How to sell during a recession

Context: I started my sales career in July 2008, right before the Great Recession. While reps were being laid off left and right, I broke every sales record in 2009 and became the #1 seller out of thousands in company history. Here's what I did differently:

==

1. Psychology - Your buyers are nervous about keeping their jobs. They need to show their employers how valuable they are to the business. So in a counterintuitive way, people are open to buying more during a downturn than when economy is booming. Lean into that by adapting your pitch to highlight how companies / execs who are using your solution are doing better than the market average. It's all about survival of fittest now.

2. Tech is Cheaper Than People - Sad, but true. Position your solution as a way to save costs / replace lost labor productivity by automating work that a human might have to normally do. While companies will be cutting headcount, they still need to be productive. Highlight how your solution makes up for the labor shortage.

3. Revenue is the Golden Goose - Focus the ROI case of your product to revenue. This feels obvious, until you realize that 99% of cold emails I get don't explicitly and simply explain how buying this product = more money. It's all "shorten ramp time" or "save time" or "increase security" blah blah. Nobody cares during a recession. Cash is king. Lean into how you'll help prospects make more cash.

4. "Conservative" Language - There were a couple phrases I added to my sales track that landed really well in early 2009. The gist of which was: 
"While other companies have been hurting during this downturn, we've been breaking company records. It helps that our product helps you save money and be efficient, which nobody cares about during a boom, 'Growth at all costs!' mindset. But today, we can help you do more with less and deliver better than market results."

==

I'll try to post more of these later this weekend. But as sales leaders and reps come to terms with the new reality of our economic climate, the time to adopt and get first mover advantage is now. Sharpen your talk track. Change your tone. Reflect reality.

35 days ago, I told you we'd see layoffs in tech. The smart ones listened. Today, it's clear the cuts may come faster and deeper than even I thought. 

But we're in luck savages: we are responsible for generating revenue! That's the last function a company wants to cut, especially during a downturn.

Still that doesn't mean we won't get our asses canned if we don't put up results. I've been getting more and more DMs on LNKD from reps saying "I thought you were an idiot. Now I suddenly just got laid off." 

Hope the above helps you thrive, and I'm always rooting for you all. Always.

... yes, even the haters. ❤️ 
👑 Sales Strategy
57
poweredbycaffeine
WR Lieutenant
15
☕️
Management loves to reduce force and redistribute the quota across the survivors. Don’t think that being a top performer means you’re safe.
sahil
Notable Contributor
1
Deepak Chopra of Sales
That is fair. But many companies with strong balance sheets see times like these as opportunities too. Snatch up top talent, blow past competitors, etc.

Some of the biggest companies of past decade (Uber, AirBnB, WhatsApp, Venmo, Groupon, Instagram, Slack, Pinterest, Square) were founded and accelerated during 2008-2010.

In tough times, cream rises to top way faster. Fwiw: Webflow strikes me as a company that's gonna do that this time around.
TheNegotiator
Arsonist
-3
VP of Sales
It does mean you’re safe, and as safe as you can theoretically make yourself during a recession.

Someone who can sell when the economy is broken is invaluable. If you work for a ‘Lehman Bros’ during a recession, hitting 700% of quota won’t save you, but you’ll be invaluable, and highly attractive to your next employer.

The man who convinced me sales was the right career path for me, was in sales in 2007/2008 - he’s a family friend.  He was a full quarter ahead of his annual quota, when he got an apologetic and embarrassed call from his longtime boss.

Before his boss had time to finish beating around the bush and get to the point, he turned the tables and said:

 “I’ve been expecting this call, let me save you the hassle.  Here’s how I can help you out: drop my base to $45,000 ($130K pay cut for him) and double my commish on my deals. The company can keep the revenue I bring in, and I can keep my job.  If I’m not making the cut in 2 quarters, you can terminate me”

There was silence on the call. His boss said I have to get this approved by the board, and I’ll get back to you.

He got a call before the end of the afternoon, and it was a go. His boss didn’t even ask him, and got 60K approved for his base.  The man still works at the company and had one of his best income years in 2010, because he was still on the double-commish plan.  When he got his base back (I didn’t get the numbers) it was more than 2.5X what he was making in ‘08.

And that children, is why sales is for winners. To the victors go the spoils.
poweredbycaffeine
WR Lieutenant
7
☕️
No.
TheNegotiator
Arsonist
-3
VP of Sales
Right about Lewis and George, right about this, you’ll get used to it 😇
poweredbycaffeine
WR Lieutenant
6
☕️
You’re right about everything, though, right?

Save your story about 2008—it’s 2022. I’m not taking a cut because a company flew too close to the sun and is going to cut the fat earners and the bottom half, keeping the middle reps who must make up for both groups. When they don’t, they’re also fucked.
TheNegotiator
Arsonist
2
VP of Sales
You’re catching on.

Being serious? Yeah I usually am. I won’t say you’re wrong all the time, but it’s alarmingly frequent. I wouldn’t speak with conviction unless I was certain. 

No offence, but if I still work for someone else by then, I want a 500k base and I intend to get it before I’m 35- with all the accompanying commish potential, perks, etc that come with scaling from where I am now to that. Obviously I will invest and multiply my income, so those future gains are implied as well.

But I am waiting for, and (mentally at least) prepared for the day where a company tries to dispose of me like garbage, because they can’t keep my base on the books AND stay in business. At that point, I will pull a reversal the way my hero did. Not for the company, obviously, but for self-preservation. It won’t be easy, it won’t be fun, but I will endure and survive.  The real crime would be failing to prepare for that call, but it’ll come for all of us.

With due respect, if you’re under the impression that all companies don’t “fly too close to the sun” you may want to consider waking up. That’s the nature of corporate greed, humans push the boundaries and pay the price, repeatedly. It’s spoken about explicitly in Margin Call- which as it happens is set in 2008. Anyone, anywhere in the corporate structure pays the price along with the company itself, directly proportional to where you are in the hierarchy.

So, my story wasn’t for you. Don’t listen, I couldn’t care less lol, how does that impact me? It was in response to your comment, which was objectively inaccurate.  You don’t have to like, or heed what I think/say. What difference does it make? If I’m right, I’m right. If I’m wrong, I’m wrong. Your inability to recognize it could/will be your problem.  I’ll be ready for the call regardless.
poweredbycaffeine
WR Lieutenant
3
☕️
Do you think that call will come during one of your walks? Or will you be too busy thinking deviously about lethal plans to avoid being treated like a piece of garbage by your employer? Better keep one ear and one eye open, sensei.

Here’s the long and short of it: I don’t take a single word you say seriously. Your attitude and desire to be a full-blown sociopath tell me that you are a person who has insulated themselves with a persona of supreme intelligence and a “lone-wolf” mentality to avoid feeling the emotions that would otherwise cripple you. You write as if there is a greater plan for you and the rest of us are lower on the totem. Oh, and the way you talk about and treat females…come on man. You act like they’re evil and will suck the life force from you like some kind of vampires. Re-fucking-lax.

Stop taking yourself so seriously.
TheNegotiator
Arsonist
0
VP of Sales
If I spend 4 hours at a time walking, there’s a solid possibility that’s when it’ll come.

My goal is, and always has been to play in the biggest leagues with the best of the best. Idk if I’m good enough yet, but I like my chances and they improve as I do.  That desire by itself means there’s a greater plan for me. I planned it.  You can too.  Nothing I’ve said is applicable exclusively to me.

If I’m superior, it’s not because I think I’m better. It’s because I want to be, and you don’t want it badly enough. You don’t get to be naive, AND bitch if you’re employer treats you like garbage and you find yourself out in the cold. You have to pick one.  I keep both eyes and ears open.  You write as if you sleepwalk, all the time. I’m betting that you don’t, but it sure sounds like it.

Now ask me if I care whether you take me seriously. 
poweredbycaffeine
WR Lieutenant
1
☕️
I need not ask. I already know that you do…after all, you’re a sales leader.

You wouldn’t be good at what you do if you didn’t care what others think.
TheNegotiator
Arsonist
1
VP of Sales
You know, your insights in your last comment weren’t as terrible as usual. I actually thought you were paying attention.  Back to square one.  I couldn’t give less fucks if I wanted to. 

If you, or anyone else raised valid, interesting points, I’m receptive. There’s no point disregarding valuable information, regardless of the source.. but the entire premise of my argument is you’re wrong.  That’s 3 in row now.

And for the record, I’m an IC. I told the CEO that as the team expanded I’d provide executive guidance and help set an overall strategy, but I don’t want to be responsible or accountable for the success of others. I’m too selfish for that. I’ll never go back to management again.
thekid
Good Citizen
3
sdr
Ur cringe
TheNegotiator
Arsonist
0
VP of Sales
Take my upvote, and ask me if I give a fuck lol
poweredbycaffeine
WR Lieutenant
1
☕️
Don’t call yourself a VP if you’re a mere IC. VPs lead teams, and all you seem to lead is a miserable existence.

Please keep telling me how wrong I am. My career, and performance therein, would prove otherwise. At least I have the courage to develop others and produce multiples for companies at the same time. Enjoy chasing a half-million base and an early grave.
TheNegotiator
Arsonist
0
VP of Sales
Don’t tell me what to do, while you go fuck yourself
poweredbycaffeine
WR Lieutenant
0
☕️
Sure thing!
Pachacuti
Politicker
2
They call me Daddy, Sales Daddy
Its all good advice and I agree with most of it.
Most cold emails are crap and do not give me a reason to respond.
Coffeesforclosers
Notable Contributor
2
Director Sales and Market Development
Smart companies will Break out in the downturn. Keep crushing savages, protect ya neck! 
FormerStartupJobHopper
Tycoon
1
AE
Bro... unemployment in the United States is 3.6%. We are in one of the hottest economies in history. Your advice above seems sound but what is the fascination with the idea that B2B tech is in some unique bubble at this exact moment? If we are, what is different about now than 6 months ago? Or 3years ago? 
sahil
Notable Contributor
3
Deepak Chopra of Sales
The last time inflation was this high, it was 1981. Unless you've studied economic history, it's hard to know just how terrifying that is.
FormerStartupJobHopper
Tycoon
2
AE
Ok so inflation, fair enough. There was a recession and then a recovery and a 25 year boom. And that inflation was structural, ours is largely supply chain related. Idk, I’m no expert. But I’m not freaking out
DungeonsNDemos
Big Shot
1
Rolling 20's all day
Good thing my product does this in normal conditions.
sahil
Notable Contributor
0
Deepak Chopra of Sales
That's a good product to sell
MrMonte
Arsonist
1
Head of Sales
Great way to reframe it @sahil - I sell specifically to hospitals and use client outcomes data from March 2020 to March 2021 to adapt the pitch.
E_Money
Big Shot
1
💰
All depends on what you're selling. The market for fresh kidneys, for example, is very reliable. 
Broncosfan
Politicker
1
Account Manager
Sahil won’t even take a meeting regardless of how much I harass him on LI lol.
SADNESSLieutenant
Politicker
0
Officer of ♥️
Love this advice
Smilesndialz
Politicker
0
SDR
This is all good advice, @sahil! Thanks for sharing this with us.
Smilesndialz
Politicker
0
SDR
@sahil are there specific companies that you think will do well despite this recession?
sahil
Notable Contributor
0
Deepak Chopra of Sales
Yes. Those with strong PMF, strong cash balance sheet, and low burn.

High flying risky startups that spend faster than they earn are screwed.
TheQueenofDiamonds
Politicker
0
Account Executive
Nothing makes me help someone more than them calling me "an idiot". 
Great post, @sahil thanks for the warnings and tips- modifying my cadences to reflect this.  



sahil
Notable Contributor
1
Deepak Chopra of Sales
😂- I've been called a lot worse. The important thing to remember is: those that can, do. Those that can't ... complain about other people.
Nordicsaleshero
0
sAE
Love this post. Keep saving us <3 
NotCreativeEnough
Big Shot
0
Professional Day Ruiner
one of the main things I've learned is that you really need to frame your product as a must have, not a nice to have. If you get them to the point that they think they literally can not survive as a business without your product, they will buy it because they'll see it as their saving grace in the recession, not as another expense
SDRawrrr
0
Sales Development Rep
Almost a month into my first SDR role. Haven’t been able to book a meeting to save my life. Any advice on trainings? I don’t want to get let go. I seem to be one of the few that are failing
GDO
Politicker
0
BDM
Love this. Thanks 🙏

Especially the conservative language
jefe
Arsonist
0
🍁
Great advice here
antiASKHOLE
Tycoon
0
Bravado's Resident Asshole
I needed to revisit this and study it as things are looking rough.