The Rolodex Is Dead: Why Modern Sales Success Demands More Than a Contact List

There's a reason why nobody uses these anymore

I had lunch recently with a CEO of a tech startup who was getting ready to add to his sales team (which consisted of just him at the time).  I asked him about what kind of experience he was looking for and he said, “I need salespeople who have a deep Rolodex of potential customers for our technology.”

Having been in tech sales for 38 years working with several sales teams, the senior executives in the past have always harped on the value of a well-worn Rolodex.  They looked at is as a tangible testament to a salesperson’s network and influence. They also thought that any salesperson with a good contact list could get deals done more quickly. 

Things are different today.

The Limitations of the Rolodex

While having a network is certainly a plus, over-reliance on existing contacts can be problematic. Many hiring managers (and CEO’s) are tempted by candidates boasting extensive rolodexes, envisioning immediate access to a wealth of potential clients. However, what they’re forgetting about is the dynamic nature of business relationships and the evolving landscape of tech sales.

In our experience, the true value of a salesperson is their ability to build new relationships and adapt to changing markets, rather than relying solely on existing contacts. 

Besides, the more senior salespeople you talk to, many of their contacts have changed companies, even moved to different verticals, or in some cases they’ve retired.  Gone are the days when people work for the same company for decades.

The Evolving Role of the Salesperson

Modern sales require more than just connections; it demands adaptability, strategic thinking, and the instinct to develop a deep understanding of the client’s needs early in the sales cycle.

Today, the Internet has made the customer a lot more aware of what’s out there; when a salesperson makes their initial discovery call, odds are that the customer has already done extensive research on what they’re looking for and is ¾ of the way to making a decision.  In this environment, potential customers are looking at a salesperson to be their trusted advisor, helping to guide them through the complex decisions involved in acquiring new technology.  (As a side note, as we all know by now, this also means that the sales guy who “shows up and throws up” is dead).

Experience Means Everything

For tech startups, experienced salespeople can generate the greatest value. It doesn’t matter so much what the technology is.  Most of them have been there before and know which mistakes NOT to make.  Here is a brief sampling:

-Having an unclear value prop.  Make sure your story is compelling.  When customers first talk to you, they don’t care about your product.  They only care about whether or not you can help them;

-A poorly designed sales process.  A good sales process should generate progress and be a journey with clear milestones and requirements, not just a bunch of activity.

-Undercharging. Yes, the early customers get the best deals.  But getting customers out of a low paying cycle takes forever and in some cases will never happen.

And one of my favorites:

-Chasing smaller customers.  A mentor of mine once said “small companies can’t help small companies”.  He was right.  They’ll sap your resources with little return.

At BD Methods we bring 100 years of combined start up experience in sales and channel development.  Let’s talk and see if we can help you.