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The Startup Chat

499: How to Sell During the COVID-19 Crisis

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Read time

2 min

Topics

Relationships, Sales & Revenue, Economics & Policy

AI-Generated Summary

Key Takeaways

  • Speed optimization: Close every deal today rather than tomorrow or next week, as customer attention and willingness to buy decreases rapidly during crisis conditions. Prioritize closing over negotiating better terms or extracting additional dollars from deals already in progress.
  • Cash flow priority: Negotiate prepayments for three, six, or twelve months upfront with significant discounts rather than monthly contracts. Monthly payment contracts become worthless if customers face bankruptcy or severe financial distress within months, making upfront cash essential for survival.
  • Work-from-home authenticity: Embrace family interruptions and home distractions during sales calls rather than hiding them. Invite children to wave hello, acknowledge the shared situation with prospects, and make authentic human connections instead of pretending to operate from corporate offices.
  • Outstanding invoices urgency: Collect all pending payments and outstanding invoices immediately, treating collection as business-critical. Contracts and payment terms lose enforcement value during economic downturns when customers face bankruptcy, making current collections far more valuable than future commitments or legal agreements.

What It Covers

Steli Efti provides tactical sales strategies for closing deals during COVID-19 crisis, emphasizing extreme urgency, optimizing for immediate cash flow, and adapting to work-from-home selling environments with families present.

Key Questions Answered

  • Speed optimization: Close every deal today rather than tomorrow or next week, as customer attention and willingness to buy decreases rapidly during crisis conditions. Prioritize closing over negotiating better terms or extracting additional dollars from deals already in progress.
  • Cash flow priority: Negotiate prepayments for three, six, or twelve months upfront with significant discounts rather than monthly contracts. Monthly payment contracts become worthless if customers face bankruptcy or severe financial distress within months, making upfront cash essential for survival.
  • Work-from-home authenticity: Embrace family interruptions and home distractions during sales calls rather than hiding them. Invite children to wave hello, acknowledge the shared situation with prospects, and make authentic human connections instead of pretending to operate from corporate offices.
  • Outstanding invoices urgency: Collect all pending payments and outstanding invoices immediately, treating collection as business-critical. Contracts and payment terms lose enforcement value during economic downturns when customers face bankruptcy, making current collections far more valuable than future commitments or legal agreements.

Notable Moment

Efti warns that negotiating two-year monthly contracts holds zero value during crisis because contracts become unenforceable when customers face bankruptcy, and businesses will not sue struggling customers for small monthly payments during economic collapse.

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Episode Transcript

Hey, everybody. This is Steli Efti. And this is Heaton Shah. And today, I'm gonna start up chat in our pandemic series. We're gonna talk about sales. And can't we like talking about more than just sales and marketing? We just wanna bullshit and chat about business and life. And hopefully, while we're doing that, provide a lot of value to people. The world's best business podcast. Podcast. Oh. Shit. Oh, shit. We got it. For people trying to get shit and done. Yeah. We don't wanna give you feedback. That's bullshit. Yeah. We want you to do your best. I have a a sales something. Savant, genius, whatever word people wanna use, but he he knows a thing or two about sales. So let's talk about sales. I've seen some emails you folks have sent. I've seen some features you folks are releasing, and I know you've changed up your road map a little bit yourselves in in order to service folks. But I I think the big question on people's minds from a sales standpoint both if they're managing salespeople and and they have salespeople or they are a salesperson, what do I do? Everything's different now. I'm not in the office. I'm not you know, I don't know if my prospects are gonna listen to me anymore or even, like, you know, what do I do? So please lay it on us. Yeah. So this is gonna be a very tricky time for people in sales, but there's many other people that are in much worse situation. So okay. So a couple of things. I think first, on an individual level, salespeople working from home is highly unusual in selling just from their home. And on top of it, it's gonna be much more unusual if the whole family is with them. Right? Sales is such a contact sport, kind of high velocity, high quality contact sport, such a communication sport. And it's such it's so fundamentally relying on the state that you're in being a powerful enough state to be able to influence people, hopefully, in a positive way, that if you are at home and you are depressed or anxious or fearful or confused, and there's children screaming in the background and you're in your pajamas, and you're now trying to call somebody that is equally distracted at home, confused, and you're trying to now make people pay attention to you and then make buying decisions, it's gonna be tough. Right? There's no sugarcoating it. This is gonna be a tough time. It's funny. The first big surge of questions that I got from sales team, salespeople, sales leaders was the selling from home piece. And on that, there's a lot of advice out there. And and, you know, I think the only things I can say there is you'll have to find a way to get yourself in a good as good of a state as you can, and you're gonna have to improvise …

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