Justin Gray, CEO and founder at LeadMD, joins me, Jen Spencer to discuss partner relationships and breakups, trusting data, success in the channel and more on this episode of The Allbound Podcast.
Transcription
Man: Effective selling takes an ecosystem. Join host, Jen Spencer, as she explores how to supercharge your sales and master the art of never selling alone. Welcome to The Allbound Podcast, the fundamentals of accelerating growth with partners.
Jen: Hi, everybody. Welcome to The Allbound Podcast. I'm Jen Spencer, Vice President of Sales and Marketing here at Allbound, and today I am joined by Justin Gray, who is CEO and founder of LeadMD. Welcome, Justin.
Justin: Thanks for having me.
Jen: Well, it's so good to have you, and for those of you who are listening who don't know, Justin brings a lot of expertise, I'm really excited to have him on the podcast. In addition to being the CEO and founder of LeadMD, he's also a weekly columnist at Inc., the CEO and cofounder at Six Bricks, managing partner at Gray Matter Ventures, partner at Grayson Organics, and CMO and cofounder at PaidSuite. That's a lot. You're a busy, busy man.
Justin: It's a mouthful.
Jen: Yeah. I'm sure our listeners are going to be able to gain a wealth of knowledge from you. So, Justin, tell us a little bit about these companies that you work with.
Justin: Sure, I've kind of picked different organizations up along the way almost by accident, but, really, the centerpiece organization that I'm a part of is LeadMD, a digital marketing consultancy. Out of that kind of sprung the need to educate and match great marketers with employers, and that's what Six Bricks does. I've since formed a little venture, a very little venture organization called Gray Matter Ventures that I'm using to feed organizations, including Six Bricks. Then I've got some other ventures in the payments world, and then a very unprofitable labor of love known as Grayson Organics, which is actually my family's farm that we converted into organic in 2008 and have been running small field crops ever since.
Jen: That's awesome. So, what we talk about here on the show is partner programs and partner channels. And, so being a founder, a cofounder, on the executive team of these organizations, you have a lot of experience running companies and contributing to these organizations. In your experience, when do you think the best time is to start a partner channel program?
Justin: Yeah, it's kind of like that old question of when's the best time to plant a tree? Twenty years ago, the second best today. Obviously it does depend on the business model. The payments business that I'm a part of operates exclusively through the channel, so we started that organization with the notion that we would be managing and maintaining a completely outsourced sales channel to sell and implement our products. So, look at the model through which you want to sell, if that's going to be totally outsourced to the channel, or if that's going to be a blend.
Have a consorted channel strategy right from the beginning and tackle really difficult questions like who's going to market on behalf of the organization, are you going to do it from a corporate level, are you going to shove that down to and empower the franchisees or channel partners to do that on their own behalf? Those are decisions that are always best made right upfront, and so I think just as with anything, developing a really strong strategy from the beginning and executing towards that consistently is what we see as a recipe for growth.
Jen: Would you mind sharing why you decided to sell exclusively through channel for that organization?
Justin: Yeah, so sales is all about trust, and that particular organization, which is PaidSuite, sells integrated payment products. So we looked at the marketplace and we could've formed our own inside sales channel and tried to penetrate the market from scratch, but, instead, we chose to actually partner with software organizations and ISOs that already had existing relationships and add our suite of products to their repertoire. So, it just really allowed us to break down those trust barriers, accelerated our speed to market, and led to a good deal of success within that business. I think, had we chosen to try to kind of brute force it and spin up our own inside sales channel, it would've been a much longer time to market. It would've been a lot more investment on education and training, and just empowering that force. So, again, it was the right decision for us based on what we wanted to accomplish in the business within our first 24 months.
Jen: Oh, it makes perfect sense, absolutely. I think what's really cool about you and your perspective is that you have that business where you are going to market through these partners, but then with LeadMD, you are a partner of many technology organizations that I know a lot of our listeners would know about. And, so you get to see both sides of it, and that, I think, brings this other layer of expertise to you that a lot of people don't have. Most people pretty much live on one side of the fence or the other.
Justin: Right. Yeah, actually, one of our strongest verticals is channel sales. We've got organizations like Blue Cross Blue Shield, we've got a lot of med device organizations, Mobi, just organizations that are dependent upon that extra layer of support, and again that provides a lot of interesting challenges from a marketing standpoint. It presents a lot of opportunities to empower those sales channels, educate them, and, obviously, we got to keep them up-to-date on the quickly evolving world that we all live in. So, definitely a huge amount of opportunity, and then we really do see the folks that are empowering their channel partners through marketing and through education. That's a strategic advantage for our organization, absolutely.
Jen: Let's talk more about that. With all of your experience, I'm sure you've created a number of strategic alliances that have been fruitful. Maybe you've even seen some that have fell flat, whether they're partnerships that you've been a part of or that you've been supporting from an agency perspective. I'm wondering if there was any sort of recipe or repeating factor that you could recognize in a partner or in a partnership that would signal this makes sense, this is a mutually beneficial alliance.
Justin: Yeah, and that's always a really difficult prediction to have right upfront. My crystal ball is broken, so what may seem like a great partnership where everyone's aligned and we're going to go to market together and achieve this awesome amount of success is often not the case. You really need to be careful about whether this is going to be truly a value equation, as we term it, presenting equal value on both sides. And, so we've tried to get more formalized throughout the years at LeadMD as we've taken a look at the types of partners that we would potentially want to work with, the types of partnerships that have worked well in the past, and really gauge new potentials on that scale. So, we've actually kind of developed a partner evaluation framework that we leverage when we're looking at a new partner.
Having worked with over 3,000 B2B technology organizations, we have a lot of folks that want access to our customer base, but that isn't always a as I mentioned a balanced equation. We're often not getting the same amount as we're putting in there, so we've kind of tried to really hone in on what makes a successful partnership. For us, it really does come down to the fact of can we wrap services around that partner offering? Does it lead to more work, frankly, for our organization? We're a time and materials billing organization, so we need to figure out a way to build clients and provide value. And if the partner solution doesn't enable us to do so, it's a difficult partnership for us. We definitely need to be enabling our customers, and if we can't do that in the form of providing that solution and wrapping our best practices around it, it's not a good solution for us.
Jen: Right, and that's great food for thought for a lot of businesses that are creating these agency partner programs, I’m glad to have that kind of feedback to share with folks. Can you also kind of tell us when you think about the most successful partnerships that you've had, where did they come from? For people that are just starting out and just starting to build their program, is there anything we can learn from some of your most successful endeavors?
Justin: Yeah, our most successful partnership to date is obviously Marketo, and like anything successful in business, I think it comes with a healthy dose of luck. So, there is some unrepeatability around that as well, but I would say that what is a constant between all of our good relationships is we're using that solution in house. We have a relationship with them, they're aligned with our culture and we know that we align from a methodology standpoint. So, I was Marketo's 20th customer way back in 2006. I started using the platform before I was ever a partner at a payments organization, I sold my piece of that payments company, and kind of went out on my own and didn't really know what I wanted to do.
Some folks hit me up and said, "Hey, would you help us build a sales and marketing engine?" and I said, "Yeah, that sounds great, but you're going to have to implement some technologies that I know how to run. So, let's go ahead and implement salesforce.com, let's implement Marketo, and let's really get all of the text back in place to support that repeatable engine." Throughout the years, we kind of grew with Marketo and formed a really strong partnership with them to the point where they would outsource a lot of their work to us. We were participating in deal cycles with their sales reps. We were empowering them where they needed kind of that value engineering consultative approach. A lot of their sales reps just aren't marketing experts, and our folks are. So, we were willing to slot in within that sales process, provide that marketing expertise, and, of course, as a result, we were able to win business.
So, again, it was a win-win throughout that entire life cycle, and that really is why that's our flagship partnership. We've been able to repeat that with a lot of core digital marketing platforms and sales platforms that we brought on. Engagio is probably the newest member of that stable, and, again, we use the software, we see the value in it. We have the expertise in house to really ensure success within the partner orgs that we board on that platform. So, I would say that you can't discount the value of relationships. Relationships really drive everything that we do. I love the way that marketing is currently going, in kind of this quality over quantity aspect, finally. And, at the center of most of those relationships and partnerships is a really tight understanding and alignment that you just don't get when you start taking all-comers.
Jen: Well, I'm glad you mentioned this because you wrote an article fairly recently, and it was called "How to Avoid Getting Eaten Alive by Your Partner Ecosystem." I loved it. If anyone hasn't read it, I recommend when you're done listening, go check it out. It's at leadmd.com/marketplace, we'll also link to it in the show notes. In the article you say, if you want to get to the heart of how well your potential partner performs, become a client first. And, it is really great advice, and I understand from your Marketo story, even from the Engagio perspective, I understand it. Is it a hard and fast rule that you have to use that technology in order to find value? Could you see partnering with an organization if you weren't actually using that product first? Or, is that part of that evaluation criteria that you have?
Justin: I mean, it's one that we feel really strongly about. There's exceptions to every rule, obviously. I would say that there's no better way to really get an understanding of how well that partner treats its customer base, and, therefore, my customer base, than to experience that firsthand. So, we view that as something that's really important to our business. Now, we're also a sales and marketing consultancy who can use all of these products, if a product doesn't have the fit within your stack or within your go-to-market strategy, then I certainly understand that.
It is absolutely my pet peeve when we're up against a competitive deal, and we're up against an agency that doesn't use Marketo themselves. I mean, it's as simple as navigating over to their site and looking at the scripts that are contained on the site. It’s like hey, great, you're up against us and a HubSpot partner. Why is the solution that they're proposing to you not good enough for them to use? That's fundamentally part of our sales strategy. We've been using this, we know the ins and outs of it, we don't support any other marketing automation platform, so we feel strongly enough about it to make it an exclusive partner of ours as well. So, we kind of put our money where our mouth is, and, eat our own dog food, drink our own champagne, make up our own bad analogies. It's core to our business. It works for us.
Jen: Yeah, it definitely makes sense. So, back to that article. You mentioned to avoid partnerships where you stand nothing to gain.
Justin: Sounds obvious, right?.
Jen: Yeah, it's obvious. Obvious, right, but, I mean, no one goes into a partnership going, "Well, I'm not going to get anything out of this. Let's jump right in," right? So, it's possible at the start of the relationship everyone's like, "This is going to be amazing," but then as the companies maybe grow, you evolve maybe a partnership becomes one-sided. Maybe you end up doing the heavy lifting without anything in return. Do you have any advice for folks on how to handle that kind of situation? Do you break up? How do you not burn a bridge? Do you hang on hoping there might be something in the long-term that will keep this alive? What advice do you have?
Justin: Yeah, I think there's obviously a couple of facets to that. So, as I mentioned, it sounds super obvious, right, but I would say that there is kind of this aspirational partnership that exists out there. I feel like this happens a lot with big logos. Like, we know they've got a ton of customers and their customers kind of look like our customers. Thinking putting out a press release and putting this logo on our site is going to add so much credibility, but we don't take that extra step to really drill into what are we going to do together? How are we going to realize this value?
I find asking those uncomfortable questions yields the best result. So, yeah, we both operate in the same space, and we've got similar customers, but what are we going to do together, explicitly, tomorrow? Are we going to market together? Are we going to create content? Are we going to do some account planning and alignment exercises? What is success going to look like in 6 months, 12 months, 18 months? How many deals are we going to have boarded? When we board a deal, what is that process going to look like? Am I going to run the majority of the implementation? Do you want to own some as the technology provider?
So, having those really difficult conversations upfront I feel helps to avoid the very difficult conversation down the road where you've been a part of that partnership, you've had the logo on your site for two years, and there's never been anything that's precipitated from that agreement, and now you've got to go back and say, "Hey, this isn't working out." I mean, breaking up is hard to do, so I would say the more that you can really drill in, get explicit, and set up a plan right from jump street, the less you will have to go back and revisit and have those uncomfortable conversations.
So, that's first and foremost. Now, if you haven't done that or things change, conditions change, the landscape looks different, and suddenly you find yourself in that bad position, I think it's best just to use real world data there. Let's look back at the pipeline we've generated together, it's weak to nonexistent. The types of customers that we've boarded maybe are no longer customers, or maybe we weren't able to make those customers happy because of the misalignment of expectations. One of our core tenets is we track everything. If I'm boarding a new partner, I'm tracking that all within CRM. What deals are we working on together? What deals did we swing and miss? What deals did we win? And, then I can pull those reports.
The Marketo partnership has not been all roses and champagne either. Marketo's gone through some pretty big market shifts. During the course of our partnership, they've gone from 20 employees to 1,500 employees. They've gone public, and then they were taken back private. There are major continental shifts that we've seen within that organization, and the org today behaves fundamentally differently than it did when we first rolled out our partnership and I wrote a contract on the back of a napkin. So, as it's progressed, the data has really enabled me to come to those partner conversations and say, "Look, this is data from 2013. Look at the data from '15. You're my largest competitor right now," which at one point Marketo was my largest competitor.
So, you have to be able to back up those shifts with actual data, and what I actually find, certainly within larger organizations, is they're often not well-positioned to gather that data themselves, or there's been so much turnover or process shift internally that they're actually using my dataset as law to describe the success of the partnership. So track everything, and that makes those conversations a little bit easier as you get into that data, and everyone can look at the same thing and agree that, yeah, this isn't working and maybe there's a solution to that, or maybe it's time to go our separate ways. But regardless, we can't blame it on emotion at that point, we want to blame it on something that's tangible, that's real.
Jen: That makes a lot of sense. I'm sure there are a lot of organizations that you've partnered with that have benefited from the fact that you are gathering that kind of data. Unfortunately, for a lot of companies that are growing a million miles a minute it does seem sometimes like an afterthought, just this extra thing to do. But, it is extremely important, especially when you're balancing those resources and trying to figure out where to spend your time. So, do you also use that data that you might have with one partnership to help determine what success looks like in another partnership? Do you keep that internally and leverage that as a baseline?
Justin: Yeah, so we'll introduce that baseline in partnership conversations. We're potentially looking at a new partnership right now, and normally the first question out of my mouth is what does your most successful partnership look like? You can get a big feel for how that process is going to go by the data that they're able to present. If they're more on the fluffy side of, "Well, we do some activities together. They sponsor our trade show every year or our conference. We do some marketing together," I'll know that this is not as data-driven as we want it to be because I want to see sales pipeline.
I want to see the amount of revenue that you've closed together in the last 18 months. What does the joint sales cycle look like? So, absolutely, we've taken that data collection and turned it into a benchmark to which we hold other potential partnerships. The question always exists out there of there’s this new company and they don't have a long track record, but we think there's a lot of potential. And, those are going to exist.
When we partnered with Engagio, they were less than 12 months old at that point, but, fortunately, they were made up by the who's who of previous Marketo employees. So, there was some faith that was included within that partnership as well, knowing that Jon Miller's not going to start an organization that's going to tank. Again, that's where you have to kind of leverage those relationships, whether it's data-driven or it's relationship-driven, insight is the key out of either one of those points.
Jen: All right. You could say that that relationship originally came out of good data as well, so that was definitely a very, very, very safe bet. Okay. So, I have one last official channel question for you, and that is, what’s one piece of advice you’d give to someone who's really trying to breathe life back into their channel partner program? We see this a lot, we see a lot of organizations who start a program. And they probably under-resourced it, or they expected to do one thing, it does something else, and now they're kind of back at it ready to reinvest. If you could give that person, that organization, or that leader advice, what would it be?
Justin: Yeah, I really do love data, but, moreover, I love getting to the why. I don't just want to hop on a phone call or go to a meeting and ask that question. I want to see it firsthand. So, my number one piece of advice to our internal folks or anyone that's in charge of managing partner relationships is get out there and get embedded within that partner. We love to go out into bullpens and just work for a day and see what those conversations look like at that partner organization. Are they mentioning us? Are they having conversations that we could be assisting but we're not being tapped to come in and be that resource?
I love getting embedded within those environments and just seeing how their process works. Is another partner there when you show up? We've had that happen before. I had one of my competitors literally officing out of Marketo for a while, and we were like, "Wow, we really need to up our game," because they've got a level of access that we're just not taking advantage of right now. So we immediately said, "We'd love to get a cube here and park ourselves two days out of every week." And we flew someone over, and I actually eventually lit up a sales team in San Francisco to be closer to them. That insight would've never come about if I hadn't made a trip over there and just said, "I'm going to sit in your bullpen and see what these conversations sound like." Ultimately, you want to understand what does that sales pitch sound like? Where do they struggle? Where do they need help? Where can I provide some value? Simply saying, "You need to help me sell into your customer base," or, "You need to sell my services," is not going be effective.
Communicating “We have to have a solution-based message. So, when you're running up against this objection, we can help, and I heard your sales reps combat that objection a dozen times when I was out onsite.” So, I really do think that kind of that employee exchange approach is a highly valuable exercise, and, regardless of whether that has to do with partner or any other aspects of the business, I really do encourage our employees to get out there, get embedded with the partner, and understand why aren't we more successful in this partnership? I guarantee you will learn something that you would not have had you not been in that close proximity.
Jen: Absolutely. Gosh, that collaboration is unbelievable. Such good advice, and such an awesome story, too. Now, before we totally wrap this up, at the end of the podcast I always ask people some more kind of personal questions to get to know them a little bit. I make it a speed round, but I don't know how fast we end up really going, but just four questions. Are you up for it?
Justin: Yeah, absolutely. Let's do it.
Jen: Okay, okay. So, first question is what is your favorite city?
Justin: My favorite city is San Francisco, California.
Jen: Me too. I'm going to ask you why. See, I do this, I make it not be speedy because I want to ask more questions.
Justin: I lived in San Francisco for two years, really for the purposes of assisting in LeadMD’s growth, and, I was born and raised in Phoenix, Arizona, so probably not the most culturally diverse epicenter in the world. It just blew my mind to be able to walk down the street and get the best food in the world, walk into a networking group and everyone's leaning forward and engaged, and participating in these conversations. It just seemed like everyone wanted to be there, and that's kind of how I describe San Francisco.
You could throw an event in Arizona, and struggle to get five people to show up. I was part of a Bulldog meet up when I was over there, and like 30, 40 people would show up with their Bulldogs every week. And, I was like, "Jesus, I can't get this level of engagement when I'm giving away free training, much less trying to get Bulldogs to show up to a meet up." So, it just seemed very intentional, and I love intentional things.
Jen: So, side note...I'm gonna help you. We're going to lobby together for, like, a high speed train between Phoenix and San Francisco.
Justin: Yeah, absolutely.
Jen: So, that'll be a pet project in our free time, Justin.
Justin: Hyperloop.
Jen: Yeah. The next question for you was going to be are you an animal lover? You mentioned the Bulldogs, so is that a yes?
Justin: I am. Yeah, I love bull breeds, and I love English Bulldogs. I have a 10-year-old English Bulldog named Chubs. It's a girl. I wanted to give her a complex early in life. When that dog's no longer around, I will absolutely be heartbroken. So, yeah, I love animals, love dogs.
Jen: All right. Question number three. Mac or PC?
Justin: Mac, a thousand times.
Jen: Yeah. And, question number four. Let's say I was able to offer you an all-expenses paid trip. Where would it be to?
Justin: Oh, that's a really good one. I've got this weird philosophy on life that I love really new experiences in really comfortable places. So, I would actually probably go to St. Thomas. It's my favorite spot on earth, but I'd love to try to figure out some new stuff when I was down there. The last time I was down there we found this little secluded pool that is in this outcropping of rocks on one of the many islands that surround St. Thomas. So, I think it's just one of those places where you can go and find something new every single time, and definitely one of my favorite places on earth.
Jen: Sounds wonderful. Well, thank you so much for spending some time with me today. It was so awesome getting a chance to talk to you about channel, about partnerships on both sides of that fence. If anyone who's listening would like to reach out to you personally, what's the best way for them to get a hold of you?
Justin: I'm looking forward to being the only guest on this show ever that actually loves using Twitter, so you can hit me up at @jgraymatter on Twitter, or you can check us out. Our site leadmd.com. I'd like to say we give away more best practices than most agencies have. So, all of our content's there available for free, and, of course, my contact information is there as well.
Jen: Wonderful. Well, again, thank you, and thank you all for joining us for The Allbound Podcast. We'll catch you next week with an all-new episode.
Justin: Thanks, Jen.
Man: Thanks for tuning into The Allbound Podcast. For past episodes and additional resources, visit the resource center at allbound.com. And, remember, #NeverSellAlone.