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Being a managing partner isn’t just about having a leadership title — it means balancing ownership, strategy, and daily operations in a way that directly shapes the success of a business. And in partnerships and LLCs, where leadership structures differ from traditional corporate models, this role is even more critical.

While writing this blog post, I spoke with plenty of managing partners who never planned on becoming one — it just happened. Some started as lawyers, others as marketers or financial experts, but at some point, they found themselves making high-level decisions, driving business growth, and taking on more responsibility than ever before.

That unexpected shift into leadership is common, and many managing partners learn the role on the job. So, what does it actually take to succeed in this position? This guide breaks down their key responsibilities, career paths, and what it takes to lead successfully.

Table of Contents

• What is a managing partner in an LLC?
• Managing Partner vs. CEO
• Why is a managing partner important for a business?
• Managing Partner Role and Responsibilities
• How to Become a Managing Partner
• Managing Partner Agreement
• Managing Partner Compensation
• What It Really Means to Be a Managing Partner

What is a managing partner in an LLC?

A Limited Liability Company (LLC) is a business structure that separates personal assets from business liabilities. In other words, if an LLC is being sued or goes bankrupt, the owner’s personal assets are not at risk.

This makes it different from other business structures like a sole proprietorship — a business structure with one owner who is not legally distinct from his or her business (most freelancers fall into this category). It’s also different from a corporation (e.g., Microsoft, Dominos), which has a different management structure and taxation scheme.

Within an LLC, owners are called members, and management can be structured in two ways:

• Member-managed LLCs where the owners (members) actively run the business.
• Manager-managed LLCs where members appoint a manager (who may or may not be a member) to handle operations.

In some cases, a managing partner (or managing member) is a member who also takes on leadership responsibilities, overseeing operations and guiding strategy. Unlike corporations, which have CEOs and boards of directors, LLCs often rely on managing members or partners to balance ownership, leadership, and daily business operations.

Mark Donnolo, managing partner at business consultancy SalesGlobe, describes the role as a mix of leadership and hands-on strategy. “I think of a managing partner as a first among equals,” he says. “It’s the person that’s leading the charge strategically.”

While many LLCs have a single managing partner, others share leadership responsibilities. For example, Beth Sherman and Nathan Palmer, co-founders of digital marketing firm Signify Digital, both act as managing partners, splitting management duties equally.

Managing Partners in Partnerships

A partnership, like an LLC, is a business structure where ownership is shared among partners. While all partners have a stake in the company, a managing partner typically takes on leadership duties, such as:

• Overseeing daily operations.
• Managing finances and strategy.
• Representing the business in key decisions.

Some partners may be actively involved in operations, while others act as silent partners, providing capital but taking a less hands-on role.

Managing Partner vs. CEO

I used to think managing partners and CEOs were basically the same thing — they both lead companies, right? But after diving into this, I’ve discovered some key differences that really matter.

The BasicsManaging partners are actually owners of their business (usually LLCs or partnerships), while CEOs are appointed by boards of directors to oversee a corporation’s strategic direction. This changes everything about how they operate.

Power and Decision-MakingManaging partners have real skin in the game. They own part of the business and make decisions alongside other partners. They usually report to an executive committee but have a lot of freedom in day-to-day decisions. CEOs, on the other hand, might get some stock options, but they’re ultimately answering to the board about every major move they make.

Money and Job SecurityThe pay structure really shows the difference. Managing partners live and die by the company’s profits — their income is directly tied to how well the business does. CEOs typically get a salary plus performance incentives like bonuses and stock options, all decided by the board.

What’s really interesting is what happens if things go south. A CEO can get fired by the board if they’re not meeting performance goals, plain and simple. But removing a managing partner? That’s way more complicated because they’re an owner. You’re usually looking at complex buyouts or restructuring the whole partnership agreement.

A 2024 report from the National Association for the Self-Employed (NASE) found that 58% of LLCs in the U.S. operate as member-managed, meaning the owners — often including managing partners — are actively involved in daily operations. In contrast, corporate CEOs are typically hired rather than being owners themselves.

In some cases, a person may hold both titles — legally designated as a managing partner but operating as a CEO in daily business functions. Whether “managing partner” is purely a legal designation or an active leadership role depends on the company structure.

The right leadership structure depends on the company’s needs. LLCs and partnerships thrive on direct ownership involvement, while corporations often prefer a separation between ownership and executive leadership. Managing partners have more job security but take on more financial risk, while CEOs have defined salaries but can be replaced at any time.

Managing Partner vs. Owner

In my conversations with managing partners, I’ve learned that ownership alone doesn’t define leadership — it’s the level of responsibility that sets managing partners apart.

• Managing partners don’t just own part of the business — they run it. They oversee operations, hiring, strategic growth, and decision-making.
• Other owners may be passive investors who contribute capital but don’t participate in daily management.
• Some businesses have multiple owners in executive roles, but only a few take on the title of managing partner, leading the company’s direction.

This leadership structure can be a game-changer for scaling a business. Daniel Snow, managing partner at TRAFFIX, a logistics company that scaled from $71 million to over $1 billion, credits their three-managing-partner model as a critical factor in their success.

“One of the key factors behind TRAFFIX’s remarkable growth… was the strategic leadership structure of having three managing partners, each with unique and complementary skill sets. This approach created a well-rounded leadership team that filled in skill gaps, ensured diverse perspectives, and eliminated decision-making deadlocks.”

He also emphasized that great managing partners know their weaknesses and rely on others to fill the gaps. Instead of trying to do everything themselves, they focus on building a strong leadership team and investing in people.

According to the IRS’s Statistics of Income Bulletin Fall of 2024, with partnerships filing 4.5 million returns and representing over 28 million partners in the 2022 tax year, it’s clear that defining leadership roles within these structures is crucial for sustainable growth.

For many businesses, the difference between an owner and a managing partner isn’t just about title — it’s about who steps up to lead.

Managing Partner vs. Limited Partner

Before speaking with managing partners, I assumed all business partners had similar levels of involvement. However, I quickly learned that limited partnerships are structured to separate management control from financial investment.

Limited partnerships have two types of partners:

• General partners. Actively manage the business and assume liability for debts.
• Limited partners. Provide capital but don’t participate in daily operations and aren’t liable for business debts beyond their investment.

A managing partner is typically a general partner who takes on leadership responsibilities, such as setting strategy, overseeing daily operations, and making key financial decisions.

According to the IRS, limited partnerships represent only 9.9% of all partnerships, yet they account for over 36% of total pass-through income — showing how financially impactful they can be despite being a smaller portion of business structures.

For example, venture capital (VC) firms often follow this model. The general partners (GPs) manage the fund and make investment decisions, while limited partners (LPs) — such as pension funds or wealthy individuals — provide capital but have no direct control over day-to-day operations.

Want to understand how a general partner differs from a managing partner? Check out the next section for a full breakdown.

General Partner vs. Managing Partner

While the terms general partner and managing partner are sometimes used interchangeably, they have distinct roles depending on the business structure.

A General Partner:

• Is found in limited partnerships (LPs).
• Takes on full liability for the business’s debts and legal obligations.
• Actively manages the business but may not be the sole decision-maker.

A managing partner:

• Is common in LLCs and partnerships.
• Is always an owner in the business.
• Has strategic and operational leadership responsibilities.
• May also be a general partner in a limited partnership.

Key Distinction: A general partner is responsible for managing a partnership, but in some cases, partnerships designate a managing partner to lead strategic direction and decision-making. In LLCs, managing partners function similarly but often operate within a more flexible structure.

Why This Matters: If you’re structuring a business partnership, understanding the difference between a general partner and a managing partner can help you determine the right leadership setup for your company.

Why is a managing partner important for a business?

One theme that stood out in my conversations with managing partners is that this role goes beyond a title — it requires making high-stakes decisions that directly impact the business. Managing partners drive strategy, make tough decisions, and ensure the business runs smoothly while balancing long-term growth.

From my perspective, a strong managing partner creates stability, fosters innovation, and sets a company apart from competitors.

1. Steering the Ship

From what I’ve seen, managing partners are right in the thick of every major decision, making sure everyone is pulling in the same direction. Whether they’re figuring out how to grow the business, handling risky situations, or adapting to industry changes, they keep things moving forward.

Take Jennifer Compton’s story at Shumaker. As the first managing partner of a law firm that’s been around since 1925, she puts it perfectly:

“When I started my career, I never set out with firm management as my specific goal. I just wanted to be a great lawyer. But each step — associate to partner, and eventually to leadership — was built on trust, accountability, and the desire to contribute to the firm’s long-term success.”

What hits me about Compton’s journey is what it reveals about great managing partners — they’re not just running the business today. They’re building something that lasts, creating opportunities and developing future leaders along the way.

2. Improved Decision-Making and Growth Potential

With their deep understanding of the business, managing partners ensure that decisions aren’t just reactive but aligned with long-term success. Their ability to navigate complex challenges is especially crucial for businesses aiming to scale.

First Round Capital’s research supports this, revealing that teams with more than one founder outperformed solo founders by 163%, and solo founders’ seed valuations were 25% lower than teams with multiple founders. These findings highlight how shared decision-making — like having a managing partner alongside other leaders — contributes to stronger business performance and financial outcomes.

I’ve seen firsthand how managing partners dive deep into the money side of things. They’re not just glancing at spreadsheets. They’re making tough calls about where every dollar goes and how to keep the business profitable. From haggling over contract terms to figuring out how to boost revenue, they’re the ones making sure the numbers add up.

In my conversations with managing partners, they consistently emphasized one thing: If you want your company to grow and stay profitable, you need someone at the top who really understands the financial side of the business. I’ve watched companies struggle when they don’t have this kind of financial leadership, and thrive when they do.

3. Talent Development and Employee Retention

A managing partner’s leadership extends beyond financial and strategic decisions — they also shape company culture. Prioritizing employee growth and fostering a collaborative environment leads to better retention, productivity, and overall job satisfaction.

I think Richard Branson, CEO and founder of Virgin Group, put it best: “Clients do not come first. Employees come first. If you take care of your employees, they will take care of the clients.”

Strong leadership at the top creates a ripple effect throughout the organization, leading to a more engaged and high-performing team.

4. Adaptability in a Changing Business Landscape

Industries evolve, so managing partners must stay ahead of trends and embrace change. Those who are willing to pivot, innovate, and adapt tend to be the most successful in leadership roles.

McKinsey’s 2024 report on business agility found that companies with adaptable leadership structures are 1.5 times more likely to outperform competitors in rapidly changing markets. This aligns with what I’ve heard from managing partners who emphasize long-term strategy over chasing short-term trends.

Rafikuzzaman Khan, managing partner at Microters Germany, shared how he approaches this challenge:

“Since I have to make crucial decisions, I’m now focusing on creating long-term strategies where we can integrate these changes in a sustainable way.”

Khan’s insight reinforces an important lesson — managing partners who stay ahead of industry shifts and technology trends position their businesses for long-term success.

Managing Partner Role and Responsibilities

A managing partner isn’t just another executive; they’re an owner who’s got their own money and reputation on the line. Unlike a CEO who might just be hired to run things, they’re personally invested in making the business work.

Here’s what they actually do:

• Strategy & Vision. These folks handle the big-picture stuff while getting their hands dirty with day-to-day operations. When the market shifts or new opportunities come up, they’re the ones making the calls on where the company needs to go, because their own success depends on it.

• Problem Solving. They’re problem solvers, plain and simple. If something’s not working — maybe the operations are a mess, money’s tight, or growth has stalled — they’re in the thick of it. They can’t just pass it off to someone else because, ultimately, it’s their business at stake.
• Financial Oversight. Money matters fall squarely in their lap. They’re watching the budget, deciding where to invest, and making sure the company’s actually making money. It’s their own wallet on the line, so they tend to think twice about every major financial decision.
• Team Building. Good people make or break a business, and managing partners know it. They’re constantly thinking about who to bring on board, how to keep their best people around, and what kind of workplace they’re building. The culture starts with them.
• Relationship Management. When it comes to dealing with important clients or keeping everyone in the loop, that’s their job, too. They’re the ones schmoozing with clients, updating investors, and making sure their team knows what’s what.

How Managing Partners Divide Responsibilities

Managing partners don’t always oversee every function directly — they often delegate responsibilities based on their strengths, background, and business needs.

For example, Mark Donnolo, managing partner at SalesGlobe, takes a hands-on approach to business development, intellectual property creation, and content marketing. His focus stems from his background and expertise in these areas. Other managing partners may emphasize different priorities.

At Signify Digital, a U.K.-based marketing agency structured as a limited company (similar to an LLC in the U.S.), Beth Sherman and Nathan Palmer split responsibilities based on their strengths.

“Having two partners suits our business well,” says Sherman. “While we have the same passion and vision, we each bring a different skill set to the company.”

Sherman leads client management and business development, while Palmer focuses on work delivery and campaign strategy.

Using Tools to Manage Growth

Since managing partners are responsible for business growth and client relationships, having the right tools can make all the difference. Platforms like HubSpot’s Sales Hub help managing partners:

• Streamline sales operations.
• Track business performance.
• Nurture client relationships.

By leveraging automation and analytics, managing partners can spend less time on manual tasks and more time driving strategy.

I’ve learned that this flexibility is a key benefit of the managing partner structure. Partners can tailor their roles based on what best serves the company. Some managing partners take an active leadership role, while others act more as investors or strategic advisors. The key is ensuring that all core responsibilities are covered, whether through delegation or direct oversight.

[alt text] managing partners, HubSpot Sales screenshot showing Prospecting dashboard

Get started with Sales Hub today.

How to Become a Managing Partner

Through my conversations with managing partners, I’ve learned there’s no single path to this role. Some rise through the ranks in their firms, others transition from entrepreneurship, and some find leadership after unexpected career shifts. I think what stands out in each journey is a mix of expertise, adaptability, and a willingness to take on responsibility.

Here’s how four managing partners built their careers — and what aspiring leaders can learn from them.

1. Moving From Specialist to Leader

For many managing partners, the first step is mastering their field before stepping into leadership. Jennifer Compton, the first managing partner of Shumaker law firm, spent years specializing in employment law counseling and litigation before taking on firm-wide leadership.

She initially served as vice chair of Shumaker’s management committee and managed the firm’s Sarasota office before becoming the first person to hold the managing partner title.

Her journey highlights an important truth: Leadership opportunities often emerge for those who build deep expertise and earn the trust of their peers.

2. Scaling a Business as a Managing Partner

For some, the path to becoming a managing partner happens through growing a company strategically. Daniel Snow, managing partner at TRAFFIX, helped dramatically scale the business, but his journey began long before that.

Growing up in a family-owned logistics company, Snow was immersed in the business from an early age. After completing university, he launched his own company and later merged it back into TRAFFIX. This blend of entrepreneurship and operational experience positioned him for leadership.

“I learned early on to ask myself two key questions: ‘What can I do better?’ and ‘What can the company do better?’” Snow explained. “By acknowledging my limitations and investing in the growth of others, I helped foster an environment where the business could expand well beyond the initial vision of its founders.”

Looking at his story, I’ve realized that scaling isn’t just about watching revenue grow — you’ve got to have the right leaders steering the ship.

3. Reinventing Leadership After Setbacks

Not every managing partner starts with a clear path to leadership. Yusef-Andre Wiley, managing partner at Timelist Group, turned his life around after a period of incarceration, proving that leadership can emerge from unexpected places.

“Once I began taking courses related to self-help and business management, my lifestyle began to change,” Wiley said. “Empathy became my landing place, which enabled me to deal with people where they are at — not to harm, not to judge, and to believe in second chances.”

His work in re-entry housing and rehabilitation programs for former felons led to partnerships with funders, elected officials, and nonprofit leaders — eventually growing Timelist Group into a recognized organization.

When I look at Wiley’s path, I’m reminded that technical skills only get you so far. What really matters is having a vision you believe in, pushing through the tough times, and using your past experiences to make a real difference.

4. Leaving Corporate to Build Something New

Some managing partners step into the role after realizing they want to lead differently. Yvette Schmitter, managing partner at Fusion Collective, spent years in corporate tech leadership, working her way up at a Big Four consulting firm before making a bold decision: to leave and build something of her own.

“The turning point came when I realized two fundamental truths: The organizational culture I was in no longer aligned with my soul’s purpose, and there were entire communities being overlooked that I knew I could help transform,” Schmitter said.

She launched Fusion Collective with a mission to make technology more accessible and equitable, proving that sometimes the best way to lead is to create the kind of business you want to see in the world.

Common Steps to Becoming a Managing Partner

While each of these managing partners took different paths, I noticed some common themes in my research and conversations. If you’re looking to step into this role, here are some key steps that can help.

1. Educational Foundation

While there’s no formal requirement, most managing partners start with a bachelor’s degree in business, law, or finance. An advanced degree like an MBA can further set candidates apart — particularly in finance-heavy industries. About 22% of the world’s top CEOs hold an MBA, highlighting its value in leadership roles.

2. Gaining Practical Experience

Before stepping into leadership, building experience in management roles is crucial. This might involve:

• Internships or early career roles in business management.
• Climbing the ranks from entry-level to partner.
• Gaining operational experience in a specific industry.

Many managing partners start as specialists in their field before expanding into business management.

3. Strategic Networking

Managing partners often rise through strong professional networks. Relationships with mentors, industry leaders, and business partners can open doors.

According to findings from a 2022 survey, 42% of professionals found their current jobs through some form or effect of networking, including referrals, applying to openings shared in their network, and more.

4. Taking on Leadership Roles

Most managing partners serve in leadership capacities before they officially get the title. Whether it’s:

• Managing an office location.
• Leading a department.
• Running major firm-wide initiatives.

Compton’s career is a great example of this. She served as vice chair of Shumaker’s management committee and managed a regional office before stepping into the managing partner role.

5. Understanding Business Operations

A managing partner isn’t just a high-level executive — they’re often directly responsible for a firm’s financials, hiring, and operations. Learning how a business runs from the inside out is key to success.

6. Continuous Learning and Adaptability

Since industries evolve, it’s imperative for managing partners to stay up on trends to make strategic decisions. Those who continuously learn will innovate and adapt, leading to success in leadership roles.

Key Takeaways From Managing Partners’ Career Paths

While no two paths to becoming a managing partner are identical, some common themes emerged:

• Build deep expertise first. Becoming an expert in your field creates credibility and trust.
• Take leadership opportunities early. Managing partners often serve in leadership roles long before the title is official.
• Help scale a company strategically. In growth-oriented firms, managing partners play a direct role in business expansion.
• Adapt to change. Staying ahead of industry shifts is critical to long-term success.
• Develop a strong leadership style. Managing partners shape not just business strategy but also company culture.

Whether you work your way up within a firm or launch your own business, the path to managing partner requires a mix of skill, strategy, and opportunity.

Managing Partner Agreement

A partnership agreement is a written agreement between business partners or LLC members. It lays out important information about the company, such as:

• Capital contributions — how much capital each partner has contributed.
• Equity agreement — how much of the company each partner owns.
• Operating details — the responsibilities of each partner.
• Compensation agreement — how each partner will be paid.
• Disputes — how they will be resolved.
• New partners — if, when, and how someone can become an owner.
• Exit agreement — what happens when a partner leaves the partnership.
• Decision rights — whether decisions require consensus or a majority, for example.

Sometimes, you need to draw up this agreement early on, especially if there are seed investors who want to contribute capital and need to know their rights and ownership share.

At other times, if you are starting a new venture, you may not know who will be involved and whether you will raise investment. In that case, you might want to let the idea shape out a little before you formalize things.

That being said, it’s very important to get things on paper.

“Teaming up with people always seems fun and rosy and optimistic in the beginning,” says Donnolo, “but when things really get tough, that’s when personalities and differences start to show. Operate on the assumption that we need to make sure everybody’s gonna be protected, just in case.”

Donnolo recommends speaking to an attorney and, if you can afford it, an executive compensation consultant when you write up your agreement. However, there are some simple templates you can start with if that’s out of your budget. The agreement should be reviewed and tweaked as your company grows and evolves.

Managing Partner Compensation

Compensation structures for managing partners can be complicated, as they can take different forms and will vary from one business to the next.

Distributive Share

Partnerships (as well as some LLCs) are flow-through tax entities, which means the company’s income (both profits and losses) passes directly on to the owners. This is called a distributive share.

Most of the time, partners receive a distributive share that is proportional to their ownership percentage. For example, if one partner owns 80% of the business and the other owns 20%, they will split any profit 80-20.

Partners can also choose to divide their income however they like by outlining the arrangement in their partnership agreement. This can be done for tax purposes or for any other reason, such as if one partner is taking more of a reputational risk.

Guaranteed Payment

According to IRS rules, a partner cannot be considered an employee or be put on the payroll. However, if a partner contributes services or capital to the business, they may receive a guaranteed payment in lieu of a salary.

This is a fixed payment that ensures the partner has predictable income even if the company doesn’t make a profit. Guaranteed payments differ from a salary in that they are not subject to payroll tax. Instead, they will be taxed as ordinary income as part of the partner’s individual tax return.

Managing partners and any other active partners may also receive an additional payment in lieu of a performance incentive or bonus, but again, this payment is not taxed via payroll and is not technically classified as a paycheck.

In Sherman and Palmer’s case, they split everything 50-50. They take a fixed amount from the business each month and review that figure every six months. Any excess profit is reinvested in the business or kept in a fund for future use.

“We have found that an equal share of decisions, challenges, and rewards keeps us both motivated and on our toes at the same time,” says Sherman.

Equity

Of course, the owners’ biggest advantage is owning a portion of the business. If the business grows and succeeds, the owners’ equity portion will become an increasingly valuable asset.

Compensation in an LLC

By default, an LLC with multiple members is treated by the IRS as a partnership. This means the managing partner’s compensation will be paid (and taxed) in the same way as if the business was a partnership.

However, an LLC can also choose to be treated as a corporation, which is sometimes done for tax purposes. In that case, members must be hired as employees and paid a salary to earn an income. They can also earn a share of the profits in the form of dividends.

If your business is an LLC, it’s a good idea to consult an accountant to work out salary and dividend amounts, as there are regulations and tax implications.

What It Really Means to Be a Managing Partner

Before writing this piece, I assumed a managing partner was simply a business owner with leadership responsibilities. But, after speaking with managing partners across industries, I learned the role is far more strategic and adaptable than I expected.

For some, like Jennifer Compton at Shumaker, leadership was a natural next step after years of earning trust and honing expertise. Others, like Daniel Snow at TRAFFIX, scaled their businesses into industry leaders. And then there’s Yusef-Andre Wiley, whose path was shaped by personal transformation and a drive to create real change.

I learned there’s no single path to becoming a managing partner — some rise through the ranks, others start their own businesses. While an MBA or business degree helps, real-world experience, leadership skills, and strategic thinking matter just as much.

And despite their different backgrounds, every managing partner I spoke with emphasized the same thing: You can’t do it all alone. Success comes from building the right team, focusing on strengths, and leading with intention.

As a small business owner, I’ve learned firsthand just how important it is to understand buyer motives. After all, if I know what motivates my customers, I can tailor my sales pitch to match their unique interests and inclinations.

Of course, it’s impossible to read people’s minds — but by learning to recognize some of the most common buyer motives, you can maximize your chances of understanding what drives your clients’ purchase decisions.

Does this sound intriguing? Read on to learn more about the eight buyer motives every salesperson needs to know, as well as my own top tips for how to navigate emotional and rational buyer motivations.

Table of Contents

• Buyer Motivations
• What is buyer motivation?
• Emotional vs. Rational Buying Motivations
• When can rational and emotional buying motives overlap?

What is buyer motivation?

If I’ve learned anything over the course of my marketing and sales career, it’s that people are complicated. The people buying your goods or services are motivated by a complex range of thoughts, feelings, and instincts, and these buyer motivations work together to influence your customers’ purchasing decisions.

It’s also important to note that these diverse buyer motives come into play throughout the customer journey.

The Customer Journey

Specifically, there are three main stages in the customer journey:

• Awareness. When the prospect becomes aware of a need or problem.
• Consideration. When the prospect gathers information about different ways to solve their problem.
• Decision. When the prospect makes a buying decision to solve that problem.

At each stage of this journey, it’s up to you as the salesperson to understand your customer’s motivations. Then, you can use that understanding to effectively communicate the value of your offering, guiding the customer through their journey toward a closed deal.

Pro tip: If you’re not sure where to start, these free Customer Journey Map Templates can help you outline your company’s customer journey and experience from start to finish.

Below, I’ll walk through eight of the most common buyer motives to consider, including both emotional and rational motivations.

1. Need

Need might be the most immediate buyer motive. After all, if a prospect has an urgent problem and you can solve it, they’re inherently going to be motivated to consider your offering.

Of course, people aren’t always aware of their needs. You’re more likely to be able to capitalize on your buyer’s needs if they recognize the full spectrum of potential issues that can stem from their situation.

If you approach interactions with prospects assuming that they already have a comprehensive understanding of everything they need, you’re liable to miss out on a lot of opportunities.

Pro tip: Steve Jobs once said, “A lot of times, people don’t know what they want until you show it to them.” The same principle applies to what people need: Prospects don’t always recognize a need until you show them one.

Some buyers will already have a clear-cut picture of their problems and how your product or service could address them … but others might need a little more guidance. As a salesperson, it’s my job to raise my prospect’s awareness of an issue, explain how that issue applies to their situation, and demonstrate how my offering can address it better than anyone else.

2. Imitation

Imitation may be the greatest form of flattery, but it’s also an important buyer motive. When a buyer doesn’t have a direct need for a product, but they’re still motivated to buy it because everyone around them seems to want it, that’s imitation at work.

Pro tip: You may think of peer pressure as exclusive to young people, but research from Washington State University shows that people of all ages are susceptible to FOMO, or “fear of missing out.”

Imitation is the underlying buyer motive that drives many consumer fads. When a certain product or service rapidly becomes popular, people won’t want to miss out on the movement, so they’ll be motivated to buy it out of the desire to imitate those around them.

3. Fear

Beyond fear of missing out, there are many other ways in which fear can serve as a powerful catalyst for action. That’s why so many companies lean on scare tactics — whether subtle or overt — to create urgency behind their messaging and sales efforts.

While this may seem unethical, there are contexts in which speaking to people’s fears can be entirely justified.

For example, the National Highway Traffic Safety Administration recently launched an ad campaign with the slogan “Click It. Don’t Risk It.” to encourage people to buckle up when driving. The campaign emphasizes the very real danger of car crashes, using scary images and statistics to illustrate the importance of wearing a seat belt.

Pro tip: I’ve learned that it’s important to balance leveraging buyers’ reasonable fears with avoiding unethical, manipulative marketing strategies.

As with other motives, buyers may not initially realize that they’re facing a risk that they should be afraid of. While I never recommend stoking fears unnecessarily, effective salespeople can highlight the real downsides of not buying their product or service to raise valid concerns that their prospects may not have recognized otherwise.

4. Health

According to a recent study, health and wellness is the number one driver of Americans’ home-related purchasing decisions. Many consumers prioritize their health above all else — and they’re willing to buy products and services that promise to protect it.

As such, if you can emphasize that your product or service will help people live healthier, longer lives, that can help you capitalize on this important buyer motive.

Of course, you can’t just say that your product will make people healthier. The key to selling based on health is to offer a concrete, legitimate demonstration of the health benefits. Whether it’s a testimonial from a doctor, statistics from a study, or some other form of evidence, you’ll need compelling proof to establish exactly how your product benefits consumers’ well-being.

Pro tip: If you show that your offering addresses a relevant, urgent health concern, you’ll be in an excellent position to sell effectively.

5. Impulse

Take it from me: People don’t always give a ton of thought to the purchases they make. While some decisions are the result of careful deliberation, we all fall under the spell of impulse purchasing now and then.

When consumers get caught up in the heat of the moment and buy for the sake of buying, that’s the result of the impulse buyer motive.

Impulse buying is rooted in excitement. Luckily, as a salesperson, you don’t have to just sit around hoping that your prospects will get excited about your offering — you can take steps to generate that sense of urgency proactively.

Pro tip: Promotional pricing tactics like flash sales or limited-time-only deals can be powerful tools to drive impulse buys.

In addition, I’ve found that imitation and impulse can often go hand in hand. After all, if buyers see their peers embracing a product or service, they might be inclined to jump on the bandwagon without fully considering whether they really need what they’re buying.

6. Pleasure

Some purchases are driven by needs. But, in other cases, people are motivated to buy products or services simply for entertainment or pleasure. These nice-to-have purchases may be less essential, but buyers can still be highly motivated to make them.

After all, we all like to enjoy ourselves. So, from time to time, we all like to buy things just because we want to.

In general, I’ve learned that this buyer motive is most relevant for products or services that are seen as luxuries. Of course, what counts as luxury can be highly subjective, but most of us can at least make a pretty solid guess based on intuition.

Pro tip: To sell to buyers motivated by pleasure, it’s often helpful to cast your product or service as a luxury.

For example, if someone is shopping for home decor or a new pair of designer sandals, their priority is probably pleasure. The same can’t be said for someone looking for insect repellant to deal with their house’s ant problem or for a plumber to deal with a flooded basement.

7. Financial Gain

Especially when it comes to B2B sales, buyers are more willing to spend money if the solution lets them make money. In these cases, the prospect’s main motive is to leverage your product or service to improve their own business operations. For example, they might be looking to purchase a tool that will help them boost employee productivity, generate more revenue, or eliminate unnecessary expenses.

If you’re selling to a prospect with this motive, you should share quantitative metrics that illustrate the results and outcomes you can offer. Remember: Show, don’t tell. I’ve found that referencing similar businesses or current customers that have seen significant financial gains by leveraging your product can be a highly effective strategy for financially motivated prospects.

Pro tip: Put financially-driven buyers at ease by sharing cold, hard facts that illustrate exactly what they can expect if they do business with you.

Prospects motivated by financial gain typically have more at stake than those who are just buying a product to avoid missing out on a hot new trend. That’s why it’s so important to convince them they’ll be in good hands if they invest in your product or service.

8. Aspiration

The last buyer motive that I think is important to consider is aspiration. Some consumers are driven to buy because they aspire to improve themselves. They want to change for the better, and they are willing to spend money to make it happen.

Purchases like gym memberships and subscriptions to online courses, for instance, generally aren’t made out of fear or the pursuit of pleasure. On the contrary, they are motivated by people’s sincere ambition to better themselves.

Pro tip: If you’re selling to a buyer motivated by aspiration, the key is to emphasize what they could achieve — and who they could become — if they opt to make a purchase.

For example, if you’re selling online coursework or paid online certifications, let your prospects know how your product can help bolster their resumes. You can even share testimonials from satisfied customers that highlight how helpful your offering has been for their career development.

At the end of the day, self-improvement requires determination. So, if you want to capitalize on this buyer motive, you’ll need to show your prospects something to be determined about.

Emotional vs. Rational Buying Motivations

Clearly, there are many different kinds of buyer motives. But in general, I’ve found that motivations for buying can be grouped into two main categories: emotional motives and rational motives.

Emotional Buying Motives

When prospects are driven primarily by emotional buying motives, it means that they are motivated to buy something because of how they think the purchase will make them feel. For example, a buyer motivated by the need to feel respected among their peers would be considered emotionally motivated.

Pro tip: To sell to emotionally-motivated buyers, it can be helpful to focus on the emotional benefits of your product or service.

In my experience, emotional marketing tactics such as telling a compelling story and creating a sense of community can be great ways to engage with more emotionally-motivated buyers.

Rational Buying Motives

In contrast, rational buying motives are driven by logic and reasoning. What are examples of rational buying motives? These buyers are likely to consider factors such as durability, safety, and price before making a buying decision.

Pro tip: Rationally-motivated buyers are more likely to be convinced by quantitative facts and evidence than by a more emotional sales pitch.

There are a wide range of sales tactics that can be effective when selling to more rationally-driven buyers, from doing extensive research to understand the prospect’s needs to quantifying the benefits of your offering in terms of time or dollars saved.

Example: Two Kinds of Car Buyers

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To illustrate the differences between emotional and rational buying motives, it’s helpful to consider a pair of examples. So, let’s imagine a consumer looking to purchase a car.

A Rational Buyer Example

If the consumer is rationally-motivated, the process might look something like this: They first spend time conducting extensive research on factors like fuel economy, safety, and durability.

Then, they identify a specific used vehicle at a local dealership that meets their ideal specs and budget, and despite its lack of fun features like power windows or a stereo, they buy the car. This purchase is based on concrete need and practical utility, making it a highly rational purchase.

An Emotional Buyer Example

In contrast, an emotionally-motivated purchase might look more like this: A consumer already owns a car, but stops by the local dealership to check out a new line of convertibles. They didn’t plan to buy anything, but they saw a car that they immediately decided was the car of their dreams.

They take it for a test drive, and they love how it rides. They imagine how cool they would look driving along the Pacific Coast Highway with the top down, wearing a scarf, aviator sunglasses, and leather gloves. They get so excited that they buy the car on the spot.

Most purchases fall somewhere between these extremes — but these examples capture the essence of the two categories: Emotional motivations include feelings such as pleasure, vanity, comfort, or prestige, while rational motivations tend to be based on factors like budget, safety, and durability.

When can rational and emotional buying motives overlap?

In my experience, it’s rare for a buyer to be 100% rational or 100% emotional. Instead, real-world buying decisions are most often a combination of both.

As sales expert Sander van Dongen explains, “Rather than viewing emotions and logic as opposing forces, it’s more accurate to consider them as complementary elements that together form a powerful combination in consumer decision-making.”

He argues that “emotions create the initial desire to buy, while logic provides the necessary justification to validate the purchase.” As such, van Dongen suggests that “effective marketing strategies harness both these elements.”

Of course, this can be a tricky tension to navigate as a salesperson or business owner. Restaurant Manager at Deschutes Brewery Ryan McCargo recognizes this challenge in his own work, reflecting that “the balance between rational and emotional approaches within a marketing campaign can be daunting.”

According to McCargo, being rational is best when you want to illustrate the usability and functionality of the campaign.

“When you’re ready to communicate the campaign’s purpose and connect it to its place within the wide world, that is when to clutch your emotional pearls,” McCargo says.

McCargo notes that people like to see rationality when asking, “What makes this product good/quality?.” They need emotional connection to pull the trigger on the question, “Why is this product good for me?”

At the end of the day, we are all only human — and humans are naturally both emotional and rational. Rather than attempting to classify every prospect as motivated exclusively by just one factor, I’ve learned that effective salespeople embrace the nuance and complexity of their customers’ diverse motivations.

Understand Buyer Motives to Increase Sales

Whenever I talk to prospects, my first question is always, “Why?” Why is this person interested in what I have to offer? What drives them? What are they afraid of, or what are they hoping for?

If you take the time to understand why your prospects are considering buying from you, you’ll be empowered to craft a sales approach that’s tailored to their unique buying motives.

Ultimately, understanding your buyers’ motives can help you create campaigns that engage your prospects and nudge them toward buying your product or service. After all, there’s a reason for every purchase. It’s up to you to identify it.

Welcome to Breaking the Blueprint — a blog series that dives into the unique business challenges and opportunities of underrepresented business owners and entrepreneurs. Learn how they’ve grown or scaled their businesses, explored entrepreneurial ventures within their companies, or created side hustles, and how their stories can inspire and inform your own success.

You and I both know it: Grants for Black-owned businesses are hard to come by. According to a 2024 State of Black Business Report by the Center for Entrepreneurial Equity — more than any other demographic — Black business owners experience pervasive barriers to accessing capital. That means finding the right opportunities often takes more time, research, and resilience than it should.

In this piece, I’ll share a diverse list of grants and other funding resources for Black-owned businesses, all thoughtfully selected to help you take your dreams to the next level.

Table of Contents:

• Black Owned-Business Statistics You Should Know About
• Grants for Black-Owned Businesses
• Additional Resources for Black-Owned Business Owners
• We Need More Black Businesses, So Start Yours

Black Owned-Business Statistics You Should Know About

Although pursuing entrepreneurship and business ownership as a Black person isn’t easy, it’s not impossible. Despite obstacles, Black entrepreneurs and founders continue to rise, create, and thrive in spaces that weren’t exactly built with them in mind.

That said, I think it’s crucial always to acknowledge the facts. As a Black founder and business owner, knowing how other Black entrepreneurs are thinking/feeling/navigating day-to-day challenges can help you:

• Recognize where Black founders and business owners are in their respective journeys
• Understand the ways in which Black founders and business owners are using emerging tools and technology
• Grow comfortable with your business growth and approach to navigating business ownership

To assist you with staying grounded in the reality of your journey, here are some statistics from Truist’s Q1 2024 Small Business Owners Survey that I think are especially worth noting:

• 32% of U.S. small business owners surveyed view AI as very/extremely important to their business

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• 40% of U.S. small business owners who were surveyed are interested in using AI to increase productivity; 34% are interested in using AI to improve customer service experiences

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• 59% of U.S. small businesses source materials and products internationally

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• Only 48% of U.S. small business owners say their work-life balance is good or perfect

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Take a peek at a few more statistics from the Center for Entrepreneurial Opportunity’s 2024 State of Black Business Report:

• 97% of U.S. Black-owned businesses have less than 20 employees

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• 94% of U.S. Black businesses are located in an urban area (70% are located east of the Mississippi River, especially large concentrations of Black-owned businesses in the southeast)

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• 48% of Black-owned businesses are less than two years old

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• 71% of Black-owned business owners say more income was a “very important” reason for owning a business; 69% say wanting to be their own boss was another

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Grants for Black-Owned Businesses

Grants for Black-owned businesses are notoriously perceived to be far and few. While it may feel discouraging at times to sift through countless resources and come up short, the key is knowing where to look — and when to look.

Many grants are seasonal, application-only, or promoted through specific networks and platforms, which means staying informed is half the battle. Nevertheless, I’ve got good news to share: there are organizations, foundations, and even corporations that are actively investing in Black entrepreneurs and intentionally working to close the racial wealth gap.

Personally, I think the best grants and funding resources are the hardest ones to find. Why? Because they’re tucked away in networks, industry circles, or lesser-known platforms that most people overlook, which means less competition and a better shot at securing the bag.

Still, I know scouring the internet for resources meant for you feels exhausting and never-ending. So, instead of crawling through Google for hours on end, browse through the list of nearly 20 Black-owned business-specific grants and funding sources I curated below:

1. Shea Moisture Grants

Shea Moisture offers $1M grants annually to small, Black-owned businesses across the health and beauty sector through several grant opportunities.

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Each grant provides a funding award (between $10K and $100K), education, access to additional resources, and mentorship for Black entrepreneurs. Its primary grant programs are:

• The Brown Girl Jane Grant: This grant is for Black and women-owned beauty and wellness businesses in the U.S. Typically, its recipients get between $10K – $25K in funding. Applications open in Fall 2025, and you can apply here.
• The Next Black Millionaire Grant: This grant offers $100K, business development services, and retailer distribution support to black-owned businesses in the U.S. You can apply here.
• The Blueprint Grant: This grant is for Black women (aged 13 – 35) who are pushing boundaries across beauty and creative industries. Its recipients get $10K in grant funding and 1:1 mentoring support. You can apply here.
• Community Impact Grant: This grant offers $10K to newly established (at least one year old) Black-owned businesses. Businesses can also be nominated. You can apply here.

2. Hello Alice’s Democratizing the Friends & Family Round Grant

Hello Alice’s Democratizing the Friend & Family Round Grant aims to help women of color overcome the early-stage funding gap they often face.

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The program offers $25,000 in grants and mentorship to 20 NYC-based female founders of color.

Deadline: The application due date has passed; the next grant cycle deadline is to be announced. In previous years, the application due date has been March 3.

Eligibility: Applicants must identify as a woman of color and own a small business.

3. FedEx Small Business Grant Program

FedEx launched its annual Small Business Grant Contest in 2012 and has given approximately $1.5M in cash prizes since then.

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There’s a $50K grand prize for one business and $20K for the nine others. Winners are also matched with a mentor and can receive $1K in print credit at FedEx.

Deadline: The application due date has passed; the next grant cycle deadline is to be announced. In previous years, they’ve been due on April 1, 2025.

Eligibility: Applicants must be 18 years of age or older, a legal resident of the United States, own a for-profit business that’s been operating for at least six months, and be current shipping customer with FedEx (using a FedEx shipping account number).

4. Ladies Who Launch

Ladies Who Launch (LWL) is a small business grant and mentorship program for women and non-binary small business owners in the consumer packaged goods (CPG) industry.

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LWL aims to remove barriers to access that often prevent these groups from succeeding through $10K cash grants and 6th-month education and mentorship opportunities.

Deadline: Applications are closed; the next grant cycle deadline is to be announced. In previous years, they’ve been due on March 31.

Eligibility: Applicants must identify as a woman and/or non-binary.

5. National Association for the Self-Employed Growth Grant

The National Association for the Self-Employed (NASE)’s Growth Grant offers its members business grants of up to $4K. The funds can be used however you see fit.

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For example, you could use your NASE Growth Grant to pay for business growth operations, from marketing and hiring to expanding facilities.

Applications are accepted on a rolling basis, and will be reviewed the following quarter. For example, applications submitted in July, August, and September are reviewed in October. You must be a good-standing member for three months prior to applying, and you can apply for the next round here.

Deadline: Applications are reviewed quarterly (i.e., applications received between Jan. and Mar. are reviewed in April).

Eligibility: Applicants must be a NASE member to apply.

6. FedEx Entrepreneur Fund and Boost Camp Program

Hello Alice and the Global Entrepreneurship Network (GEN) joined forces to create the FedEx Entrepreneur Fund and Boost Camp Progra. The program provides 150 small business owners with a 12-week digital growth accelerator experience and an opportunity to receive $10K in funding.

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Plus, selected participants for the FedEx Entrepreneur Fund and Boost Camp Program receive education, mentorship, access to expert-led sessions, and tons of other entrepreneurial growth-specific benefits.

Deadline: Applications are closed; the next grant cycle deadline is to be announced. In previous years, they’ve been due on December 13.

Eligibility: Applicants must be entrepreneur who is the leading executive (i.e. Founder and/or President, CEO, CFO, COO, or any such other similar title) of a business that meets the below business criteria; and 18 years of age or older.

7. The Coalition to Back Black Businesses Grant

This private small business grant is a joint effort between corporations like American Express, ADP, AIG Foundation, Altice USA, Down, and the S&P Global Foundation.

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Businesses that qualify will receive $5,000 in grants, mentorship, and training. Only a select number of entrepreneurs will be tapped for their $25,000 Enhancement Grants.

Deadline: Applications are closed; the next grant cycle deadline is to be announced. In previous years, they’ve been due on September 6.

Eligibility: Applicants must identify as Black/African-American and own a small business.

8. Nike x Jordan Black Community Commitment Grant

Nike, Inc. and Jordan have partnered to offer institutional and grassroots organizations the Nike x Jordan Black Community Commitment Grant.

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Since 2021, the Community Commitment Grant has supported organizations driving sustainable change in the fight against systemic racism and working to create more equitable futures for Black Americans.

This funding opportunity offers a one-year grant to selected awardees. Thus far, Nike and Jordan have committed $8.6M to both national and local organizations.

Deadline: Applications are closed; the next grant cycle deadline is to be announced. Check back here for 2025 updates.

Eligibility: Applicants be a part of a 501(c)(3) nonprofit organization that has been established since 2021 or prior with an annual operating budget between $100,000 to $3M. Its mission should align with one of grant’s key focus areas:

• Economic Justice
• Education
• Narrative Change
• Social Justice

Qualified applicants may apply once each year (if they have not received the grant before).

9. Joseph Beam Black Gay Men’s Wellness Grant

The Joseph Beam Black Gay Men’s Wellness Grant, offered and sustained by the Black Wellness Fund, is a grant funding opportunity designed for older Black gay men and folks in the health and wellness space.

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Recipients of Joseph Beam Black Gay Men’s Wellness Grant receive $10,000; up to three winners are selected. Previous winners of this grant have been WalkGood LA (2023) and The F.I.N.D. Design (2023).

If you’re hesitating to apply for this funding opportunity, here’s a little advice: The nicher the grant, the more inclined you should be to submit an application. A niche grant does not equal a lost opportunity, so if you feel like your venture fits the bill, go for it with confidence — this could be the exact support you’ve been waiting for.

Deadline: The application due date has passed; the next grant cycle deadline is to be announced. In previous years, they’ve been due on February 28.

Eligibility: Applicants must identify as gay, Black, and male. Applicants must also apply on behalf of an organization or collective that specifically holds space for:

• Wellness/mental health support groups
• Relationship-building events
• Wellness and healing projects for Black gay men ages 50+ living with HIV/AIDS

Fiscally-sponsored organizations are encouraged to apply as well.

10. Wish Local Empowerment Grant

The Wish Local Empowerment Grant, powered by Wish Local, provides Black entrepreneurs and founders with funding grants (between $500 and $2000) to help build/rebuild their small business.

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The Wish Local Empowerment Grant is open to Black-owned businesses only; it’s even advised that grantees use the money they’re awarded to pay rent and operation costs, connect with customers (through events or IRL activations), and provide opportunities for advancement to the communities they serve.

Deadline: Applications are accepted on a rolling basis; folks can submit their application at any time here.

Eligibility: Applicants must be 18 years of age or older, identify as Black/African-American, own a business that’s earned an annual revenue of less than $1M, has 20 or fewer employees and a brick and mortar location. If selected for this grant, you’re required to join Wish Local.

11. Pathway to Opportunity Pitch Competition (formerly known as the National Black Business Pitch)

The Pathway to Opportunity Pitch Competition was made with small businesses in mind. It connects them with interested corporations seeking to expand their supply chain with innovative products and services.

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Selected participants will receive cash prizes of up to $5,000. However, those selected to move on from the application phase will transition to a live pitch competition in which they’ll pitch in front of a virtual audience of corporate procurement professionals.

Deadline: The application due date is June 9, 2025.

Eligibility: Applicants must identify as African-American and own a small business within the United States.

12. Just Thrive Grant Program

The Justworks Professional Employer Organization (PEO) assists companies with Payroll, HR, and Compliance, along with access to health insurance, 401k, and more.

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In partnership with The Well Work, JustWorks PEO offers one of two credits ($6,000 or $2,000) to eligible businesses that are at least 50% owned by a member of an underrepresented group or 501(c)(3) nonprofits focused on eradicating racism. Grant amounts depend on when your business was formed.

Deadline: Applications are accepted on a rolling basis; folks typically hear back within one business day.

Eligibility: Applicants must be a person of color and own a business with at least two employees OR have founded a nonprofit dedicated to antiracist work.

13. Ulta Beauty’s Muse Accelerator Grant/Program

The Ulta Beauty Muse Accelerator Grant/Program offers eight early-stage beauty brands the opportunity to grow and expand their growth toward retail readiness and business success.

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The Muse Accelerator Grant/Program awards $50,000 to selected grantees to help accelerate their businesses; one grantee can receive an additional $10,000 in financial support. All participants will receive 10 weeks of training on how to set up their brand for long-term success and mentorship from Ulta Beauty Merchandising partners.

Deadline: The application due date has passed; the next grant cycle deadline is to be announced. In previous years, they’ve been due in June.

Eligibility: Applicants must identify as BIPOC, be at least 18 years old, and be a U.S. or Canadian citizen currently residing in the U.S. or Canada. Additionally, an applicant’s business must be registered in either country.

14. Black Ambition Prize

The Black Ambition Prize aims to fund bold ideas and help reduce barriers to capital for Black and Hispanic entrepreneurs. However, just like its founder, Pharrell Williams, the process for applying for and receiving the Black Ambition Prize can only be described with one word: Unconventional.

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Once moved beyond the application round, selected applicants will compete for awards between $20,000 and $100,000. 150 – 200 semi-finalists will be chosen to participate in the Black Ambitionist mentorship program.

Underrepresented founders who decide to apply for the Black Ambition Prize will also receive support with marketing opportunities, graphic design support, and access to information sessions and webinars (before applying).

If you’re a Black business owner, I urge you to apply for this funding opportunity. It’s designed to feel like an experience, not a competition, which is, in my opinion, extremely rare to see/find in the grant funding landscape. While the pool is more significant than most funding opportunities, this unique reward is designed for anyone to apply.

Deadline: The application due date is May 2, 2025. Winners are announced in November 2025.

Eligibility: Applicants must be Black or Hispanic entrepreneurs and apply as a team (with at least two members). Additionally, all applicants must be building an early-stage venture across one of the five categories:

• Consumer Products and Services
• Healthcare
• Media and Entertainment
• Technology
• Artificial Intelligence (AI)

15. The Black Ambition HBCU Prize

Like the Black Ambition Prize, the Black Ambition HBCU Prize is for Black and Hispanic entrepreneurs from Historically Black Colleges and Universities (HBCUs).

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The Black Ambition HBCU Prize is tiered and allows multiple teams to be selected for funding at different levels. However, eligible applicants can only apply to one of the two Black Ambition HBCU Prize tracks. More specifically, the Black Ambition HBCU Early Business track is for ventures that have raised no more than $1M in dilutive funding; these ventures can compete for up to $100,000 in funding.

This funding opportunity may be niche, but it’s for a reason. If you’re a former HBCU graduate/student turned entrepreneur, apply for this opportunity. I believe this grant exists for the HBCU community exclusively, so you won’t have to worry about navigating as large of a pool of candidates as you would for another funding opportunity.

Deadline: The application due date is May 2, 2025.

Eligibility: Applicants must be a Black or Brown undergraduate or graduate student (part-time or full-time), recent alumni (graduated within the last two years), or former student (attended in the last two years, within at least one year of course credits). Additionally,

16. Lenovo’s Evolve Small Grant

Lenovo’s Evolve Small Grant was designed to uplift minority, disabled, and women-owned small businesses.

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Over the last four years, the Evolve Small Grant has supported 5,000+ businesses with 750+ hours of mentorship and over $3M in grant funding. Grant recipients receive a $25,000 grant, a customized AI technology package (valued at $10,000), and inclusion in the Goodie Nation and Chantel Cohen mentorship programs.

If you’re a Black business owner, I highly recommend applying for this grant, mainly because, quite frankly, new, free-of-cost technology and money are hard to come by. Even if this funding opportunity doesn’t check off every box, it’s worth giving yourself (and your business) a shot at getting the financial support you’ve always dreamed of.

Deadline: The application due date has passed; the next grant cycle deadline is to be announced. In previous years, they’ve been open from January 27 to February 17.

Eligibility: Applicants must have a small business, have an annual revenue of less than $7.5M, and have 75 or fewer employees. Additionally, an applicant’s business must be located in the following areas:

• Atlanta, GA
• Chicago, IL
• Dallas, TX
• Los Angeles, CA
• Miami, FL
• San Diego, CA
• Houston, TX
• Washington, D.C.
• Toronto, Ontario

17. Start.Pivot.Grow Micro-Grant

Start.Pivot.Grow is a national business acceleration program dedicated to supporting local businesses through delivering research-based, results-driven business education, technical assistance, and access-to-capital programs.

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The $2,500 Start.Pivot.Grow Micro-Grant is offered quarterly and allows small businesses to use it in whatever capacity they see fit. Previous grantees have used it for utilities, commercial rent, professional development, and other essential business needs.

Deadline: The application due date is the last day of each quarter, typically on the 30 or 31 of the month.

Eligibility: Applicants must own a U.S.-based for-profit business that has been in operation for at least two years and has 1-2 employees, including the owner. Additionally, the applicant must have made an annual revenue of $50,000 or more.

Additional Resources for Black-Owned Business Owners

Grants aren’t the only way to get resources for your Black-owned business. Support can look like legal aid, networking opportunities, educational courses, financial assistance, discovering new tools that make building your venture easier — the list goes on.

Building and growing a business takes more than just capital; it requires access to knowledge, connections, and infrastructure that can help you make informed decisions and scale with intention.

Whether you’re just getting started or looking to get extra knowledge that’ll help you elevate your venture to new heights, the organizations I’ve listed below offer valuable support beyond just funding:

1. Start Small, Think Big Inc.

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Start Small, Think Big Inc. is a 501(c)(3) nonprofit organization committed to advancing equity and inclusion in entrepreneurship through connecting minority-owned small businesses with the resources and community support they need to thrive.

Start Small, Think Big also offers free small business workshops and events as well as expert small business services, from finance services to legal assistance.

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I think Start Small, Think Big is a great place to start if you’re seeking a knowledge base that:

• Helps you navigate the legal and financial foundations of running a business
• Offers actionable guidance through free workshops, events, and expert support
• Connects you with a community invested in inclusive, long-term business growth

2. Farm Aid

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This nonprofit platform offers an annual grant program that funds family farms and rural service organizations. In 2022, Farm Aid assisted Black and other minority farmers and groups working to demand change for racial justice and social equity.

Farm Aid offers tons of several farmer-specific assistance, from Cultivemos, its Northeast-based network of farmers, service providers, mental health professionals and nonprofit workers, to its Farmer Resource Guides, designed for folks who are navigating challenges in agriculture, business planning, and farmer well-being.

3. Sales Hub

Sales Hub, a core product offering of HubSpot, offers small business owners the technological tools and integrations they need to:

• Streamline sales processes
• Manage customer relationships more effectively
• Drive consistent business growth

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[alt text] a screenshot of the hubspot sales hub software info page

I think Sales Hub is a great beginner software for any business owner who wants to get organized, save time, and build better relationships with their clientele — all without needing crazy amounts of training on every single feature.

If this sounds like you, I recommend looking into what Sales Hub can do for your business venture.

4. Venturize

Venturize, powered by the Small Business Majority, supports founders with the unbiased advice, business growth essentials, and workplace benefits guidance they need to start, run, and grow their businesses on their own terms.

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I think Venturize is a great place to start if you’re seeking a knowledge base that:

• Breaks down complex topics
• Empowers your informed decisions
• Meets you at every stage of your entrepreneurial journey

5. SCORE

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Completely run by a network of volunteers, SCORE has provided resources like education and mentorship to small business owners since 1964. Additionally, SCORE offers free templates, and online events to founders looking to broaden their knowledge in business planning, marketing, finance, and more.

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[alt text] a screenshot of the SCORE employee to entrepreneur resource hub site page with a poto of a south asian woman holding her product in-store

We Need More Black Businesses, So Start Yours

The truth is … the barriers to Black business ownership are real — but so is your potential.

Despite the challenges, Black entrepreneurs continue to build, create, and innovate in ways that shape industries and uplift communities. That’s why it’s not just important that you start your business — it’s necessary. We need your ideas, your leadership, and your vision out in the world.

So, know this: your journey matters, and there’s a growing ecosystem of support ready to back you. So don’t wait. Start your business, grow it, and own your power every step of the way. The future of Black business starts with bold moves like yours.

Editor’s note: This post was originally published in February 2021 and has been updated for comprehensiveness.

For decades, sales hinged on pitching product features and benefits — an approach that once worked but now falls short. Buyers now expect measurable value and real outcomes, and those who cannot deliver risk being left behind.

Outcome-based selling, though more effective, was often sidelined because it required a deeper understanding of customer goals, a shift in mindset, and a commitment to long-term success.

With so many similar offerings, switching providers has never been easier, making customer retention an uphill battle. To stand out and grow, you must go beyond what your product does and prove how it drives real success for your buyers.

In my years editing the HubSpot Sales Blog, I have seen that top salespeople do not just pitch features. They show exactly how their solution moves the needle. In this guide, I will break down why outcome selling works and walk you through the exact steps to master it.

Table of Contents

• What is outcome-based selling?
• Outcome-Based Selling vs. Solution Selling
• Benefits of Outcome-Based Selling
• Challenges of Outcome-Based Selling
• How To Do Outcome Selling
• Examples of Outcome Selling

But what’s the difference between an outcome and a benefit?

• A benefit is the immediate advantage a customer gets from your product.
• An outcome is the bigger-picture result and the lasting impact of those benefits over time.

Before we discuss examples, let’s first unpack the mechanics of outcome-based selling and how it shifts the conversation from product features to customer success.

How Outcome-Based Selling Works

People don’t just want solutions. They want the right solutions to reach their goals. Show your prospects your product or service can help them get there, and you’ve earned a new customer.

It becomes much easier to implement outcome-based selling once sales teams identify a target audience. Once they know exactly who they’re selling to, they can tailor their approach with precision.

In my experience, the best way to do this is by gathering key insights about your prospects:

• Their business goals. What are they trying to achieve? What is their vision?
• Their existing challenges. Are there any pain points they need to address? Are they currently facing any obstacles?
• Their key performance indicators (KPIs). What metrics do they use to measure success?

Of course, you can’t just guess these details. You need in-depth research to uncover them. I’ve found that the only way to truly understand your prospects is through direct research, conversations, and analysis.

With these insights in hand, I then build a tailored presentation that connects my offering to their goals and challenges. If they accept my proposal, my product or service is delivered as a means to an end, helping them achieve exactly what they set out to do.

Outcome-Based Selling vs. Solution Selling

Outcome-based selling focuses on delivering a measurable business result for the customer.

Instead of emphasizing product features or services, this approach centers on the impact a solution has on the customer’s goals — things like increased revenue, cost savings, or improved efficiency. Customers pay for results rather than just a product or service.

Why does this shift matter? Because businesses today demand ROI-driven purchases. With growing competition and shrinking budgets, decision-makers no longer just compare product specs — they prioritize solutions that guarantee measurable business impact.

Unlike outcome-based selling, solution selling focuses on identifying a customer’s problem and aligning a product or service as the fix. This method requires:

• Uncovering customer pain points through discovery questions.
• Mapping product features directly to those pain points.
• Presenting a tailored solution that clearly solves the problem.

Solution selling is about fixing problems; outcome-based selling is about delivering measurable success.

Here’s an example of a company selling cloud storage solutions:

• Solution Selling. “Our cloud storage is secure and scalable, helping you protect your data as you grow.”
• Outcome-Based Selling. “Our cloud storage slashes IT costs by 30%, eliminates downtime, and frees up your team to focus on innovation instead of maintenance.”

Instead of competing on product features, they differentiate on value delivered.

Here’s the bottom line: By shifting from solution-based to outcome-based selling, sales teams position themselves as strategic partners, not just vendors.

Benefits of Outcome-Based Selling

If you want to close more deals and build lasting customer relationships, outcome-based selling is the key. Here’s why.

1. Improved Customer Satisfaction

Outcome selling starts with research. When you deeply understand your customers’ needs, you don’t just sell them a product; you provide a solution they can’t imagine living without.

When customers feel truly understood, they don’t just buy. They trust you, they return, and they refer others. That’s the power of outcome-based selling.

Pro tip: To gather these customer insights, I recommend tapping into social media and online forums where your customers vent their frustrations and ask pressing questions. This real-time feedback gives you unfiltered access to their deepest needs so you can position your solution exactly where it matters.

2. Higher Upselling Potential

The experts I’ve talked to over the years note the link between outcome-based selling and upselling. If I’m satisfied with a brand, I’m definitely going to try its other products as long as they’re things I need. Most customers are like me; we’re loyal to brands that truly deliver.

What does this mean for you? Higher upselling potential. If this doesn’t work, you can cross-sell related products to your customers.

Both techniques boost profitability by generating more revenue from existing customers and lowering customer acquisition costs.

Pro tip: Be careful when cross-selling, though. If customers feel you just want more of their money, they’ll likely lose trust. Show them you genuinely want to solve their problems. I’d suggest winning them over with discounts. Interestingly, we surveyed 1,477 sales professionals, and 34% of them agreed that discount pricing is the most effective way to cross-sell customers.

3. Sustained Long-Term Relationships

When you deeply understand your customers’ needs and address their pain points, they see you as a trusted partner, not just a vendor. And trust is everything.

Many experts I work with say clients have bought what they were selling because reps earned their trust by understanding customer pain points. So, once you establish trust, clients will want to stick with you.

4. Increased Perceived Value of Your Business

You’ve probably caught on by now: fully immersing yourself in your customer’s business is crucial. It strengthens your perceived value and sets you apart from competitors.

How, you ask? Customers expect to achieve their goals. The key is to understand exactly what those goals are. Having a clear pulse on your customers’ priorities allows you to build a reputation for getting in, pinpointing challenges and opportunities, and delivering solutions that drive real results.

Here’s an example: Take a SaaS company that has been selling CRM software based on features.

If they adopt an outcome-based approach, focusing on how their tool can help clients shorten sales cycles, they can reposition themselves as revenue accelerators rather than software providers.

The result? Enterprise deal sizes grow and they’re more likely to secure longer contracts because customers see them as a growth partner rather than a cost.

Or, consider a marketing agency that stops pitching services and instead ties proposals to measurable client growth, like tripling lead conversions. By proving their direct impact on revenue, they attract higher-value clients and justify premium pricing.

Outcome-based selling positions you as an indispensable partner, making your brand impossible to ignore.

When this strategy pays off, the market views your company as a premium provider. Even better?

You can charge more for your offerings, attract high-value clients, and expand your influence — all while reinforcing your reputation as a trusted leader in your industry.

5. Discovery of New Business Opportunities

An unexpected benefit of outcome-based selling is identifying new business opportunities — ones you might have otherwise overlooked.

By tracking customer outcomes and exploring their evolving needs, you can gain insights that can be used to develop new products, services, or expansion strategies.

For example, a B2B consulting firm might learn that its clients struggle with post-implementation adoption of its strategies. Instead of leaving it at that, it might develop a new training program to support execution, turning what was once an afterthought into a done-for-you service at an extra price.

By continuously uncovering and using these growth avenues, you don’t just increase revenue — you cement your position as a market leader.

Challenges of Outcome-Based Selling

1. Defining and Measuring Outcomes

Since outcome-based selling is results-driven, customers want clear, measurable outcomes.

However, since every industry defines success differently, aligning expectations with customers can be complex. Without clear alignment, customers may feel misled or dissatisfied, making it harder to close deals and retain clients.

How to overcome it:

• Collaborate with customers to define success metrics upfront and ensure alignment.
• Use clear, industry-specific KPIs and refine them collaboratively as business needs evolve.
• Set milestone-based evaluations to track and demonstrate progress.

2. Longer Sales Cycles

With higher stakes, more decision-makers get involved, each requiring proof of value before committing. This adds complexity and lengthens the sales process.

How to overcome it:

• Use data-driven storytelling to demonstrate ROI quickly and persuasively.
• Identify key stakeholders early and tailor messaging to their priorities.
• Offer pilot programs or phased implementations to reduce perceived risk, provide early proof of value, and accelerate buy-in.

3. Higher Expectations From Customers

Since customers are paying for results, they expect clear, tangible success and hold sellers accountable if those results fall short. Failure to meet expectations can result in lost trust, contract disputes, or churn.

How to overcome it:

• Set realistic goals and timelines to prevent overpromising.
• Maintain ongoing communication to manage expectations and adjust as needed.
• Provide post-sale support and continuous optimization to reinforce value, improve retention, and pave the way for upsells.
• Have a clear, repeatable, outcome-based selling framework.

Pro tip: Many sales teams struggle to align their approach with customer outcomes, leading to missed opportunities and inconsistent results. Without a clear framework, it’s easy to fall into solutions-focused selling instead of outcome-based conversations. To help structure your strategy, download this sales plan template and create a repeatable, outcome-focused process.

4. Risk of Uncontrollable Variables

Market shifts, economic downturns, or internal changes can derail even well-planned outcomes, making sellers responsible for factors beyond their control. These disruptions can lead to missed targets, strained relationships, or contract renegotiations.

How to overcome it:

• Be transparent about potential risks and set realistic contingencies.
• Offer flexible contracts that adapt to changing conditions.
• Position the relationship as a long-term partnership with shared risks and rewards, reinforcing mutual commitment.

By proactively addressing these challenges, sales teams can turn outcome selling into a competitive advantage — strengthening customer trust, accelerating deals, and driving long-term success.

How To Do Outcome Selling

If you’re ready to implement outcome-based selling, the steps below will help you and your sales team hone your strategy.

1. Create your ideal customer profile and buyer persona.

Among the sales professionals we surveyed, 24% said that providing prospects with a highly personalized experience generates the most growth for their companies. And on the customer side, we found that 78% of customers expect more personalization.

To personalize the customer experience, you must fully understand your industry and ideal buyer. Whenever I want to gain a high-level understanding of any industry, I always start by building an ideal customer profile (ICP) and a buyer persona.

While these terms may seem synonymous at first glance, they’re not the same.

• An ideal customer profile describes key attributes of a company that best fits the solutions I provide. So, my ICP could include details about the company size, annual revenue, and industry.
• A buyer persona describes my prospect’s specific needs, challenges, and goals. (To get started with this step, use this free persona maker tool.)

The insight you gather from defining an ideal customer helps you personalize your sales call. Personalization, in turn, sways the decision-makers in your favor.

2. Understand your prospect’s needs and desired outcomes.

To create a compelling sales presentation, identify your prospect’s needs and propose solutions that provide a desirable outcome.

For example, if I notice that my prospect’s growth has stagnated, I’ll build my presentation around this problem. First, I’ll identify the cause of the stagnation, and then I’ll provide a solution that accelerates growth. But I can’t achieve any of these without doing my research.

In our survey, we found that 25% of sales experts also believe researching prospects before meeting them is non-negotiable. It’s a great way to build customer rapport, making the meeting run smoothly. And it goes both ways: over 90% of prospects research companies and products before engaging with a sales representative.

In-depth research will also help you determine what customer success looks like and the metrics they use to measure it. Start there and refine your strategies over time.

Bonnie Ruan, chief product officer at Beska Mold, a CNC machining manufacturer, recommends a similar tactic: “Understanding the prospect’s strategic goals and how they measure success is crucial. At Beska Mold, we often use tools like SWOT analysis to better understand how our solutions can align with and drive a prospect’s objectives.”

Pro tip: Each role within a company has unique needs and priorities. Find out what’s important to the people in these roles. This helps you craft a captivating narrative and make a sale.

3. Clearly explain how your solution suits the prospect’s needs.

Offering alignment can help you close more deals. But this isn’t just a hunch. In fact, 25% of the sales professionals we surveyed believe that selling outcomes to prospects is more effective than selling products to them.

Here’s what I do:

• After identifying a prospect’s challenges and desired business outcomes, I find a way to align these challenges with my offerings. Teams that properly execute this step close deals faster.
• Transparency is key. If my prospect has an issue I can’t resolve, I admit my limitations. And if there’s something I intend to do about it in the future, I will let them know. But whatever you do, don’t overpromise.

For instance, if I’m pitching an email marketing tool to an agency that wants to target certain subscribers based on their website behavior, but my software isn’t built for that, I’ll be as transparent as possible. I won’t promise to offer that level of personalized segmentation just to land a sale.

Setting unrealistic expectations can quickly negate your investment in a client by eroding trust. In fact, Ray Pierce, the founder and CEO of Zippy Cash for Cars, has a cautionary tale on this:

“We learned to under-promise and overdeliver by meticulously planning and executing. An early client’s ambitious goal taught us the value of reasonable expectations and open communication. Now, we work together to align expectations and celebrate accomplishments along the way to their desired future.”

4. Provide supporting information for your pitch.

As you prepare to make your sales call, remember that your prospects are savvy. They hold the positions they do because they’re good at their jobs. So, you can trust they’ll double-check your claims and throw curve balls in your presentation.

The good news is you have nothing to worry about if you’re well-prepared. However, as you prepare, understand that quality information is the key to a good outcome-based selling strategy.

Here’s what I do:

• I start my presentations by acknowledging the depth of my prospects’ situations. This makes them feel heard, and it also allows me to demonstrate my attention to detail.
• Next, I maintain a bank of resources by providing granular details of my offering and how it solves the problems I identified.
• I always substantiate claims with hard results from real-world tests to alleviate doubt. If I have some from past clients, this is a good opportunity to leverage testimonials and case studies. They prove to prospects that my solutions work because they’ve made a difference elsewhere.

Pro tip: If you have a website, consolidate all the important information on your offerings and organize them for prospects to pore over if they need to get into the nitty-gritty. If you’re yet to create one, I recommend beginner-friendly tools like WordPress and Wix.

If your product changes, update the information on your website, too. This way, you’ll always have a baseline for future presentations.

5. Present your outcome-based solution.

You’ve extensively prepared to blow your prospect’s mind. You have a killer offering, tons of research findings, and a captivating presentation. Now, it’s time to make your case.

Here’s what I do:

• Support all your claims with data from credible sources, but keep your points concise. Over the years, I learned that these show a prospect I’ve done my homework and respect their time. I also learned that personalizing my messages to align with the prospect’s point of view helps them see how my offerings relate to their desired outcomes.
• This stage is also a great opportunity to showcase product demos. But first, I work with our product development team to customize the product. Through customization, we can address inefficiencies and challenges currently affecting the prospect’s operation, making our product a great fit for them.
• Finally, you must always consider your prospect’s budget when submitting your proposal. You wouldn’t want to sabotage your efforts by quoting a price the prospect can’t afford, would you?

We all hope our presentations will flow smoothly. But sometimes, prospects object to some of our ideas. Objections can put you down, especially if you poured your heart and soul into the project.

One of the biggest challenges that up to 13% of sales professionals face is difficulty in handling objections from prospects. But it doesn’t have to be this way.

Jacob Kalvo, co-founder and CEO of Live Proxies, said this about handling objections: “Most often, the objections arise due to a lack of information or are prompted by fears over the implementation and its effects. Directly addressing these concerns with the use of detailed explanations, additional data, or examples of similar past situations would thus aid in mitigating doubts.”

Examples of Outcome Selling

The examples below illustrate how I would use an outcome-based approach to sell various products in different scenarios.

1. Content Marketing Services

It only took me a quick Google search to discover that most content marketing agencies present their offerings by highlighting features.

It’s common knowledge that such agencies offer keyword research, off-page SEO, and backlinking services.

To cut through the clutter, I’ll reveal specific business goals I can help the prospect achieve. Here’s a paragraph I might include in my pitch:

“With our custom-crafted content marketing strategies, you’ll see a boost in your website’s visibility across search engines and social networks, where your audience is more likely to find you. This exposure will drive organic traffic to your website and attract high-quality leads.”

2. E-Learning Platform

A great e-learning platform is built with usability and convenience in mind. So, I wouldn’t bore my prospects by telling them how user-friendly the app is.

Instead, I’ll talk about how the platform can help them upskill their team.

My pitch can include a paragraph like this one:

“So, what will the future look like if you invest in our e-learning platform? Well, at some point within the next twelve months — a timeline I’d be happy to discuss further — your workforce is equipped with advanced copywriting skills, saving you the cost of hiring and training new employees.”

3. Customer Service Management Software

In this scenario, a traditional sales rep would showcase impressive product features like the ticketing system, reporting tools, scalability, integration, and subscription tiers.

However, my outcome-based approach would revolve around the real results the client wants to achieve.

Here’s a preview of what I’d include in my pitch:

“Our customer service management software will help you resolve problems three times faster than manual methods, leading to a 25% increase in customer satisfaction and a corresponding increase in positive feedback.

I can point you to the success stories of ecommerce companies like yours that have achieved similar results.”

Notice how I spiced up this example with figures? It’ll give my audience even more reason to trust me. While quantifying your business value is great, you should only use this approach if you can back up your claims with real results.

Increase Your Win-Rate Through Outcome-Based Selling

Outcome-based selling can help you close more deals, reduce churn rate, and increase customer lifetime value.

As you interact with more clients and discover the different ways they use your products, you can refine your strategy and deliver more value.

Using the steps I’ve outlined in this guide, you can create your own outcome-based selling strategy that delivers measurable results and helps you reach your sales goals.

Editor’s note: This post was originally published in August 2020 and has been updated for comprehensiveness.

I‘m not sure there’s any activity more closely associated with sales than cold calling. It can be the trial by fire that preps SDRs for a career in the field, the day-to-day responsibility that keeps reps diligent and engaged, and the basis for a ton of sales org’s prospecting infrastructures.

It‘s been a staple of several salespeople’s professional lives — one that can be every bit as obnoxious as it is essential. But where does it stand in 2025? And where might it be headed in 2026 and beyond?

Well, valued reader, we here at the HubSpot Sales Blog — the literal hub and/or spot that every last sales professional can (and should) rely on for sales-related insight online — were really stewing on those questions and more. That’s why we surveyed 379 sales professionals to get a pulse on all things cold calling in 2025.

We answer questions like:

• Do sales orgs still cold call?
• How much do salespeople still cold call?
• What resources do salespeople use for cold calling?
• When is the best time to cold call?
• Why do salespeople cold call?
• What results are sales orgs seeing from cold calling?
• How can you get better at cold calling?
• What might the future of cold calling look like?
• What is the state of cold calling in 2025?

Important Context

You’re probably wondering where this data came from? Well, we leveraged Panoplai — an AI-driven research platform (that‘s amazing and I can’t plug enough) — to glean all of this wonderful insight.

We surveyed 379 sales professionals of various backgrounds across a wide range of industries. They‘re employed by businesses of virtually all sizes. Here’s a look at that distribution:

Our respondents also had varying degrees of seniority within their organizations, but they predominantly identified as being at the associate and management levels. Here’s a look at how that shook out:

Ultimately, the base represented a diverse but solid array of sales professionals — one that we felt would be a fair reflection of the field as a whole.

With that in mind, let’s get into the good stuff.

Do sales orgs still cold call?

This was the first base we wanted to cover for obvious reasons. If no one cold calls anymore, we wouldn‘t have a lot of room to produce a compelling report, and we would’ve exhausted a solid chunk of budget and effort on research that basically said, “There’s nothing to see here, losers. Go make a report about cold emailing.”

Luckily, that didn’t happen.

As per our survey:

• 24% of respondents say their sales orgs leverage cold calling as a primary sales channel.
• 25% say they leverage it as a secondary sales channel.
• 19% say they only leverage it for specific campaigns or segments.
• 12% say their orgs have moved away from cold calling.
• 21% say their orgs have never used cold calling.

Cold calling was also pretty prominent in a lot of our respondents’ personal day-to-day. Our survey found that:

• 22% of respondents say cold calling is a major part of their daily activities.
• 22% say they do it regularly but not daily.
• 21% say they do it but only occasionally.
• 8% say they don’t do it but manage people who do.
• 28% say they don’t do it at all.

How much do salespeople still cold call?

So, we’ve established that cold calling is alive and well. The question is, “Just how ‘alive and well’ is it?” How frequently are salespeople who cold call actually cold calling the cold leads they call coldly?

Well, as you can assume, it varies based on how ingrained cold calling is into a given org‘s sales process and a specific sales professional’s day-to-day.

According to our research, salespeople who say cold calling is a major part of their daily activities make calls by this distribution:

• 13% make 1-20 cold calls per week.
• 30% make 20-50 per week.
• 22% make 51-100 per week.
• 22% make 100-200 per week.
• 12% make more than 200 per week.

Here’s what that distribution looks like for sales professionals who say they cold call regularly but not daily:

• 37% make 1-20 cold calls per week.
• 36% make 20-50 per week.
• 14% make 51-100 per week.
• 6% make 100-200 per week.
• 7% make more than 200 per week.

So, how do those numbers translate to sales orgs’ overall prospecting efforts? Well, respondents who say their sales org leverages cold calling as a primary sales channel:

• 2% say it comprises 0% of their sales orgs’ prospecting efforts.
• 16% say it comprises 1-10%.
• 27% say it comprises 10-25%.
• 27% say it comprises 26-50%.
• 19% say it comprises 51-75%.
• 8% say it comprises more than 75%.

Of our respondents who say their org leverages cold calling as a secondary sales channel:

• 1% say it comprises 0% of their sales orgs’ prospecting efforts.
• 28% say it comprises 1-10%.
• 48% say it comprises 10-25%.
• 18% say it comprises 26-50%.
• 2% say it comprises 51-75%.
• 2% say it comprises more than 75%.

Of our respondents who say their sales org leverages cold calling only for specific campaigns or segments:

• 8% say it comprises 0% of their sales orgs’ prospecting efforts.
• 39% say it comprises 1-10%.
• 39% say it comprises 10-25%.
• 14% say it comprises 26-50%.

Additionally, of our respondents who say their org leverages cold calling as a primary sales channel:

• 25% say their cold call volume has significantly increased year-over-year from 2024.
• 38% say it has slightly increased.
• 22% say it has stayed about the same.
• 10% say it has slightly decreased.
• 4% say it has significantly decreased.

Of our respondents who say their org leverages cold calling as a secondary sales channel:

• 6% say their cold call volume has significantly increased year-over-year from 2024.
• 34% say it has slightly increased.
• 48% say it has stayed about the same.
• 11% say it has slightly decreased.

Of our respondents who say their sales org leverages cold calling only for specific campaigns or segments:

• 3% say their cold call volume has significantly increased year-over-year from 2024.
• 28% say it has slightly increased.
• 57% say it has stayed about the same.
• 8% say it has slightly decreased.
• 4% say it has significantly decreased.

What resources do salespeople use for cold calling?

Cold calling is tough. Anyone who‘s ever done it can attest to that, so it makes sense that sales orgs would equip their salespeople with resources to streamline, structure, and simplify the process. But what are those resources, exactly? Well, reader, here’s what we found on that front.

A solidly constructed sales script is one of the more valuable resources a sales org can leverage to ensure consistency in its calls’ messaging and execution — and a lot of reps say they use them.

We asked our respondents who personally engage in cold calling as a major part of their daily activities about them, and:

• 28% say they follow a strict sales script.
• 52% use one but adapt it significantly for each call.
• 9% say they only use bullet points or talking points.
• 11% don’t use any script.

When we asked the same question to respondents who say they cold call regularly but not daily, they responded like this:

• 8% said they follow a strict sales script.
• 54% use a script but adapt it significantly.
• 23% say they only use bullet points or talking points.
• 14% don’t use a script at all.

However, a well-constructed sales script typically isn’t enough to support consistently successful sales calls on its own. Cold calling often involves some degree of personalization, and that starts with thoughtful prospect research. So, where do most cold callers look to gather that?

When we asked about prospect research methods, our respondents who personally engage in cold calling as a major part of their daily activities answered like this:

• 59% say they look at prospects’ social media profiles
• 57% check out their prospects’ company websites and news.
• 61% look at their CRM data and past interactions.
• 34% leverage third-party intelligence tools.
• 11% say they don’t typically research before calling.

When we asked the same question to respondents who say they cold call regularly but not daily, they responded like this:

• 48% look at prospects’ social media profiles
• 57% check out their prospects’ company websites and news.
• 61% look at their CRM data and past interactions.
• 30% leverage third-party intelligence tools.
• 7% say they don’t typically research before calling.
• 1% use other methods.

Sales orgs often look beyond resources like sales scripts and prospect research processes for cold calling, folding relevant tools into their tech stacks.

When we asked respondents who personally engage in cold calling as a major part of their daily activities what cold calling tech their teams use:

• 45% said they use a sales engagement platform.
• 59% said they use a CRM.
• 49% said they use a contact/lead database.
• 23% said they use conversation intelligence software.
• 33% said they use a call recording and analysis tool.
• 16% said they use voicemail drop software.
• 26% said they use call scheduling tools.
• 15% said they use a call script or talk track library.
• 2% said they use other resources.

Here’s how our respondents who say they cold call regularly but not daily, responded:

• 50% said they use a sales engagement platform.
• 54% said they use a CRM.
• 50% said they use a contact/lead database.
• 25% said they use conversation intelligence software.
• 26% said they use a call recording and analysis tool.
• 15% said they use voicemail drop software.
• 33% said they use call scheduling tools.
• 25% said they use a call script or talk track library.

Of course, you can‘t support a thoughtful, effective cold calling strategy if you don’t track your results — so naturally, we asked our respondents who personally engage in cold calling as a major part of their daily activities how they primarily track their cold calling results. Here’s how they answered:

• 48% primarily use a CRM.
• 22% primarily use spreadsheets.
• 18% use a dedicated sales engagement platform.
• 11% use manual notes.
• 1% don’t formally track metrics.

Here’s how our respondents who say they cold call regularly but not daily answered the same question:

• 44% primarily use a CRM.
• 24% primarily use spreadsheets.
• 17% use a dedicated sales engagement platform.
• 10% use manual notes.
• 6% don’t formally track metrics.

Also, any survey about anything in 2025 isn’t complete with some questions about AI, and this report is no exception.

When we asked our respondents who cold call as a major part of their daily activities about the extent to which they leverage AI tools to support their cold calls, they answered like this:

• 23% say they use AI tools extensively to support their cold calling efforts.
• 49% use AI tools occasionally to support their cold calling efforts.
• 17% don’t use AI tools to support their cold calling efforts but plan to.
• 11% don‘t use AI tools to support their cold calling efforts and don’t plan to.

When we asked the same question of our respondents who say they cold call regularly but not daily, they responded like this:

• 11% say they use AI tools extensively to support their cold calling efforts.
• 44% use AI tools occasionally to support their cold calling efforts.
• 30% don’t use AI tools to support their cold calling efforts but plan to.
• 14% don‘t use AI tools to support their cold calling efforts and don’t plan to.

That last question probably has you wondering, “What kind of impact has AI had on cold calling?” Well, regardless of whether you actually asked that, we’re going to tell you.

Of our respondents who cold call as a major part of their daily activities:

• 32% say it has completely transformed their approach to cold calling.
• 37% say it has moderately improved their approach.
• 20% say it has had a minimal impact so far.
• 5% say it has had no impact at all.
• 7% don’t use AI for cold calling.

When we asked the same question of our respondents who say they cold call regularly but not daily, they responded like this:

• 12% say it has completely transformed their approach to cold calling.
• 45% say it has moderately improved their approach.
• 24% say it has had a minimal impact so far.
• 11% say it has had no impact at all.
• 8% don’t use AI for cold calling.

When is the best time to cold call?

Cold calling resources can‘t do too much for you if you don’t apply them strategically, and timing is a key component there. Catching a prospect at the wrong time (or missing them altogether) really undermines your shot at converting.

When we asked what time of day our respondents who cold call as a major part of their daily activities found to be most productive for cold calling, here’s what they said:

• 20% said early morning (8-10 am)
• 38% said late morning (10 am -12 pm)
• 26% said early afternoon (12 pm – 3 pm)
• 11% said late afternoon (3-5 pm)
• 6% said after hours (after 5 pm)

When we asked the same question of our respondents who say they cold call regularly but not daily, they responded like this:

• 11% said early morning (8-10 am)
• 51% said late morning (10 am -12 pm)
• 25% said early afternoon (12 pm – 3 pm)
• 11% said late afternoon (3-5 pm)
• 2% said after hours (after 5 pm)

We also wanted to know if any specific day of the week was particularly primed for successful cold calls, so we asked respondents who cold call as a major part of their daily activities what day of the week they thought was best for cold calling. Here’s how they answered:

• 14% said Monday
• 30% said Tuesday
• 27% said Wednesday
• 17% said Thursday
• 12% said Friday

When we asked the same question of our respondents who say they cold call regularly but not daily, they responded like this:

• 24% said Monday
• 39% said Tuesday
• 21% said Wednesday
• 9% said Thursday
• 7% said Friday

Why do salespeople cold call?

All of this information begs the question, “What’s the endgame here?” What’s the ideal outcome of one of these calls? Well, as we found, that “ideal outcome” varies a lot from org to org.

According to our study, these are the main goals behind cold calling for our respondents who cold call as a major part of their daily activities:

• 23% say the most positive outcome of a cold call is scheduling a follow-up call.
• 43% say it’s setting a meeting or demo.
• 6% say it’s getting referred to another contact.
• 26% say it’s generating immediate interest in a product or service.
• 2% say it’s gathering valuable information.

When we asked the same question of our respondents who say they cold call regularly but not daily, they responded like this:

• 15% say the most positive outcome of a cold call is scheduling a follow-up call.
• 38% say it’s setting a meeting or demo.
• 11% say it’s getting referred to another contact.
• 27% say it’s generating immediate interest in a product or service.
• 8% say it’s gathering valuable information.

What results are sales orgs seeing from cold calling?

That question might be the crux of this whole report — is cold calling actually effective? Does the strategy still hold weight and deliver results that make it worth the effort, investment, and potential verbal abuse from prospects? Here’s what we found.

Cold calls have notoriously low conversion rates, and our respondents mostly confirmed that.

When we asked our respondents who cold call as a major part of their daily activities what their conversion to appointment rate on their cold calls was, they answered like this:

• 2% say they see a conversion rate of less than 2% on their calls.
• 35% say they see one of 2-5%.
• 32% say they see one of 6-10%.
• 21% say they see one of 11-20%
• 10% say they see one of over 20%

When we asked the same question of our respondents who say they cold call regularly but not daily, they responded like this:

• 6% say they see a conversion rate of less than 2% on their calls.
• 26% say they see one of 2-5%.
• 50% say they see one of 6-10%.
• 14% say they see one of 11-20%
• 4% say they see one of over 20%

It can also be tough to even get a prospect on the phone in the first place. According to our respondents who cold call as a major part of their daily activities:

• 15% say their typical response rate is less than 5%.
• 24% say it’s between 5-10%.
• 38% say it’s between 11-20%
• 18% say it’s between 21-30%.
• 5% say it’s more than 30%.

When we asked the same question of our respondents who say they cold call regularly but not daily, they responded like this:

• 2% say their typical response rate is less than 5%.
• 44% say it’s between 5-10%.
• 32% say it’s between 11-20%
• 12% say it’s between 21-30%.
• 10% say it’s more than 30%.

Our study also indicates that sales professionals seem to keep things moving when cold calling — not getting too hung up on individual prospects.

Of our respondents who cold call as a major part of their daily activities:

• 22% make 1-2 call attempts before moving on from a prospect.
• 55% make 3-5 attempts.
• 13% make 6-8 attempts.
• 4% make 9-12 attempts.
• 6% make more than 12 attempts.

When we asked the same question of our respondents who say they cold call regularly but not daily, they responded like this:

• 26% make 1-2 call attempts before moving on from a prospect.
• 56% make 3-5 attempts.
• 13% make 6-8 attempts.
• 4% make 9-12 attempts.
• 1% make more than 12 attempts.

How can you get better at cold calling?

So, we‘ve addressed the “what” and “why” behind cold calling. Now, let’s take a closer look at the “how.”

When we asked our respondents who regularly cold call as a major part of their daily activities what they feel the biggest challenges with cold calling in 2025 are, they answered like this:

• 40% said it was getting past gatekeepers.
• 40% said it was reaching decision-makers.
• 44% said it was overcoming initial rejection.
• 28% said it was standing out from competitors
• 15% said it was privacy regulation and compliance.

When we asked the same question of our respondents who say they cold call regularly but not daily, they responded like this:

• 30% said it was getting past gatekeepers.
• 44% said it was reaching decision-makers.
• 49% said it was overcoming initial rejection.
• 31% said it was standing out from competitors
• 18% said it was privacy regulation and compliance.

We also dug deeper into the specific cold calling tactics that sales professionals see the most success with.

Of our respondents who cold call as a major part of their daily activities:

• 55% cite a personalized, research-driven approach as one of the cold calling techniques that has given them the best results in the past year.
• 34% cite using pattern interrupt or unexpected openings.
• 29% cite leading with industry insights and trends.
• 13% cite problem-centric questioning.
• 9% cite leveraging social proof or case studies.
• 1% cite other methods.

When we asked the same question of our respondents who say they cold call regularly but not daily, they responded like this:

• 50% cited a personalized, research-driven approach as one of the cold calling techniques that has given them the best results in the past year.
• 25% cite using pattern interrupt or unexpected openings.
• 32% cite leading with industry insights and trends.
• 31% cite problem-centric questioning.
• 7% cite leveraging social proof or case studies.

We also asked what our respondents found to be the most effective openers to cold calls.

Of our respondents who cold call as a major part of their daily activities:

• 46% open cold calls with a direct introduction and purpose statement.
• 20% start with a question to generate interest.
• 20% start with a reference to research or a specific company situation.
• 10% start with a mention of a mutual connection or referral.
• 5% use pattern interrupt or an unexpected statement.

When we asked the same question of our respondents who say they cold call regularly but not daily, they responded like this:

• 39% open cold calls with a direct introduction and purpose statement.
• 25% start with a question to generate interest.
• 15% start with a reference to research or a specific company situation.
• 18% start with a mention of a mutual connection or referral.
• 2% use pattern interrupt or an unexpected statement.

The difference between a successful cold call and a hard rejection can also rest on how long sales professionals can keep their prospects on the phone.

Of our respondents who cold call as a major part of their daily activities:

• 4% said a successful call generally lasts under two minutes.
• 49% say it usually lasts between 2-5 minutes.
• 29% say it usually lasts between 6-10 minutes.
• 15% say it usually lasts between 11-15 minutes.
• 4% say it usually lasts longer than 15 minutes.

When we asked the same question of our respondents who say they cold call regularly but not daily, they responded like this:

• 6% said a successful call generally lasts under two minutes.
• 42% say it usually lasts between 2-5 minutes.
• 36% say it usually lasts between 6-10 minutes.
• 12% say it usually lasts between 11-15 minutes.
• 5% say it usually lasts longer than 15 minutes.

Cold calling is also often just a piece of the puzzle. Sales orgs generally take a dynamic, multi-channel approach to prospecting.

When we asked our respondents who cold call as a major part of their daily activities about the other channels they pair with cold calling, this is how they answered:

• 73% combine email with cold calling.
• 44% use social media outreach.
• 29% use direct mail.
• 54% use SMS or text messaging.
• 12% use video messages.
• 2% use other methods.

When we asked the same question of our respondents who say they cold call regularly but not daily, they responded like this:

• 76% combine email with cold calling.
• 37% use social media outreach.
• 25% use direct mail.
• 54% use SMS or text messaging.
• 8% use video messages.

What might the future of cold calling look like?

We’ve established that cold calling still has a pretty solid foothold in the sales landscape, but is that going to last? We asked some questions to get to the heart of that question.

Here’s how all of our respondents answered when we asked them how effective they feel cold calling is as a sales strategy in 2025:

• 28% said it’s not effective.
• 52% said it’s somewhat effective.
• 16% said it’s very effective.
• 4% said it’s extremely effective.

When we asked our respondents whose orgs leverage cold calling as a primary sales channel whether cold calling will be more or less important to their sales process in 2026, they answered like this:

• 25% it will be much more important.
• 21% said it will be somewhat more important.
• 36% said it will be about as important as it currently is.
• 9% said it will be somewhat less important.
• 9% said it will be much less important.

When we asked the same question of respondents whose orgs leverage cold calling as a secondary sales channel:

• 12% said it will be much more important.
• 26% said it will be somewhat more important.
• 41% said it will be about as important as it currently is.
• 18% said it will be somewhat less important.
• 3% said it will be much less important.

When we asked the same question of respondents whose orgs only leverage cold calling for specific campaigns or segments:

• 0% said it will be much more important.
• 21% said it will be somewhat more important.
• 51% said it will be about as important as it currently is.
• 19% said it will be somewhat less important.
• 8% said it will be much less important.

We also asked our respondents what emerging trends they believe will impact cold calling going forward.

According to our research, respondents whose orgs leverage cold calling as a primary sales channel answered like this:

• 63% say advanced AI call assistance will impact cold calling next year.
• 33% say increased privacy regulations will impact it.
• 32% say integration with digital channels will impact it.
• 19% say voice analytics and real-time coaching will impact it.
• 21% say the decline of traditional phone usage will impact it.

When we asked the same question of respondents whose orgs leverage cold calling as a secondary sales channel. Here’s how they answered:

• 55% say advanced AI call assistance will impact cold calling next year.
• 31% say increased privacy regulations will impact it.
• 27% say integration with digital channels will impact it.
• 27% say voice analytics and real-time coaching will impact it.
• 22% say the decline of traditional phone usage will impact it.

When we asked the same question of respondents whose orgs only leverage cold calling for specific campaigns or segments. Here’s how they answered:

• 56% say advanced AI call assistance will impact cold calling next year.
• 22% say increased privacy regulations will impact it.
• 31% say integration with digital channels will impact it.
• 19% say voice analytics and real-time coaching will impact it.
• 38% say the decline of traditional phone usage will impact it.
• 1% say other factors will impact it.

Finally, we wanted to know what skills were the most important for successful cold calling in 2025.

Of our respondents who cold call as a major part of their daily activities:

• 51% say research and personalization are key.
• 56% say resilience and persistence.
• 51% say active listening and adaptability.
• 27% say strategic questioning.
• 17% say technological proficiency.

When we asked the same question of our respondents who say they cold call regularly but not daily, they responded like this:

• 56% say research and personalization are key.
• 45% say resilience and persistence.
• 63% say active listening and adaptability.
• 37% say strategic questioning.
• 15% say technological proficiency.

What is the state of cold calling in 2025?

In a breath? Very much alive.

In more than a breath? Our survey indicates that 68% of sales professionals are employed by a sales org that leverages cold calling in some capacity, and 65% at least occasionally cold call themselves. Additionally, 63% of the sales professionals we surveyed who regularly cold call as part of their daily activities say their call volume has increased year over year since 2024.

Those figures (among others) indicate that most sales orgs haven’t jumped ship on the practice, and many of the ones who leverage it appear to be doubling down on the strategy — even with the rising tide of digital transformation shaping new prospecting methods.

There‘s something to the human element of cold calling that can’t be replicated via cold email or social media outreach. That could be a driving factor behind cold calling’s survival.

Like any other legacy-ish practice in sales, cold calling is changing. New resources and processes (especially AI-related ones) are augmenting, enhancing, and potentially threatening how it’s conducted.

For now though, cold calling is still a mostly reliable staple of several sales orgs‘ broader strategies. It doesn’t appear to be going anywhere anytime soon — but as the sales landscape continues to shift, you should expect cold calling to shift with it.

Over the last several years, I’ve learned firsthand just how important key account management can be. But what is key account management? And, how can teams develop a key account management framework that will set them and their organizations up for success?

In this comprehensive guide to key account management, I’ll walk through what key account management is, the role of a key account manager, and how to identify key accounts. Then, I’ll share some of my favorite expert-approved tips and tricks for developing a winning key account management strategy.

Ready to get started? Let’s dive right in!

Table of Contents

• What is key account management?
• What is a key account manager?
• Key Account Management Strategy
• Why implement key account management?
• Key Account Management Skills
• Key Account Manager Job Description
• Key Account Manager vs. Account Manager
• Key Account Management vs. Sales
• How to Identify Key Accounts
• Key Account Management Plan Template
• The Key Account Management Process
• Common Challenges of Key Account Management
• Is Key Account Management the Right Strategy for Your Business?
• Key Account Management Best Practices

Businesses that use this strategy often enjoy greater sales volume and longer-lasting strategic relationships. Moreover, they also have more opportunities to grow revenue from these accounts through upselling and cross-selling.

This is backed up by the data: Recent research shows that key accounts are 60-70% more likely to close than new clients, and they spend 33% more than new customers.

Of course, key account programs do come at a cost. Offering customers more resources and better discounts isn’t free. So, this strategy can naturally reduce your margins in some cases. However, I’ve found that in the long term, key account management often pays off.

After all, a successful key account management strategy isn’t focused on boosting near-term profit margins — it’s focused on increasing the longevity of a company’s most valued clients. This is a great example of the Pareto Principle, or the idea that 20% of the effort may bring in 80% of the benefits. The long-term profits you’ll make if you increase major clients’ tenure with your business are likely to more than make up for the discounts you offer and the additional resources you provide.

Why implement key account management?

Why is it so important to implement a key account management strategy? Below, I’ll share some of the biggest benefits of this approach.

Happier Customers

First and foremost, key account management is one of the most effective ways to keep your customers happy. As digital marketing strategist Drup Shah explains, “By focusing on your key accounts, you can provide personalized attention, timely support, and customized solutions that address their specific pain points. This results in higher customer satisfaction levels, fostering long-term loyalty and advocacy.”

In other words, implementing key account management is a great way to ensure that the needs of your major clients are met. You can also make sure that your team goes above and beyond to prioritize big clients, responding rapidly and accurately to their concerns. As a result, these customers are likely to be happier with your business, making them more likely to become repeat buyers. They may even recommend your products or services to their friends.

Less Churn

Another vital reason to implement key account management is to reduce churn among your highest-value customers. Shah also speaks compellingly to the importance of reducing churn through key account management, arguing that “Through proactive relationship management and regular communication, a [key account management] strategy helps build trust, mitigate risks, and prevent churn.”

Shah goes on to describe how reducing churn in this way can help you stay ahead of the competition. “By delivering exceptional value and consistently exceeding expectations,” he notes, “you enhance client loyalty and reduce the likelihood of losing key accounts to competitors.”

Greater Revenue

Finally, a recent study of more than 500 B2B companies found that key account management substantially boosts both market and financial performance. This makes sense — after all, key account management is about focusing your limited sales resources on retaining the customers who are likely to drive the highest levels of revenue.

Steffen Thiel, partner and global sector head for marketing and sales at the international consultancy Roland Berger, points out that the impact of key account management on revenue is especially important from a competitive standpoint. He reflects, “Looking into increasing global competition, well-executed key account management can be a decisive competitive advantage to safeguard or grow revenue.”

Of course, the benefits of key account management can only be realized when you have the right staff in place. So, let’s take a look at the role of the key account manager, as well as how these managers interact with the rest of the team.

Moreover, KAMs don’t just find ways to address their clients’ challenges and opportunities — they also create and present reports about each client’s progress to key stakeholders across the organization.

Importantly, while some companies simply assign existing sales reps to act as KAMs for one or two customers, I’ve found that this isn’t usually the best approach. Unless your team is so small that you can’t afford a dedicated KAM, it’s best to separate sales and account management, as these roles really require very different mindsets and skills. Specifically, a key account manager needs to be focused on becoming critical to their customer’s operations — not just on winning a deal.

This is not an easy job. Below, I’ll share some of the skills that I believe are the most important for a key account manager to be successful.

Key Account Management Skills

1. Relationship-Building

A key account manager must have the relationship-building skills necessary to get to know their customers on a deep level. They must develop an intimate, sophisticated understanding of each key account’s strategy, market position, finances, products, and organizational structure. Then, they can use this knowledge to make the business case to their clients that the price changes, customization, and add-ons they can offer will add value.

2. Cross-Functional Collaboration

Key accounts don’t usually buy off-the-shelf: They’re likely to want a custom blend of products and services tailored to their needs. As such, it’s crucial for a KAM to be able to work across the organization to develop these offerings in collaboration with other teams.

3. Leadership Skills

Key account management is a team effort. A successful KAM will need to have the leadership chops necessary to guide team members such as salespeople, marketers, technical support, and/or onboarding specialists.

4. Coordination and Planning

Key account programs have a lot of moving parts. To be successful, KAMs should have the coordination and planning skills to organize both short- and long-term efforts. Importantly, that includes not just planning these activities but also implementing them, analyzing the outcomes, and applying those takeaways to future strategies.

5. Business Acumen

Another critical skill in key account management is business acumen. To help their customers succeed and to communicate relevant changes effectively, KAMs must develop a thorough understanding of how their clients make money. Armed with this knowledge, a KAM will be able to solidify their position as a trusted resource and advisor for their clients.

6. Analytical Skills

In addition to business acumen, I’ve found that key account managers also need to have an analytical mindset. A KAM’s analytical skills will help them create and present business cases, and their ability to think quickly and apply their knowledge to various clients and markets will help them be confident when presenting information to customers.

7. Written and Verbal Communication

Finally, one of the key responsibilities of a KAM is to keep clients and other stakeholders updated about any issues. That means a lot of emails and a lot of live presentations — and as such, the ability to write and speak clearly is a must.

Key Account Manager Job Description

Ready to start the hiring process? Use this key account manager job description to find and attract the most qualified candidates:

Key Account Manager vs. Account Manager

It’s important to note that key account managers are not the same thing as regular account managers. Account managers manage non-key clients: customers that bring in less revenue or that may not be as much of an ideal product fit. In contrast, key account managers focus only on a company’s most valuable clients.

The relationship between account managers and key account managers is not hierarchical. Account managers do not report to KAMs, and KAMs typically do not report to account managers. While KAMs are generally more senior, both roles are usually found either on the same team or on adjacent teams.

Key Account Management vs. Sales

Key account management and sales are also two very different things. Key account management is all about managing existing high-value accounts, whereas sales is about closing new accounts.

As a result, while a salesperson (by necessity) focuses on the short term, a KAM prioritizes the future. In addition, sales reps generally zero in on specific opportunities, while KAMs have broader goals, including collaborating with the customer on mutually beneficial projects, helping the customer meet their objectives, and making sure the customer is getting the necessary support.

If you’re hiring a key account manager for the first time, one of the first duties they perform may be selecting the key accounts that they’ll serve. Below, I’ll share some of my favorite strategies for identifying key accounts.

How to Identify Key Accounts

While there’s no one-size-fits-all solution to identifying your company’s key accounts, key accounts tend to demonstrate value in a few ways:

• They represent a disproportionate percentage of revenue.
• They refer new prospects to your company.
• They give your business credibility in their industry.

Beyond these high-level criteria, I’d suggest choosing some other key factors from the list below to use when determining which accounts are the most critical for your business:

• Product fit — or how closely your product matches the client’s needs and requirements.
• Average transaction size — the average amount of money the client spends with your business.
• Revenue potential — the amount of money the client could reasonably spend with your business in the future.
• Purchasing process — the process by which the client purchases your product. For example, is there a single stakeholder who can make a purchase decision, or does a larger group have to weigh in? How long does payment processing take?
• Partner history and potential. Are they currently or were they formerly a partner of your company? Do they have the potential to become a partner in the future?
• Customer tenure — the amount of time the account has been a client of your business.
• Solvency — the client’s financial ability to pay their debts.
• Existing relationships — the relationships the client has with other businesses that could potentially also become your clients.
• Cultural fit — alignment between the way the client treats its customers and staff and how your organization treats its own customers and staff.
• Geographic alignment — if applicable, the physical proximity to your business’s headquarters or service centers.

Once you’ve decided which of these factors are most relevant in your unique business context, you’ll want to develop a formula that weighs each one based on its relative importance to your organization. Then, you can use that formula to calculate how much potential there is to expand each account.

If you’re not sure where to start, I suggest using a key account scoring matrix to identify your key accounts across these criteria: Simply evaluate each account based on the criteria you selected and assign each account a score from 1 to 10 in each category. The accounts with the highest scores will be your key accounts.

Importantly, while I know it can be tempting to label a large number of your customers as “key accounts” to make it look like your company is doing really well, it’s better to be more conservative. After all, you don’t want to overcommit yourself. Starting a KAM program requires organization-wide change, support from the C-suite, hiring and training employees, and implementing new processes. Starting small allows you to focus your efforts — and that focus is critical if you want to provide real, lasting value to your customers.

So, you’ve got a short list of your key accounts, and you’ve hired the right folks to be key account managers. Now, it’s time to execute the strategy. But how do you do that?

With this four-step process, I’ll guide you through defining and executing a successful key account management strategy.

1. Set objectives.

Before you can share the great news with your customers that they’re being promoted to key account status, you need to level-set expectations (both internally and externally). That means setting key account management objectives.

This process works just like it would for any other strategy. Using the why, how, what objective-setting framework, you can get to the root motivation underpinning your key account management strategy. You’ll also come out on the other side with measurable results.

Source

2. Deliver exceptional products and services.

Next, once you’ve defined your goals, it’s time to act on the objectives you’ve set by outlining how you’ll deliver on those promises.

Whether you’re selling physical products (such as clothing or accessories), a software-as-a-service offering, or some other kind of product or service, you’ll need to have a reliable way to deliver those products to your key accounts consistently.

Your KAM is responsible for ensuring not only that this happens but also that the client is delighted every single time. This means they’ll need to work closely with your sales, service, and operations teams to get everyone on the same page. It could also be worthwhile to set up key-account-specific processes and procedures so that the client knows what to expect and your team knows how to deliver.

3. Measure account growth outcomes.

As with any objective, setting it is only step one. Once you’ve defined your goals and built the systems necessary to deliver exceptional products and services, you’ll need to make sure you’re measuring the results.

At a high level, the end goal of any key account management strategy is to grow the account in terms of both revenue and the quality of the relationship. To measure your progress, you can start by using the metrics that correspond to the criteria you used to select the key accounts in the first place.

Beyond these basic metrics, I’ve also found that it’s often helpful to dive into some more quantitative criteria as well. For example, to measure product–market fit, you can look at factors such as adoption or usage rate within the account to determine how much value your product or service is actually providing to the client.

4. Anticipate future needs.

Finally, an effective key account management strategy brings it full circle by anticipating the future needs of each key account.

For example, if a client is purchasing more units than they did before, that may mean that there aren’t any more opportunities for volume growth — but it could still be possible that the average transaction size has room to increase. Similarly, there may be an opportunity to have the key account beta test a new product or offering that would align even more closely with their target market.

At the end of the day, I’ve learned that these strategies often boil down to keeping the account engaged (even beyond monetary transactions). Remember: Key account management is all about building and maintaining mutually beneficial relationships. So, be sure to think outside the invoice when looking for ways to strengthen these vital ties.

Key Account Management Plan Template

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The Key Account Management Process

According to the COO and co-founder of the sales software provider DemandFarm, Milind Katti, there are nine steps to take when setting up a key account management process. Below, I’ll walk through each step of this process, giving you the tools you need to get started on your own.

Step 1: Build a framework.

The first step Katti recommends is to build a key account management framework that will define how you move forward. This part of the key account management process is all about identifying your goals, targets, and needs, as well as documenting a roadmap that includes your major milestones and objectives.

Step 2: Segment accounts.

Next, use the criteria I described above to start to segment your accounts into different buckets. Rather than treating every customer as a key account, I’ve learned that it’s essential to come up with a consistent approach to identifying which clients are really your key accounts — and which can safely be considered lower priority.

Step 3: Define roles and responsibilities.

As with many business efforts, you’re unlikely to get very far with key account management if you fail to define clear roles and responsibilities. The specific organizational structure will vary depending on the unique needs of your organization, but it’s important to identify all the stakeholders that may be involved.

This will likely include functions such as Account Management and Sales Enablement, as well as departments such as Sales Ops, Revenue Ops, and others. To set yourself up for success, I’ve found that it’s critical to define each stakeholder’s role in the process, and to establish systems to ensure these teams and individuals can collaborate effectively with one another.

Step 4: Create a key account plan.

Once you’ve started thinking through the main building blocks of your key account management strategy, it’s time to put them together into a cohesive plan. This plan should include each account’s top priorities and needs, and it should also link to all relevant customer information. Then, make sure to share the plan with all relevant internal and external stakeholders, so that everyone can get (and stay) on the same page.

Step 5: Dive into the details.

To start diving into the details and putting your high-level plan into action, ask yourself the following questions:

1. What needs to be done?
2. When does it need to be done by?
3. Who will own the project, and who else needs to be involved?
4. How will the outcome be measured and communicated?
5. What happens if something goes wrong?

Then, use your answers to these questions to fine-tune your plan and ensure that you’ve accounted for every outcome and eventuality.

Step 6: Iterate, iterate, iterate.

I’ve learned firsthand that no effective plan can ever be set in stone. As Katti explains,

“Account plans are dynamic, and relationships keep changing.” Because of this reality, he recommends that “a vital part of the key account management process includes course-correcting plans along the way to ensure growth and progress in your accounts.”

Step 7: Communicate with all relevant stakeholders.

Of course, you can develop the best plan in the world — but if you fail to communicate it to the relevant stakeholders, you’re unlikely to get very far. That’s why it’s so important to map out all the internal and external stakeholders who will need to buy into your key account management plan.

Internally, you’ll need to identify all the team members who will have to be kept up to date on the status of your key accounts. At the same time, you’ll also want to define all the external stakeholders who should be involved. Then, once you’ve identified all of these stakeholders, make sure to communicate clearly and consistently to keep everyone aligned.

Step 8: Create an opportunity planning framework.

In addition to your key account management framework, it’s also important to develop a comprehensive framework for monitoring and taking advantage of new opportunities. By mapping key stakeholders and identifying potential challenges and opportunities as they arise, you can track your progress and proactively stay ahead of any changes.

Step 9: Track your progress.

Finally, once you’ve completed this entire process, it’s important to continuously track your progress and identify ways to improve. Metrics you may want to consider include profits, revenues, the quality of your customer relationships, and whether your team has achieved the other key goals and objectives you’ve defined for yourself.

Common Challenges of Key Account Management

Key account management can add substantial value to many organizations — but it’s not without its challenges. Here are some of the most common stumbling blocks that I’ve seen teams run into when trying to implement a key account management system.

1. Getting Stuck in Reaction Mode

One of the biggest challenges when it comes to managing key accounts is to avoid a reactive mindset. Take it from me: In our busy world, with constant emails and messages to review and never-ending to-do lists to complete, it can feel like there just isn’t time to be proactive.

Unfortunately, if you’re looking to delight your key accounts, a reactive approach just won’t cut it. That’s why I’ve learned that it’s essential to seek out opportunities to add value proactively rather than waiting for your high-value customers to come to you with complaints.

2. Focusing on the Product (Instead of the Relationship)

When I like the product I’m selling, it’s only natural that I tend to get really excited about it. But, I’ve learned over time that to manage key accounts effectively, it’s vital to focus on the relationship rather than getting bogged down in talking endlessly about the details of the product.

To be sure, it is still critical for key account managers to know their products and to be prepared to answer any questions their clients may have. But when it comes to how you frame your conversations, I always recommend prioritizing building a positive relationship over droning on and on about your product’s many features and benefits.

3. Struggling With a Difficult Client

Some clients are just difficult. When a customer is rude, unresponsive, or otherwise unpleasant to deal with, it can be a real challenge.

To address this, Deloitte director Swarna Renu reminds us that “difficult clients are difficult for a reason. Either they never saw the value of the connection, or they have had a tough time with some of your peers. It is absolutely critical to do your homework to find out. To find what will work, either have a clear agenda or have a way to address the concerns they have had.”

If you find yourself struggling with a difficult client, ask yourself what the underlying cause might be. Then, you can start to figure out whether you can address their concerns or whether they’re just not a great fit for your company’s products.

4. Balancing Multiple Key Accounts

Finally, one of the things I struggle with the most when managing my own key accounts is how to prioritize between multiple clients. After all, I want to deliver my best to each and every client — but there are only so many hours in a day.

Account coordinator for the international firm Orica, Valentina Barreno recognizes that “managing multiple accounts with varying needs, expectations, and deadlines is indeed a multifaceted challenge.” Barreno recommends several strategies to navigate this.

“I prioritize getting to know each client and their specific needs, ensuring to address them in the best possible way, recognizing that each client is unique,” she explains.

In addition, Barreno notes that “maintaining a clear overview of goals, tasks, and progress for each account is crucial. [In addition,] effective communication with clients and my team ensures we establish realistic expectations and boundaries, fostering a collaborative environment.” And finally, she suggests that “leveraging tools and systems for organization and automation is fundamental to optimizing workflows and efficiency.”

Ultimately, there’s no getting around the reality that your time and energy are limited. To manage your key accounts successfully, it’s essential to think strategically about how you will balance all their needs — without burning out yourself.

Is Key Account Management the Right Strategy for Your Business?

Personally, I’m a big fan of key account management. But despite its many potential benefits, it’s not a good fit for every organization. So, before you go all-in on this approach, I definitely recommend that you consider the following factors.

1. How transactional your current sales process is.

If your sales cycle is relatively short and your sales reps have minimal interaction with prospects, key account management probably isn’t the right choice. After all, key accounts require consultative selling techniques, and it will be hard to convince your salespeople to adopt entirely new processes for just a few clients.

2. Whether your product has upsell and cross-sell potential.

There’s little point in continuing a relationship with a customer after the sale if they’re definitely not going to buy more. Obviously, you should still provide excellent customer service and support to promote positive word-of-mouth. However, if upsell and cross-sell potential are limited, key account management may not make as much sense.

3. Your ability to “land and expand.”

The above rule has one exception: Even in situations where you can’t upsell your client directly, key account strategy may still be a good investment. That’s especially true if getting your foot in the door of the prospect’s company creates the opportunity to grow the account by selling to other departments.

4. The competitive landscape.

In some cases, a key account program can serve as a major competitive advantage. For example, imagine your customer has narrowed down their choice of vendor to you and one other company. If you can promise to make them a key account — and your competition can’t do the same — it could help you win the deal.

5. Company capacity and resources.

Time and time again, I’ve seen that successful key account management is only possible with company-wide support, executive buy-in, and a dedicated key account team. You’ll also need enough runway to cover an investment that might take 12, 24, or even 36 months to recoup.

According to Mike Schultz, co-founder and strategic advisor of RAIN Group, the most significant difference between high-performing companies and everyone else is an effective account planning tool. Schultz argues that a key account plan helps you identify the most significant possibilities for growth, potential roadblocks, threats from the competition, and more.

Indeed, an analysis from RAIN Group of more than 370 companies found that high-performing companies were almost three times less likely to struggle with maintaining an effective account planning tool.

Source

As such, an effective plan should consider your company’s capacity and resources by addressing the following four areas:

Relationships

First, as part of the process of putting together your key account plan, it’s critical to map out every customer stakeholder. This information will help you figure out which relationships you need to build and maintain — as well as anyone who could potentially derail your plans.

Note each person’s title, role in the decision-making process, how much contact you’ve had with them, and how “friendly” they are.

Customer’s Business

Next, to provide value to the account and find mutually beneficial opportunities, you’ll need an in-depth, sophisticated understanding of their business. Stay up to date on their key business goals, financial health, and current initiatives, and regularly run a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis.

Account Goals

This section of the plan should cover how much this account is currently worth, which opportunities you’ve lost and won with them, where you see potential revenue growth, and your projected value for those opportunities.

It should also outline your short-, mid-, and long-term goals, as well as the owner of each. For example, maybe your sales engineering team is responsible for getting a meeting with the CTO by January. A nearer-term goal might be getting 60% of a new department using the free version of your tool, but your ultimate objective is to transform the entire department into paying users.

Account Strategy

Finally, this section of the plan is arguably the most important. It takes your goals (in other words, your account wishlist) and breaks down the actions you need to take to reach them.

Use the same structure you used for your objectives: short-term, mid-term, and long-term. For example, the key goals you’d set for your January meeting with the CTO might be:

• Strengthen relationship with VP of Engineering.
• Develop a compelling value proposition for meeting with the CTO.
• Ask a VP to request a meeting with the CTO on your behalf.

The more specific and actionable these goals are, the better. After all, strategic account management involves juggling numerous initiatives, priorities, and campaigns all at once. Without clear direction, your team is liable to go off in a thousand different directions. Plus, with this approach you can also continuously adapt your strategy down the line if something changes.

Key Account Management Best Practices

Over the course of my career, I’ve learned that there’s no one solution to account management that will work perfectly for everyone. That said, there are several best practices that I’ve found can be effective in many situations. Below, I’ll share some of my personal favorite key account management best practices.

1. Select the right accounts.

A winning strategy hinges on being selective. So, make sure that you pick the right key accounts — and that you apply the same criteria to each one.

Relatedly, I always recommend regularly reviewing your key accounts to verify whether they still require additional time, energy, and resources. If their performance justifies the resource allocation, then continue on. But if they are underperforming, or if the account no longer feels like a good use of additional resources, you may want to consider scaling back.

It’s also important to keep track of non-key accounts that may one day become key accounts. For example, if a smaller customer is about to experience significant growth, they may qualify as a strategic account. Courting them now will earn you their loyalty before any other company in the space.

Finally, ensure that you periodically assess your selection criteria. Are your current key accounts generating as much ROI as you anticipated? If not, it could be a sign you’re using the wrong measures when determining which clients should be your key accounts.

2. Build a dedicated team.

Even the best KAMs can’t get the job done alone. Each key account manager should have a cross-functional support team to assist in the proper execution of deliverables related to the client’s account. To serve your clients well, these teams should include a range of skills, disciplines, and expertise.

In addition, if possible, I have found that it can be helpful to name an executive sponsor for each account. These sponsors can play a significant role in getting the necessary resources, connecting with the C-suite at the target account, and providing high-level guidance.

3. Consistently measure account performance.

What gets measured gets done. As such, staying on top of account performance is critical for success. Set a cadence for internal account reviews: Depending on your team’s size, the account’s value, and the relationship’s dynamic, it might make sense for these reviews to be weekly, monthly, or quarterly.

At these meetings, KAMs should report each account’s engagement and loyalty (both should trend upward). From here, you should also schedule recurring check-ins with the client to get their feedback, address any issues, and find areas for improvement.

4. Invest in the right tools.

Having the right tools in place can make the job of a KAM a lot easier. For example, a CRM can be a great way to keep track of your communication with the account stakeholders, give everyone on the account team visibility into what’s happening, and minimize duplication of effort.

Similarly, if you are having a hard time getting responses to your emails, an email tracking and notification tool can help. This type of tool can let you know precisely when your recipients open your emails and click any links.

In addition, you can use LinkedIn (either the free version or LinkedIn Sales Navigator) to monitor changes in your account’s market and industry, strategic shifts, hiring and firing decisions, and more. I’ve also found that a meetings tool can make the meeting scheduling process much more seamless for attendees by eliminating back-and-forth emails, and you can try investing in a video platform such as Loom to create personalized prospecting videos.

Grow Your Business With a Key Account Management Strategy

In my opinion, a well-planned, comprehensive key account management strategy won’t just keep your best customers satisfied. It will also provide opportunities to grow these vital relationships exponentially. With the key account management framework I’ve outlined in this article, you’ll be set up to add substantial value to your most important accounts — and both your retention rates and bottom line will benefit as a result.

Editor’s note: This post was originally published in March 2020 and has been updated for comprehensiveness.