John's Music Blog

For the 3rd time this month, Mark Leslie was mentioned in a conversation or presentation. The most recent was at TiE Boston’s Annual VC Outlook Dinner. Actually, mentioned, is way too soft. He was cited, praised, quoted, and otherwise venerated. Mark has a remarkable story. He took VERITAS from 12 employees and $95,000 in annual revenue to over 6,000 employees and $1.5B in revenue, before the company merged with Symantec on July 5, 2005.

I first met Mark, when I hosted IDC’s StorageVision conference in San Jose in May 2000, a year in which we recruited Steve Luczo, then CEO, and now Chairman of Seagate, and Joe Tucci, then the newly appointed President and COO  of EMC.  Mark wasn’t the best dressed (that was Joe) or most poised (that was Steve), but he gave, by far, the best talk. The talk that was discussed three times this month wasn’t, however, his StorageVision speech. That honor goes to this talk: “It Always Takes Longer and Costs More.” On Page 15 of the presentation, Mark begins a discussion of the Sales Learn Curve (SLC), which is the sales equivalent of the Manufacturing Learning Curve (MLC). The SLC is critical, Mark argues, to knowing when to step on the gas with sales.

Almost every company I’ve talked to measures the cost of sales. But where organizations differ is in the costs that are included in the cost of sales. Mark includes:

• Marketing
• Product management
• Product marketing
• Product  support
• Sales engineering
• Sales

Some of these costs are more fixed than variable. Marketing, product management and product marketing don’t need to grow linearly with sales. Support, sales engineering, and sales costs are, however, more directly proportional to revenue.

Since more sales means that the fixed costs in the cost of sales calculation decline as a percent of sales, many startups are tempted to hit the gas early on deploying sales and sales engineering resources. But until they have gone through the iterative process of perfecting the sales process, this approach just burns cash.  Instead, he stresses the importance of  investing for learning in the early stages, making iterative improvements in the sales process. When the sales process is perfected, then, and only then, should a company put the “Pedal to the Metal,” making significant investments in sales and sales engineering.

I had a conversation with Megan at BzzAgent this week.  My interest was peaked, when a former IDC colleague, who now works at Iron Mountain Digital, mentioned BzzAgent. 

BzzAgent claims to have 400,000 “buzz agents,” who have agreed to review products and services and to share with their friends and colleagues their honest opinion.  BzzAgents get the products for free.  They test them.  And they create buzz.  The buzz could be good, or it could be bad, but it’s buzz.  I don’t know if Iron Mountain Digital uses BzzAgent, but I can see the fit, since, Iron Mountain offers desktop and server backup services to homes and businesses. 

At the $80,000 entry price that Megan mentioned, you’ll want to get a lot of buzz for the investment, and you’ll want to have enough confidence in your product to expect that most of the buzz will be good.   In the consumer products and services area, I see a great opportunity to leverage BzzAgent.  It’s hard to see the fit for the kinds of enterprise IT infrastructure providers with whom we are working. But, Megan suggested I check out their Frogpond offering, which I will do when I get a chance. 

In the meantime, after listening to the pitch from Megan, I decided to sign up myself.  I am now officially a BzzAgent.  I’ll let you know how it goes.  For now, I’ve just filled out a bunch of surveys about my drinking habits (softdrink and otherwise).  Fortunately, the fortunes of Coke and Pepsi don’t depend much on my soft-drink habits. If they did, the companies would be broke.

I did a couple of customer-satisfaction interviews today.  I won’t tell you the company or describe the product.  It’s not important to the discussion, but in case you are wondering, it’s not one of the companies or products I represent.  It is important to note that both individuals that I interviewed want the product and the company to succeed.

In the first survey, I got a lot of feedback.  Almost an hour’s worth.  There was some very positive feedback about certain components of the offering, but I heard many more negative comments, such as:

• They are barely keeping up with free alternatives.
• The leadership was great for a startup, but needs to step aside if they are to get to the next level.
• They are not listening to their customers.
• They treat everyone the same, and don’t listen to the different needs of different customers.
• No one thinks their product or their service is adequate.
• I have to go to a third party to fix the problems they aren’t addressing, and I know other customers who are doing the same thing.
• I shouldn’t have to pay someone else to do the job that they should be doing. (more…)

When I was growing up, my family would occasionally take what we called “Penny Walks.”  We lived in western Colorado, where the towns were mostly laid out on a North-South, East-West grid.  A penny walk involved taking a walk, penny in hand, and every time you got to a corner, you flipped the coin. Heads you go right. Tails you go left.  You never knew where you were going to go, but you knew you weren’t going to get caught in a familiar routine.  With penny walks, you ran into different people or different things. You had variety. Penny walks don’t work as well in Massachusetts, where I live now, because the streets are laid out in the rough equivalent of a meandering cow.

My random walks these days are as likely to occur on the World Wide Web, as they are to occur in my town.  Did I mention we have almost no sidewalks? So here on the internet, thanks to a link from Jason Rakowski, I was lead on a random walk through his blog, to another blog by someone named Dejra to a service called Pingomatic.  The service helps writers/bloggers raise the visibility of their sites by updating search engines.  I’m trying it out today.  I’ll let you know how it goes. 

Given Dejra’s focus on affiliate marketing, I’m wondering if she knows my brother, Ken?

Dejra? Ken?

A recent blog entry by Denise Shiffman on Viral Voice referenced an article in InsideCRM entitled The Facebook Marketing Toolbox.   I’ve only been using Facebook for a few months, so this article was a great find, with links to tons of resources and recommendations.  Thanks Denise.  This article is required reading for my new client, StorMagic, and my nephews who continue to grow their restaurant, Black and Brew, down in Lakeland, Florida.  Keeping getting the word out!  For all others, reading is optional, but highly recommended.

I had a call yesterday with a guy (I’ll call him Julio, because that isn’t his name) that is responsible for storage decisions at a very big company (I’ll call the company Acme, because that isn’t the company’s name).  I can’t name the company or the guy for reasons that are obvious to anyone who works in a large public company.   But I can share the gist of our conversation.  The part that is interesting to startups is the conversation we had around supplier management, environment complexity, and supplier support.

Julio’s at the end of a purchase decision cycle, and he told me which way he was going.  “We’re going with Sun, at least for now,” he said, “because they provide great service, we’ve worked with them for years, they understand our environment, and quite frankly, I don’t want to add another supplier.”  (more…)

Mike Worhach, President and CEO of Sepaton, walked into the Starbuck’s where I was meeting  Paul Gillin this morning, and said, “Every time I see you, you’re taking notes.” Confirming once again that it’s important to surround yourself with people smarter than yourself, I was having a follow-on to my meeting with Paul last week.  Paul has been amazingly generous with his time, given that he has started writing another book.  I’m eight chapters into his book from last year (2007, for those of you who are keeping track), The New Influencers, and I wanted to pick his brain on how he might be able to help one of our clients.  But I also got an added bonus, which was getting a few quick tips that could make a big difference for anyone.  Here’s one. (more…)

I’ve made more than a few mistakes in my various careers.  One of them was buying a near bowling-alley length automated tape library (ATL) with a robot whose size, if not speed, would rival any in Detroit.  I made the purchase based upon the promise of future enhancements that would ensure this would be the last tape library I would ever buy.  You see, the ATL was going to be upgradeable to a Virtual Tape Library (VTL), and all my backup and restore problems would be, if not solved, at least contained.   To be fair, it was a committee decision, but I was a strong internal proponent.  Suffice it to say that the VTL upgrade was late and more virtual than real, and the ATL wasn’t the last library the company had to purchase.  In fact, I heard rumors that a second ATL was  offered for free, since the VTL upgrade was late.  But I can’t verify the rumor.  By that time, I had moved on to a new company, where my job was predicting the future.  The irony is not lost on me. (more…)

I told you in an earlier post that I would tell readers about some institutions “about which I care deeply.”  One of those is Metrowest Jewish Day School, and tonight I spent time on the phones trying to raise scholarship money for students who want to attend.  As with most private religious schools, particularly those in startup mode like ours, the cost of tuition is substantially less than the cost to educate.  In addition, many families can not afford the cost of tuition.  But because we want to make this unique education open to all in our community, we do the fundraising.  So far this year, we are more than 80% of the way to meeting our goal of raising $700,000. 

As an inexperienced solicitor, I was thankful for the script that was provided for my pitch.  In short, this script, which was a good “pitch,” explained who we are and the fact that we are raising money for scholarships.  Short and sweet.  Next to me was another inexperienced solicitor and parent of a student at the school, who made more calls and raised more money than me tonight.  But I accomplished something that, over the long run, I hope will turn out to be just as valuable.  I sold the school.  Or more accurately, I began the process of selling the school. (more…)