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How to Turn a Corporate Vision (and Services Application) Into a Technology Product Sale

By: Paul DiModica

Paul DiModica is Founder of DigitalHatch Marketing, and publisher of the ebook, "How to Sell Technology",

Sometimes you can have too much corporate vision. As the new economy clucks on and VC valuations of service-based businesses continue to decline, it becomes even more important to package executive vision into a technology product sale. Today, service-based companies are valued at 50% of annual revenue. Conversely, valuations of product-based companies are from five to ten times annual revenue.

Visions are great for executive summaries in a business plan. But at the end of the day, it is revenue that drives companies, not PR. Selling a vision pushes technology salespeople into a conceptual sell process that elongates sales cycles, stalls decision makers, and complicates ROI presentations. So how do you take a corporate technology vision and package it into a box to be placed on the shelf ready for a sale? Well, it's complicated, but try these steps.
Step 1: The conversion process starts with your CEO (and possibly the firm's founder) and then focuses on having him/her go through an intellectual catharsis to understand that businesses (most businesses) don't buy vision. Their vision needs to be packaged to generate revenue NOW and to help confirm its implementation validity.

Step 2: Once the executive management team accepts this packaging idea, try to match an un-serviced market gap with part of your corporate vision. You do not need to sell the whole vision, just a part of the pie to help validate its market positioning and target market penetration.

Step 3: When selecting an intangible technology service sale from the vision, reposition it as a package sale (i.e., "x" number of hours, fee based project, affix a name to the service, etc.).

Step 4: Now, take the piece of the pie that you are focusing on and wrap a marketing cloak around it giving the program a name using product nouns to describe it (i.e., Softkit, Connectivityware, NetTalk Program, etc.).

Step 5: Price it as a product by units (i.e., five Softkit licenses sell for $100,000, etc.).

Step 6: Retrain the sales force to sell their old vision like a product. Again, focus on nouns in your sales presentations and telemarketing scripts that describe the new product. By taking a part of your corporate vision (or service) and turning it into a technology product, you will help shorten sales cycles, increase your valuations with investors, and prove that the CEO's long-term goals can be sold.

Corporate visions are great, but revenue is better!

© Copyright 2001 Paul DiModica

Other Articles by Paul DiModica

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