‘Sell To People Who Handle Other People’s Money’February 2, 2013 1:35 pm
In one quick sentence, here is the case for building stuff for the enterprise and not the consumer: It is a better idea to sell to someone handling other people’s money. Because it is definitely easier to part with money when it is not your own.
Of course, there are multiple other issues with enterprise sales. Decision making could be slow. It might be difficult to identify the decision maker because there would be a group in all probability. There might be influencers that you need to worry about. There would be quarterly budgets and related issues. Sometimes you think Steve Jobs was absolutely right when he said that enterprise decision makers are ‘confused’. Consumers are different – if they like your product, they buy them else they won’t. It is that simple.
Except that it isn’t. It is extremely difficult to get a consumer to part with her money. Unless you have a truly compelling product – of the painkiller variety, she is just going to look around, and buy somewhere else (where? we don’t know). She will browse, she will talk, she will comment – but parting with money? Forget it. It is her money. Why should she give it to you? There is a reason why even the darlings of consumer internet, facebook and twitter, finally get their revenue checks signed by someone who is dealing with other people’s money.
Make something for the enterprise. It might not be cool – but you will not feel the heat where it matters. Because all said and done, it is easier to part with money when it is not yours.