Deal Making 101

DEAL MAKING 101

A framework for getting deals done

Agenda

I. Background

II. BD vs Sales

III. Planning Process

IV. Pipeline Management

V. Q&A

2

BACKGROUND

Name dropping and humble brags

History and Focus

• Function

• Direct Sales

• Business Development

• Advisor

• Friend to founders

• Stage

• Early Stage

• High Growth

• Space

• Entertainment (B2B2C)

• High-end Hospitality (B2C)

4

BD VERSUS SALES

Understanding the difference

Strategic vs. Transactional

Business Development

• Longer term

• Cross functional

• Highly ambiguous

• Drives secondary KPI’s

Sales

• Immediate term

• Siloed

• Highly quantifiable

• Drives revenue

6

BD: Build, Buy or Partner

7

• Drive secondary KPI’s

• Increase user base

• Increase engagement

• Enhance product offering

• Gain speed to market

• Acquire talent team

• Buy growth

• In new territories

• At mature market stages

8

Sales: Rinse and Repeat

• Drive revenue (and nothing else)

• Product market fit is clear

• Target market is identified

• Total addressable market is

measured

THE PLANNING PROCESS

“Give me six hours to chop down a tree, and I will spend

the first four sharpening the axe.”

- Abe Lincoln

The Planning Process

Goal Setting

• OKRs

• KPIs

Target Refinement

• Primary versus secondary

Offer Refinement

• Refine, refine, refine

Channel Development

• Based on target group

10

Collateral Creation


• Based on channel

• Based on sales cycle

Pipeline Mgmt

• Lead gen to close

Closed Won Handoff

• Post close integration

Account Mgmt

• Day to day maintenance

• Entrench relationship

Goal Setting

Measurable Accomplishments Measurements

• OKR’s

• Objective / Key Results

• Disseminated internally

• KPI’s

• Key performance indicators

• Customer Acquisition Costs

• Revenue per Contract

11

• Aligned w/ company goals

• Proving product market fit

• Proving traction

• Increasing revenue

• Increasing market share

• Clear and transparent

• Including the evaluation

metric

Goal Setting

• Objective: Increase revenue by X% by Q2

• Key Result: Expand into 3 new territories

• Key Result: Reignite stagnant leads older than 90 days

• Key Result: Hire two new sales representatives

• Objective: Create marketing partnerships to increase user

base by Y% in Z markets by Q4

• Key Result: Evaluate 10 best of class partners

• Key Result: Create 9 - 12 month forecast for each

• Key Result: Submit 3 recommendations to the executive team

12

Secondary

Target Identification

13

• Primary target

• Strongest product market fit

• Immediate and measurable

revenue opportunity

• Significant addressable market

• Secondary target

• Next tier of customer

• Product fit might be a reach

• More dev work might be required

• Complimentary to primary target

• Part of the same ecosystem

• Smaller market, seen as gravy

Primary

Secondary

Target Identification: Ticketfly Example

14

• Primary target• Independent venues

• No LYV / AEG

• No sports teams

• General seating only

• Maximum capacity of 2100

• Secondary target• Next tier of customer

• Reserved seating venues

• Larger venues with scaling needs

• Complimentary to primary target

• Booking agents

• Record labels

Primary

Pitch Refinement

15

• Crisp and clear

• Unambiguous

• Tailored to each target

• Primary message different from the secondary

• Tailored to each channel (next section)

• Time and real estate will vary

• Determines future collateral (next, next section)

Pitch Refinement: Examples

16

“Full service, high-end home

sharing for distinguished

homeowners and travelers.”

“Cashless payments and

customer analytics for the live

event industry.”

“Ticketing and marketing software

for concert promoters.”

Channel Development

17

• Drives lead generation

• Hunting ground

• Tailored to target group

• Determines future collateral (next section)

Channel Development

18

Channel Primary Secondary

Direct Mail X X

Online Advertising

Online Prop 1 X

Online Prop 2 X

Email Newsletters

Publication 1 X

Publication 2 X

Cold Contact X X

Professional Networks

Group 1 X

Group 2 X

Group 3 X

Collateral Creation

19


• Based on channel

• Based on buying phase (AIDA)

A quick note on AIDA

20

Attention Interest Decision Action

Collateral Creation

• Direct Mail

• Brochures

• Inserts

• Online

• Facebook / Google

• B2B / B2B micro site

• Email Newsletters

• Templates

• Cold Call / Email

• Standard template

• One sheets

• Events

• Trade show collateral

• Signage

21

PIPELINE MANAGEMENT

Cadillacs and steak knives

Lead Opportunity Meeting

23

Pipeline Management

Proposal Contract Closed

The Lead

• Generation

• Inbound

• Response from marketing efforts

• Outbound

• Cold calls, outreach and networking

• Qualification

• Metrics for evaluation

• Separate winners from losers

24

The Opportunity

• Conversion

• Graduate the winners to an opportunity

• Initial outreach

• Know your plan

• Do your homework

• Outline next steps

• Set a meeting to dive deep

25

The Meeting

• Meeting preparation

• Do your homework

• Tailor your demo

• Outline your goals

• Initiate a consultative discussion

• Listen 80% / Talk 20%

• Gather information

• Determine if next steps are needed


• Return with a proposal

• Set a date to review

26

The Proposal

• Presentation

• Consider it a marketing document

• Avoid legalese

• Negotiation

• Keep it open

• Leave room to adjust (because you will adjust)


• Ask for feedback / comments

• Set a date for follow up

27

The Contract

• Presentation

• Binding, legal document

• More thorough, as it may include T&Cs

• Negotiation

• Remain flexible on new points


• Ask for feedback / comments

• Set a date for follow up

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Closed Won / Lost

WON

• Ring the bell

• Ensure a speedy and

seamless handoff to your

operations team

• Continue to check in and

track success

LOST

• Understand why

• Price versus product?

• Always keep the door

open

• Track where they went

and when they’re up for

renegotiation again

29

Q&A