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Why hiring a Sales or Business Development person in Indian software industry will always end up in a failure?

Most of the Indian software companies will hire a Business Development person with the expectation to add more customers to their portfolio or to achieve more revenue. But this plan will always end up as a flop show and the company will start to think it’s all because of the non-performance of their BD person. The company thinks the solution to this is to fire the current BD person and to hire a new one.

Business Development person
Business Development person

In a typical situation an Indian software company will hire an experienced BD person with high salary & asks him/her to go & get let’s say 1 crore worth of business for their company. But the company will not give any leads to this BD person, neither they will have any plans for this BD person (they will only have expectations).

Now this BD person will go to market to identify the opportunities (in simple words to get leads) and because the lead generation is a separate function which takes its own cycle our BD person might not be able to close any deals in the first 3-4 months because he is spending most of the time in generating a lead.

The company will start to realize “we are paying so much salary to this BD person & he has not got us any deal in the last 2-3 months”. From this is where the conflict starts. So whose mistake is this?

Obviously it’s the company’s mistake because how can you expect your BD person to generate revenue/win new deals without giving quality leads? Have you given your incoming leads to this BD person?

The ways to overcome this never ending problem is the companies have to figure out a right strategy & role for the BD person.

If you are expecting the BD person to close deals & get revenue for the company you need to make sure you are giving quality leads (including your incoming leads) to your BD person so he can pursue that lead, qualify it, understand the requirements, create solution, approach & proposal, negotiate, follow up, win the deal and get the MSA or SOW signed.

If you do not have enough leads then either strengthen your marketing effort or hire a lead generator (junior level people) instead of hiring an experienced BD person.

Conclusion

If you hire an experienced BD person with high salary & expect him to do everything from lead generation to deal closure that’s the biggest mistake you would have made. Because you will end up in paying someone a lacs of money for cold calling, emailing & lead generation instead of paying such high money for closing deals & getting revenue for your company.

In the entire sales cycle the lead generation constitutes to only the first 10%. The remaining 90% is the actual Sales/BD role which involves converting that lead into a sales closure (Even the most popular CRM’s in the world have allocated this percentage). So use your experienced BD person to perform the later 90%. This is the only way how you can create a very successful sales eco system in your organization.

Did you like this topic or do you have a different opinion to share? Please leave a comment below or write to us at contact@therealpictures.com

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