The B2B Revenue Executive Experience
The B2B Revenue Executive Experience

Episode · 3 years ago

Jacob Baadsgaard on Results-Based Relationships

ABOUT THIS EPISODE

Founders and CEOs often expect immediate results from new sales teams and employees. But that isn't always realistic, or sustainable. To find out why, we sat down with Jacob Baadsgaard, CEO of Disruptive Advertising, a team-enabled agency that uses analytics and data to help clients grow their businesses, leveraging platforms like Google and Facebook. 

We're listening to the BTB revenueexecutive experience, a podcast, dedicated ele executives, train theirsales and marketing teams to optimize growth, whether you're looking fortechniques and strategies wore tools and resources, youve come to the rightplace. Let's accelerate your growth in tree to one: Welcome Er, you wane tothe B to be revenue executive experience on your host Chad Sanderson.Today we have with this Jacob Badsgard cgeo of disruptive advertising andwe're focusing on results based relationships, how the impact sales,marketing and growing Your Business Jacob. Thank you for taking the timeand welcome to the show hey thanks for having weach Chad. So before we jump in,we typically asking off the wall question just to give our audience alittle bit more insight into you. So, as you look back over your career, wasthere a pivotal moment, something that happened or lessons that you learnedthat kind of change its trajectory or your thinking on your career and whatyou want to do accomplish and if so, what was it and how did impact you yeah? You Bet I had an interestingexperience. Early on a my career after school was working for a company calledOmnature, a as a technical implementation consultant, and I feltlike a like a Frad like I didn't know what Iwas doing. I tathe individual. That was training meat the time. It was her first opportunity to mentor and train someone,and I don't think she necessarily knew how to do that and I felt kind of inbetween a rock and a hard place in that I wasn't getting it and I felt dumb andtoo scared to ask her to explain because usually the response was you didn't getthat or how can you don't remember that, and so I was just feeling like shoot. Idon't know what I'm doing and the person that's supposed to be helping me. I'm. You know a little scared of an Ifeel like I'm getting beat up every time. I do this, and so I'm there SittI'm there thinking God that I did. I make the wrong decision and I have noconfidence. I just think shoot. What did I get myself into here and theexperience that really made a big difference for me was anindividual who is not on my team, not my manager who I had become acquaintedwith. While I was there one day he walked by and apparently my face musthave shown how I was feeling on the inside and he stopped by and he's like, Hey Jacobhow's it going man, and I said good because that's what we all say and hecalled my bullshit and said no you're not tell me how you're really doing,and so we got into it kind of explained why I was feeling you know not up to the task lackingconfidence and not knowing what I needed to move forward and he proceeded to spend a couple hourswith me that day and for the next thirty to sixty days spent one to twohours a day with me and just really helped answer. Myquestions help make sure that I understood things held me accountableto making sure that I was pushing myself and man after getting his support and feeling likeman. I don't know if I have what it takes to be successful, getting thatlevel of individual support when it wasn't even required of them to do thattotally changed my life over the next eight to ten monthsbecame one of the top performers and the organization and is what ultimately,what led me to starting disruptive advertising with the skill set that Istart developed there, and so that was something that absolutely changed. Mytrajectory my personal confidence and my perspective on what I want to do inmy career, and that is, I want to be that guy. I want to be that guy, that'swilling to step in and help t when when it's needed, even if there isn'tsomething financially in it for me excellent, so that's that kind offueled the whole desire to create disruptive advertising. It sounds likeso can you give our audience little bit...

...of context around that company and whatled you to start it yeah. So disruptive advertising were atech enabled agency and we use analytics and data to help our clientsgrow their businesses, leveraging platforms like Google and facebook andthat's what we do and our mission statement is. We improve lives throughresults, based relationships, and just like that, experience that I just shared with you.That's a relationship. That's delivered results for four years, I'm still veryclose friends with that individual and that's what we tried to instil and bring to the table not onlywith clients and, of course, that that isthat top priority for us. But we also do that with each employee that worksat distruptive advertising as well, then so you, you know, the successstory of disruptive is well known for anybody who takes the time to look. I'mcurious, though he multimillion dollar business, probably have sales team. Nowa all companies start out with founder base selling. How did you make thetransition from being the person that had to do it all to having a true salesteam? Well, I'll tell you what that was oneof the hardest things for me to figure out as it is for most businesses andthere's no way we're at where we are today without breaking through that andI'll tell you what I did wrong and then I'll tell you what work and and thenhopefully, there's something for all of us to learn. There is at first indforemost, I went and hired some more experienced, bigger guns that were moreexpensive that had a lot of calls, experience and kind of just tried tohand it off to them, and what happened was they didn'tunderstand? The business H had good sell skills, but because they came at ahigh cost, the expectations for them to deliver what we needed as anorganization. There wasn't a huge leash, right or or the amount of time that wehad to get there, and so, after a few months of saying well, this anything that you are selling is comingover with really bad expectations and even then we're still not sellingenough to justify what we're paying you I'ter a couple of those experiences. Ijust thought shoot: What am I going to do? How am I going to get past found orbas selling, or is this going to become a lifestyle, business right and what's interesting? Is there was thispersistent kid that kept Viking me for a sells job? He was still in school and and just kept fugging me for a job,because he had a friend that worked there, that just loved working atdisruptive advertising, and so finally, I'm like man. If he is this persistentwith me I'll, probably be pretty persistent on the cell side, I'm himand another individual brought them both over very low costindividuals- and, I said, hey. I need to get to the point where I don't haveto sell everything, and I want to take a different approach here. I'm going tosell everything for you and I'm still going to pay you a commission on it,and I need for you the first three months to set me up with someappointments. Go Hustle make some things happen. We have some goodendboun leads coming in as well and you're just going to observe, watchwhat I do. How I do it and you're going to make sure that we stay on top of allof it? Well Long Story Short taking that approach and just really givingthem that time and experience to just work with me see how I do it so thatthey're not coming up with their own version per se, actually ended up paying off the bigtime dividends for us, because I got to the point where it took a while andthat's and that's the the part of the answer that I didn't like is yeah. Theywere starting to contribute and close their own deals after a few months, but I still paid them pretty well paidthem commissions on sales that I closed for them, and just really let themobserve and listen to the way that I was doing it and after it took about ayear before they were very solid, andependent and now had kind of took the way that I wasdoing it and kind of molded that into their own thing. But with a with asolid and consistent foundation. After...

...eighteen months, they were doingfantastic. The company was growing and now we were hiring people that theycould train an entor and, and now we've got a team of over ten people on ourselves, team nowand that are all doing fantastic and closing more revenue than you know. Mytop sells guys close more now than I ever did on my on my own, each that's what you want to see,though yeah. That's exactly what I want and I still like to pretend like I'm,the tbest sells guy in the organization, but I don't know if I am anymore well, I mean, and when you make thattransition, I mean first off Cudos to you right, because I've seen a lot offounders who don't crack that nut right. First, they don't want to give upcontrol an Individualis, not scalable. We all know that right and so beingable to have that comfort level and that insight and crack that nut is. Youknow, Cudos to you and an the organization. I'm curious, though, asyou go from you know, you took eighteen months say to traine those two peopleto give them the the foundation. How do you ensure that, as you continue togrow, that foundation is scalable? Is it the one on one mentoring? Is eachone given you know the the longer leash of say, twelve eighteen monthsshadowing somebody? How do you? How do you guys handle that well in that process actually did havea sells coach, as I was going through that process and what what I and a lotof founders have is what we call is being unconsciously competent right,like we just kind of know, the right things to say and do and that's whywe're in business, to begin with, with the product of service that we'rebringing to the table and as we went through this process andsaw actuallymost of it was very repeatable and that we could go from being unconsciousabout it to conscious and intentional about it to where we actually start tobuild the collateral, the process, the systems leveraging the crm doing thesetypes of things to actually make it a repeatable scallable approach is kindof what we did during that and continue to do even now, but someone that comesand now gets up to speed exponentially faster than than these initial two people so trialin Arr and figured out what worked? What did and make sure you kept thegood stuff and got rid of the stuff that wasn't working, O draging themdown. Yep, and so when you one of the things that we talked about, are kindof exchanged emails on it was was this investing in your employees and itsounds like you know. Eighteen months is a long in a BTOB enterprise base that I comefrom. It sounds like a really long time: Thi's, probably sales reps going wow. Iwas you know when I'd started at job ABORC they'd, given me that type ofhelp the desire to invest in the employees.Obviously it comes from that that story you told, but can you give us someexamples of how else you're in investing and enabling your employeesand what kind of results you've seen from that yeah? You Bet the. I think it's also important to knowthat they were contributing in a meaningful way within about six toeight months, okay, but they, but they weren't performing at a top levelindependently until about eighteen months. So it's not like. I wanteighteen months without them, selling any shit a so that were clear on that and then,as far as this is actually one of the reasons why I started my own business.As I felt like, the the I would get compensated at level X andif I worked to three four five times as hard and produced two three four fivetimes as much, I wasn't getting compensated that way, and so I foundmyself feeling frustrated that you know I found myself not performing at mypeak level because it didn't really benefit me to do that.All the time- and I didn't like you know when I was being honest withmyself- I didn't like that. I was kind of stepping down a little bit and notpushing myself to do my best and because I wasn't in the cells role andso no matter how many clients I serviced or the workthat I did or the great things that I accomplished that he did have in hemeaningful impact to revenue. I wasn't seeing that come back to me at the radethat felt right that felt fair to me,...

...and so one of the things that I've donevery differently in my organization is the cells teams always have veryaggressive. Hey you want to make more money so more right and you've got avery variable performance based commission compensation model where youhave some more control, some of the the risk that comes with that, but a lot ofthe upside that comes with that as well. Okay, and so I said, you know, that'sgreat, why don't we do this for all roles in the company? And so that's what I've done is for for thepositions that I've created in the company IAVE always taken the time toback into their financial contribution to the organization and creatingcompensation plans that don't penalize top performers, because if I'm a topperformer and just because I can get it done twice as fast as you, becauseyou're still only a year into this and I'm two years into this. Does that mean I need to do twice theamount of work for an extra tengrand a year in my salary right dand? So I'm just tried to create thatmentality of don't penalize top performers. Take the time to understandthe financial impact to the business and back into that and say hey if youcan perform- and this is even for some non, you know theyre kind of severalseveral levels removed from revenue, but I can say, as a percentage of totalrevenue, that you would that you are as cost in the company if we can grow thecomput me by twenty percent without needing to hire someone else becauseyou're just way more efficient at it. We can flow at least a lot of thatthrough to you right, Seeif, not all of it, and so that'skind of the mentality that we've taken is the only ceiling that is in place isyour own ceiling and the more times you can break through that our compensationplans allow you to almost immediately recognize the benefit of that, and sothat's one of the things that we've done. toreally invest in our talent here at disruptive. is bysending it up that way, and I think that's when we do. Our internal surveyswere about a hundred people. Now, in the organization, that's very regularlyone of the most common things mentioned about one of their favorite thingsabout the company. This is the investment that you guys put into themyeas, and so it's interesting right, theire organizations complansespecially for sales people complains, are always a sensitive subject. Whenyou back into financial contributions, are you doing it outside of the salesgroup is just kind of standard across the organization, or is it somethingyou've really focused on making sure you're not put in the ceiling acrossjust the sales team across the entire organization and so for all roles? We want to havethat type of compensation in place and make sure that it's financiallyjustified. I mean, especially in the btob world hat the two numbers. Thatmatter are the lifetime value of the customers that we're working with andthen the the cost that it takes for us to acquire and then service and fulfilon those customers, and so yeah we've got a back into it, but everyorganization touches that somewhere right right, and so that's that's whatit's based on excellent. So when we were when we were talking, we were theconcept of you know we have a lot of companies out there and I'm sure you'veseen it will they'll, invest in hiring people and get to a certain size. Imean, I think you guys are in a sweet spot right now and hopefull cancontinue to scale it with the authenticity and approach that you'vegot. But if you get to some of those organizations that are you know hundredmillion two hundred million, I have a tendency to see a lot of them say: Hey.You know what I'm going to invest in growing my team, so I'll hire a bunchof people, but I won't necessarily also spend the money to enable them. So I'mcurious, if you have any advice, what you've learned kind of as you've scaledto this point, those organizations that have gotten to that point where theythink the Answeris just put more feet on the street more bodies in there arther lessons or advice or perspectives. You can provide that might jog thememories of those that are insay large organizations that still kind of Paikthemselves into a corner. At times you know: That's it's interesting, even going from anindividual consultant to an...

...organization about a hundred people.Now we've absolutely experienced that, and so it exists that at the largerscale as well- and it probably a larger challenge there. But those are thethings that we've experienced, the the hangouts that you know, because we'rejust a few friends working together and you know, were friends outside of work as well,and spending a lot of that time. Together things change and maintaining that culture that isimportant as the company grows and and staying true to our mission. It's beena challenge and it's not one that we've been immune to either in our growth asa company, because keep in mind were only four and a half years old and inthat time period the growth that we've had has been quite a bit for us tohandle. So one of the things that I've noticedthat makes a big difference is enabling and empowering the leaders in theorganization to say because they would come back to me they're, like Ah Jacob.I feel like we're losing some of this. You know what it used to be like,because I used to spend so much more time with you wed hang out. We do thosetypes of things and and then for me, realizing hey, that's now what I needyou to do. It's your team right that doesn't need to change it just follo. Iguess it does change, but that's that's the level that it needs to happen nowand so some things that that we do is very regularly life events that happenat disruptive advertising. We had a new baby, we got married, we bought ourfirst home. We actually have a budget set aside. That's not that's not formalright, it's not anything that anyone's expecting, but that we like to makesignificant contributions for people in those times and critical moments oftheir lives, and so I had to realize. I need to empower my leaders to identifythose opportunities and so that they have a budget that they can draw fromto antribute to the people on their team that way right going out and Havean launch or hangingout after work, but there needs to be a budget and encouraged to have those types of activities, sowe've kind of taken what was really our roots and how I ran the business with asmall team to now saying: Hey each individual team in the company. You nowhave the resources and are encouraged to do the same thing. So it sounds to me so I maybe too muchinformation for the audience or for you, but I've done my fair shareback in theday of working for founders and I've always seen that struggle that Idon't know if it's an internal, if it's fear, if it's I don't want to, let goof it. You sound this. You sound very well adjusted for for a founder. I don't mean that thecome across the way it's probably coming across. It's is meant to be acompliment, but what you're talking about are thet. It sounds like theideal right, but founders have a tendency to to hold on to too much toolong, and so I don't know if you're familiar with less Trackman, he wrote abook called, don't eff, it up he's kind of he's kind of known as what they callhim. The second, the best second CEO founders, have ever hired or somethinglike that. But one of the things he talks about is that that that fight tolet go. How did what was it about you and your approach that it sounds to meunless you just really have got me kind of snowed sounds like you just kind ofcoand, naturally ta into invest. In I mean there had to be some sleeplessnights right. Am I wrong about that? Well, and I think, there's still morethat I'm holding on to than than maybe Cam through N that Cono lets? U, let'sbe real here, Toda, because there's something that is satisfying aboutbeing the guy or girl that tathat makes that meaningfulcontribution to someone in the critical point in their life and to get thatappreciation and all the good vibes that come back from that film like gogood person, and that is something that I have wanted to hold on to. But I'verealized that I just simply can't. I can't keep track of o everything that'sgoing on in everybody's lives and if I didn't empower them that that it justwasn't going to happen and it was going...

...to create issues, and so I wish I could you know at least that'swhat I would have wanted to do. But I realized I couldn't, and you know wehave had to make that transition excellent. So all right, so f, thespace that disruptive is in. You guys are, you know, Ta, you said Techenabled. So I'm curious there's a lot of change, that's going on in the spaceand technology. You know some days at everybody's talking about Ai some days.It's something else, I'm curious from your perspective and with whatdisruptit does what you see on the technology landscape that you're themost excited about, not only maybe from a business standpoint, but also thatability to enable that giving back and maintaining that culture inside ofdisruptive yeah? Well, there's there's a couple of things that I would point out here inour industry which we're in the digital marketing agency right, and we manageroughly about a hundred million in annual budgets for a clients in whatthey're spending on Google and facebook to grow and advertise for theirbusiness. And what we found is that our softwareis actually identified. Seventysix percent of those budgets are completely wasted and not driving value,and so some of the technology that we've been investing in our and is howto reallocate and redistribute digital marketing budgets so that, instead ofwasting that seventy six percent, it's actually growing and scaling thebusiness and reallocated in an area that's actually producing. And so thetechnologies that were investing in developing ourselves and that we'reseeing in the industries are really those that are taking seriouslyconnecting the dots. You know you think in a btob world, where people have anine, you know three six, nine eighteen month cell cycle and being able to tieback the marketing efforts that drove the actual revenue that contributed.Those are the areas where I think people need to be focused and here's the thing. A lot of the machinelearning ai things that are thrown out. There are often optimizing without thatlevel of insight and they're optimizing on hey, let's just drive in more leavsat a lower cost. Well, what of their crappy leads man and the machine learning isn't workingnow the cells teams pissed off because I'm having to go through e times moreleads to find a good one. You know, and so the technology that I'm the mostinterested in is looking at those and saying: Let's actually tie this throughthe revenue contribution, Margein profit whatever for the business andthen the technology that I've found. It's actually not that new, but it'simproving across all the platforms is understanding the power behindincreasing lifetime value of a customer, because the most the person that's mostlikely to buy for Mo is the person that's already bought from you in thepast and taking those lists of customers that have already bought fromless uploading those into platforms like Google and facebook and otherswhere we can actually go and get them to buy more or cross, sell them intosomething different or get more users or whatever. That is, and that's wherewe're seeing a lot of people miss the mark. Right now is net. New customersare so expensive and everyone wants to find a silver bold. That makes it youknow it super easy cost effective to just get. You know tons of new net newcustomers when the reality is yeah. You can do that and you need to beincreasing the lifetime values side of that equation as well. So those are thethings that I'm the most interested in right now. Attributions always been achallenge so crack, and that would be you know phenomenal, but I got tobelieve if you can did deliver that type of attribution yours. It wouldhelp bridge that chasm between sales and marketing right because an IT'lfight, it's a fine and that's. The thing is: When you have that level ofinformation and sophistication it's no longer marketing versus cells, it'smark. It's a marketing and sales team that are working together for the samethings, because that's that's! What I see is the marketing always says: Heywe're winning we delivered the leads you needed and Sol said well yeah, butthat's not what we really wanted,...

...because the lead sucked when marketing and sells are both heldaccountable to the same thing, which is revenue contribution to the company.That's how you overcome that and it's challenging, but those breakthroughsand the solutions exist and need to be in place if you want to be successfulwith your business excellent. So, let's Change Direction here, a little bit. Weask all of our guess kind of two standard questions and of eachinterview. The first is simply as a founder and CEO of a hundred percentcompany that makes you a in sales pariments a target or prospect forpeople tha want to get your attention. I'm curious. If somebody's trying toget your attention and build crediblly, somehin th, you don't know, what's themost effective way to capture your attention and start a conversation, ifsomebody thinks they have a solution that might be of value. Well, I'll tell you what I get hit upwith these a little bit more often but the cold call. I cannot remember thelast time that I've answered a phone call of a number. I didn't recognize emails. I already get bombarded with somany that I'm rarely reading those but I'll tell you what I get hit upoccasionally with the text message with with a concise message about something,and I read it, and I've responded to some of those interesting you're, thefirst person who's mentioned the Tacx. So let's let I got to dive into that alittle bit, so the some people would say that texting. Somebody is a littlebit more of an intimate level of connection that needs to be earned, butit sounds like if they're providing value or capturing your attentionyou're open to getting not random but targeted. Let's say targeted textmessages yeah. You know what- and I agree withwhat you said and at the same time I read everysingle text that comes across my phone n Tuso. You know there is definitelygoing to be a balance there and you know part of me when it's not somethingI'm interested, I'm definitely more frustrated that I'm getting texted bysomeone. So it needs to be done right, but I'veseen to be very effective with myself and that something that we've beentesting out for my own business and with some of our claents as well thatwe're seeing some good success with Andso. Just any pointers you could givesomebody if they before they go crazy and start randomly texting people. Anymany pointers or lessons learned. You could share yeah. There are laws aboutwhat you can and can't do. So I would point be with all the loi woulddefinitely be cautious with that, and there are can be stiff penalties inthose types of situations, but at the end of the day, when it's when it's youknow kind of like the ABM or the account base marketing solution. Wherereally is a single? You know a very small group of people that you're goingafter, I think that's when it can be very effective, and you know, even if it's just a simpletext, that it's like hey. I just sent you this or a simple video or those types ofthings that you can send over get. You know there are great ways to do that,but you know make sure you're being complaant. It works ruly well, whenyou're going for a larger cell on kind of that count base marketing marketingstrategy, but yeah. Those are a couple f things that I threw out thereexcellent all right. So last question: We call it our acceleration insight.There's one thing: You could tell sales marketing professional services, peopleone piece of advice that you would give to them that if they listened, which isalways the challenge with if they listen and embrace tet, that youbelieve would help them hit their targets. What would it be? And why well I'll, tell you the one, that's topof mine for me right now, and that is there is such a such a thing as badrevenue and wasting one time on chasing down the deal that isn't theright fit for the for the software for the service and just pushing thatrevenue through it never pays off in the long run, because it pulls timeaway from from selling the clients and customers that you really should befocused on, and I see my own team, I...

...see so many other cells teams get stuckin that, where they're so concerned about hitting the number they'll reallys as long as someone's willing to say yes, they'll push that cell through,rather than moving on coming up with a system that is good at identifying,which ones are good in which ones are not. That are ultimately going to drivethe value that the business needs and let's focus and work on those ones andstop wasting our time on those that are not the right fit, because that createsmore problems than it solves. By hitting a quotea number and here's the thing a lot of people will say. Well, if Idon't do that, I won't hit my numbers and I actually don't agree with that.If you stop wasting your time on the cells that you really shouldn't bepushing through anyway, you'll hit your numbers and you'll hit him in a moremeaningful way. That makes a bigger contribution to the company and willgive you opportunities to grow faster without a doubt so perfect Jacob. If alistners interested in talking more about the topics we touched on today,what's the best way to get in contact with you, yeah companies work withdisruptive advertising to increase cells volume, and we do that by drivingleads or ECOMMERCE cells. TOG Leveraging Google Edwards and facebookads is primarily what we do and so we've actually developed a tool forthose oof you that are already exploring or spending money in thoseavenues which most companies are, we've developed an audit tool where we areactually glad to do that for you for free, go to distruptive, advertisingcom audit and well run and audit on your adwardsYor facebook campaigns for free, give you a beautiful PDF. That shows youexactly what I is and is not working in your account that you can either go fixand give to your marketing team so that you're getting better quality leads oryou can engage us and that's something that we can help with as well. So Ican't think enough for being on the show. Today it's been great having you,I really appreciate the time. Jat thanks for Havpng Meg, all right,everyone that does it for this episode. Please check us out of BTB revezeccomsuscibe on Itune er with friends, families coworkers. You know the drill.If you like what you are hearing, please leave his review on itombs anduntil next time we have value. Prime solutions with you all nothing, but thegreatest success you've been listening to the BTBrevenue executive experience to ensure that you never miss an episodesubscribe to the show, an itunes or your favorite podcast player. Thank youso much for listening until next time.

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