Hi everyone, I am starting a top-shelf agency and it’s going well so far. Though, one part we’re stuck on is the idea of how to land big companies as clients (companies doing over $1b /yr like Microsoft or Logitech).
Who should we be reaching out to in order to move forward to the close? Would this be the Advertising Directors, Human Resources Manager, who?
Also, if you have any further advice with client development, we’d love to hear it.
My suggestion: Lower your expectations. Given that you are just starting your business, there’s no way you’re going to get custom from the likes of Microsoft unless you have a really compelling and unique product. These big firms have well-established purchasing procedures, and are not going to respond to cold calls, mail shots, social media campaigns, or even face-to-face networking.
Better to focus on building a solid customer base from smaller businesses. Build a first-rate reputation within your niche. Acquire referrals, testimonials and recommendations. And, importantly, build up some cash flow so that you won’t be reliant on one or two large clients.
Once you’ve done all that, you can start aiming higher. But don’t make it a priority. After all, there’s plenty of work to be had from smaller clients, and their money is just as good as Microsoft’s.
It really depends on the type of business you want to do with them: do you want to be their provider for small projects, big projects or really major projects.
Also, it depends on the capacity and experiencie that your company has to provide that service
If you want the really big stuff and you don’t know the CEOs of the company, forget it. This is done on the highest level and you really have to know them, not only their names but have reguolar contact with them.
For small and medium projects, in my humble opinion, the best thing to do is to ask the company directly. Sometimes a simple phone call to the switchboard can tell you which department would be handling this type of contract. Most of the time, these companies have a Purchases Department with different sections for anything they need to buy.
It will not be the person who will make the final decision but it will be a contact and you can start from there.
Getting to this kind of companies normally goes from small stuff where you prove your worth, and step by step climbing the ladder.
Be friends with someone high enough up to hire your firm.
Hire a marketing guy to go wine & dine enough of the ones above until you find one that will hire you.
When a company is big enough, there are other companies willing to shell out lots of money just to get their foot in the door. The most recent thing I’ve seen is a company that took over one of our mainframes for only $50,000 for 10yrs. I know someone who works in the company and the project is costing them $1,500,000 in labor alone. But, they got their foot in the door and hopefully it pays off for them.
If you mean that literally, I have to disagree. If you think a hard-nosed executive from a major corporation is going to respond to every marketing guy who buys them a boozy dinner, you’ll be disappointed. These executives have careers that depend on making the right decisions, and they know better than to be influenced by this sort of gift, bribe or incentive. And they will probably be earning so much money anyway that they won’t be impressed by a hot meal.
You’ll also find the cost to your firm of all the wining and dining will quickly outsrip any profits you make, even assuming you land a contract, which is unlikely.
If you think a hard-nosed executive from a major corporation is going to respond to every marketing guy who buys them a boozy dinner, you’ll be disappointed.
The pluralization was not accidental. Also, not everyone with the ability to influence decisions like that are Executives. Managers or even Senior developers have enough influence to get these contracts, depending on the service and the need.
You’ll also find the cost to your firm of all the wining and dining will quickly outsrip any profits you make, even assuming you land a contract, which is unlikely.
I agree there as well. Foot in the door.
But as a small company, those companies are much bigger and have no problem using up every offer you give them without giving anything back. Even if that means it drives your small company into bankruptcy, they really don’t care. There is a line around the block ready and willing to take your place. I see it more than I would have ever expected to.
@mikl
I appreciate the insight, having been a designer for over 13 years, it is now time to move onto bigger things as you so put-it.
@molona
This is very helpful, I do have contacts to the CEOs of many large firms and appreciate the insight. Yes, there are many small tests and if you are an expert, you will get to the top.
“But as a small company, those companies are much bigger and have no problem using up every offer you give them without giving anything back. Even if that means it drives your small company into bankruptcy, they really don’t care. There is a line around the block ready and willing to take your place. I see it more than I would have ever expected to.”
But do keep an eye in the paper though, because many corporations (at least the state-owned ones where I live) will publicly advertise when they’re tendering for services. Lots of time these will be things like transport or recycling, but occasionally you might get a small web-project, and that could be your ‘in’.
Long shot, though, so don’t hold your breath for this one.
(Also because it’s very likely that they only tender because they’re obligated to. Chances are they already know which firm they’ll hire before the ads even go out.)
As you have telling, it is a startup, it is better to think once again about your idea. Because over ambitious may lead to loss. Give some time for your business to grow.
If you wanted to make $1 million, then it is probably easier to get 100 small-to-midsize companies to spent $10,000 versus a Microsoft to provide all of your revenue.
If you provide a good product or service and build up a steady customer base, then you first of all won’t spend your time day-dreaming about getting rich off of Microsoft, and you might actually catch a Fortune 500 company’s interest if you keep growing.
Another point is that you do not call Microsoft and say, “Who do I speak to to sell $1 million in goods/services.”
You do it through relationships.
After you have a good product/service and have a steady demand, try going to conferences, trade shows, getting in the news, presenting at conferences, and generally work on your exposure.
Then you might be at one of those conferences and bump into a Sr. VP of Marketing who might give you some time.
$1b clients come from very tight networks and relationships with people in the industry. I doubt you could win them “cold”, you could join some strategically located golf clubs, attend global expos, hang out in business/first class lounges at airports where such important decision makes are likely to be for a genuine networking opportunity with these prospective clients.