• http://www.matchcraft.com mcentorani

    If you spend enough time in front of small business owners and really listen to them…they will actually teach you how to sell to them. Borrell makes some great points on what is contributing to the extremely high churn rates among the SEM resellers. One of the points that is mentioned is \clicks are often worthless if they aren’t the right kinds of customers\. It’s a huge point, but to really understand this from the business owner’s perspective, you have to be willing go in with more questions than pre-packaged solutions. That will require a major culture shift for many resellers.

    What many SEM resellers are slowly figuring out is that it’s not that difficult to sell a SEM program to a small business owner once…but it’s not easy selling it again when it’s time for renewal. Especially if the first sale wasn’t the \right sale\.

    If this trend is going to change, part of the answer will require sales reps approaching small business owners with more questions than answers. This means questions that are specific to their business and industry and not taking for granted that every accountant is the same, or that every plumber is the same, or that every chiropractor is the same. Each business owner has specific target groups that they are trying to reach, specific reasons for choosing them, specific geographic areas they are trying to attract customers from, as well as a specific number of new customers they can handle, etc. The point is, they are not all the same and a one-size-fits-all approach will continue to create high churn rates.

    If resellers are to succeed in the long run, part of the answer (in additon to Borrell’s other good points) will require training the sales reps how to ask the right questions, to be able to suggest the right solution, and set the right expectations, to make the \right sale\.

    For more on this subject check out…http://blog.matchcraft.com/?p=3

  • http://www.planetc1.com/ chiropractic

    I like the comment above, not every client is the same, sales reps in my experience have failed to recognize this fact.

    Amazing that the churn rates are so high, yet not surprising. In my experience they do tend to be focused on customer acquisition vs customer retention.

    The model of buying ppc from google and reselling it to clients won’t work forever (even if it’s working now). What’s next?

  • http://themarketingspot.blogspot.com Jay Ehret

    The entire model is flawed. The number one use of the internet is to research products and get more information. The number one goal of search engine marketing is to generate leads or make sales. The two don’t mix.

    Local businesses are thus disappointed in their returns because they think they will see increased sales directly from their SEM investment. They are expecting something that is not likely to be delivered.