Introduction to Business Development and Sales

Patrick Dang
A free video tutorial from Patrick Dang
Founder of PatrickDang.com | Sales Coach
4.4 instructor rating • 8 courses • 95,551 students

Lecture description

An introduction to business development and sales covering which strategies will be best for you.

Learn more from the full course

Business Development & B2B Sales for Startups- Sales Valley

The Complete Startup Playbook for Business Development & B2B Sales to learn Lead Generation, Pitching, & Closing Deals.

06:26:19 of on-demand video • Updated February 2021

  • Students will learn the PROVEN Sales Valley Methodology to build business relationships and generate sales
  • How to sell and generate meetings remotely and be productive while working from home
  • All the different types of business development deal structures you can use to grow your business
  • The MOST EFFECTIVE way to pitch your product or service to potential customers
  • How to write amazing emails that get responses even if you don't have any copywriting experience
  • How to sell anything using your own authentic personality without sounding "salesy"
  • How to build your own lead generation machine to get consistent leads every month
  • How to use the BEST email scripts and templates top sales professionals use
  • How to close deals effectively and grow a business relationship for the long term
  • How to successfully negotiate business deals
  • How to find an infinite amount of companies and people who will be a GREAT fit for your product or service
English [Auto] Hey what's going on guys. So we made it to the section where we're going to give you an introduction to what business development and sales is all about. Now when it comes to the strategies you can use to grow your startup they're essentially going to be three big different ways. You're going to be able to do that. The first one is direct sales which is you're selling directly to another company. Another one is going to be business development and this is where you're going to partner with another company to reach new audiences. And the final one is going to be marketing So let's go ahead and dive into each. Once you get a better understanding of what each function is so you can figure out which one is going to be the best for your business. Now when it comes to direct sales essentially what you're doing is it requires you to build a sales team when you want to scale. And when it comes to direct sales it also is a little bit more transactional compared to strategic. And when you are doing direct sales the product or service that you're offering typically doesn't change too much. So essentially you're going out to different companies and you're selling the same product or service. Some people are going to say yes some people are going to say no and you keep repeating that cycle. And so when you want to make money and direct sales Either you sell more of whatever you have or you get your current customers to buy more from you. So that's going to be a brief introduction into direct sales. But don't worry we will go into more direct sales strategies soon. Now business development it's all about building strategic partnerships to reach another company's audience. And so what you're doing is you're going out and you're find different companies that you can partner with which is a little bit different from selling directly to them and in a way when you're doing business development you're providing value to them and their customer base. But at the same time you may also be providing value to your own customer base and we will go into more examples of what exactly I mean in a bit. And finally the last strategy is a marketing which is essentially creating inbound leads from content creation like videos and white papers and things like that and essentially the goal of marketing is to generate leads for the sales teams to go in and close the deal. Now for the purpose of this course and we're going to focus on the direct sales aspect of things and business development aspect of things. And this is because although they are different functions within a company. The strategies you can use to be successful at both of them are very similar. So what exactly is the difference between sales and business development. They sound similar they sound different but let's go ahead and dive into you know what exactly those differences are and what those similarities are. So you can decide which one you want to focus on for your startup. So let's go ahead and talk about sales first. So in sales you're essentially selling a ready to buy product meaning the product may have some slight variances and change but for the most part you're selling the same thing to pretty much anybody that fits your product market fit. So an example of this is that you're selling a SAS software as a service software insurance consulting services or even physical products like Nike sneakers could be things from software all the way to physical goods that you can wholesale so you can essentially go to all these different companies and sell the exact same exact thing to everybody which makes it very simple. And so the typical process when it comes to doing direct sales is you go through a sales cycles you talk to them have a meeting you make sure there's a fit then you close the deal. And in the future you will continue to sell the same product to them over time or you will upset them in the future. And this is very common especially in the startup world for SAS companies or technology companies. You may go into a company and see if there's a fit and then you would sell them something. And a lot of times companies work by selling them a subscription model so every year they would have to renew that subscription. And so that's how a sales cycle would work. And you know if you already have a customer and you come out with new products especially when it's in software you can hit them up again and then try to upset them on whatever new products that you have. So when it comes to scaling sales it does require you to build out your sales team because you want to dominate the entire world you're going to have to have a world class sales team selling to people all around the corners of the earth. And that's how most startups do it when they focus on direct sales. So to further illustrate what exactly Drexel's is all about let's go ahead and give you a demonstration. So the sales person has one side and he's going to go out looking for prospects and prospects are going to be people you've identified who may be a great fit for your product or service. So the salesperson goes out tries to talk to the prospect has a meeting with them and then you know does a little presentation and eventually closes the deal. So if they want to find more customers they've got to find another prospect and another prospect and another prospect so this is the same salesperson going out and reaching out to different people trying to make that sale. And so what essentially happens is once he or she does find someone that is willing to pay for their product or service it to give them money pass it over directly to the sales person and that's going to be the end of that. So when you're trying to scale your sales team essentially you're going to hire you know one two three or multiple sales people and they're going to go out finding prospects who fit their product market fit. And if one person says no they go to the next one and the next one then the next one eventually they're going to get people who are willing to buy their product or service and they're going to give them money and pass it over directly to the sales person and that sales person is going to pass it directly to the company that they're working for. But if you're working for yourself is going to go directly to you. So that's everything we've got to cover on sales. Let's go ahead and talk about business development. And so I can give you you know what exactly the differences and similarities between sales and business development. So when it comes to business development it's going to require you to have more strategy to build a partnership with a another company or another individual. So we are going to do is you're going to get this other company you're going to build a relationship with them and you're going to convince them to sell your product or service directly to their customer base. And it doesn't require you to build a huge sales team to scale. And the reason why is because when you go to another company who has a huge audience or a huge base if you can get them to sell your product then they're going to do all the work for you. And so when it comes to development essentially what you're doing is you're in Ebeling another person a lot of times it might be even a salesperson to sell your product for you. And so this is why one business development person can go out make these business partnerships of other companies and scale because the other companies that they're partnering with already have a large customer base. And that's how you're going to get your foot in the door in two huge audiences. And this is very different from direct sales because direct sales you've got to go to each individual and try to sell them directly. And so both sales and business element. One thing I want to let you know is they can both exist at the same time. A lot of huge startups and a lot of huge companies frankly both have sales divisions and business development divisions because both of them can work and help each other out. So there's going to be four different type of business development partnerships that you can utilize for your startup and it's going to be product distribution brand and Shanno. So let's go ahead and dive into each one so you have a better understanding of how business development actually works product business development. Essentially you're building a business partnership that improves the end product either for you or the company that you are partnering with. And so what you're doing is you're increasing the value for the current customers and you're going to attract new customers not only for the company you're partnering with but you're also going to attract customers for yourself. So an example of this is when Spotify did a partnership with genius. So if you guys know about the partnership what it essentially looks like is if you ever use Spotify before on your mobile device let's say I'm listening to Drake's passion fruit on the top part of the screen and what you're going to see is behind the lyrics and it's powered by genius. And you could see their logo there. And so what happens is when you play a song on Spotify and what genius essentially does is there a technology company a crowd source technology company where people can go in and write the meaning behind lyrics and the artist themselves can also input what they meant when they wrote the song. So when you're listening to the song you could see directly what the artist meant when they were talking about it. And you know it goes line by line. So this is a really great partnership because jenius which is a startup essentially who has all this data on the meaning behind lyrics goes to Spotify and says hey we have all these annotations of these lyrics. Do you want to implement them in your service. So Spotify says OK. And so all the millions of people who heard Spotify listeners are now going to have jenius lyrics in their service when they're using it on their mobile device. And this is great for a genius because they don't have to go and get a sales team and try to sell all these different companies if they strategically find companies like Spotify or Pandora or SoundCloud and say we can implement lyrics into the songs that you already have and they're going to and the company is going to be like sure that genius has access to millions of people who have may have maybe never have heard of the service before. And so how it works is spotify collects a subscription from the millions of premium listeners. And they you know pass over the money to Spotify and Spotify is going to pass a certain percentage or a certain fixed amount to genius because of that partnership by integrating genius into their service they essentially increase the value of the Spotify service so it is a win win situation for both sides. Now the other type of business development we're going to talk about is the distribution model. And essentially what you're doing is you're going to gain new customers by getting exposure to other companies. Audiences or customer base and providing more value to your customers as well as another persons company. And so an example of that is the distribution model behind Netflix so when you think about Netflix which is you know it's a larger company but not too long ago it was a startup. It's this huge platform where they got a lot of movies a lot of shows and essentially got millions of paying users who go on every single day to watch Netflix. And so if you are creating a new TV show or if you're a stand up comedian and you want to get more exposure what you can do is you can partner up with Netflix and have them distribute your content on to their platform. And so if you're sorry if you're starting out creating a brand new show and nobody knows who you are and you want to get as much exposure as possible do a Netflix deal might make a lot of sense because by purely putting it on Netflix basically they're going to promote you to all their millions of watchers and you're going to get lots of views right off the bat because you because you did that deal. So disher Bhushan these are very powerful and that you can tap into other people's network and they can promote you and why Netflix wins is because they're going to get all this fresh new content that may be only available on their platform. And so if you're a fan of the TV show that's going to come out and it's only available on Netflix and if you don't have Netflix you have to go to Netflix com and buy a subscription. And so it is a win win situation for both sides. Now the next type of business development deal we're going to look at is the brand enhancing deal and it's going to be a partnership that improves the brand image for both parties that are involved. And so an example of this is the festival life is beautiful and how it books different music artist. So life is beautiful essentially is a large music festival and they're not quite as big as Coachella or another festival like that but they are quite they're getting big and they're pretty new on the scene and not as well known. And so how a music festival. And essentially they are him he's a kecil startup how they essentially build out their name is there. They're going to book really big artists to perform during their lineup. And if you're a fan of the artist you might go to the music festival just to see it. And so if you look at their lineup they're going to be people like Chance the Rapper the gorillas Lord Blink 182 Kaskade Wiz Khalifa and so these are really big household names especially in the U.S. a lot of people listen to. And so if maybe you have never heard of Life is beautiful but you know that you know the Grella just came out of there a hiatus and they're performing for the first time in many years. That's a moment where you're going to want to go and if the only place to see them is Life is Beautiful that's where you're going to be. So from a brand perspective Life is Beautiful gets all this brand recognition because they have all these top tier artists performing at their festival and for the artists they win because they did a partnership with. Life is beautiful brand. And by performing at a festival what they're doing is what they're getting paid. Number two they get the credibility of being a festival performer so they could say hey I performed that this festival life is beautiful this other festival. And you can go out to other festivals all around the world and say hey this is my resume of where I performed. This is why you should book me for x amount of thousands of dollars. And so it's a win win Grant enhancing relationship because life is beautiful wins by getting all these performers to enhance their brand by association and the artist themselves get the recognition of performing at a big event like life is beautiful and a win win situation on both sides. Another example of Brenda Hansing business development is you know Gary V So Gary Vaynerchuk you know he's been on the entrepreneurial scene for a while but recently he's been making a ton of content trying to inspire people to become entrepreneurs or do what they love. And so he makes a lot of content on YouTube Snapchat Instagram. He's basically he's got millions of followers all around the world. And so what he did is a partnership with K-Swiss. So he is I believe the first business person to have his own custom sneaker. And so this was very powerful because as a business person by being the first business person to have a sneaker deal he's going to go down in history as the first. And so it enhances his brand. And now K-Swiss is going to win because case was competing against Adidas and Nike and a lot of the heavy hitters that are dominating the scene right now and they're trying to become relevant again. And so cases may not be able to get a LeBron James or Kobe Bryant because you know one it's expensive and maybe they don't have the brand leverage to get those people. So what they can do is go to someone like Gary V who's getting really popular on the scene especially in the social media world. And hey say hey let's go ahead and do a collaboration where you're going to have a K-Swiss shoe your own shoe line and you're going to promote it to your audience and because your audience is super cool. K-Swiss will then become super cool by association. So every week V-twins because he gets a sneaker before all the business people do and gets his on line case who wins because they get to piggyback off of gay reviews. Social relevance in this time and so it's a brand enhancing deal on both sides. Final business development you're going to look at is channel partner ships and it's a partnership where two companies where they have similar customers develop a relationship where one company introduces the other product or service to their audience. And a lot of times it's going to work by a Affiliate Program or it's going to work with a revenue share deal. So an example of partnership channel partnership is going to be ty Lopez. Now I know a lot of people you know they may not have the nicest thing to say about Ty Lopez because his friends runs a lot of ads and he's kind of cheesy in some senses but you cannot deny that his social media following across the board is giants. Not only does he have millions of followers on like Facebook snap chat Twitter Instagram his email list has millions of people on it that are ready to buy whatever he has to put out. And so another company which has a startup called consulting dot. They help other individuals become consultants. They have a product that is a few thousand dollars that they sell. And it's a e-learning product. And so what they do is they go to Ty Lopez and they say hey we got this product that's you know worth thousands of dollars. We want you to try to sell it to your millions of audience and hopefully a small percentage of your audience actually buys it. So Ty Lopez says OK sounds good. I'll do it if we do a deal where I get revenue share and you know they do the deal. So Ty Lopez go out and he will promote consulting Dotcom's products to his audience and his audience. You know a small percentage of it will buy it because they are a good fit for that product. And so what they'll do is the audience will give Ty Lopez money to purchase the product and Tyler is going to get his cut. He's going to give the rest to consulting dot com. And so that's a partnership where it's going to be a revenue share deal. Another Chowan partnership is or call you know the company that I use to work at Oracle they do have a direct sales division and they also have channel partnership divisions. So what happens is or code will have a representative go out and find all these individual sellers that do not work at Oracle. So they find these resellers who are who are looking to make money and they have a customer base. And so those resellers what they'll do is they'll take a bunch of Oracle products and they will go to their customers and try to shop them around. And basically if they see that another customer that they have might be a good fit for whatever or call is offering they're going to try to sell it to that customer. And if that customer buys it then they're going to pass over the money to the reseller and the reseller is going to pass a cut of that back to Oracle. And the reason why this works very very well for Oracle because essentially once we develop the partnership with these resellers and they don't have to just work with one they could work with thousands across the globe. These resellers are essentially going to do all the heavy lifting and trying to sell it to their customer base. And because Oracle already created that technology and basically just allows other people to sell it on their behalf they're just going to keep collecting money month over month just by building these Kanno partnership relationships. So to recap everything that we covered these are going to be the four different type of business relationships that you can look for. It's going to be product distribution and brand and channel. So now that we covered the business development relationships are one thing to note is that in the beginning we did talk about sales and what that similarities and differences were between the two. And I want to say it might look like business development might be a more attractive route in that you're getting other people to do the heavy lifting for you before a lot of different startups you know direct sales might actually be better for you because the weather might be better for you. It really just depends on your situation your product. And you know exactly what you're trying to do. And so in the next section we're going to dive deep into which one you should choose are either direct sales or business development or maybe a combination of both to fit your startup so that you can grow and scale.