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Predictable Revenue: Turn Your Business Into

Predictable Revenue: Turn Your Business Into a Sales Machine

Aaron Ross, Marylou Tyler
T4 no Open Library recordgoodreads

Summary

Ross built the outbound sales process at Salesforce that he credits with generating a large amount of recurring revenue, and this book sets out the method. It became the standard reference for business-to-business software sales organisation.

The central structural argument is role specialisation. Ross divides the sales function into four: inbound lead qualification, handling leads that arrive from marketing; outbound prospecting, cold outreach to accounts that have not expressed interest; closing, running the sales process to signature; and account management, retaining and expanding existing customers. His argument is that these require different skills and different temperaments, that combining them means the urgent displaces the important, and specifically that a person responsible for both prospecting and closing will always prioritise closing and starve the pipeline.

The outbound method he describes, which he calls Cold Calling 2.0, involves emailing senior people to ask for a referral to the right person rather than pitching, which produces a much higher response rate and a warm internal introduction. He also covers the metrics that make outbound predictable: response rates, qualified opportunities generated per prospector per month, and the conversion rates through each stage, which together allow revenue to be forecast from activity.

The method has been widely adopted and has also been widely degraded, since mass automated outbound based on this template has reduced the response rates the original approach depended on. The book has no evidence base beyond Ross's experience at one company, and it applies only to business-to-business sales with a defined buyer.

Key takeaways 7

  1. Sales should be split into four specialised roles, being inbound qualification, outbound prospecting, closing and account management, because each requires different skills.
  2. A person responsible for both prospecting and closing will always prioritise closing, which starves the pipeline and makes revenue unpredictable.
  3. Outbound outreach that asks a senior person for a referral to the right contact produces far higher response rates than pitching does.
  4. Pipeline generation becomes forecastable once response rates and stage conversion rates are measured, which turns revenue into a function of activity.
  5. Qualified opportunities generated per prospector per month is the metric that determines whether outbound can be scaled by hiring.
  6. Outbound prospecting should target accounts selected by fit rather than responding to whoever expresses interest.
  7. Mass automated adoption of this template has degraded the response rates the original method depended on.

Who should read it

Founders and sales leaders in business-to-business software building a specialised and forecastable sales organisation.

Where it sits in the reference 2

Business themes
Business themes

Who recommended it 1 · 1 direct

davidcancel.com — 'Here Are The 13 Books I Recommend To Everyone On My Team'

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