Ross Perot: The Greatest IBM Salesman Ever?

Good Morning! Last month Warren Buffett announced his $130 billion fortune will go into a charitable trust run by his three children after he passes, which will make them the ultimate decision makers in deciding where the funds will go. So, we’d like to extend an open invite to the Buffett kids: If you’re in the market for some enterprise B2B software, we'd love to get 30 minutes on your calendar. How’s next week? 😉

In today’s Follow Up:

• Sales lessons from Ross Perot 👀 

• Sales tip of the day 🧠 

• Do sales spiffs actually work? 🗞️ 

• Sales jobs, Linkedin & a meme 😂 

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Ross Perot: From IBM Sales Rep to Software Billionaire.

Picture this… It's the late 1950s, and a young Navy veteran named Ross Perot lands a job at IBM selling computers.

Ross was always an overachiever and quickly became the top sales rep at the company.

But after crushing his quota quarter after quarter, upper management wanted to cut his territory. So rather than taking a hit on his territory size, Ross negotiated a lower commission rate and kept his territory.

But Ross still wasn't satisfied. He noticed his customers didn't just want computers; they wanted a service that provided the hardware, software, and programming, all at a reasonable price. He pitched all of the IBM execs on his idea, but they said it wasn’t the business IBM was in.

So in 1962, after just 5 years at IBM, and with a $1,000 loan from his wife, Ross founded Electronic Data Systems (EDS). Ross hit the road, pitching his new service to 76 different companies until the 77th finally said yes. That's right, 76 "no's" before his first "yes."

Fast forward 6 years, and EDS was raking in $1.5 million in profits with 323 employees. And by the early '80s, General Motors bought EDS for a cool $2.5 billion.

But Perot wasn't done. He went on to found Perot Systems, sold it to Dell for billions, and even ran for president.

So, we sent the intern down the rabbit hole of Ross Perot to figure out what made him such a great sales rep, and what we can learn from him.

Here’s what he found. 👇️ 

Product Matters. A Lot. 🖥️

Ross once said: "A lot has been said and written about my sales career. It is important to understand I was selling computers at a time when companies were buying their first computers. It was like selling umbrellas when it is raining.”

The lesson? The product you're selling can make or break your career.

Try to choose an industry that has tailwinds behind it. And always be on the lookout for that "umbrella in the rain" opportunity.

Speed Matters ⚡

Perot was all about speed. When GM bought his company, he wasn’t happy with how big companies operate.

He famously said, “I come from an environment where, if you see a snake, you kill it. At GM, if you see a snake, the first thing you do is go hire a consultant on snakes. Then you get a committee on snakes, and then you discuss it for a couple of years. The most likely course of action is -- nothing. You figure, the snake hasn't bitten anybody yet, so you just let him crawl around on the factory floor. We need to build an environment where the first guy who sees the snake kills it.”

In sales, speed is a secret weapon.

Studies found that responding to an inbound lead within 5 minutes of submission increases your odds of connecting with them by 100X.

Move fast. Make decisions quickly. Follow up promptly.

Push Through the Suck 💪

We’ve all heard that sales is about perseverance…

But Ross demonstrated what that really means.

Remember those 76 rejections before Ross's first "yes" with EDS? That's perseverance.

Studies found that 92% of salespeople give up after four “no's,” but 80% of prospects say “no” four times before they say “yes.”

Hire Winners, Not Just Experience 🏆

When Perot was hiring a sales team, he didn't just look for industry experience (although he did say it’s important for some roles).

Ross looked for people with a track record of success since childhood.

People who have accomplished things and overcome adversity.

Why? Because sales isn't just about product knowledge. It's about drive, determination, and the ability to overcome obstacles.

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Sales Around The Web 🗞️ 

📊 Outreach breaks down what revenue intelligence actually means, and why sales teams use it.

🪦 A Philidelphia headstone salesman was charged with fraud after he sold $1.5M worth of custom headstones and never planned to deliver them.

💸 According to a recent poll by SaaStr, 70% of respondents don’t believe that sales spiffs work.

👀 Sales reps talk about telling their prospects when they’re about to miss quota.

Checking In On LinkedIn

No more t-shirts on sales calls?? 🤔 

Sales Meme of the Day