Making Your First Biz Dev Hire
Let's face it—clients are dragging their feet when it comes to signing off on proposals. Once they finally do, getting the ball rolling feels like an eternity. Your resources are being stretched in directions you never thought possible. Desperate times call for strategic measures (that’s a saying, right?). Enter the "Rainmaker"—a business developer who can not only line up prospects but also seal the deal. There's a lot to unpack here, so let's dive into the ins and outs of making your first biz dev hire.
Do You Need a Full Stack Biz Dev Person?
Before writing the job description, it’s important to nail down exactly what you're looking for. You see, most people use the term "Biz Dev" interchangeably with "Sales." Instead, let’s think of it as a trinity: marketing (one to many), sales (one-on-one conversations), and partnerships (relationship-building with other firms). Knowing the right blend for your agency helps you set actionable goals and identify the right talent.
Mistakes to Watch Out For
Unfortunately, I’ve seen far too many hiring mishaps with that first biz dev person. Often, the fault isn't on the new hire; they're set up to fail right out of the gate. Here's how you might sidestep these common mistakes:
Metrics: Set clear metrics to measure your progress. Whether it’s monitoring conversations with Marketing Qualified Leads (MQLS) or tracking the number of proposals sent out to Sales Qualified Leads (SQLs), choose the metrics that matter to you. For instance, you may want to keep an eye on website traffic and engagement to gauge the effectiveness of your content marketing efforts. Whatever it is, clear metrics keep everyone on the same page.
Timelines: Know when to expect new business. If you usually acquire 3 or 4 new clients a year, expecting your biz dev hire to double those numbers is wishful thinking – and an operations nightmare waiting to happen.
Marketing Spend: Diversify your marketing efforts. Don’t put all your eggs in the biz dev basket. As you know from experience, it’s not a wise strategy to rely on one person to bring all the business to your agency.
Commissions: Commission-based pay can be a double-edged sword. Sure, your new hire might reel in big clients, but these might not align with your long-term goals. Here's what I mean: Imagine your salesperson is working solely on commission. They go after big, lucrative deals—great for short-term revenue, but what if these deals don't fit your agency's expertise? I've seen this scenario play out multiple times. Biz dev people bring in all sorts of business—from influencer partnerships for experiential firms to website projects for content agencies. Initially, it feels like hitting the jackpot; your revenue soars. However, you now have to deliver on projects that aren't aligned with your expertise. Ultimately, this becomes a short-term revenue play, leaving you with case studies that don't help you target your ideal clients.
Equity: Many folks consider offering equity in hopes of reducing the salary they would have to pay. Before I make this section too long, let me say this -- treat equity offerings carefully. Offer it only to those who are willing to make a real investment in your business.
Compensating Your First Biz Dev Hire
Here’s a strategy for thinking about your first biz dev hire:
Let’s talk salary: Let's say you're looking to hire a full stack biz dev person. And we'll assume the going rate is about $120K – gulp, I know. But here’s a workaround. Aim for a base salary that hits at least 70% of that expectation, so roughly $84K. This way, you're staying competitive without blowing your budget. (This advice assumes you can afford the $84K hit to your payroll.)
Provide a bonus structure: Next, we need to craft a bonus structure that bridges the financial gap for your new hire. I’d recommend steering clear of commissions, which often put the emphasis on quantity over quality. Think of the bonus structure as your new hire's roadmap. It helps them zero in on the kind of clients that fit squarely in your agency's sweet spot. When those high-quality projects roll in, that's when the bonus kicks into gear.
Think of this as a strategic financial package that aligns everyone’s goals. It’s a win-win.
Key Takeaways
If you're feeling squeezed by clients who are slow to commit, a biz dev hire could be the solution you’ve been seeking. However, make sure to take a measured approach. Zero in on the specific skills and roles you need, whether it’s in marketing, sales, or partnerships. A strategic hiring plan with clearly defined KPIs, realistic timelines, and an affordable compensation package can help you avoid the pitfalls that have tripped up many agencies before you.
Ultimately, your focus should be on long-term, sustainable growth and landing clients who align with your core expertise. After all, you're not just trying to meet today's goals; you're building a profitable business for the long-term.