
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Dont forget that you have an attitude that the world might disagree with you AND you are okay with that. This is
the attitude that made you to start-up in the first place.
Your sales activities should be in parallel with product development
Sell your product while you build your product. All start-ups that are failing in front of my eyes started sales cycle
after the founders thought Now our rocket is ready to reach Jupiter. Your customers dont want to travel to Jupiter
today. Get them to Moon and then Mars before you get them interested to go to Jupiter.
A start-up we worked with, Twaang launched a music app and have 50,000 installs today. They started their sales
when their first line of code was being written. They got a famous singer to sign up even before their app had a GUI.
They are growing bigger and I see why. Do you see it too?
Hire experts and consultants to help you learn new things
Unless you really know how to sell, dont get into it directly just because you are a co-founder. I mean you should
learn sales but learning the hard way when you can hire experts and consultants is a bad idea.
My friend Sujay Pai, is the co-owner of Pai Group of Hotels. They were initially a Darshini type of restaurant during
the 90s.My friend and his brother hired expert consultant to scale their business to 3 and 4 star hotels and
restaurant. Learnt from the consultant for 3 years before they took the lead and now they have 9 hotels and
restaurant in 2 states and are expanding to other states and locations. All managed and run by themselves.
Partial success can be dangerous
One of the many dangerous things to happen to entrepreneurs like me is to be partially successful. This is a moment
when a bug gets into our brain and makes us think I know how to do everything I need to without needing any
advice from people.
I thought I was doing everything good with sales. My friend Nandan Pujar who also is a co-founder of a start-up and
a Digital Marketing Experthelped me recognize certain meta aspects I was missing and our pipeline became healthier
by a couple more bytes.
Courage as a skill to sell
When money in the bank is low, you often lose your courage. Money and courage dont have a direct connection to
people like me. I have been bankrupt many times and money doesnt dent my courage. Courage is an acquired skill
(and you should read Malcom Gladwells David and Goliath).
A start-up customer once asked us We need regression testing, user acceptance testing and performance testing
and I responded, You probably dont gnickuf need all that because here is what you need bulleted points and
here is why you need them and they signed us up getting our value.They spread the message about our good work
and we have some cool people knocking our door.
Ask yourselves why and when you pay for things and learn from it
Wait a minute! Look at things that you pay for and why you do pay even when you are running out of money. There is
something to learn from it.
For instance, you hire a power backup UPS unit. Why? It is essential to serve your customers without delays because
of power supply problems. You hire it (your SaaS model) because you see your load can increase as you grow the
number of customers and people working for them. Think about your customers problems and help them solve their
customer problems. They will pay.
Closing notes
I love what Mekin Maheshwari, Chief People Officer said to me. We have been working with Flipkart helping them in
testing web and mobile apps. I happened to meet Mekin(whom I had met in e-sparks 2011, months after starting
Moolya) after we started working with Flipkart in 2012 and said, We started working with Flipkart and we thank you
for the opportunity and look forward to a great partnership to which he gently replied, The value you provide will
determine your longevity.
The value Mekin is talking about is how we help them help their customers. That is what you need to be doing in a
B2B business. That is your sales pitch.
We have been in continuous business with Flipkart and we are very happy with the announcement yesterday that
Flipkart achieved in 1 Billion Dollar GMV sales run rate. No! We are happy when our customers have grown after we
have been working with them because it is an indirect feedback to what we are doing for their customers.
While I am successful with all that, I was having a tough time as a husband to tell my wife who runs a fashion
jewellery business that she is great in designing jewellery and not in sales. Only yesterday evening she showed a sign
of agreement to what I said. If a wife can agree, the rest of the world can.
[That is the consciously humorous side of me]
Pradeep also has good experience with customer acquisition, read here
Read lessons Pradeep learnt from a death threat from an ex-employee
And his take on why working for start-ups make you unfit in a good way
Also discover an amazing infographic on How to Sell Anything from Funders and Founders.

AUTHOR PROFI LE :
Pradeep Soundararajan is the Kung Fu Panda and CEO of Moolya Software Testing. Moolya helps solve business
problems through testing. Pradeep is experienced at getting fired, being considered dumb, redneck, rebel, being
bankrupt, falling many times in his career and rising from ashes while (or, because) he was doing good work. He is a
recognized tester worldwide (in the testing community) for his testing skills, blogging and a speaker invited to

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Raghava Thummapudi Prakasam engineering college, kandukur
Raghava Thummapudi Prakasam engineering college, kandukur
good post
Reply Like Follow Post July 15 at 10:51pm 2
Inkoniq
When money in the bank is low, you often lose your courage. Money and courage dont have a direct connection to people like
me. I have been bankrupt many times and money doesnt dent my courage. Courage is an acquired skill. #startup
#entrepreneurs. Very True!
Reply Like Follow Post May 30 at 9:53am 2
Sekhar Babu Software Engineer at Panacya Business Solutions Pvt. Ltd.
Great post. Thank You. #entrepreneurs,#startup
"The value you provide will determine your longevity ... ",
"Building a product and selling a product are two different things"
'Sell your product while you build your product."
Reply Like Follow Post July 15 at 10:04pm
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DineshKumar Venugopal Alagappa College of Technology, Guindy, Chennai
Sell your product while you build your product. exactly #startup #bootstrap (y)
Reply Like Follow Post 16 hours ago
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Shiva Ganesh CEO & Founder at Broken Glass Designs
Great post..! 100% true..!
Reply Like Follow Post July 15 at 10:36pm
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Mohanish Varde
very good post!!
Reply Like Follow Post July 15 at 6:24pm
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Pradeepkumar Thangamuthu Works at Airpush
great post..
Reply Like Follow Post July 15 at 10:20pm
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Rohan Ranade Top Commenter Social Media Strategist at Hungama Digital Services
Great Post..
Reply Like Follow Post July 15 at 6:39pm
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Aamir Raza Founder at 360Spinlab
Thanks!
Reply Like Follow Post July 15 at 6:24pm
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Nicolas Beuvin ESSCA
great post ! Thank you Pradeep.
Reply Like Follow Post March 11 at 11:36am
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