– Why it doesn’t work and what you could do instead.
I am assisting software companies with internationalisation. What that comes down to is helping our clients acquire customers in a new market (bootstrapping), building a local presence (bridgehead) and heading for market dominance (scaling) .
Before jumping to the subject of this post let me clarify a few things.
The clients I am assisting all have high price/low volume type of software solutions. They need to get sales people in front of potential customers in order to get the sales/purchase process rolling. Sales cycles are highly unpredictable, but always somewhere between 6 and 24 months.
I often get approached by software companies who would like me to take their products to the market either directly or through a channel of value added resellers, systems integrators or maybe even a 3-tier model. And they offer to pay us a share of the revenue generated through this effort. Basically what they are saying is: “We don’t want to listen to all your consulting theory or read your nice reports; get us some customers and we will pay you with a share of the revenue you generate for us.”
This blog post will explain why this model is doomed to fail, at least in the western world and what you could do instead. Continue reading