IT|Redux

Inverted Sales Process

Wednesday, August 2nd 2006 | Ismael Ghalimi

Last month, I presented how Intalio’s adoption of an Open Source business model essentially leads to an inversion of the traditional enterprise software sales process. Today, I’m glad to share this sales process with you.

The idea is pretty simple: generate leads through word-of-mouth and active blogging (happy customers are the best salespersons you can get), consider everybody as a customer (including software vendors and system integrators), sell something affordable initially (training is the key to the whole process), then offer more advanced services to the customers who can most likely pay for it.

Shown on the sales process are expected conversion rates from one stage of the process to another. For example, we expect 1.5% of end users installing our product to sign for a training class within four months, and 25% of those to sign for a support contract no longer than six months after they attended the training class initially.

Also, we make sure that every step in the sales process pays for itself, so that we increase our gross margins and reduce any pre-sales investments to the bare minimum. Sales for our training classes are done through our website, and customers pay by credit card before they receive training. Similarly, sales for support contracts are done over the phone, and we never travel to meet a customer before a support contract has been signed. Following these very simple rules helps us ensure that we develop a profitable and scalable sales process.

We implemented this invested sales process less than six months ago, so it’s too early to tell whether things will pan out as we expected or not, and we certainly will have to make some adjustements along the way. Nevertheless, we started the year with 12 customers, and we now have 70, listed there for the ones we’re allowed to talk about. In other words, we’re off to a good start!

Entry filed under: BPM 2.0, Open Source

3 Comments - Add a comment

1. Thought Leadership&hellip  |  August 13th, 2006 at 12:17 pm

BPM and the Lies told by Industry Analysts…

I was reading a blog by Ismael Ghalimi of Intalio on the Inverted Sales Process where he states that Intalio has over 70 customers…

2. IT|Redux » On Intal&hellip  |  January 3rd, 2007 at 9:02 am

[…] That being said, there is a lot more to Commercial Open Source than just licensing terms. To me, the implications of an Open Source business model are a lot more significant when considering the inverted sales process it can support. The enterprise software industry needs to be reformed in many ways, and providing source code under an Open Source license is only a small part of the changes that are required. Allowing enterprise customers to adopt radically new technologies while lowering all barriers to adoption is what CIOs should be looking for, and the inverted sales process pioneered by earlier commercial Open Source players — il faut rendre à César ce qui appartient à César — is what it’s all about. […]

3. tech decentral » li&hellip  |  January 3rd, 2007 at 3:32 pm

[…] IT|Redux » Inverted Sales Process generate leads through word-of-mouth and active blogging…, consider everybody as a customer…, sell something affordable initially…, then offer more advanced services to the customers who can most likely pay for it. (tags: open-source business-models sales marketing) […]

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