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Predictable Revenue

Predictable Revenue

Turn Your Business Into a Sales Machine with the $100 Million Best Practices of Salesforce.com
by Aaron Ross 2011 213 pages
3.97
5k+ ratings
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Key Takeaways

1. Cold Calling 2.0: Revolutionizing Outbound Sales

RIP Cold Calling

Death of traditional cold calling. Cold Calling 2.0 is a revolutionary approach to outbound sales that eliminates the need for traditional cold calls. Instead, it focuses on using email campaigns to generate referrals and set up warm conversations with decision-makers. This method typically yields a 7-9% response rate from high-level executives, significantly higher than traditional cold calling.

Key components of Cold Calling 2.0:

  • Use email as the primary initial contact method
  • Focus on getting referrals to the right decision-makers
  • Craft short, personalized emails readable on mobile devices
  • Follow up on responses with targeted phone calls
  • Aim for quality over quantity in prospecting efforts

By implementing Cold Calling 2.0, companies can create a more predictable and sustainable pipeline of qualified leads, leading to increased sales productivity and revenue growth.

2. Specialization: The Key to a High-Performing Sales Organization

Specialize, Specialize, Specialize!

Divide roles for maximum efficiency. A high-performing sales organization requires specialization of roles. This approach allows each team member to focus on their strengths and increases overall productivity. The four core sales functions that should be separated are:

  1. Inbound Lead Qualification (Market Response Reps)
  2. Outbound Prospecting (Sales Development Reps)
  3. Closing Deals (Account Executives)
  4. Account Management/Customer Success

By specializing roles, companies can:

  • Improve focus and productivity of each team member
  • Create clear career paths for sales professionals
  • Enhance measurement and accountability of each function
  • Identify and resolve issues more easily within the sales process

Even small companies should consider specializing roles as soon as possible, starting with separating lead generation from closing activities.

3. Lead Generation: Seeds, Nets, and Spears

Pick a niche, get rich.

Diversify lead generation strategies. The "Seeds, Nets, and Spears" framework provides a comprehensive approach to lead generation. Each type of lead has different characteristics and should be treated differently:

  • Seeds: Referrals, word-of-mouth, and organic growth
  • Nets: Marketing programs like email campaigns, conferences, and advertising
  • Spears: Targeted outbound efforts, including Cold Calling 2.0

To maximize lead generation efforts:

  • Invest in customer success to generate more "Seeds"
  • Develop targeted marketing campaigns to cast wider "Nets"
  • Implement Cold Calling 2.0 techniques for precise "Spears"

By understanding and leveraging these different lead types, companies can create a more balanced and predictable flow of qualified opportunities.

4. The Power of Predictable Revenue

You can make as much money as you want, doing what you love.

Create a repeatable sales process. Predictable revenue is the holy grail of sales organizations. It allows companies to forecast accurately, plan for growth, and make informed decisions. To achieve predictable revenue:

  • Implement a consistent, repeatable sales process
  • Focus on measurable metrics that lead to revenue (e.g., qualified opportunities generated)
  • Use sales force automation tools to track and analyze performance
  • Regularly review and refine your processes based on data

Key metrics to track for predictable revenue:

  1. New leads created per month
  2. Conversion rate of leads to opportunities
  3. Number and value of qualified opportunities created per month
  4. Conversion rates of opportunities to closed deals
  5. Booked revenues (New Business, Add-On Business, Renewal Business)

By focusing on these elements, companies can create a sales machine that consistently delivers results and supports sustainable growth.

5. Sales Development: A Critical Role for Growth

Where and when Account Executives should prospect

Dedicate resources to prospecting. Sales Development Representatives (SDRs) play a crucial role in generating new business opportunities. By focusing solely on prospecting and qualifying leads, SDRs free up Account Executives to concentrate on closing deals.

Best practices for Sales Development:

  • Hire dedicated SDRs to focus on outbound prospecting
  • Use Cold Calling 2.0 techniques to generate high-quality leads
  • Develop a clear process for qualifying and passing leads to Account Executives
  • Implement a scoring system to prioritize leads
  • Provide ongoing training and support for SDRs

By investing in a strong Sales Development function, companies can dramatically increase their pipeline of qualified opportunities and drive sustainable revenue growth.

6. Selling to Success: Focus on Customer Outcomes

Sell past the close with a "Success Plan"

Prioritize customer success. Successful selling is not just about closing deals; it's about ensuring customer success and long-term value. This approach leads to higher customer satisfaction, increased renewals, and more referrals.

Key elements of selling to success:

  • Develop a deep understanding of the customer's business and challenges
  • Create a "Success Plan" that outlines how your solution will drive customer outcomes
  • Focus on solving problems rather than pushing products
  • Maintain engagement beyond the sale to ensure successful implementation
  • Cultivate champions within customer organizations

By aligning your sales process with customer success, you create a win-win situation that drives sustainable growth and builds a strong reputation in the market.

7. Building a Self-Managing Sales Machine

Everything begins with the CEO.

Create systems for autonomy. A self-managing sales machine allows for scalable growth and frees up leadership to focus on strategic initiatives. To build such a system:

  • Develop clear processes and guidelines for each sales function
  • Implement robust sales force automation and reporting tools
  • Create a culture of accountability and continuous improvement
  • Empower team members to make decisions and solve problems
  • Regularly review and refine processes based on data and feedback

Examples of self-managing systems:

  • Automated lead routing and qualification
  • Self-service training and onboarding programs
  • Peer-to-peer coaching and mentoring
  • Transparent performance metrics and leaderboards

By building a self-managing sales machine, companies can achieve consistent results and scale more efficiently.

8. Talent Cultivation: The Foundation of Sales Success

The best salespeople are more like consultants or business people who can sell than salespeople.

Invest in people development. Cultivating talent is crucial for long-term sales success. This involves not just hiring the right people but also providing ongoing training, development, and career growth opportunities.

Strategies for talent cultivation:

  • Create a "farm team" system with clear career paths
  • Implement regular training programs (e.g., weekly "SalesforceU" sessions)
  • Use role-playing and simulations to develop skills
  • Provide opportunities for cross-functional experience
  • Recognize and reward top performers

By focusing on talent development, companies can build a high-performing sales team that consistently delivers results and adapts to changing market conditions.

9. Leadership and Management in Modern Sales

Treat salespeople as customers or users, and your tools, sales environment, and programs are the "products".

Adapt leadership style. Modern sales leadership requires a shift from command-and-control to a more collaborative, empowering approach. Effective sales leaders:

  • Set clear expectations and vision
  • Remove obstacles for their team
  • Inspire and motivate through purpose, not just compensation
  • Work for their people, helping them achieve their goals
  • Continuously improve processes and systems

Tools for modern sales leadership:

  • V2MOM planning process (Vision, Values, Methods, Obstacles, Metrics)
  • Regular team and individual feedback sessions
  • Transparent performance metrics and goals
  • Collaborative problem-solving sessions
  • Investment in personal and professional development

By adopting a modern leadership approach, sales executives can create a high-performing, engaged team that drives sustainable growth and adapts to changing market conditions.

Last updated:

Review Summary

3.97 out of 5
Average of 5k+ ratings from Goodreads and Amazon.

Predictable Revenue receives mixed reviews, with an overall positive reception. Readers praise its practical advice on sales team specialization, lead generation, and revenue growth. Many find it valuable for SaaS businesses and startups. Critics point out repetitiveness, poor editing, and excessive promotion of Salesforce.com. Some argue the content could be condensed into a shorter format. Despite these criticisms, many readers consider it a must-read for sales professionals, offering actionable strategies and insights into modern sales processes.

Your rating:

About the Author

Aaron Ross is a renowned sales expert and entrepreneur. He gained prominence for his work at Salesforce.com, where he implemented innovative sales strategies that significantly boosted revenue. Ross's experience in developing effective sales processes and team structures forms the foundation of his book. He advocates for specialization within sales teams and emphasizes the importance of predictable revenue generation. Ross's approach focuses on outbound prospecting, lead qualification, and nurturing customer relationships. His methods have been widely adopted in the SaaS industry and beyond. As a consultant and author, Ross continues to share his expertise, helping businesses optimize their sales operations and achieve sustainable growth.

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