There is an old saying: “nothing in life happens until a salesperson sells something”. I subscribe to this philosophy in business, and want to recognize “the rainmakers.”

The Free Dictionary defines a rainmaker as: (Business / Commerce) Informal chiefly US an influential employee who creates a great deal of business or revenue for his or her firm.

While each and every employee plays a critical role, rainmakers hold a very special position within companies. These people take concepts, ideas, products and services to market and turn them into revenue streams. They find customers who need these solutions and are willing to pay for them. They create value; they sell.

This is by no means an easy task; and, it carries a ton of risk. There is an enormous amount of emotional risk involved because of the high probability of rejection—what happens if the prospect says no? The rainmakers are on the front-line; they are in many cases doing things that have never been done before. They can be thought of the Special Forces of business because—to borrow the Navy Seal motto—they have to adapt, improvise and overcome. And, the financial health of the firm, let alone their own personal finances, depends on them being successful.

They play a game of probability (known as a “closing ratio” – the percentage of deals won versus total proposed). The very best are clutch players – they bring in the game changing deals, when they are most needed. Their success ultimately feeds the entire company.

Prolifiq is blessed with phenomenal rainmakers. All clutch players blessed with intuition, foresight, imagination, drive and determination. When they tell me something is going to happen, I take it to the bank.

Oh, how I love it when it rains.

In March of 2008, we began an initiative I called: “It’s the channel stupid!” It was one of our five initiatives for the year. We intended not to construct a sales channel for ourselves; but, rather we sought to apply our application across our customer’s sales channel. The idea was to allow a company to “syndicate” its’ selling and marketing content so that all of its employees could use it to communicate to and through the distribution channel. We formulated the idea, and shared it with one of our larger customers ─ they asked us to get started, and our “serving the extended enterprise” use case was off and running.

Flash forward 15 months, and now our Media, Entertainment and Technology (MET) business unit is seeing a large uptick in inbound lead activity. And these are not small companies. I am surprised by this as we have done almost no marketing around this initiative. So, we ask all inquirers where they heard about us. The answer: “…a salesperson from ___________told me about how they are using you.”

The why part is something I can only surmise. The economic recovery is underway (may not be broad-based or universal) and insightful companies realize they need to do things better, faster, smarter, and more effectively to grow their top-line revenues. A consistent theme we are hearing is: “…we want to find better ways to help our distribution channel be more effective. We want to help them sell.”

June 3-5, 2009, TechAmerica is sponsoring the Channels 2.0 event in San Jose. The focus of the conference is the distribution of On-Demand applications. I have been asked to join a panel to talk about the nature of sales channels for SaaS companies, and to provide some insight into how we support our customer’s sales channels. I hope you can make it; I will be writing about my experience and what else I learned at the event.

It’s a funny concept to talk about a company managing a relationship with a customer. It is not like we have a human connection with one another as the term “relationship” would imply. We don’t text each other silly messages and make plans for the weekend, but I would argue that the relationship between a company and a customer shares many of the same qualities of a human relationship - and is no less complicated to manage. Think of the company as the suitor and the customer as the eligible bachelorette.

The fairy tale begins: Most of the time, the company pursues us in some way (through acquisition efforts, SEM, ads and marketing, rather than buying us a drink at the local bar); Other times, we meet through friends and mutual acquaintances (via referrals rather than blind dates); Inevitably, the company spends an awful lot of time and money trying to get to know us (through surveys and profiling rather than flowers and chocolate); when we lose interest, the company sends us treats and incentives to encourage us to stay engaged (loyalty programs and promotions rather than expensive jewelry); if we leave, the company (should) do everything they can to get us back (lapsed/lost programs); In the end, if we like said company, we tell our friends; if we hate said company…we also tell our friends. Either way, the reputation of the company rests in our hands – just like in a human relationship. And now, with social networking, all of this can happen even quicker, which is great for companies who have healthy relationships but very bad for companies who do not.

That is why managing the customer relationship is so critical to the success of a business. The company many believe that they have what the client wants, but if they don’t treat them the right way, it’s a moot point. As an example, a few months back, my friend and I walked into a designer shoe store fully intending to spend our bonuses on a pair of shoes (name not to be revealed, but think red soles). We were ready to seal the deal. We were walking down the aisle with this company. We loved them (irrationally so). BUT, we got into the store and were treated miserably by the sales associate. The relationship ended. No shoes were purchased that day. They managed the relationship well up to that point, but it broke down at the most important moment, and for a customer relationship to be successful, the management process must be consistent and unyielding.

What I can say is that there is no one right way to manage customer relationships, however, if a company applies the same guiding principles to their customer relationships that they would to their human relationships and remembers to pay attention (track activities or lack thereof), react appropriately to different behaviors (lifecycle marketing) and do everything they can to keep their customers happy (relevant communications, loyalty programs, incentives), they will be much closer to “happily ever after”.

So, how do companies find their soul mates? That topic is for the second date…

I used to teach a sales training class where I posed the question: “How many of you are being taken for granted in your current job?” Invariably, every hand in the room would go up, there would be exasperated sighs, snide comments and then the dark humor interpretation of the three letters of the company acronym. My response was always the same: “Oh, really?”

Let’s talk about some of the people we take for granted. When we pull a gallon of milk from the cooler at Safeway, we are taking a lot of people for granted: the farmer, the milk collection truck driver, the pasteurizer, the bottling plant, the delivery truck driver, the milk cooler repairman, the stockperson, and the store manager—to name a few. All of these people have specific roles in our lives, and we have become accustomed TO taking them for granted. Our health depends on it.

When we enter an airplane, we take for granted: the airplane assembly people, the FAA inspectors, the air traffic controllers, the mechanics, the fuel truck driver, the load managers, the flight attendants and the pilots. The 153 passengers on USAirways Flight had taken Captain Chesley Sullenberger for granted as they boarded the plane; they probably don’t anymore. What they took for granted was that he knew his stuff, had spent time in the simulators, and was up on his certifications.

As salespeople, we are responsible for the revenue of a company—we move the economy. On average 20 employees, and 20 family dependents rely on what we do for their livelihood. They take for granted that we: know our stuff, have practiced our sales pitches, are calling on the right people, have our messaging straight, and most importantly, we make our calls.

So the key question is not “are we being taken for granted”, it is: CAN we be taken for granted?

Let me know if you are being taken for granted and why.

I have been taught that a key aspect of leadership is taking responsibility. I have been completely dismayed over the last several decades at the complete and abject denial of personal responsibility.

This erosion has been evident in our leaders through statements such as: “I don’t recall…” (Ed Meese), “Mistakes were made….” (Ronald Regan), “I don’t involve myself in that level of detail….” (Jeff Skilling) and, “It depends on what your definition of ‘is’ is….” (Bill Clinton).

A true leader steps up and accepts and owns responsibility for their actions and the actions of their subordinates. This is an absolute in my book. Not only is it the RIGHT thing to do; it is amazing how quickly a situation can be defused. Most people are very forgiving of someone who owns up to their responsibilities and mistakes.

Our new President displayed his true leadership with how he handled the Tom Daschle withdrawal from the nomination for a Cabinet position. President Obama was not responsible for Daschle’s malfeasance with his tax payments, nor did President Obama conduct the vetting process. But, it was his pick and it is his administration.

He stepped up and owned the process and the outcome. Way to go! It is about time we have true leaders.

Sometimes, there is a moment of panic. One of those times could very easily have been in early October when it became glaringly apparent that this was not just a “market correction”; but, was actually a full blown recession. We were just beginning our second half, and we were on a tear having grown 60%+ half on half with the previous year. What to do? What to do?

First things first: DON’T PANIC. These are the exact words I used with the team. We then devised a very simple strategy: let’s talk with our customers. Nice to know we were right; this is what Seth Godin prescribes to increase sales during these times.

We proactively contacted all of our customers and asked them: “How can we help you through these times?” It is (however it shouldn’t be) amazing how effective this was. This approach strengthened our relationships, and actually our business continues to grow. This is what I believe true partnership is about – a good partner is supportive in good times as well as bad. Our customers are the reason we exist; we are here to serve them.

Thank you for the opportunity.

I had the privilege of seeing and hearing Roger Ehrenberg, former “Wall Street guy” and former co-CEO of Monitor110, speak about the meteoric rise and fall of Monitor110. (See his presentation here.) I must say, it takes a mighty man to very candidly and publicly rate himself on what was a very public failure of a high-flying start-up.

Ehrenberg lists four reasons why Monitor110 failed:
1) Lack of a “buck stops here” leader
2) Too internally focused
3) Too much PR, too fast
4) Too much money.

Lisa P. and I compared notes on the presentation when we got back to Portland, and she urged me compare with this list to see how Prolifiq rates. So here it goes:

1) Lack of a “buck stops here” leader – Kirby, our Board Chair, and I have had many conversations about the management structure and style of Prolifiq; it is unique. The four officers of the firm (Neil, Hemingway, Jim and me) have all sat in the senior executive chair here at one time in the company’s history. The “change-outs” have been driven by the stage we are at, and what skill sets are needed at the time. I believe it says a lot about each of us, that we are able to cede control to the next leader without our egos getting in the way. This has led to a very collaborative management style among the officers/senior leadership team that others on the team may not truly understand or appreciate. What it also creates is a confrontational management style among the officers (and our teammates) where every idea or decision gets challenged; and rightfully so. In the end, it prevents dictatorial decision making; and all of the team rallies behind the decision/direction. I will say, it does take some patience to work in this environment. Overall grade: B-

2) Too internally focused – Prolifiq has never had the luxury of being internally focused. When we first conceived our messaging platform, we decided we should sell our idea to a particular, large company. We approached them and they bit. They bit hard; and they are still our largest customer. Their end-user requirements have been key drivers in the evolution of the platform. As a result, the entire Prolifiq team has developed a keen sense of listening to customer requirements as we evolve and grow. The only drawback to this is that customer requests come fast and furiously, and sometimes it feels like they can outpace our ability to keep up. This sometimes prevents us from focusing on our long-term strategies. Overall grade: A-

3) Too much PR, too fast – Lisa M., our PR firm, would say this is NOT our problem. She has been frustrated with me/us for years as I would not “let her off the leash” to tell our story publicly. One of our most impactful PR events was a magazine award that we instructed her NOT to pursue. She defied us and did it anyway, and our customer was honored with the top award. Go figure. We have stayed stealthy, not because of secrecy or humility, we just felt our money was best spent on our products and our people. It is only within the last 3 months that I have allowed Lisa P. and Lisa M. to do any kind of PR activities. Overall grade: A+

4) Too much money – this may seem anathema; but, yes you can have too much money (and conversely, you can have too little). I worked for a start-up during the “bubble” that had raised $52 million and had not achieved meaningful revenue. We got STUPID; we did stupid things; and,  the internal politics were stupefying. Prolifiq does not have this issue. We are angel funded. The entire board and management team are investors. We are not only managing our investor’s money; we are managing OUR money. We watch every expense. We build only what sells. We sell only that which helps our customers and rewards our shareholders. And, we are not over-valued. In 2005, our Board required that we prove the business model by being profitable and generating cash. We met this objective and then went on to further invest in the business. More is on the way. Overall grade: A+

Prolifiq was born during the aftermath of the 2000 bubble, and as a result, we are technologically bold, fiscally conservative. Sometimes our grasp exceeds our reach (meaning we do great things; however, not enough people know about us); sometimes we can be intimidated by big opportunities and approach them more humbly that we should; and, sometimes our growth is slower than our investors had hoped.

Our belief is that: 1) we elate our customers, 2) the most important thing is for us to survive to fight another day and, 3) our shareholders will be enriched by our continued execution. This philosophy has allowed us to weather two economic storms; and, allowed us to deliver 50%+ growth this year. The future is never certain; but, I am exhilarated by what I see for FY2009. It promises to be an amazing year, fraught with many challenges. I have faith in our philosophy and our team. We will continue to grow and prosper.

I am especially grateful for Roger Ehrenberg’s candid assessment of his own performance and for causing me to look in the mirror and assess our team’s performance. I am interested in your thoughts as you apply his filters to your business and to ours.

 

Malcolm Gladwell in Outliers explores how events and circumstances have shaped all people, especially successful ones.

As part of our monthly book club, I asked the team to retrace their steps back as far as they can remember. What I am asking them to look for is the "pivot points" in their lives so they can understand the decisions they've made, why, and who were the influencers on those decisions. My thinking is that if they understand how and why they have made decisions in the past, they will be better equipped to make them in the future. Obviously, this is a very personal journey of discovery and conjures up memories ... some delightful, and possibly some painful ones.

My journey of discovery led me to conclude that I owe my life to my mentors, starting with my very first: my mother. In addition to the basics of life, she instilled in me a strong work ethic and my basic principles of business were learned through her tutelage. I was asked by my coworkers about my mentors, and I was able to rattle off over 30. I currently engage with 7 who are shaping various aspects of my life.

This got me thinking; who are the mentors from whom to choose? The answer: All of us. In a "pay it forward" way, we all have skills and insights we can share with those around us. This is a service we are obligated to do in life, and the rewards of doing so are immeasurable.

I'd love to hear your stories of mentorship and menteeship. Who are you helping and who is helping you?

Last night I was at a CEO forum where we were discussing the economy and how we were coping with it. On Monday I was in NYC speaking at the SIIA Previews event. The mood was rather somber at both events with almost all CEOs focused on the availability and cost of capital, their cost structures, and when this will all end.

I asked my peers last night: "How many of you are planning a bold move for 2009?" With the exception of one other person than me, it appears that everyone is hunkering down. And this is coming from a group of companies who are all experiencing revenue growth.

My question is why not? Are we all so jaundiced by the media negativity surrounding the economy that we are afraid to act?

What has happened to the unbridled optimism that made America great? Who is the next Gates, Jobs, Ellison, Brin, etc?

Moods such as pessimism and optimism are contagious. What I believe happens is CEO retrenchment or trepidation causes employee trepidation. What happens when the sales guy is afraid to make the next call, or is afraid to chase the bold deal?

Where have all the heroes gone, and what is it going to take for them to show their faces?

I'd love to hear from each of you what bold action you are taking in your own world to move from pessimism to optimism. It's up to us, individually and collectively, to lead the way out of this mess.

Let's get to work.

This morning, IBM/Lotus formally announced the commercial availability of LotusLive -- formerly known as "Bluehouse" -- IBM's cloud-based collaboration and social networking application.

In conjunction with this announcement, Prolifiq announced the commercial launch of the Prolifiq--LotusLive integrated solution with medical device manufacturer InSet Technologies. (see Prolifiq press release)

InSet Technologies is the first customer shipment of this joint Prolifiq/IBM solution and is transforming how the company does business. Maureen Shaffer is a visionary marketer; Lotus is interviewing her onstage on Tuesday morning so that she can share her experience with the 8000 attendees of Lotusphere.

Maureen has established a truly virtual work environment and has woven social networking into the culture and operations of the company. Maureen believes this joint implementation saves 20% of each of her employees' time.

This deployment is the result of a 17 month engagement with Lotus. Prolifiq was invited into this relationship just as Lotus was beginning to plan its partner and integration strategy. As a result, Prolifiq helped craft, and was the first ISV to develop against, the web services APIs of LotusLive.

When we first contemplated the project, we were intimidated--IBM has roughly 400,000 employees and does over $100 billion in revenue--what could they possibly gain by working with Prolifiq? I asked them exactly that question when we first met.

Robert, LotusLive Chief Architect, said it was quite simple: Prolifiq has 7+ years of cloud computing experience, and IBM could learn from us how to integrate and deploy hybrid-SaaS solutions.

Prolifiq gains visibility within the Lotus ecosystem and gains new customers. While our official color palette is red, black, white and grey--this week, we're bleeding yellow.