How to be selective?

I think selectivity is one of the most critical competencies required for success in all fields of business, from innovation to finance. And sales is no exception.

Selectivity has been the foundational element of trade since the very beginning. And in today’s current terms, it is the core of commercial effectiveness. Being selective about the geography where you want to sell, market segments, type of customers, offering, pricing…

Yet, it is not that easy to implement. Because selectivity is the product of deep thinking, analysis, and reflection…and sometimes intuition and feeling, it requires a certain level of clarity.

On the other hand, without being selective, getting lost in a commercial activity is very easy. So, how to become more selective?

Naval Ravikant, who is considered a Silicon Valley guru (because he shares a lot about his deep thinking and reflections in an unusual way), proposes a method.

I called it the 5000 USD method and tweaked it slightly to apply to selling.

According to that approach, you value your one hour at a very high rate. That rate must be unreasonably high…like 5000 USD/hour. And if it is not unreasonable, it means that it is not high enough. No matter how high you set it, sometimes it can not be high enough. Think about an hour of joyful time you spend with your kids…How much would you value that hour? Yes, it is valueless.

So, as a salesperson, your one hour virtually costs 5000 USD. I can hear you saying if anybody would pay me 5000 USD per hour, I probably would not be doing what I do. I kindly recommend you remain patient and keep reading.

You can value your hourly rate as high as you like, even if nobody pays you that amount in real life. Remember, it is the value YOU define.

Imagine receiving a customer call asking you to drive 60 km for a meeting. They would like to talk about their new project. Going 60km forth and back, plus the meeting time will take you approximately two and a half hours. According to your virtual rate, it is 12 500 USD.

Would that meeting be worth 12 500 USD?

It does not have to be a direct financial return. It can be a great learning experience, meeting a new person who would bring you new perspectives, it can be an « investment » for a solid future partnership, etc. Maybe, after the meeting, you will think it was not worth it. Great! Putting a number (in our example, it is 12 500 USD) in to value a particular meeting will help you create a benchmark and more awareness for the future.

Take this example and apply it to your choice of territory, segment, customers, products, and services you offer…and your life experience as a salesperson.

How does it look now?