How To Start A Sales Automation Platform

Start A Sales Automation Platform

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When it comes to starting a sales automation platform, you may find yourself in a place where you have to make some big decisions.

You may be asking yourself:

  • What's the first step in establishing my business?
  • How much will it cost to start my sales automation platform?
  • How do I price my sales automation platform?
  • How do I market my sales automation platform?
  • ... so much more!

We walk you through all of the steps; from idea → starting → launching → growing → running your business.

The purpose of this guide is to act as an outline for the steps you'll need to take to get your business running successfully!

market size
$4B
starting costs
$18.5K
gross margin
70%
time to build
12 months
pros & cons
37 Pros & Cons
tips
8 Tips

💡 Introduction To Starting A Sales Automation Platform

Is Starting A Sales Automation Platform Right For You?

There are many factors to consider when starting a sales automation platform.

We put together the main pros and cons for you here:

Pros of starting a sales automation platform

• Flexibility

You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.

• Ability to start your business from home

It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!

• Rewarding work

Starting a sales automation platform can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.

• Scalable

With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.

• Traffic to your website

A sales automation platform gives people a reason to visit your website and to keep coming back to you!

• No overhead costs

To get your sales automation platform started, there are no costs associated with overhead, storage, packaging, etc. This will save you a lot of time and money!

• High customer retention rates

Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.

• High margins

The gross margins for your sales automation platform are typically around 70%, which is considerably high and allows you to grow your business and manage costs easily.

• Control of workload

With starting a sales automation platform, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.

• Unlimited income potential

With starting a sales automation platform there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.

• You are your own boss!

With starting a sales automation platform, you are the one to make decisions for almost all of the operations. Calling the shots can be empowering and liberating!

• Predictable income stream

Your businesses income stream tends to be predictable based on the number of customers you have signed up. This makes financial planning and outlooks much more seamless!

• Higher likelihood of getting referrals

This business is all about referrals, which can be a a very impactful way to attract and retain customers. It's critical that you have a great referral program in place that incentivizes your customers to tell their friends about your product.

• Simple business model

A sales automation platform has the advantage of a simple business model, which makes launching and building the business more seamless.

• Greater Income Potential

With this business, the sky is the limit in regards to your income potential.

• You get to do something you truly love

With starting a sales automation platform, you get to put your energy into something you are truly passionate about! You'll find yourself devoting as much time and energy as possible into the business to make it successful.

• You can work from anywhere!

Not only can you start your sales automation platform from home, you can also run your business from anywhere in the world. This is the entrepreneur dream.

• Strong Demand & Relatively Recession Proof

The demand for sales automation platform is increasing year over year and the business is known to be relatively recession proof.

• Various different ways to make money

With starting a sales automation platform, there is not just one business model to choose from. This field is amazing in that there are various different ways to make money. Although this may complicate things, it's great to have different options and sources of revenue.

• Make money while you sleep

The advantage of starting a sales automation platform is that you have the ability to have passive income and make money while you sleep. This is the dream for many entrepreneurs.

• Results and revenue happen quickly!

Unlike other businesses, it can be relatively quick to start seeing results and revenue. As long as you follow all the steps to validate your idea before launch, you are likely to see quick results and ROI.

Cons of starting a sales automation platform

• Crowded Space

Competition is high when it comes to your sales automation platform, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.

• Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

• Longer Sales Process

A sales automation platform can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.

• Security Issues

With any Saas business, data loss and security issues may arise throughout your process of building your product. It's critical that you understand exactly what you're responsible for and how to avoid potential issues down the road.

• Isolation

Often times, as a sales automation platform, you typically work alone and do not have much face-to-face interaction with other team members.

• Taxes

As a sales automation platform, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

• No safety net

Typically, as a sales automation platform, you do not receive a consistent pay-check and instead earn money based on your transactions each month. During the slow periods, you typically take away less since the job is based on commission. It's important to budget accordingly for the slow times.

• Stressful work

This line of work can be stressful for both you and your clients. This type of transaction is a significant financial decision for your client, so expectations are very high for you. Although this career path can be very rewarding, it also comes with its challenges and stressful moments.

• You may need to charge sales tax

If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out this article

• Churn

In this business, customers can cancel their membership or subscription for your services - which can make revenue forecasting challenging and unpredictable. It's important to focus on your churn rates and trends so that you can prevent this as much as possible.

• Complex development process.

The development process for a sales automation platform can be quite complex, which may cause delays and challenges when launching and growing your product.

• Complex maintenance

Your sales automation platform will require a long-term investment due to the need for updates, bug fixes, and security vulnerabilities. It's important that you (or someone on your team) stays on top of this at all times.

• Be prepared to get out of your comfort zone!

Although this is exciting for some entrepreneurs, it can be a big challenge for others! You may find yourself in uncomfortable social and business situations, jumping into tasks and responsibilities you aren't familiar with, and pushing yourself as far as you can go!

• You might struggle financially (at first)!

If you bootstrap your business or choose not to pay yourself (or pay yourself less than you were making at your corporate job), this can be financially taxing. It's important to adjust your lifestyle and set a plan for yourself so you don't find yourself in a stressful situation.

• Minimal physical activity

A big part of starting a sales automation platform is sitting at a desk for the majority of the day starting at your computer. Some may enjoy this, but others may struggle with sitting for the majority of your day without much physical activity.

• The job can be demanding

This is one of the major disadvantages starting a sales automation platform. It's important to understand that you may need to make yourself available on a 24/7 basis.

Players

Big Players

Small Players

Search Interest

Let's take a look at the search trends for sales automation tool over the last year:

How To Name Your Sales Automation Platform

It's important to find a catchy name for your sales automation platform so that you can stand out in your space.

Here are some general tips to consider when naming your sales automation platform

  • Avoid hard to spell names: you want something easy to remember and easy to spell for your customers
  • Conduct a search to see if others in the space have the same name
  • Try not to pick a name that limits growth opportunities for your business (ie. if you decide to expand into other product lines)
  • As soon as you have an idea (or ideas) of a few names that you love, register the domain name(s) as soon as possible!

Why is naming your sales automation platform so important?

The name of your business will forever play a role in:

  • Your customers first impression
  • Your businesses identity
  • The power behind the type of customer your brand attracts
  • If you're memorable or not

It's important to verify that the domain name is available for your sales automation platform.

You can search domain availability here:

Find a domain starting at $0.88

powered by Namecheap

Although .com names are the most common and easiest to remember, there are other options if your .com domain name is not available. Depending on your audience, it may not matter as much as you think.

It's also important to thoroughly check if social media handles are available.

As soon as you resonate with a name (or names), secure the domain and SM handles as soon as possible to ensure they don't get taken.

Here's some inspiration for naming your sales automation platform:

  • Actual check availability
  • Advanced Automated check availability
  • The Final check availability
  • Tax evasion Automation check availability
  • Critical Creature Group check availability
  • Adaptive Animation check availability
  • Additional Automatic check availability
  • Archival Automated check availability
  • VersatileTool check availability
  • Ideal Shaft Pro check availability
  • Administrative Automated check availability
  • Administrative Automates check availability
  • Buyer Trading Co check availability
  • Subsequent Sales Agreement check availability
  • The Progressive Mechanization check availability
  • Shaft Collective check availability
  • The Subsequent Buyer check availability
  • The Interactive Puppet check availability
  • Automated Collective check availability
  • Subsequent Selling check availability
  • TestAutomation check availability
  • Steady Selling check availability
  • SpecialTool check availability
  • Mechanization Trading Co check availability
  • Absolute check availability
  • Unlawful Divestiture Pro check availability
  • The Visual check availability
  • Wide Auction Trading Co check availability
  • RapidSale check availability
  • Subsequent Buyer Trading Co check availability
  • Scale Computerized Group check availability
  • Fair Selling check availability
  • Mechanization Co check availability
  • Comprehensive check availability
  • The Efficient check availability
  • Expression Automation check availability
  • Conceptual check availability
  • Essential Creature check availability
  • Puppet Place check availability
  • Steady Seller check availability
  • Purchase Pro check availability
  • Steady Stinking check availability
  • Enormous Sell check availability
  • Mathematical Joyride Pro check availability
  • FirstSale check availability
  • Potential Divestiture check availability
  • Caption Automation check availability
  • The Big check availability
  • ExcellentTool check availability
  • Additional Animation check availability
  • Primary check availability
  • The Reliable check availability
  • Drive Group check availability
  • WideSale check availability
  • Reliable High Technology Place check availability
  • Kazan Automation check availability
  • The Adaptive check availability
  • High Tech Pro check availability
  • Recent Auction Co check availability
  • The Willing check availability
  • Drive Trading Co check availability
  • The Future check availability
  • Line check availability
  • Forward check availability
  • Vital Creature Collective check availability
  • The Controlled Computerised check availability
  • ForwardSale check availability
  • Fixed Mechanization Collective check availability
  • BestTool check availability
  • Subsequent Sold check availability
  • Mechanisation Collective check availability
  • The Wide Sales Event check availability
  • Archival Auto check availability
  • Handy Tool Around check availability
  • ComputerizedAutomation check availability
  • Deck Computerized Co check availability
  • The Text check availability
  • Resale Spot check availability
  • Data check availability
  • AdvancedAutomation check availability
  • The Controlled Machinery check availability
  • The Test check availability
  • Domestic Auction Spot check availability
  • The Primary check availability
  • EasyAutomation check availability
  • The Computerized check availability
  • Text Techniques check availability
  • Conditional Selling Spot check availability
  • Regression equation Automation check availability
  • Potential Resale check availability
  • Instrument Collective check availability
  • ElectronicAutomation check availability
  • The Called check availability
  • Possible Auction check availability
  • The Suitable Puppet check availability

Read our full guide on naming your sales automation platform ➜

🎬 How To Start A Sales Automation Platform

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How Much Does It Cost To Start A Sales Automation Platform

If you are planning to start a sales automation platform, the costs are relatively low. This, of course, depends on if you decide to start the business with lean expenses or bringing in a large team and spending more money.

We’ve outlined two common scenarios for “pre-opening” costs of starting a sales automation platform and outline the costs you should expect for each:

  • The estimated minimum starting cost = $1,801
  • The estimated maximum starting cost = $35,118
Startup Expenses: Average expenses incurred when starting a sales automation platform. Min Startup Costs: You plan to execute on your own. You’re able to work from home with minimal costs. Max Startup Costs: You have started with 1+ other team members.
Office Space Expenses
Rent: This refers to the office space you rent out for your business. To minimize costs, you may want to consider starting your business from home or renting an office in a coworking space. $0 $2,000
Utility Costs (office space): This refers to the first month's utility bill for your office space. If you are not responsible for this bill, this would not apply to starting your sales automation platform. $0 $150
Office Supplies: Although these may seem like minor costs, things like your desks, chairs, pens, paper, filing cabinets do add up. To avoid these adding up too much, try to be as lean as possible and go paperless! $25 $1,000
WiFi: Whether you work from home or in an office space, WiFi is an expense that's tough to avoid. Although the cost is minimal in most cases, it should be appropriately budgeted for each month! $10 $100
Total Office Space Expenses $35 (min) $3,250 (max)
Equipment & Supply Expenses
Technology Office Equipment: This includes (but is not limited to) physical items such as: laptops, cameras, monitors, microphones, speakers, headsets. Technology needs grow as your company evolves, so to minimize costs, try and only purchase what is needed for you to run your business at the time. $500 $5,000
Total Equipment & Supply Expenses $500 (min) $5,000 (max)
App Creation Costs
App Development: App development is the process of creating software intended to run on a mobile device.In addition to coding, there are other elements to consider:- design- back end development- security- architecture- testingMany businesses hire an expert that has the technical knowledge to design and develop an app.Depending on the scope of your project, the cost can vary. Some business owners learn to code on their own to minimize these costs, and others, hire a developer to work for them part-time or full-time. $1,000 $20,000
Apple Developer Program: To submit your app to the app store, you will need to enroll in the apple developer program. This costs $99/year. $99 $99
Total App Creation Costs $1,099 (min) $20,099 (max)
Software Expenses
Design Programs & Software: These programs might include the Adobe family of design tools: Photoshop, Illustrator, InDesign and others. This is typically a monthly subscription ranging from $10-$50/mo. $0 $50
Email marketing tool: If you plan to grow your email list and email marketing efforts, you may want to consider investing in an email marketing platform (ie. Klaviyo, MailChimp). We put together a detailed guide on all of the email marketing tools out there + the pricing models for each one here $0 $100
IT Support: IT support installs and configures hardware and software and solves any technical issues that may arise.IT support can be used internally or for your customers experiencing issues with your product/service.There are a variety of tools and software you can use to help with any technical issues you or your customers are experiencing. This is a great option for businesses that do not have the means to hire a team of professionals. $150 $2,000
Accounting & Invoicing Software: It's important to have an accounting system and process in place to manage financials, reporting, planning and tax preparation. Here are the 30 best accounting tools for small businesses. $0 $50
CRM Software: CRM (customer relationship management) software is used to track your company’s interactions with clients and prospects. Although this is not a necessary tool to have for your sales automation platform, implementing this in the beginning may set your business up for success and save you a lot of time later on. For a full list of best CRMs to use for your business, check out the full list here. $0 $250
Project Management Software: You may want to consider using a project management and collaboration tool to organize your day-to-day. This can also be very beneficial if you have a larger team and want to keep track of everyones tasks and productivity. For a full list of project management tools, check out this full list here. $0 $25
Internal Communication Tool: If you plan to have multiple members on your team, you may want to consider an instant message tool such as Slack or Telegram. The cost is usually billed per month (approx $5/user/month) or there are freemium versions available on many platforms. $0 $20
Social Media Management Tools: If you plan to do social media marketing for your sales automation platform, you should consider investing in a social media automation or publishing tool. This will save you time and allow you to track performance and engagement for your posts. Here is a list of 28 best social media tools for your small business. $0 $50
Online data storage: It's important to make sure the information for your sales automation platform is stored and protected should something happen to your computer or hard drive. The cost for this is affordable and depends on how much data you need to store. To learn more about the different options and pricing on the market, check out this article. $0 $299
Total Software Expenses $150 (min) $2,844 (max)
Advertising & Marketing Costs
Business Cards: A sales automation platform involves quite a bit of customer interaction, whether that is attending tradeshows, sales calls or simply having face to face interaction with prospective clients. Business cards are a great way to stay front of mind with your clients. $0 $50
Customer Research & Surveys: Many sales automation platform's conduct industry and consumer research prior to starting their business. Often times, you need to pay for this data or hire a market research firm to help you in this process. $0 $300
Affiliate Marketing Commission & Fees: If you want to increase revenue for your sales automation platform, affiliate marketing is a great way to promote your product to a new audience. When determining affiliate commission rates you will offer, you will want to take into account the price and margin for your product to ensure affiliate marketing is worth it for your business. According to Monitor Backlinks, the average affiliate commission rate should be somewhere between 5% to 30%. To learn more about how to set commission rates, check out this article.. $0 $250
Influencer Marketing: Partnering with like-minded influencers is one of the most effective ways to grow your social media presence. Many small businesses simply gift a free item in exchange for an influencer post, or pay the influencer directly. $0 $750
Press: If your business and story is unique enough, press and media attention may come to you, but odds are, you may need to do your own outreach and budget for this. We put together a guide here that discusses different press opportunities (both free and paid). $0 $500
Google Ads: With Google Ads you have the ability to control how much you spend by simply setting a monthly budget cap. Additionally, with these ads you only pay for results, such as clicks to your website or phone calls! It's okay to start with a small budget at first and make changes accordingly if you see valuable returns. $0 $300
Facebook & Instagram Ads: With Facebook and Instagram ads, you set your budget and pay for the actions you want (whether that be impressions, conversions, etc).You can learn more about pricing based on your impressions here. $0 $350
Total Advertising & Marketing Costs $0 (min) $2,500 (max)
Website Costs
A Domain Name: Your domain name is the URL and name of your website - this is how internet users find you and your website.Domain names are extremely important and should match your company name and brand. This makes it easier for customers to remember you and return to your website. $12 $200
Email hosting: Email is a critical piece for running your business. Once you have your domain name, you will want to set up email accounts for each user on your team. The most common email hosts are GSuite (typically starting at $6+ per user, per month) or Microsoft Office (typically starting at $5+ per user, per month). The number of email accounts you set up will determine the monthly cost breakdown. $5 $75
Total Website Costs $17 (min) $275 (max)
Other Expenses
Credit Card Processing Fees: If you process credit cards then you will need to deal with interchange fees - which is usually around 3% of total charges. These fees are often forgotten about and can hurt cash flow if not taken into account. $0 $300
Total Other Expenses $0 (min) $300 (max)
Training & Education Expenses
Professional Training: If you plan to have employees for your sales automation platform, training can be time consuming and take you away from growing your business. You may want to consider hiring a professional trainer to onboard your team and put together a training manual with all processes and procedures. $0 $850
Total Training & Education Expenses $0 (min) $850 (max)
Total Starting Costs $1,801 (min) $35,118 (max)

Raising Money

Since the startup costs to start sales automation platform range between $1,801 - $35,118, there are ways you can raise money to cover these costs.

Here are a few ways you can secure additional funding:

Write a Business Plan

Writing a business plan from the start is critical for the success of your sales automation platform.

Why?

Because this allows you to roadmap exactly what you do, what your overall structure will look like, and where you want to be in the future.

For many entrepreneurs, writing out the business plan helps validate their idea and decide whether or not they should move forward with starting the business.

You may want to consider expanding upon these sections in your business plan:

  • Executive Summary: Brief outline of your product, the market, and growth opportunities
  • Overviews and Objectives: Overview of your business, target customers, and what you need to run your business
  • Products and Services: Specifics on the products and services your business will provide
  • Market Opportunities: Analysis of customer demographics, buyer habits and if your product is in demand
  • Marketing: Outline of your marketing plan and how you plan to differentiate yourself from other customers
  • Competitive analysis: Analysis of your competition and the strengths and weaknesses therein
  • Operations: Hierarchal structure of the company and what it will take to run the business on the day-to-day
  • Leadership Team: Detailing roles and responsibilities of each manager based on their specific skill-set
  • Financial Analysis Understanding of all expenses, operating budgets, and projections for the future.

Learn more about how to write a business plan here

Determine Which Business Bank Account You Need

There are hundreds of banks out there, and it can be overwhelming to find one that's right for your business.

Here are some factors you may want to consider:

  • Location - Is your bank close enough that you can easily make deposits or get cash?
  • Low Fees - Make sure to understand any and all fees associated with setting up and maintaining your bank account. Ask for a list - banks usually try to keep this hidden and in the fine print.
  • Online Banking Services - Make sure you can easily navigate through your online portal and you have easy access to everything you need.
  • Line of Credit - What do your options look like (even if you don't need this now, you may need this down the road).
  • Every bank has something that differentiates them from the rest, so make sure whatever that is applied to your needs and values.

Check out this list of the 13 Best Banks for Small Business in 2020 and what makes them so unique.

Setting Up Your Sales Automation Platform (Formation and Legal)

When it comes to setting up your business, you may find yourself in a place where you have to make some financial and legal decisions.

The first thing you'll want to decide on is whether you want to be an LLC, S-Corp, or C-Corp.

These three options are found to be the most common when starting a small business, and all serve to protect your personal assets and also provide you with certain tax benefits.

  • LLC: All income and expenses from the business are reported on the LLC personal income tax return.
  • S corp: Owners pay themselves salaries + receive dividends from profits.
  • C Corp: C Corps are separately taxable entities that file a corporate tax return (Form 1120). No income tax is paid at the corporate level and any tax due is paid at the owners individual expense.

Depending on where you're conducting business, you'll also want to consider securing the proper permits, licenses and liability insurance.

Learn more about securing the right permits and licenses ➜

Need to start an LLC? Create an LLC in minutes with ZenBusiness.

Building an MVP (Minimal Viable Product)

When building a sales automation platform, it's critical that you first validate your product/service rather than rushing to build it right away.

This could save you months, if not years of building the wrong product/service.

If you're hoping to decrease any sort of risk that comes with launching your sales automation platform, designing a prototype can be a great way to de-risk your situation.

The point of your sales automation tool prototype is that it doesn't have to be perfect.

In the beginning stages, it doesn't matter how rough V1 of your prototype is, it's more important to just get started and you can always refine from there based on feedback from your network and most importantly your customers.

How To Build A MVP

Here are several different ways of building a prototype/MVP:

  • Start by building a landing page to see if customers actually need your product and if they are willing to pay for it
  • Build a very basic version of your idea and ask for immediate feedback from potential customers
  • Present a problem and solution via Facebook/Instagram Ads and see what the response is like

How To Find The Right Developer For Your Sales Automation Platform

If you (or others on your team) don't have the necessary coding/design skills to build the product on your own, finding the right developer for your sales automation platform is a critical piece to bringing your idea to life.

Prior to hiring someone, you'll want to:

  • Have a very clear understanding of what your product (or MVP) will look like
  • Understand what the details of the user experience will look like (pages, how users sign up, backend administrative details, billing, reports etc). It may help to draw out the prototype and UX experience on a design platform such as Sketch
  • Understand what features you want to implement now and even those in the future
  • Understand the costs and time associated with hiring a developer and set a budget (more on that below)

Here are some ways you can find a developer:

Arielle Frank, founder of Clout Collective talks about her experiences and lessons learned when hiring a developer as a non-technical founder:

My first attempt to find a developer was a massive failure. I was basically screaming to be taken advantage of with my lack of technical knowledge and a heart full of hope. I signed an extremely unfavorable contract with a developer based in Morocco who claimed to offer “discounted” development services in exchange for equity in the company. By “discounted” I mean that it would cost only $40K to build the MVP. At the time I had no frame of reference for whether or not this was normal and justified it to myself.

Luckily, after a lot more internet sleuthing, I found my current developer, Adeva. Working with Adeva was the opposite experience of my initial encounter in every way. At $8K, Adeva’s quote for my MVP was literally 1/5th the cost of the original developer! I decided to save money on a front-end designer for V1 by using a template and designing things where I could in Figma.

I was forced to figure out many of the details and features of the platform upfront since Adeva couldn’t give me a quote without detailed user stories.

When building out the prospective features, I tried to focus on the end result and work backward from there.

For example, the end goal was for a content creator to be able to read a review and know whether or not they want to collaborate with a specific brand. I used this goal to inform the questions I collected for the reviews and the best way to display this info. During this phase, I also relied heavily on my beta testers for feedback about which info would be the most useful for them.

It’s tempting to add a bunch of cool, slick features when you’re building your product, but my brilliant mentor encouraged me to focus on doing one thing extremely well.

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Wilson Hung, on starting ARPU (/month) full story ➜

The Software Business Model

Tiered Pricing Model

You may want to consider having different pricing tiers to meet the needs of your customers.

With this model, there are typically 2 or more packages for a specific price that offer a fixed amount of features.

Each package should reflect the needs of the buyer persona - for example, a customer looking for a beginner package may have a very different use case than a customer looking for an enterprise package.

By offering different packages, you're able to target different audiences which will lead to increased conversions and revenue. Additionally, your chances of "upselling" existing customers are much higher as you have establisished trust with your customer and they're left wanting more once their use case evolves.

Per-User Model

Many sales automation platform businesses charge a fixed rate per user on the account (either monthly or yearly). This can be especially lucrative if you're targeting larger businesses where the user number will be much higher.

This model is not always preferred as it can be challenging to forecast revenue accurately when the user count within businesses is fluctuating constantly.

Flat Rate Model

If you decide to adopt a flat-rate model, this would mean that you offer only one price for every customer. All customers are treated equally and have access to the same amount of features.

This model is not as common as tiered pricing because it only meets the needs of one buyer persona and can limit growth and you're able to have multiple revenue streams.

Per Feature Model

This model charges customers based on the # of features they need. Customers add features "a-la-carte" which will determine the overall price of the product.

This can be a lucrative model, however, the number of different use-cases customers need can become overwhelming (making the sales process longer) and it can be challenging to find a price structure that works well.

The business model you choose depends entirely on your needs and goals as a company. To find what works well for you, you may want to consider testing several models and conducting market research to see what competition in the space is doing.

The Freemium Model

Offering free trials to your platform is a great way to gain exposure for your business and potentially get new customers!

Finding the right sales automation platform is a big deal for most people, so it can be important for customers to try a free version with limited features prior to making a big investment.

Once your customer reaches the limits of their free account, they're much more likely to invest in the premium version so they can gain access to all of the features your product offers.

There are a few different ways you can limit certain aspects of your product:

  • Usage quotas: Storage limits or limiting the number of times they can utilize a feature
  • Limited features: Only allowing your free user to utilize certain features vs all features - this is also a great way to upsell during the user's experience
  • Limited support: Customer support can be time-consuming, by limiting the level of support to free users this is a great incentive for them to upgrade (and will save you a lot of time and money)!

Here's an example of SEO website, Sanity Check offering a free version to their website:

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How To Price Your Sales Automation Tool

One of the most challenging aspects to starting a sales automation platform is determining how much to charge for your sales automation tool.

When businesses under-price their product, this can be extremely detrimental to their bottom line and reputation.

Often times, businesses under-price their products to drive demand and volume, but that last thing you want is for customers to view your product/service as "cheap." Additionally, this can have a big impact on the type of customer you attract, which can be difficult to recover from.

On the other hand, when businesses over-price, this tends to be just as damaging to the business.

When customers buy, it's likely that they will explore the internet and look at other competitors to ensure they're getting the best value + deal. This is why it's so important that you research your competition and understand where you land in the marketplace.

Here are some factors to consider when pricing your product:

Understand your customer

It's important that out of the gates, you identify the type of customer you want to attract and how much they're willing to pay for your service. One great way to do this is by surveying your customers. Here are some important items you'll want to takeaway:

  • Customer demographic: Age, gender, location, etc.
  • Buying habits of your customer: What they buy + when they buy
  • Level of price sensitivity with your customer

All of these segments will help you identify the type of customer you're attracting and how to price your product accordingly.

Understand your costs

When pricing your sales automation tool, it's critical that you first identify all of your costs and consequently mark up your sales automation tool so you can factor in a profit.

The actual cost of your sales automation tool may include things like:

  • The actual cost to make the product (ie. raw materials, supplies, manufacturer).
  • Shipping + overhead fees
  • Rent
  • Operating costs to run your business

You may want to consider creating a spreadsheet with every single expense involved in operating/owning your business. This will give you an idea as to what you need to generate in order to at the very least, break-even and will help you price your products to factor in a profit.

Create revenue goals

When determining the price of your sales automation tool, you'll want to create goals for revenue + how much profit you want your sales automation platform to make.

This process is simpler than you may think:

  1. Think about your breakeven cost (by completing the above step).
  2. Create a revenue goal based on your break-even cost
  3. Evaluate the # of items you plan to sell in a given period (make sure this is a realistic number)
  4. Divide your revenue goal by the number of items you plan to sell

This figure will help determine your estimated price per product in order to meet your revenue goals.

Evaluate your competition

The last piece in determining how to price your sales automation tool is by simply looking at your competition.

The best way to do this is by finding like-minded businesses that offer product(s) with similar perceived value. Then, you can compare prices of the different businesses and determine where your sales automation tool fits best in the marketplace.

All of these factors play an equal part in pricing your sales automation tool, so it's important you evaluate each one individually to come up with an accurate price that will help optimize your business from the start.

🚀 How To Launch Your Sales Automation Platform

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Build A Website

Building a website is imperative when launching your business, and with the right tools in place, this can be a simple task to check off the list (without having to hire someone).

  1. Pick a domain name that's easy to remember and easy to type
  2. Choose a Web Hosting Plan (ie. Shopify, Squarespace)
  3. Make sure you choose the right theme and design
  4. Implement the proper page structure (ie. about page, contact page, pricing etc)

To learn more about how to build a stellar website with little stress, we give you all the details on this step-by-step guide.

Web Design

Once you have chosen the domain, web hosting, and platform, it's time to get started with the design phase.

Themes are a great way to produce the fundamental style and identity of your website - this includes everything from your font design to your blog post styles.

One of the best ways to get started is to simply explore the various themes (free or paid depending on what you're looking for) and test them on your site.

If web-design really isn't in the cards for you, you may want to consider outsourcing a web designer to help bring your vision and brand to life.

Launch Strategies For Your Sales Automation Platform

There are various different ways you can launch your sales automation platform successfully.

Here are a few different strategies to get customers excited about your sales automation platform.

  • Build hype with a landing page: you can effectively do this through waiting lists, discounts, countdown timer etc
  • Create a teaser video: even just a 30 second video is a great way to exposure for your sales automation platform, and possibly even go viral
  • Reach out to influencers: The right influencer for your product has the ability to reach your audience with just one post, and because of their loyal following, this could lead to a big return for you.
  • Get Press: Whether you plan a PR stunt or get exposure through a popular news outlet, this is a great way to attract initial customers
  • Launch on popular sites: A great way to get buzz about your sales automation platform is to submit your launch to popular startup sites.

Here are a few popular sites to launch on:

Learn more about how to launch your business successfully ➜ here

🌱 How To Grow Your Sales Automation Platform

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Improve your SEO

SEO is not just about driving traffic to your site, it's about driving the RIGHT traffic to your site, and ultimately, converting leads into customers.

One of the most important aspects of SEO is understanding what your customers are searching for, otherwise known as "keyword research."

Here are some tools that can help you choose the right keywords for your sales automation platform.

Publish Great Content

Finding keywords is an important piece of the puzzle, but Google also ranks your site based on the actual content you produce, as this is what your customers are reading and engaging with.

There are various different "forms" of content that you may want to consider diversifying on your sites, such as blog posts, articles, studies, and videos.

So let's discuss what google considers "good content:"

  • Length - This will vary depending on the page, however, generally having a sufficient amount of content helps search engines recognize that your site is a good source for a specific topic
  • Engagement - The longer people stay on your website to read your content, the higher Google will rank your website. It's important to have informative and "thick" content that keeps people reading
  • Avoid Duplicating Content - Google will recognize this and may consider your content to have low value
  • Ensure pages load quickly - This will also help with engagement and time spent on your website
  • Shareability - Create content that people want to share, and is easy for them to share, especially to their social media accounts (ie. "click to tweet" is a great example of this).

Another element of creating good content is creating consistent content.

If (and hopefully you are) publishing content frequently, it's important to stick to a schedule - this helps build brand trust and easy user experience with your customers.

Planning out your content with a content calendar is key to staying consistent.

Here are a few great content calendar tools that can help you:

  • Trello
  • Airtable
  • If you prefer to keep it simple, your average spreadsheet is just as useful!

Backlinks

Backlinks are an important piece to SEO, as they allow for other websites to link to your content.

Search engines recognize that other sites are essentially "verifying" your content and essentially rank you higher because of this.

Of course, some links are more valuable than others and can affect your site in different ways.

For example, if a highly valuable and credible site like the New York Times links to a page on your website, this could be remarkable from an SEO perspective.

Aside from organically getting mentioned from other sites, there are other ways that you can increase and earn backlinks:

  • Create infographics with relevant data that people want to share
  • Promote your content on different sites/look into "guest blogging"
  • Contact influencers/journalists/bloggers and ask them to mention you!
  • Write testimonials for other sites in exchange for a backlink
  • Leverage existing business relationships

Learn more about the fundamentals of SEO ➜ here and check out Neil Patel's 3 Powerful SEO Tips below

Build A Blog

One of the most effective ways to build brand awareness and grow your business is through consistently blogging.

We've outlined some useful tips for you to consider when creating content:

Consistency and Quantity

Quality is important, but it should be the standard for any content you publish.

What’s more important is consistency and quantity.

Consistency is as simple as committing to publishing and sharing a certain number of posts per week. For me, that’s three per week right now.

This kind of commitment is key, because one day, a random post will blow up, and you will have never expected it.

Oversaturation

The easiest mind trap is to think "I’m posting too much", and “I need to give my readers/audience/this platform a break”.

This is nonsense.

There is no such thing as oversaturation. Well, there is, but it is just someone else’s opinion.

For every person that tells you you are posting too much, there is another person that wants even more of your content.

You should ignore people’s opinions on how much you post.

Patience & Persistence

Keep posting, keep trying, and keep putting out good content on the regular. Your time will come, and when it does, it will change everything.

The only thing you have control over is your content.

You can’t control how people will react to it. You can’t control pageviews, likes, or shares.

So the only metric you should focus on is how much content you can put out in a week, month, etc.

Where to share your blog content

Mailing List

I know it sounds obvious, but the best places to share your content is on your mailing list. It is guaranteed traffic and it is a great way to get rapid feedback from your most loyal readers.

Send newsletters often. I have done once a week since starting, and I’m moving to twice a week soon.

Work on increasing your mailing list as well. Look into ways to increase your conversion rate to your mailing list. I added a flyout popup thing to my site and now I’m collecting ~30 emails per day.

An email newsletter is one of the most powerful assets you can have and it is worth its weight in gold.

Reddit

Reddit is one of my favorite places to promote content.

It is a very scary place because you will often get banned or heckled, but it can really pay off.

Create social media accounts for your blog, the main ones I use:

Twitter Facebook Instagram LinkedIn

Set up Buffer and share all of your blog posts to all of your accounts. All of these little shares really do add up.

Automate this as much as possible. I automated all of my social media for Starter Story.

Facebook Groups

When I started out, I put together a spreadsheet of relevant Facebook groups for my niche, and I would post to these groups whenever I had a big story I wanted to share.

Attend A Tradeshow

Having an online presence is important, but showing face will always remain one of the most effective strategies for growing your business.

As traditional as it may be, tradeshows and conferences are a great way to get your product in front of your customers.

It all comes down to basic human interaction - prospects are much more likely to invest in your product if they've created some sort of relationship with you and can put a face to your product!

Brandon with Photobooth Supply Co talks the importance of tradeshows

A trade show is like having access to hundreds or thousands of hot leads, all at once, and while every competitor is right next to you. It’s brutal, and it’s exhausting, and it’s amazing.

You truly have to stand out as a product, and as an experience, and as a company. We might spend $10,000 on a space and another $10,000 on staff, setup materials, and experience. Then we still have to have a show special and use that to drive sales. The margins get a lot tighter, but if you’re picking good shows, the kind your current customers go to, you’re going to do well.

That’s the best advice I can give for picking shows—just ask your customers where they’re going to be, and go there. Partially to sell, and partially to meet your people in person. You can never spend enough time getting to know your customers.

Types of tradeshows we attend

We love attending photography focused trade shows. I think photographers are probably some of the most creative entrepreneurs out there. There is the business side, which takes a remarkable amount of creative skill, and there’s the actual photography.

When you get a chance to talk to them, they realize very quickly that they’re entrepreneurs at heart and we’re a great solution!

Trade shows don’t have to be your thing to be profitable. Your company should mirror your spirit and interests, but sometimes we all have to do the things that are necessary for success.

Moreover, there is a wonderful opportunity to iterate on your sales pitch. You are sometimes talking to dozens of people in person every day. By seeing their body language and how they interact with your product, you can immediately tell what aspects of your pitch are effective.

By the end of it, you should have some solid strategies for your sales reps, ads, and website.

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Brandon Wong, on starting Photobooth Supply Co. ($300,000/month) full story ➜

Grow Your Email List

The more engaged list of emails, the more engaged customers, which ultimately leads to more sales.

One of the best ways to start growing your list is by providing your customer with something free (or discounted) in return.

This could also be anything from:

  • Ebook
  • Fascinating case study
  • Video series
  • Free week of the product
  • Discount on the product

Learn more about how to grow your email list and improve email marketing ➜ here.

Alex Nerney, founder of Create and Go discusses how the key to growing your email list is through your email opt-in:

Along with being transparent, we put a lot of emphasis on building an email list. We knew the power of email marketing from our first blog and by collecting emails, we were able to really connect with our audience and build trust with them before ever promoting our products.

The biggest factor for growing our email list was finding the perfect email opt-in. By offering something to your audience, you’re able to entice them to sign up for your email list.

We offered a blogging bootcamp and not only did it serve as an awesome list builder but it also gave people a taste of what it would be like to learn from us. launch, what has worked to attract and retain customers?

article This is an example of our currently designed email opt-in for Create and Go

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Alex Nerney, on starting Create and Go ($100,000/month) full story ➜

Improve Your Email Marketing

Different types of emails

Here are the most common types of email campaigns you can send to your customers and their benefits:

  • Welcome emails - the perfect way to provide information from the start with a clear CTA. Make sure to tell your customer everything they need to know about your product or service.
  • Newsletters - a great way to give customers updates or send out your latest content
  • Product launch emails - the quickest (and easiest) way to increase sales is by selling to current customers. Make sure they're the first on the list to know about your new product
  • Promotional emails - promote discounts, deals coupons etc. Try and make this feel exclusive and for a limited time only
  • Abandoned cart emails - give your customers a reason to complete their purchase!

Here's a great resource for finding curated email designs, for all types of email campaigns!

Customer Email Newsletter / Video Marketing

Example from Patrick Sullivan Jr, founder of Jigsaw Health:

The single most valuable tool we’ve utilized for retention is emailing our customers “edutaining” content, which is primarily video-based.

In 2017, we began a weekly series called #FunnyFriday, a video a week -- some sort of short, entertaining skit, song parody, etc. that features our products and/or culture in a unique and clever way. :)

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As of July 2019, we’ve published nearly 100 #FunnyFriday videos... We’re like the “Weird Al” of the dietary supplement industry. And we’re definitely the only dietary supplement company with a costume budget. ;-)

To date, we’ve not been able to make these videos work for new customer acquisition, and I’m ok with that. These are for retention, for showing our customers that real people work here. :)

80% of our monthly revenue is from returning customers, and that’s without forced continuity / auto-ship that so many other brands in the dietary supplement industry.

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Patrick Sullivan Jr., on starting Jigsaw Health ($1,000,000/month) full story ➜

Social Media Advertising

Social Media Advertising is one of the leading ways to get the word out when it comes to sales automation platform.

There are various different Social Media platforms available to you. Some may be more critical for your marketing efforts than others, however, it's important to have an understanding of what's out there and available to you.

Let's talk about a few of the main platforms and what makes them unique:

  • Facebook Advertising - more than 2 billion monthly users. Facebook is the best for lead generation + capturing email addresses for e-commerce businesses.
  • Instagram Advertising - approximately 500 million monthly users and has a higher audience engagement rate than any other platform. Instagram ads are best for linking to a product page or landing page and reaches the 18-29 age group most effectively.
  • Twitter Advertising- Small businesses typically use twitter ads to drive brand awareness, but the platform is meant more for organic engagement (and is not as heavily used for paid advertising)
  • Pinterest Advertising - 175 million monthly users and most effectively reaches the female audience. Pinterest is great for promoting products without "promoted". The promoted pins have a way of blending right in.
  • LinkedIn Advertising - 227 million monthly users and is geared towards the B2B market and generates the highest quality leads. Great platform for recruiters, high-end products and services that will help businesses

It's important to first define your goal/objective so that you don't waste time and money into the wrong platform:

Here are some different questions to ask yourself as it relates to your goals:

  • Do I want to simply drive brand awareness?
  • Do I want to drive users to my website to gather information?
  • Do I want to increase sales and get my customer to take action?

From there, choose the platform that targets your audience best and start experimenting!

Learn more about social media advertising ➜ here.

Founder Andy Hayes talks about mastering FB ads and the pixel:

The biggest bang for your buck will likely be mastering Facebook and it’s platform - which we all know is pay for play, so you’ll have to come up with a small amount of budget to start for marketing.

We’ve spent countless hours (and paid numerous coaches) before we cracked the code that works for us on Facebook, but it is working really well for us now.

Some of the most important things to know when it comes to FB Ads:

  • Start with retargeting (that’s showing ads to people who already know you but did not purchase). Master this - and start building information on your Facebook Pixel - before you do anything else
  • Once you have that down, try working with the 1% “Lookalike” audience to prospect for new customers. This may take awhile because your pixel audience is small, so try layering on interests - 1% Lookalike and your largest competitor, for example. Don’t use interest-only targeting until you master this.
  • Great photography and videography is key, as is smart copy. Research what’s out there in your industry and constantly test - what works for one company may not work for other people.
  • Make sure you have good offers. For example, we have a $5 trial for our subscription, which converts affordably - if we promoted our subscription with the standard $30 front charge, it wouldn’t be as cost-effective.
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Andy Hayes, on starting Plum Deluxe Tea ($75,000/month) full story ➜

🏃🏼‍♀️ How To Run Your Sales Automation Platform

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How To Retain Customers For Your Sales Automation Platform

Retaining customers is one of the most effective ways to grow your sales automation platform.

Oftentimes, it's easy to find yourself focusing on generating new customers, vs retaining your current ones.

Look at it this way - you are 60-70% more likely to sell a new product to an existing customer than you are a new customer.

That's not to say that finding new customers and revenue streams is not important, however, the easiest (and most inexpensive) source of new revenue is right there in front of you.

Here are some ways you can retain customers for your sales automation platform:

  • Responding to comments on social media
  • Send discounts (or freebies) to loyal customers
  • Provide valuable content, for free
  • Write a hand written thank you note
  • Provide awesome customer service and build relationships with customers

To find out more tips and tricks on retaining customers, check out this article ➜ here

How To Crush The Sales Process For Your Sales Automation Platform

You may find yourself in a spot where you're ready to hire a few (or many) salespeople to support the sales conversion process.

Regardless if you have one or thirty salespeople, it's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

Mike Korba, co-founder of User.Com walks us through the entire sales process and which teams are responsible for what:

User.com Sales Process

Each user and account is qualified with a specialist. For business leads, they are handled by the sales team, and if they are qualified we give them a demo, more than often at the end of their fourteen-day trial. If they’re happy they’ll add a payment, and get an account manager, so a customer support and success team who will help implement the solution and to use the technology.

Sometimes, users will convert naturally on their own, after using the freemium product and finding it to be something that they will find beneficial.

After they convert, we help with onboarding, give them some personalized tips for their specific business or industry to grow plus all kinds of support, for whatever they need - something we take huge pride in.

The team is right now more than 30 people, with more than half working on the IT and product side, and the rest are in three teams: Support, Marketing, and Sales who all work together very closely.

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Mike Korba, on starting User.com ($100,000/month) full story ➜

Provide Great Customer Service

Providing exceptional care and creating relationships with clients is a great way to build your reputation and retain customers.

Whether you are an online business or a physical business, it's highly important to communicate with customers and make them feel like they are the priority.

Just remember: customer service represents your brand, values, vision and YOU as a person.

Customer service is huge for us. Like I talked about, building a community has been one of the best bi-products in the shop.

We want everyone to feel loved, cared for, and appreciated.

If we have a customer that comes in quite a bit, we will begin to notice what they buy and reach out to them if something new comes in if we think they will like it. We also try to call people by name and greet them as if they were entering my home, not just the shop.

Another great way we retain customers is through a loyalty point system. When a customer gains enough points through their purchases, they are rewarded with a discount. It’s our way of saying “thank you” for having them be a great customer.

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Emilie Casseday, on starting Blush Boutique Co ($25,000/month) full story ➜

Diversify Your Product Line

Adding new products to your business is a great way to expand into new markets and grow your business.

It's important to note that adding new products and diversifying may not be in the cards for you right this moment, and that's okay. You can always consider it down the road.

Here are some reasons you may want to considering adding/diversifying your product

  • Meeting the needs of your customers
  • Establish yourself as a top provider in your industry and stay ahead of the game with competition
  • Resistance to downturns/trends fading
  • Create new revenue streams

Resources

We put together the best resources on the internet to help you start your sales automation platform.

Tools

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