Types of CRM Software: Which Is Right For Your Business?

What type of CRM software is right for your business? When I first started looking into customer relationship management (CRM) tools, I’ll admit — I was overwhelmed. There were so many options, each claiming to be the perfect match. But as I dug deeper, I realized that every CRM has its own focus and features. Just like you, I wanted a solution that would actually support my team, improve our customer experience, and make the buyer’s journey smoother.

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After more research, I found out that CRM software generally falls into three main types: operational, analytical, and collaborative CRMs. Each one brings its own strengths, so knowing the differences can really help you zero in on the best-fit CRM for your business. I’ll break down how different types of CRMs work, plus explore popular CRM examples.

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Depending on your business structure and goals, one type of CRM will address your needs better than the others.

the different types of crm

Let’s explore the differences in detail between the three types of CRMs on the market — and why you might choose one over another.

From my experience, an effective CRM can transform the way a business operates day-to-day offering the following three key functions.

1. Marketing Automation

Operational CRMs make marketers’ lives easier, offering marketing automation features for tedious tasks like email campaigns, content offers, and scaled outreach. You’ll appreciate not having to manually manage these processes, freeing up time for creativity and strategy.

Key Benefits

  • Efficiency. CRMs handle time-consuming tasks like email scheduling and follow-ups, helping teams focus on higher-impact activities.
  • Data insights. Many CRMs offer analytics on ad performance and lead behavior, which makes tracking ROI more accurate and decision-making more informed.
  • Specialized tools. Some CRMs support SEO, blogging, and other niche practices, enabling a more comprehensive approach to marketing.

2. Sales Automation

Sales automation smooths out the entire sales process. Instead of spending time on repetitive administrative tasks, my sales reps can focus on connecting with leads and closing deals.

Key Benefits

  • Streamlined communication. CRMs allow scheduling emails for leads, managing meetings, and tracking calls with ease so that no lead is left waiting.
  • Automated workflows. With sales automation, reps can rotate leads, delegate contacts, and set up deals without the manual hassle.
  • Better lead management. Features like sales record creation, lead prioritization, and deal tracking keep sales reps focused on what matters.

3. Service Automation

Service automation is all about creating an extraordinary experience for customers. It’s the final piece in the CRM puzzle, fostering loyalty and encouraging brand advocacy.

Key Benefits

  • Seamless customer support. Service automation establishes 1:1 correspondence between reps and customers, typically via email, live chats, or chatbots.
  • Organized ticketing system. A well-implemented ticketing system helps reps tackle each task effectively. Additional features such as a knowledge base or FAQ pages are also commonly associated with service automation.
  • Personalized customer interactions. A unified CRM system also pulls in sales record details, giving service reps the info they need to adjust their approach based on each prospect’s unique background. They can also use data from past interactions.

Who should use an operational CRM?

In my opinion, businesses with straightforward sales processes — especially SMBs — will benefit the most from operational CRMs. Even enterprise companies aiming to automate administrative tasks and maintain customer records across multiple departments can consider using one.

Operational CRM System Example: HubSpot

types of crm: hubspot crm simplifies and automates contact management

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HubSpot is an all-in-one CRM platform meant to align internal teams, pull meaningful insights, and report on growth opportunities. It brings together Marketing Hub, Sales Hub, Service Hub, and CMS Hub, with hundreds of integrations to facilitate marketing, sales, and service processes.

Best for: Any scaling businesses, from SMB to enterprise, and any team, including marketing, sales, customer service, operations, or C-suite.

Key features: HubSpot CRM offers everything in one place to help your team make the most of process automation and system integration. Try it for free to see how it fits your business.

Price: Free forever; plus additional paid plans starting at $15/month.

Why I Like It

I’ve personally tested HubSpot, and here’s why I think it’s a game-changer:

It automates manual tasks (data entry, data sync, and contact data updates) and helps you create an experience and buyer’s journey that your customers will love by centering your entire business around your customers.

Moreover, HubSpot is easy to use and syncs all interactions your team has with leads and customers to that individual’s timeline to maintain organized and accurate contact records for all of your internal team members to access and reference.

Leveraging this data, I can improve my sales efforts, execute targeted marketing campaigns, and personalize customer support. In my opinion, the most important components of an analytical CRM are data warehousing, data mining, and OLAP tools.

I’ll walk you through how each of these components works and why I think they’re useful.

1. Data Warehousing

Data warehousing is like having a supercharged database within your CRM. I’ve seen it transform how companies work with customer data, storing both current and historical information in one accessible place. It makes extracting data for analysis so much easier than with traditional databases, which can often be clunky.

Key Benefits

  • Unified data source. You get all your customer data in one place, which streamlines analysis and decision-making.
  • Easy access to historical data. Need to compare customer trends over the years? It’s right there at your fingertips.
  • Enhanced accuracy. With integrated data sources, you reduce errors and improve the reliability of your insights.

2. Data Mining

Data mining is one of my favorite features in an analytical CRM. It’s a catch-all term for the process of discovering patterns in large data sets. I’ve found this especially helpful for understanding the entire customer lifecycle, from identifying and attracting new clients to keeping them loyal.

Key Benefits

  • Deep customer insights. You get to understand why your customers behave the way they do.
  • Predictive power. It’s amazing how data mining can help you predict customer needs before they’re even on your radar.
  • Precise targeting. With a clear view of customer interests, you can craft marketing and sales efforts that resonate.

3. OLAP Tools

Online Analytical Processing (OLAP) tools take things to another level by allowing you to evaluate multidimensional data from multiple perspectives.

I think this is one of the most powerful tools an analytical CRM can offer, especially if you’re looking to understand how different factors affect customer behavior. For instance, you might want to see how people interact with your site based on where they’re located, the time of day they visit, and the features they use.

For me, OLAP tools are what really set an analytical CRM apart because they validate hypotheses formed by the data gathered through data warehousing and data mining.

Key Benefits

  • Multidimensional analysis. You can analyze various factors together, like region and usage patterns, for a richer view.
  • Deep customer insights. This kind of analysis uncovers more complex trends across different customer segments.
  • Enhanced strategic decision-making. With these insights, you can build targeted outreach and marketing plans that are based on solid data.

Who should use an analytical CRM?

I believe analytical CRMs are best suited for businesses that want to make data-driven decisions a core part of their strategy. If you’re ready to dig into some technical software and dedicate time to learn it, this could be a smart choice. It’s not overly complicated, but there’s definitely a learning curve, so having a data-savvy person on your team helps.

Analytical CRM System Example: Zoho Analytics

types of crm: zoho crm offers advanced sales analytics and reporting

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One analytical CRM I’d recommend checking out is Zoho Analytics. I recently had the chance to explore it in a demo, and I was impressed by its real-time analytics capabilities. Zoho Analytics takes raw data and transforms it into actionable dashboards and reports, which can really help with tracking important KPIs.

Best for: Businesses looking to improve their data analysis and reporting capabilities.

Key features: Zoho is all about delivering real-time data to your CRM dashboard so your team can make better decisions right now and drive long-term sales and marketing strategies.

Price: Basic – $24/month; Standard – $48/month; Premium – $115/month; Enterprise – $455/month; Custom plans available.

A collaborative CRM has two key components — interaction management and channel management.

1. Interaction Management

Interaction management is essentially the process of tracking every customer interaction — whether it’s through email, social media, face-to-face, or phone. I think of it as a central logbook where team members can update interaction histories and even share insights from their customer conversations.

This centralization means every business unit can access and add to the same record, ensuring consistent customer experiences.

Key Benefits

  • Holistic view of customer interactions. Every team can see a complete timeline of customer interactions, which means better coordination.
  • Seamless handoffs. When a customer moves from one department to another, the receiving team has all the necessary background.
  • Proactive customer service. With full visibility, teams can anticipate customer needs and step in to address issues before they escalate.

2. Channel Management

Channel management takes the information gathered during interaction management and uses it to tailor how you connect with customers. It helps me identify the best channels to communicate with each customer and find the right approach for each team. For instance, if my customer service data shows that customers respond faster on chat than email, it makes sense to prioritize chat for my support team.

Key Benefits

  • Targeted communication. By using preferred channels, you can increase response rates and customer satisfaction.
  • Resource allocation. Understanding which channels work best helps ensure you’re allocating time and resources efficiently.
  • Improved customer relationships. Tailoring communication to customer preferences builds rapport and trust.

Who should use a collaborative CRM?

I’ve found that collaborative CRMs are best suited for businesses with multiple locations, remote teams, or departments that depend heavily on cross-departmental communication. If you value transparency and shared knowledge, a collaborative CRM will be a good fit for your team.

It goes without saying, but a collaborative CRM won’t be a good fit for any company not comfortable with customer information being shared liberally throughout the organization.

Collaborative CRM System Example: Copper

types of crm: screenshot of copper crm's dashboard

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With Copper, all your customer data is stored in one place, allowing everyone across your organization to be in the loop about any customer interaction or deal. The platform’s user-friendly interface also features custom pipelines and dashboards. Copper is a good choice for small businesses looking for a simple, straightforward CRM that integrates seamlessly with Google Workspace.

Best for: Small businesses that place an emphasis on collaboration and are interested in a CRM with a user-friendly interface.

Key features: Copper offers a simple and straightforward way to store and share customer data across your organization. Integration with Google Workspace is also a plus to streamline operations.

Price: Starter – $9/seat/month; Basic – $23/seat/month; Professional – $59/seat/month; Business – $99/seat/month.

Operational, analytical, or collaborative CRM?

I was pleasantly surprised by just how varied CRM solutions can be — each one tailored to meet different business needs. Learning about the differences between operational, analytical, and collaborative CRMs helped me realize just how important it is to align my CRM choice with my business goals — whether it’s improving workflows, digging into data, or boosting team collaboration.

For businesses that want a bit of everything, I think an all-in-one platform like HubSpot’s Customer Platform is a great pick. It brings together analytics, automation, and multi-channel communication in one system, offering the flexibility to tackle multiple needs. It’s a powerful option if you’re looking to boost customer engagement and drive growth.

Editor’s note: This post was originally published in December, 2019 and has been updated for comprehensiveness.

How I Use Target Account Selling to Land My Dream Clients

Two years ago, my sales pipeline was a mess — leads ghosted after the first call, and I struggled to keep track of contacts with notes scattered across multiple tools.

Desperate for a solution, I turned to target account selling — a method I’ve since refined into a system that’s helped me land six SaaS clients in under four months. Drawing on my experience with brands like HubSpot and Zapier, I’ll walk you through how it works.

In this article, I’ll explain what target account selling is, highlight how it works, and share expert tips that’ll help you identify, engage, and close the accounts that matter to your business.

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What is target account selling?

Target account selling involves identifying and pursuing a small, carefully chosen group of high-potential companies that align with your product or service. By narrowing your focus, you improve conversion rates and build lasting client relationships.

Unlike traditional sales approaches that often rely on scattershot cold calls or waiting for leads to come to you, target account selling puts you in control.

You’re carefully choosing accounts based on factors like company size, industry, tech stack, and growth trajectory — then creating personalized campaigns to win their business.

How does target account selling work?

To show you how this approach helps, let me take you behind the scenes of how I used it to land clients like Zapier.

Rather than reaching out to every potential lead that crossed my path, I developed a focused approach where I thoroughly researched and pursued only the companies I was genuinely excited to work with.

Each step below represents a lesson learned through trial and error. I picked up some of these after spending months pursuing the wrong companies with the wrong message. Others came from analyzing what worked when I finally landed my dream clients.

1. Create your ideal customer profile.

Creating your ideal customer profile (ICP) means defining the exact type of company that benefits most from your solution. Start by analyzing your current best clients — the ones who get the most value from your work and whom you love working with.

Document specific characteristics like:

  • Company size (revenue and employee count).
  • Industry and sub-industry focus.
  • Geographic location.
  • Technology stack.
  • Growth stage.
  • Budget range.
  • Common pain points.

For example, as a content strategist, my ICP includes B2B SaaS companies with 50-200 employees, $5M-50M in revenue, and an established blog. They’re typically scaling their content operations and need help maintaining quality while increasing output.

I use LinkedIn Sales Navigator to filter companies by industry (software), size (51-200 employees), and regular content updates.

using sales navigator to find companies for target account sales

Sales Navigator allows me to quickly filter for prospects that align with my ICP, saving time and ensuring I’m only reaching out to companies with a high likelihood of conversion.

2. Build your target account list.

Your target account list is the foundation of your sales strategy — get this step right, and you’ll save countless hours chasing dead ends while maximizing your chances of closing dream clients.

I typically spend two weeks developing my list, making sure each company genuinely needs what I offer and has the potential for a long-term partnership.

Start with 10 to 15 target accounts — enough to create momentum but not so many that you water down your efforts. Each account should match your ICP and show signs they’re ready to invest in your solution.

Research these qualities for each potential account:

  • Recent funding rounds or expansion news.
  • Content publishing frequency.
  • Job postings related to your service.
  • Competitor analysis (who they work with now).
  • Growth trajectory.

I maintain three key groups in my target list:

  • Companies whose products I already use and love. When I reach out, I can speak authentically about my experience as a customer.
  • Companies with strong content needs based on their current output. For example, when I notice a company publishing regularly but its quality is inconsistent, I know it might need support scaling its content operations.
  • Direct competitors of my current clients. Since I’ve already solved similar challenges in their industry, I can offer relevant insights from day one.

Pro tip: Document why each company made your list. This research becomes invaluable when you start personalizing your outreach later.

Always prioritize quality over quantity. One well-researched account that’s ready to buy is worth more than 20 maybes.

3. Map decision-makers within each account.

Understanding the decision-making landscape within each target account helps you direct your energy toward building the right relationships. Without this step, you risk spending weeks building relationships with people who lack the authority to move deals forward.

When I research accounts, I identify three types of contacts:

  • Decision-makers — the signers like the vice president of marketing or director of content.
  • Champions — mid-level roles like Content Managers who feel the problem firsthand.
  • Influencers — employees with connections to your clients or knowledge of your work.

LinkedIn Sales Navigator makes this research easier with its advanced filters. I search for specific job titles within my target companies, then look at how these people interact with one another’s posts to understand reporting relationships.

Note any shared connections with these contacts. A warm introduction from a mutual connection can be more valuable than months of cold outreach.

4. Develop account-specific engagement plans.

Every account deserves its own unique engagement strategy. When I started out, I made the rookie mistake of sending the same pitch to everyone.

My response rate? A whopping 2%. Here’s what works better.

Sending the same pitch to every account feels efficient but often falls flat — leading to low response rates and wasted effort. Genuine engagement, on the other hand, builds trust and opens doors before you even pitch.

Design a 30-day plan for each account. This phased approach builds familiarity and trust over time, gradually positioning you as a valuable resource rather than just another salesperson.

Week 1: Build Awareness

  • Comment on their LinkedIn posts (genuine insights only).
  • Share their content with your perspective.
  • Follow the key decision-makers you mapped earlier.

Week 2-3: Add Value

  • Create a micro-case study relevant to their challenges.
  • Share industry research they might find useful.
  • Reference their work in your own content.

Week 4: Make Contact

  • Find a compelling reason to reach out (product launch, company news, content gap).
  • Create a personalized message that ties back to your previous interactions.
  • Reference specific insights from your research.

My best-performing outreach to Sprout Social started with three weeks of engaging with their team’s content before I ever mentioned working together. When I finally reached out, they already knew my name and work.

Pro tip: Document everything in a simple tracking system. I use Trello to map out engagement plans and track interactions for each account.

5. Execute multi-channel outreach campaigns.

Getting noticed means showing up where your prospects spend their time. But, after testing countless outreach combinations, I’ve learned that more channels don’t equal better results.

Here’s the focused approach that’s worked best for my B2B clients:

  • LinkedIn first. Begin with thoughtful comments on their posts. Then, send a connection request with a personal note mentioning specific insights from their content. Never pitch in the connection request.
  • Email second. Once you’ve established a LinkedIn presence, send a brief email. Reference your LinkedIn interactions and share an observation about their business that demonstrates you’ve done your homework.
  • Content creation third. Create and share content that addresses their specific challenges. Tag them when relevant, but don’t overdo it — I limit myself to one tag per month.

When pursuing a social media marketing B2B SaaS client, I noticed their team discussing remote work challenges. I wrote an article about remote team productivity, referenced their excellent remote practices, and shared it.

A week later, their Head of Content replied to my follow-up email and even thanked me for referring to their practices.

Pro tip: To keep your approach organized, consider using HubSpot’s Free Sales Plan Template. It guides you through mapping out your target accounts, tracking engagement, and measuring success at each stage of the relationship-building process.

6. Track and measure account progress.

Tracking progress helps you quickly identify which accounts are worth doubling down on and which need a different approach — or should be deprioritized. After six months of targeting enterprise accounts, I developed a simple system to track progress and to know when to pivot.

Create three key progress indicators for each account:

Engagement Level

  • Cold (no response after multiple outreach attempts).
  • Warm (likes/comments on your content).
  • Hot (direct message exchanges).
  • Active (discussing potential work).

Response Quality

  • None
  • Brief acknowledgment
  • Asking questions
  • Sharing internal challenges

Sales Momentum

  • Discovery call scheduled
  • Proposal requested
  • Contract discussions
  • Final negotiations

My rule of thumb: If an account stays “cold” after six weeks of consistent outreach, I move them to a nurture list and focus on more responsive targets.

Keep your tracking simple. A basic spreadsheet works better than complex CRM systems when you’re managing 20-30 accounts. Update it weekly to spot patterns and adjust your approach accordingly.

Tips on Target Account Selling

Target account selling takes time to master. Here are five tips that helped me (and will hopefully help you) get you closer to the results you want.

Focus on engagement over size.

Here’s a counterintuitive truth about target account selling: Bigger isn’t always the right target. While it’s tempting to chase Fortune 500 logos, I’ve found that mid-sized companies who actively engage with my content often make better long-term clients.

As Marty Bauer, Director of Sales & Partnerships at Omnisend, explains:

“Conventional wisdom says to chase the largest accounts, but we’ve found that smaller accounts can actually drive more long-term growth, provided that they’re highly engaged. We switched from focusing on data like industry, size, and location to looking at behavior. This happened after we noticed that ‘ideal’ accounts often slowed the process while smaller, more engaged accounts moved quickly. So, we started prioritizing engagement.”

I recommend focusing on accounts that show genuine interest in solving the problems you address. Look for companies that:

  • Regularly engage with your LinkedIn content.
  • Download your resources.
  • Attend your webinars.
  • Ask thoughtful questions in initial conversations.
  • Have clear, pressing needs that match your solutions.

Track engagement metrics in your CRM to identify which accounts are most invested in finding a solution. These engaged accounts typically move through your pipeline faster and convert at higher rates than larger, less engaged prospects.

Build relationships with multiple stakeholders.

Relying on a single champion within a target account is a dangerous strategy. Even the strongest advocate can change roles, leave the company, or lose internal influence — potentially derailing months of relationship building.

Besnik Vrellaku, CEO of Salesflow.io, reinforces this approach:

“The biggest lesson is that once someone leaves the organization, changes roles internally, or even loses influence from other stakeholders as consensus shifts, you find yourself losing a bargaining chip on the deal. In reality, you need to nurture and push value propositions on all sides with personalized angles to each stakeholder in detail and nurture relationships with multiple decision-makers.”

Instead, develop relationships with multiple stakeholders who influence the buying decision. Map out connections across different levels and departments:

  • Direct users of your solution.
  • Budget holders.
  • Technical decision-makers.
  • Project implementers.
  • Cross-functional team members.

Create value for each stakeholder based on their specific priorities. For example, when selling content services, I connect with content managers about quality and workflow improvements while showing marketing directors ROI and strategic alignment.

Use behavioral signals to prioritize accounts.

Every interaction a prospect has with your content or company tells a story. I’ve learned to prioritize accounts based on these digital breadcrumbs rather than just firmographic data like company size or revenue.

Behavioral signals include actions like opening emails, engaging with your LinkedIn posts, or visiting your website multiple times — indicating a prospect’s interest and readiness to engage.

Key behavioral signals to track:

  • Content engagement patterns.
  • Email open and response rates.
  • Website visit frequency and duration.
  • Resource downloads.
  • Event participation.
  • Social media interactions.

Create a scoring system that weights these behaviors. For instance, I assign higher points to prospects who engage with bottom-of-funnel content about implementation or pricing than those who only read top-of-funnel blog posts.

As Vrellaku explains, “Identifying inbound-led opportunities and leveraging that data and insights for outbound account selling has been critical. Using feedback, data points, and signals, such as lead scoring on HubSpot, allows us to focus tactics on demand generation behaviors rather than taking bets on accounts whose behavior might be very different.”

And Bauer adds support to this approach, “We’ve noticed that accounts that engage with our content or attend our webinars tend to close faster than those that just look good on paper.”

This approach helps predict which accounts are most likely to convert. For example, when a target account’s marketing team suddenly increases their engagement with your pricing page and case studies, it often signals they’re entering an active buying cycle.

Monitor these signals consistently and adjust your outreach timing accordingly. The right message at the right moment can turn a prospect who just clicked on your pricing page into a scheduled meeting.

Balance automation with personal touches.

Different accounts deserve different levels of attention. I’ve learned that applying the same sales process to every prospect wastes resources and misses opportunities.

Consider creating tiers for your outreach approach:

Enterprise Accounts ($100K+)

Fully personalized, high-touch engagement.

Mid-market ($30K-100K)

A mix of automation and personal touchpoints.

Small Business

Primarily automated with strategic personal check-ins.

For high-value accounts, invest time in custom research and tailored messaging. But don’t ignore opportunities to streamline repetitive tasks. Use automation for:

  • Initial data gathering.
  • Activity tracking.
  • Follow-up scheduling.
  • Basic email sequences.

Vrellaku shares his practical framework: “For accounts focusing on $100K ARR and above, we adopt a manual approach to ensure the ROI of resources can be measured. This increases the chances of success in a very human way by engaging multiple stakeholders with personalized demos and beyond.”

Bauer reinforces the importance of authentic connection, “People can smell an AI-generated email before they open it, but building a genuine connection lays the foundation for a good outcome.”

Save your energy for moments that matter most — like understanding unique pain points or navigating complex stakeholder dynamics.

Create industry-specific value propositions.

The days of one-size-fits-all pitches are over. Tailoring value propositions to industry-specific challenges sets you apart and builds instant credibility with prospects who see you as an expert in their field.

When I started creating content strategies for SaaS companies, my success rate tripled after I developed separate pitches for product-led versus sales-led organizations.

Your value proposition should address the following:

  • Common industry pain points.
  • Regulatory challenges.
  • Competitive pressures.
  • Growth obstacles.
  • ROI metrics that matter to that sector.

Document success stories within each industry. When targeting a new prospect, share case studies from similar companies that demonstrate clear outcomes in their specific context.

As Vrellaku notes, focusing on vertical-specific campaigns lets you prove problem-solution fit. He says, “Niche and Vertical-Focused Campaigns use problem cases that already have social proof, such as examples from the manufacturing or fintech industries. The personalization is based on a replicable problem-solution fit that doesn’t always have to be customized to an ICP. Instead, it focuses on industry or vertical use cases highly relevant to the end decision-maker, almost guaranteeing a fit and ensuring high engagement.”

Track which value propositions resonate most strongly in each industry. Use this data to refine your messaging and identify the most promising sectors for your solution.

Target Account Selling Template

Let’s be honest: A custom approach does get results, but it also takes up a lot of time. This template gives you a solid foundation to personalize for each lead without sacrificing impact.

1. Account Overview

  • Company Name:
  • Industry:
  • Location(s):
  • Revenue:
  • Employees:
  • Key Products/Services:
  • Website:

2. Key Stakeholders

Name

Title/Role

Influence Level

Contact Info

Notes

3. Account Insights

  • Recent News/Events:
  • Competitor Relationships:
  • Current Tech Stack:
  • Known Challenges/Pain Points:
  • Potential Opportunities:

4. Engagement Plan

  • Initial Outreach Strategy:
  • Preferred channels (email, LinkedIn, phone, etc.):
  • Messaging focus:
  • Engagement Activities:

Date

Activity/Touchpoint

Goal/Purpose

Status

5. Value Proposition

  • Pain Points Addressed:
  • How Our Solution Helps:
  • Key features/benefits relevant to this account:
  • Metrics/ROI:
  • Expected improvements in KPIs (e.g., revenue growth, cost savings, efficiency):

6. Sales Process Milestones

Stage

Description

Target Date

Status

Qualification

Define fit and interest level

Discovery

Uncover challenges/goals

Proposal/Presentation

Share tailored solutions

Negotiation

Address objections/align terms

Close

Finalize and onboard

7. Post-Sale Plan

  • Onboarding Strategy:
  • Customer Success Handover:
  • Upsell/Cross-Sell Opportunities:

Land your dream clients with precision.

Researching your dream clients no longer means settling for LinkedIn bios and company websites. With target account selling, you’ll have data about their growth plans and pain points before you make contact.

Your prospects will notice this depth of understanding in every interaction. When you reference their recent product launch or discuss industry challenges they face, you show you’ve done more than basic homework.

This level of effort positions you as a strategic partner who understands their priorities and solves their problems. And most importantly, it builds relationships that accelerate deals and create lasting partnerships.

This article was written by a human, but our team uses AI in our editorial process. Check out our full disclosure to learn more about how we use AI.

Negative Reverse Selling: How to Get Straight Answers From Prospects

If you’re in sales, you’ve probably tried a bunch of different sales methodologies, always looking for the one that sticks. One I’ve found interesting is negative reverse selling, part of the Sandler Sales Methodology.

At first, the name might seem a little off-putting, but it’s actually pretty simple. The goal is to get your prospect to explain why they need what you’re offering — or to quickly reach a “no” so you’re not stuck chasing leads that won’t pan out.

In this post, I’ll walk you through what negative reverse selling is, why it works, and how to use it.

Free Download: Sales Plan Template

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What is negative reverse selling?

As I’ve mentioned, you want to get the “no” as soon as possible so you can move on. Otherwise, your prospect might drag you along for weeks or months without giving a definitive answer. I call this “Hope Island,” and it usually sounds like:

  • “Hey, can you call me back?”
  • “Email me, and I’ll get back to you.”
  • “Hey, follow up with me next week.”
  • “Sorry, I had to cancel. I’ll get back to you with a better time.”

When I hear those phrases, I know I’m screwed. I don’t want to stay on Hope Island and keep calling even though they’re probably not interested. These phrases tell me it’s time to try negative reverse selling.

Negative reverse selling is a sales strategy that focuses on reverse psychology to get a prospect to either say “no” quicker or to sell your product/service to themselves. As the salesperson, you’ll respond to objections and “fluff” responses from a prospect by telling them that it sounds like this isn’t a priority for them and maybe now isn’t the right time to purchase.

Your prospect will either agree and say they aren’t interested, or they’ll defend themselves and your product/service, convincing them to close sooner.

A word of warning: It’s easy to misuse this technique in a way that makes you seem rude. Apply it selectively — and diplomatically — making sure you never use it with someone when there’s no chance of positively progressing your deal.

How does negative reverse selling work?

While you might normally want to overcome an objection a prospect has, they’re often prepared to resist your sales tactics. With negative reverse selling, you’ll end up agreeing with your prospect and then employing reverse psychology to get them to convince themselves to buy your product.

Let’s use a quick example to see what this might look like in conversation.

  • Prospect: We want to see immediate results, and that’s our biggest concern.
  • Salesperson: I understand; that makes sense. This product is really for those looking to grow their business in the long term instead of using short-lived tactics for immediate results. This might not be the right fit for you. Is it fair for me to assume that’s the case?
  • Prospect: Well, we do want to grow in the long term, and we want to use tactics that will help us grow continuously.

Do you see how the prospect in this conversation tried to convince you that they are a good fit for your product/service? That’s the reverse psychology in negative reverse selling.

If a prospect doesn’t respond by trying to convince you they’re a good fit, they’ll say something like, “You’re right. This isn’t a good fit,” which helps you get to a “no” quicker.

You want to call out your prospect’s lack of interest and get them to admit the answer is “No” without going too negative. Essentially, you’re getting them to realize they’re bluffing.

That’s it. This single framework saves countless hours. Adding in a phrase like “Is it fair for me to assume that’s the case?” gently pushes prospects to answer more honestly about their interest in your product.

Where did negative reverse selling come from?

Negative reverse selling is a tactic in the Sandler Selling System, developed to focus on having sales reps act more as consultants rather than the “pushy used-car salesman” stereotype.

The whole idea behind the Sandler strategy is to concentrate on asking the right questions during the qualifying process instead of pushing a product on someone who doesn’t need it.

Why does negative reverse selling work?

Negative reverse selling works because people resist being “sold” on something. They worry that they’re being lied to or swindled. With negative reverse selling, it’s apparent that the sales rep is not trying to do that. Instead, reps want to help the prospect solve their problem. It’s a more human approach to sales.

It pushes a prospect to talk more about their objections and work through them on whether this purchase is a priority. Plus, it helps them go over the “pros” of your product or service through reverse psychology. They discover the solution themselves.

For example, let’s say you tell a prospect, “It’s probably not a good idea right now,” or “I’m not sure you’re ready,” or even “I don’t think we have what you need.” Their response will be to defend themselves and argue why it’s a good idea, why they are ready to move forward, etc.

And, of course, if their answer is actually “no,” it’s better for you to know sooner than later so you can move on to other deals.

Five Use Cases for Reverse Selling: Negative Reverse Selling Examples

Now, let’s review some situations when you can use negative reverse selling as a sales rep.

1. Deal-Breaker

  • Prospect: We need your product/service to help us with every aspect of marketing for a lower cost, not just advertisements. That’s a deal-breaker for us.
  • Salesperson: I understand. Typically, when needs and budget don’t align, it means you might not be ready to make the jump to our type of product. Is it fair for me to assume that’s the case here?
  • Prospect: Well, no. We are ready for the full product now, so maybe our budget isn’t realistic.

Why negative reverse selling works in this scenario: This strategy will work when a prospect presents a deal-breaker because they’re usually trying to see what they can get away with in terms of negotiation. However, this flips the script and is the opposite of what the prospect expects to hear.

What I like: In this scenario, I like how the salesperson doesn’t say what’s expected. By causing that break in the conversation, the prospect has to really think about whether they’re serious about buying your product/service. And usually, they end up trying to convince you why they’re ready to make a purchase now.

2. Dragging Their Feet

  • Prospect: Can you email me, and I’ll get back to you? And maybe follow up next week as well?
  • Salesperson: I can do that. But usually, when this happens, we’ll play phone tag, and it’s not the right time for you to purchase. Should I assume that’s the case here?
  • Prospect: You’re right. We’re just not ready to make this decision yet.

Why negative reverse selling works in this scenario: In this case, negative reverse selling works because you get to that “no” a lot quicker than when you have to reach out continuously to a prospect that most likely won’t purchase.

What I like: Here, I like that the salesperson cuts the BS and saves time when a prospect isn’t serious about buying your product/service. It’s helpful to get to the “no” as quickly as possible so you don’t waste your time trying to sell to someone who isn’t ready.

3. Objections to Price, Timeline, or Delivery

  • Prospect: We need your product/service to deliver results quicker than promised.
  • Salesperson: I understand. Typically, when timeline and short-term tactics are prioritized for a client, it means you might not be ready to move our type of product. Is it fair for me to assume that’s the case here?
  • Prospect: Well, no. We want results, and we’re willing to use long-term tactics to get there.

Why negative reverse selling works in this scenario: When a prospect has an objection to price, timeline, or delivery, this strategy works because it puts you in the consultant chair, which is the entire basis of the Sandler sales methodology. It shows that you’re trying to help a client figure out what’s right for them, and they’ll work through their objections themselves.

What I like: This approach during an objections conversation can help educate a client on what expectations are realistic and will work for them.

4. Canceling and Rescheduling

  • Prospect: Sorry, I have to cancel our meeting again, but I’ll get back to you with a better time.
  • Salesperson: Okay, [client name]. I understand things happen, but typically, when a client needs to reschedule a meeting several times, it means now isn’t the right time. Can I assume that’s the case here?
  • Prospect: No, we’ve just had a lot going on. Let me get you in contact with someone else on our team who has more time to meet.

Why negative reverse selling works in this scenario: This will help a client either say that they aren’t ready to make a purchase or maybe put you in contact with someone who won’t reschedule and has more time to meet with you.

What I like: Similar to the dragging their feet example, I like how this approach to someone canceling and rescheduling a demo meeting or consultation cuts the excuses. Do they even have time for this conversation? If not, maybe there’s someone else you can talk to.

5. ‘We’ll think about it’

  • Prospect: Alright, this was a lot of great information. We’ll think about it and get back in touch.
  • Salesperson: Okay, [client name]. Typically, when I hear “we’ll think about it,” it means that a client isn’t interested in our product/service. Can I assume that’s the case here?
  • Prospect: Yes, you’re right. We aren’t going to make a purchase.

Why negative reverse selling works in this scenario: This scenario helps you get to that “no” as quickly as possible. As the sales rep, you can tell when a “We’ll think about it” is serious or isn’t. Use negative reverse selling if you know they aren’t interested, and save yourself some time.

What I like: This approach will save time and is up to the discretion of the salesperson to determine if a prospect is actually interested.

Now, let’s learn how to use reverse selling and handle negative responses.

How to Use Negative Reverse Selling

negative reverse selling guide

1. Know when you want to use it and practice.

The first step is to know what situations you want to use the strategy for. Will you implement it on deal breakers, objection conversations, or both? Then, you should practice with your colleagues to ensure you have the right cadence.

It isn’t easy to tell a prospect that you don’t think your product is a good idea, and it could have negative results. That’s why you’ll want to practice incorporating this strategy and know when you want to use it.

And get comfortable using it in your target situation before applying it to other objections or roadblocks. Before you know it, you’ll use it instinctively when faced with one of those fluffy “maybe” answers.

2. Begin with an empathetic, softener statement of understanding.

Once you’ve decided that you’re going to use this strategy, it’s time to begin writing your script. You’ll want to start with an empathetic softener statement of understanding.

Did you notice how, in all our examples, we began with “I understand” or “That makes sense”? That helps the prospect feel understood and listened to. Then, that’s when you’ll jump into the negative statement.

3. Get to the negative statement that this might not be right.

After a soft opening, say why you think this time might not be right for the prospect or ask for specific clarification to see if they’re actually interested.

4. Listen to how they respond and have quick responses prepared.

Your prospect can have many responses, so have your script prepared. What will you say when they try to convince themselves to purchase your product? Or what will you say if they say they aren’t interested? Or how can you respond if they have a negative reaction and are upset by your statement?

It’s important to be prepared for any type of reaction from your prospect.

Handling Negative Responses

Negative reverse selling isn’t a tactic to use all the time, but there are situations where this type of reverse psychology will work. It’s important to keep it in your back pocket should the situation arise.

Negative reverse selling works because you push back on a prospect’s fluffy response and ask for a specific answer. From there, you can agree to touch base in six months or when the client is ready. Either way, you can move on to other deals, and your prospect can return to their work without worrying about the next time you’ll call.

If you use this approach, be ready for a few prospects to get angry. They still don’t want to tell you no, so some prospects will lash out. Here’s an example:

  • Prospect Sam: I’m headed into a meeting; can you give me a call next week?
  • Salesperson: Sam, I’ve tried to connect a few times now. Typically, when this happens, it means this is a low priority for you at the moment. Is it fair for me to assume that’s the case?
  • Prospect Sam: Well, if you don’t want to talk to me, then I’d rather not do business with you.
  • Salesperson: Hey Sam, my apologies. I do want to talk, but I feel like I’m driving you crazy here with all these voicemails and missed calls. I’d hate to keep bothering you if it’s not necessary. It might be best if you reach out when it’s a better time.

This last line is important. You must be clear that you’re keeping the conversation positive and centered around your prospect’s well-being.

It should never feel like you’re taking revenge on an uninterested prospect by saying, “You always say you’ll call me back, Sam,” which turns the conversation into an accusation and, sometimes, an argument.

By keeping things constructive, you’ve put the negativity on yourself instead of on the prospect. It’s important to stay professional and remember you’re speaking to your prospect in a way they’re not used to hearing from salespeople.

In the conversation above, you can leave Sam your contact information and reiterate that you’d love to open the conversation when it’s their priority. This way, you’re no longer caught in the hamster wheel of calling and hoping Sam suddenly becomes interested.

We’ve discussed when to use the negative reverse selling technique and various use cases, but how can you implement this strategy? Below, I’ll give you a step-by-step guide on incorporating this strategy into your sales calls.

Negative Reverse Selling Tips

To move beyond theory, I decided to dive into practice and interview experts who revealed the tips that work best for them, along with real-life examples.

Turn ‘not now’ into opportunity.

“Not now” doesn’t mean no forever. Sometimes, all it takes is a little patience and a shift in approach to turn hesitation into a long-term opportunity. Step back when a prospect says they’re not ready and give them the space to reconsider and, in many cases, reveal what’s really holding them back.

I talked to Peter O’Callaghan, head of marketing at ScrapingBee, about how he turned a “not now” into a successful partnership.

“In one instance, a prospect from an insurance company hesitated, claiming they were managing fine with their in-house data tools. I responded calmly, ‘I understand if this isn’t a priority for you right now.’ This neutral response broke the tension,” O’Callaghan says.

Was it worth it? Absolutely.

“Instead of ending the conversation, they explained the exact challenges they faced with their tools. We shifted the discussion to how ScrapingBee could solve those pain points more efficiently. By addressing scalability, we cut their onboarding preparation from 6 weeks to 3,” O’Callaghan continues.

O’Callaghan notes that this approach not only improved their team’s workflow but saved them approximately 10 hours weekly on manual adjustments. “That small adjustment led to an agreement that has grown into one of our most fruitful partnerships,” O’Callaghan says.

Use doubt to spark curiosity.

negative reverse selling, “it’s not about selling; it’s about letting the prospect discover the value of your expertise on their own terms.”

Instead of directly trying to convince a prospect, you gently challenge their assumptions with thoughtful questions. This approach gets the prospect to rethink their needs and often helps them realize the value of your solution on their own, without feeling pushed. It’s a strategy that builds trust and lets the prospect come to their own conclusions (and that’s exactly what you should be striving for).

Russ Johnson, CEO of Linx Legal, shared how this tactic has transformed his sales approach.

In a recent conversation with a prospect exploring legal services to manage their contracts, the prospect said their team was fine handling everything in-house for now.

“I responded, ‘That’s completely fair; many businesses feel that way. But sometimes, in-house teams find it tough to keep up with the nuances of ever-changing regulations. How confident are you that your team has the bandwidth to monitor those updates consistently?’” Johnson says.

The prospect paused, then admitted they hadn’t considered the constant regulatory shifts. This opened up a deeper discussion about the gaps in their current approach and how Linx Legal could fill them.

Johnson pointed out, “It’s not about selling; it’s about letting the prospect discover the value of your expertise on their own terms.”

Challenge the “perfect fit” mindset.

Sometimes, prospects hesitate because they believe they need a solution that’s a “perfect fit” for their business. This mindset can cause them to overlook a product that could solve their current challenges. A great way to shift this thinking is by challenging the idea of perfection and focusing on addressing their immediate needs instead.

I talked about this with Carl Jacobs, co-founder and CEO of Apicbase. Jacobs notes that he had to refine his sales techniques what he said to navigate tough conversations and win over hesitant prospects, especially in the competitive food and beverage technology space.

“In a recent conversation with a prospect, they said, ‘Your software looks great, but I’m not sure it’s exactly what we need right now.’ I responded, ‘You’re absolutely right; Apicbase might not be the perfect solution for every restaurant or F&B business,’” Jacobs says.

However, according to Jacobs, perfection can sometimes delay solving the real issues at hand. “For example, ‘Have you found a way to cut food costs without adding hours of manual work to your team’s plate?'” Jacobs says.

Jacobs explained that this approach works because it lowers their defenses while subtly shifting the focus to the problem at hand. In this case, the prospect admitted they hadn’t yet tackled food cost management effectively, which opened the door for a conversation on how Apicbase’s software could help.

As Carl put it, “Progress often beats perfection.”

Shift focus from cost to solution.

negative reverse selling,

When prospects raise concerns about the cost of a solution, it’s easy for the conversation to get stuck on price. But don’t let that throw you off. One effective way to handle this is shifting focus from cost to the real value your solution brings.

Frank Sondors, founder of Salesforge.ai., says he has used negative reverse selling to turn price objections into valuable conversations.

“For instance, if a prospect says, ‘Your solution is too expensive for our budget,’ I might respond, ‘If price wasn’t a concern, do you believe our solution would help solve your problem?’ This forces the prospect to rethink their objection and focus on the real value we’re offering,” says Sondors.

This resulted in exploring alternative pricing models and a sealed deal.

“Negative reverse selling helped refocus the conversation on solving the problem, not just on cost,” Sondors added.

Let prospects convince themselves.

Speaking of concern called “high cost,” another effective strategy is to let the prospect compare your solution to others in the market. By doing so, you‘re not pushing your product directly — you’re guiding them again to realize the value themselves.

Your sales rep can simply respond that they would offer a cheaper alternative product from a competing company. And then can call out some disadvantages of that like lacking customization, etc.

It actually helped me secure sweat deals when I was leading Signum AI’s sales team.

The tactic gets prospects to reconsider their priorities and convince themselves that price isn’t a problem.

Implementing Negative Reverse Selling

When reps are trained on how to use this approach, it’s important to stress that you should use it delicately. It’s not a catch-all tactic or one you should build your sales strategy around. It should only be applied when nothing else works.

Pick the one situation you keep getting stuck on. If you repeatedly have prospects who schedule a meeting, cancel, push it back two weeks, and cancel again, implement the negative reverse approach there.

As salespeople, sometimes we have to force hard conversations and save both sides valuable time. Use the negative reverse strategy, and turn “Maybe” into “Yes” or “No” before two-week follow-up calls eat away at your calendar and quota.

Purchase Order Financing 101: Pros, Cons, and How It Works

Your ideal customer just placed their largest order yet. It sounds like a dream come true, right? Well, at least it did before you checked your inventory and realized you didn’t have the goods on hand to deliver — or the cash to purchase what you need from your supplier.

But don’t throw in the towel just yet. Purchase order financing can help you fulfill this order and potentially gain a lifelong customer.

Free Download: Sales Plan Template

In this article, I’ll share what purchase order financing is, how and when you should use it, and the potential pros and cons.

Table of Contents

Purchase orders are legal documents issued by buyers communicating the intent to purchase goods from a company. If the company selling the goods does not have the inventory to fulfill the order or purchase materials from their supplier, the purchase order can be used to apply for advance funding paid to the supplier to support the fulfillment of the order.

Who needs purchase order financing?

Purchase order financing helps businesses bridge the gap between large customer orders and supplier payments. It’s particularly valuable for:

  • Manufacturing companies handling custom orders.
  • Import/export businesses managing international shipments.
  • Wholesale distributors scaling their operations.
  • Seasonal businesses managing demand spikes.
  • Startups and growing companies that haven’t built extensive credit history.

For many businesses, traditional funding options may be out of reach or too slow to capture time-sensitive opportunities. PO financing enables them to take on more orders and fuel sustainable growth.

How much does purchase order financing cost?

Purchase order financing typically costs between 1% to 6% of the supplier’s monthly costs, based on factors like your company’s financial health and order size. Here’s what shapes your rate:

  • Order amount. Larger orders (over $500,000) often qualify for lower rates since the financing company can spread their risk.
  • Customer creditworthiness. A Fortune 500 buyer means less risk than a smaller company, potentially reducing your rate.
  • Time to payment. The longer it takes your customer to pay, the more you pay in fees. Most PO financing companies charge in 30-day blocks.
  • Supplier relationships. Strong supplier ties can help reduce costs since they may offer better payment terms.

For example, if you get a $100,000 purchase order with net-30 terms, you might pay between $1,800 and $6,000 in fees. That’s steeper than traditional bank loans, but remember — you’re paying for speed and accessibility.

Most PO financiers structure payments as a flat monthly fee rather than an annual percentage rate (APR). This makes it easier to calculate your total costs upfront and decide if the math works for your margins.

The Pros of Purchase Order Financing

No Personal Credit Requirements

When I talk to fellow founders about purchase order financing, this is often their biggest relief: Your personal credit score doesn’t make or break the deal.

Unlike traditional bank loans where they dig through your credit history, PO financiers care more about your customer’s ability to pay than yours.

I’ve seen this work especially well for immigrant founders and entrepreneurs who haven’t built up their credit yet. One founder I worked with had a stellar product and a purchase order from a Fortune 500 company but no credit history in the U.S.

The financier looked at his customer’s strong payment history and approved the deal within days. Your business opportunity matters more than your FICO score here.

Quick Access to Capital

Most businesses get their funds within 5-10 business days after approval, which beats the months-long wait for traditional financing.

The streamlined process helps you move fast when big opportunities come around. Your customer submits a purchase order, you send it to the financier, and they review it — often giving initial feedback within 24-48 hours.

Many PO financing companies have digital platforms where you can upload documents and track the approval process in real time. This means no scheduling multiple bank meetings or gathering years of financial statements.

Some companies even integrate with finance CRM platforms like HubSpot to streamline the entire process, from initial application to final payment tracking.

The speed makes a real difference when suppliers need upfront payments or when you’re racing against tight delivery deadlines. Even complex deals typically close within two weeks.

Maintains Equity Ownership

PO financing lets you keep 100% ownership of your business while accessing the capital you need to grow.

Unlike equity financing, where you give up a piece of your company, PO financing is purely transactional. You pay a fee for the service, then move on with full control of your business.

For perspective, most early-stage equity rounds dilute founders by 15-25% per round. That adds up fast when you need multiple rounds to fund your growth. But with PO financing, whether you use it once or a hundred times, your cap table stays clean.

This matters most when you’re scaling quickly and want to maintain decision-making power over your company’s direction.

Scales With Your Orders

The financing amount automatically adjusts based on your purchase orders. When orders are small, you borrow less. When they grow, your funding grows, too.

Most PO financing companies work with orders ranging from $50,000 to over $10 million. This flexibility means you’re never locked into borrowing more than you need for each deal.

The scalability works both ways — you can use it for a single large order or set up a revolving facility for multiple orders. One month, you might finance a $75,000 order, and the next month, you might finance a $500,000 one. Your available funding adapts to your actual sales pipeline.

This natural scaling helps you manage cash flow without overextending your business.

No Hard Assets Required

Traditional lenders want to see buildings, equipment, or inventory as collateral. PO financing takes a different approach — your purchase order is the asset.

The financier looks at the strength of your customer’s promise to pay rather than the physical assets on your balance sheet. This works particularly well for service businesses or companies with light asset models.

Even businesses operating from home offices or co-working spaces can qualify. Your customer’s purchase order and creditworthiness serve as the main security.

This removes one of the biggest barriers newer businesses face when seeking capital. You can access substantial funding without pledging personal assets or business equipment as collateral.

The Cons of Purchase Order Financing

Supplier Verification Required

Your suppliers need to pass the financier’s verification process. This means sharing their business details and sometimes agreeing to specific payment terms.

Some suppliers feel uncomfortable with this level of scrutiny or prefer not to deal with third-party financiers. Others might raise their prices to cover the additional paperwork and coordination.

This verification process can strain relationships with suppliers who value their privacy or prefer simpler transactions. You’ll need backup suppliers ready in case your preferred ones don’t want to participate.

Higher Costs Than Traditional Loans

Monthly fees of 1.8% to 6% might seem reasonable for a single order, but they add up when annualized. A rate that works out to 24-72% APR means you need healthy profit margins to absorb these costs.

Most traditional bank loans or lines of credit charge 5-15% annually. But here’s the reality check — PO financing serves a different purpose. You’re paying for speed and accessibility, not just the money.

Consider these costs as part of your overall pricing strategy. If fulfilling larger orders helps you negotiate better supplier rates or reach economies of scale, the math might still work in your favor.

Customer Relationship Impact

Your customer learns about the financing arrangement since they’ll need to verify the purchase order and agree to pay the finance company directly.

Some customers view this as a red flag about your financial stability. Others might hesitate to share their financial information with a third party.

Managing these conversations requires careful communication. You need to frame PO financing as a strategic tool for growth rather than a last resort for cash flow problems.

How does purchase order financing work? [Template]

There are typically four parties involved in purchase order financing transactions. They are:

  • Seller/borrower. The company that needs financing to fulfill the customer’s order.
  • Lender. This company finances the transaction. They review the purchase order and borrower’s qualifications to disperse funds directly to the supplier to fulfill the order at hand.
  • Supplier. This party provides the goods or materials needed to fulfill the order. They receive initial funds directly from the lender.
  • Customer. The customer provided the initial purchase order requesting goods from the borrower’s company. They receive the final product delivered by financing. Their payment typically goes directly to the lender.

Now that we understand who is involved in a purchase order financing deal, I’ll walk you through the steps it takes to complete this type of order.

po financing steps

1. The customer issues a purchase order.

To begin the process, a customer sends a purchase order to a seller with the intention of making a purchase. The purchase order specifies the product, the number of units, and the date they would like to receive the order by.

For example, if an office manager decides to upgrade the furniture in their office building and wants to purchase 100 new office chairs, they can start by drafting a purchase order and sending it to the furniture company they would like to order from. The purchase order should indicate the specific chair they would like to order, the number of chairs (in this case, 100), the delivery address, and the date they would like to receive the chairs.

2. The seller requests a quote from the supplier.

Once the seller receives the purchase order, they can share the purchase order information with the supplier. The supplier determines if they have the inventory to fulfill the order and sends the seller a quote outlining how much it will cost to fulfill the order.

Once the seller has this information, they can determine if they have the cash on hand to make the purchase from the supplier upfront, or they can decide to pursue purchase order financing to pay the supplier.

Continuing the example above, when the office furniture company goes to their supplier to price the order of 100 chairs, they realize they did not have access to enough funds to purchase the chairs from the supplier. They decide to pursue purchase order financing to provide the chairs to the customer.

3. The seller applies for purchase order financing from a lender.

Once the seller decides to pursue purchase order financing, they must apply for the funds needed from a financing company. The customer’s initial purchase order and the quote from the supplier must be provided to be considered for funding.

In the case of the office furniture, the furniture company applies for funds from a financing company. After reviewing the initial purchase order and the supplier quote, the lender approves the seller’s application and agrees to finance this effort.

4. The lender pays the supplier to fulfill the order.

After the seller has been approved, the lender provides the necessary funds to the supplier directly. This amount should cover the cost of manufacturing and delivering the goods requested in the purchase order.

5. The supplier fulfills the order.

Once the supplier receives the funds from the lender, they provide the products outlined by the original purchase order and deliver the goods directly to the customer. The seller is typically not involved in this step.

For example, when the furniture supplier makes and ships the 100 chairs, they send the order directly to the office manager who provided the initial purchase order. The office furniture company does not serve as a middleman during this step of the process.

6. The seller sends an invoice to the customer.

After the supplier delivers the order, the seller sends an invoice to the customer requesting payment. The payment terms outlined in the invoice should adhere to the terms outlined by the lender when they provided the initial funding.

7. The customer pays the invoice.

When the customer pays the invoice, their funds go directly to the financing lender.

Again, during this step of the process, the furniture company does not serve as a middleman. The office manager will pay the financing lender directly.

8. The lender takes applicable fees and disperses the remaining funds to the seller.

Once the lender receives the funds from the customer, they take any applicable fees as outlined in their original lending agreement and give the remaining funds to the seller.

Here’s a purchase order template that can be used for this process:

purchase order template from hubspot

Download our easy-to-use purchase order template.

PO Financing Companies to Consider

Finding a reliable PO financing partner requires looking beyond interest rates and minimum funding amounts. Here’s a breakdown of the top companies in this space, along with their specialties and ideal customer profiles.

SMB Compass

SMB Compass specializes in smaller PO deals starting at $10,000 — notably lower than most competitors’ $50,000 minimum. The average interest rate is 7.99% APR.

Their digital portal lets you monitor the entire funding process, from initial submission to supplier payments. Most clients receive term sheets within 24 hours of applying.

They offer nine types of business loads and are accessible to a variety of borrowers.

Best for: Businesses operating for over two years and with strong personal credit scores.

Liquid Capital

Liquid Capital processes purchase orders ranging from $20,000 to $20 million, with typical approval times of 24 hours. They serve clients across North America.

Their repayment terms typically run up to 90 days, and the estimated fees per 30 days are 2-4%.

Best for: Mid-sized businesses in various industries ranging from chemicals and plastics to medical ales.

Southstar Capital

Southstar Capital has experience in government and business contracts and their processing time averages 2-5 days. They also base their credit decisions on your customer’s credit.

They offer some of the most flexible repayment terms, and you can also combine PO financing with receivable financing for accounts.

Best for: Companies seeking other forms of financing complementary to PO financing.

AdvancePoint

AdvancePoint handles purchase orders for new businesses with financing up to $500,000, with a focus on technology hardware and software resellers. They complete due diligence in 2-10 business days.

AdvancePoint also offers a variety of other financing options, including equipment financing and bad credit business loans.

Best for: Small to mid-sized businesses who want to compare multiple loan options.

How to Choose the Right PO Financing Company

The right PO financing partner can mean the difference between steady growth and missed opportunities. I believe these five factors will help you evaluate which company best matches your business needs, industry requirements, and operational style.

how to choose the right po financing company

1. Evaluate their supplier relationship management.

A PO financing company’s reputation with suppliers can directly impact your deal terms. When evaluating potential financiers, look beyond their funding capabilities to their supplier network and relationship management approach.

Behrouz Bakhtiari, a supply chain expert at McMaster University, points out an often-overlooked benefit:

“Companies may be surprised to find out that suppliers are willing to provide better terms if a PO lender is involved in the transaction. If a reputable PO lender is involved, suppliers will become less risk averse in their price and terms proposals.” This means choosing the right PO financing partner could help you secure more favorable supplier terms.

Ask potential financiers about their supplier onboarding process and communication protocols. The best companies maintain strong relationships across various industries and can provide references from their current supplier network.

I suggest you request to speak with suppliers they’ve worked with previously. Their experiences will tell you more about the financier’s reliability than any sales pitch.

2. Assess their seasonal business experience.

When choosing a PO financing partner for seasonal business needs, look closely at their track record with similar cyclical industries. The right partner should understand the unique challenges of seasonal demand.

As Bakhtiari notes, “Suppliers providing seasonal items often work with numerous customers, and the number of orders tends to increase rapidly before the season starts. This may place unforeseen strains on the supplier, resulting in delayed shipments.”

Ask potential financiers specific questions about their seasonal business protocols:

  • How do they handle supplier delays during peak seasons?
  • What contingency plans do they have for shipping disruptions?
  • Can they provide examples of successful seasonal business financing?

The best PO financing companies have systems to manage seasonal complexities and can demonstrate past success with similar business cycles.

3. Consider their international capabilities.

Your PO financing partner needs expertise in international trade regulations and financing structures for businesses operating across borders. Each country has its own set of rules and requirements.

Bakhtiari highlights a crucial consideration, “One area is different terms and requirements for factoring in different countries. The PO lender and factoring agencies in different countries may employ different terms and conditions.”

When evaluating international capabilities, verify:

  • Their experience with your target markets.
  • Their network of international banking relationships.
  • Their understanding of currency exchange risks.
  • Their track record with cross-border transactions.

I recommend looking for partners who can clearly document their international processes and have established relationships with reliable factoring agencies in your key markets.

4. Review their risk management approach.

A purchase order financing partner’s approach to risk tells you a lot about their reliability and fit for your business. Their risk assessment process should be thorough but not overly restrictive.

Bakhtiari emphasizes this balance, “PO financing needs to be used only when other options are unavailable or do not provide sufficient funding. It’s a great option when traditional options do not provide timely or sufficient funding, and there’s an opportunity for growth and market share acquisition.”

Look for partners who:

  • Have clear criteria for evaluating orders.
  • Provide transparent risk assessment processes.
  • Can explain their approval requirements upfront.
  • Show flexibility based on customer creditworthiness.

Ask about their risk mitigation strategies and how they handle common challenges like shipping delays or supplier issues. Their answers reveal how they’ll respond when problems arise.

5. Check their shipping timeline policies.

Shipping delays can quickly turn a profitable order into a loss when using PO financing. You need a partner whose policies protect your margins when timelines slip.

Bakhtiari warns about this critical risk:

“If a supplier does not commit to the planned shipping timeline, the additional PO financing costs can easily eat into the profit margins of the transaction. Even though there may be penalties for delayed shipments charged to the supplier, these often prove to be less than the additional cost charged by the PO lender.”

When evaluating potential partners, ask:

  • How they handle supplier shipping delays.
  • What additional fees apply when shipments run late.
  • Whether they offer flexibility on payment terms for delayed orders.

I think the best partners have clear policies that align supplier penalties with their late fees to protect your bottom line.

Getting Started

Successful PO financing often comes down to relationship management more than pure financials. The companies that get the best terms aren’t necessarily the ones with the strongest balance sheets but those who build solid relationships with their financiers, suppliers, and customers.

The most valuable insight? The importance of running the numbers before you need them. Understanding your margins and calculating potential financing costs ahead of time puts you in a much stronger position when that big order finally lands on your desk.

15 Best LinkedIn Summary & Bio Examples [+ How to Write Your Own]

Writing a LinkedIn summary is one of those tasks that sounds easy until you try to do it. Should you recount your prior roles? List your accomplishments? Write in first-person or third?

Or, should you forge ahead using the cookie-cutter bio LinkedIn wrote for you? (The answer to that question is no, but don’t worry — you’ll soon have a LinkedIn summary you’ll be proud to publish.)

In this blog post, I’ll dig into what to include in your LinkedIn About section to make it stand out, as well as some examples to inspire you. Let’s get started.

→ Download Now: 10 LinkedIn Summary Templates

Table of Contents

If you’re a marketing or sales professional like myself, writing a LinkedIn summary is especially hard. You’re not targeting recruiters and hiring managers; you’re appealing to potential clients and buyers. To catch their attention, you need to be a little more flashy with your expertise.

When I first crafted my summary almost a decade ago, I simply regurgitated key points in my background: I went to [X] college, then joined [X] company, and so on. Looking back, I was missing a clear narrative to pull it all together.

I also realized that potential clients aren’t just looking for someone with a shiny, perfect track record — they’re looking for a bigger story, a solution to their problem, and a relationship they can trust.

Whether you’re a job seeker starting your search on LinkedIn or a tenured professional, your summary should speak to your skills, experience, and professional interests — think of it as your digital elevator pitch.

Why a Good LinkedIn Summary is Important

Writing a LinkedIn summary may feel like an unnecessary step — especially if you keep your profile up to date. You might also see it as unnecessary if you don’t spend a lot of time on the platform or aren’t looking for a job.

But, from my experience, a good LinkedIn summary is crucial for career success. For salespeople, it can be a handy tool for social selling; for other professionals, it could be the gateway to a new career opportunity.

Kaitlin Milliken, senior program manager at HubSpot, believes that having a good LinkedIn summary is key for professionals who want to get hired.

“LinkedIn summaries offer a window into your experience,” she says. “If I‘m looking to fill a position, I can see not just where you worked but how those positions play into the narrative of your career. I can understand what type of work you’re most passionate about, so I can see if you’re a good fit for a position.”

Let’s go over the reasons you should most definitely write a LinkedIn summary.

1. You get to introduce yourself in your own words.

While your prior roles may be notable, they’re not the only things people should know about you. A LinkedIn summary will allow you to make a personable first impression and highlight your accomplishments and expertise succinctly.

2. You get to show your personality.

I love LinkedIn summaries that aren’t afraid to show some personality. They tend to be more “sticky,” staying in mind long after I close LinkedIn.

Consider adding a little flair and humor, or keep it super professional. Either way, your LinkedIn summary will give recruiters and other users a taste of what they can expect if they reach out to you. It can also help recruiters gauge culture fit and help prospects and potential clients get a sense of whether they’d like to work with you.

Need more help building a LinkedIn profile that showcases everything you have to offer? This tutorial can help.

3. You can rank higher in LinkedIn search results.

LinkedIn uses the About section in its algorithm, as well as your LinkedIn headline, current title, and other factors. By writing a keyword-rich LinkedIn summary, you can become more visible to potential prospects and recruiters in search results.

If you include keywords such as “content,” “management,” and “analysis” in your bio, you may attract more views.

Ready to get started writing your LinkedIn summary?

1. Create a quick outline prior to writing your About section.

While you do get 2,000 characters of space for your LinkedIn summary, the last thing your audience needs is long, rambling paragraphs with no clear progression from sentence to sentence.

Sticking to a predetermined structure will help you communicate clearly and concisely. Here’s a format below that you can follow.

  • Hook: A sentence that makes the reader want to keep reading. Remember: only the first three lines are visible when a user enters your profile. With a hook, you ensure they click “See more.”
  • Mission: Tell the reader why you do what you do.
  • Expertise and Skills: Tell the reader what you’re good at.
  • Accomplishments: Show the reader how your expertise delivered results in the past.
  • Call to Action: Tell the reader what you want them to do after they’re done reading your summary.

Also, keep in mind that people tend to scan, not read. I recommend keeping your sentences concise and consider breaking longer paragraphs into bullet points.

If you’re not sure how to get started, use our free professional bio templates, which you can use to write your LinkedIn bio.

Featured Resource: Free Professional Bio Templates

how to write a linkedin summary, free professional bio templates

Use HubSpot’s free professional bio templates to write a standout LinkedIn summary for your profile.

2. Hook readers with a strong opener.

When I think of a good hook, it‘s something that disrupts you, but there’s a difference between disruption and annoyance. You want something that’s going to generate interest on a dime — not something too kitschy, weirdly offensive, or borderline eye-rolly.

A good example is from Ryan Gunn, director of demand generation and marketing operations at Aptitude 8 (and my go-to resource for all things CRM solutions). If you aren’t familiar with Gunn, his summary does a fantastic job of grabbing your attention:

Source

[alt text] how to write a linkedin summary, ryan gunn linkedin summary

I like how he hooks us by describing a common problem, leading readers to think, “Yeah, this guy gets it.” His bio also sets the stage for Gunn to introduce himself as a solution, conveying himself as a passionate problem-solver and master of the HubSpot platform.

Ultimately, the goal of the first sentence of your LinkedIn summary is to get your audience to continue reading, and Gunn does this well.

In some cases, only a few sentences (that act as openers) can do a great job at hooking readers and conveying the message you need to.

Matt Redler, co-founder at Za-zu, said he was recently “stopped in [his] tracks” when he read his co-founder’s (Chris NeJame) two-sentence LinkedIn summary. Here’s what stood out:

  • “I look for problems in the code and problems that lead to problems in the code. I love studying social systems and how their dynamics play into the quality of the software we produce, but also how that quality plays back into social systems.”

Redler says, “[This summary] showed how Chris thinks, not just what he does. Most engineering leaders write about technologies they know or teams they’ve led. Chris wrote about how he sees the relationship between people and software. In two sentences, he revealed himself as someone who thinks deeply about both technical and human systems.”

According to Redler, a great LinkedIn summary captures how you think, not just what you’ve done. The best ones make the reader stop and think, “This person is different.”

“My tip is simple: write what actually fascinates you about your work,” says Redler. “Not what you think others want to hear, but what keeps you up at night, thinking. That authenticity will attract the right people — the ones who think like you do.”

There are many ways to hook readers with your LinkedIn summary. For instance, you can open a loop that can only be closed with further explanation or make a claim so outlandish that it needs further justification.

Hook Example

“It took me more than X sales demos to learn the secret about Y, but since then, something unexpected has happened.”

3. Tell the reader why you do what you do.

In my experience, people connect with stories and values more than the straightforward “what you do.” While the “what” is important, consider also including the “why.” That adds a more personal, compelling element to your summary — and your profile viewers are going to value that connection.

Understand what has attracted you to your profession and what your mission is in your role. These will make your LinkedIn profile more emotionally resonant.

Mission Example

“I grew up on the Mississippi River and watched it get clearer over time as manufacturing standards improved. Since then, I knew I wanted to spread the word about sustainability in business environments.”

4. Speak to your industry expertise.

As valuable as a valid rationale behind why you do what you do, profile viewers won’t put too much stock in it if you don’t seem like you know what you’re talking about. That’s why I like to see a little flexing here — a reference to your expertise that gives you some instant but real clout. Describe your background and qualifications in two to three sentences.

For example, are you a salesperson using LinkedIn to connect with prospects? Your summary should speak to your expertise in your industry and your interest in helping people achieve results.

Or let‘s say you’re a customer success manager using LinkedIn to connect with customers — if that’s the case, your summary should speak to your expertise in your industry and your availability for consulting.

Alexander Brandrup, a co-founder at Neurogan, recommends leading with your pertinent accomplishments.

“You don’t want to sound braggy, but you do want to give enough information in a way that allows hiring managers to quickly identify whether or not you are worth their time,” Brandrup says. “Make sure you personalize the information so that it’s clear that it is your own voice. Make prospective employers want to know more about you than just what’s written on your resume.”

Industry Expertise Example

“I have 7+ years of sales experience — with experience in both sales development and account management.”

5. Call out your specialties and skills.

Okay, so you’ve hooked a profile viewer. They have a sense of why you’re passionate about what you do, and the reference to your experience you just made has them thinking, “Gee whiz! This person might just be the real deal!”

Now what? Well, it’s probably time for you to actually get into the weeds of what you do — to a reasonable degree of “in-the-weeds-ness.” Give them 1-2 sentences about the specifics of your role.

For instance, if you’re a digital marketer who focuses primarily on social media management, go ahead and say that. Don’t leave the reader to guess what “digital marketing” means in the context of your role.

Or, if you recently graduated from college, did you study something specifically within your field?

Calling out your specialties is especially critical in sales. “Working in sales” can mean a lot of things — the field encompasses a wide range of roles with a wider range of affiliated responsibilities and an even wider range of buyer personas and verticals.

Whether your goal is to appeal to employers or prospects, be sure to call out the things you do well to attract the opportunities best aligned with your goals.

Specialties and Skills Example

“I’m a mid-market sales executive with experience in direct sales and SAAS product demonstrations.”

6. Provide data to back up your results and prove your expertise.

Now, you’re cooking — you have all kinds of valuable context about who you are and what you do, but why should this profile viewer believe a word you say? Give them an answer with some hard data.

Prove that you’ve delivered with some real figures. You don’t need to give prospective employers a laundry list of your accomplishments — that’s what resumes are for — but weaving in a few of your most impressive data points in your summary can go a long way.

Proof Example

“Over the past five years, I’ve made it into the President’s Club three times, and my closed-won business has seen less than 10% churn during the first 12 months.”

7. Mention if your team is currently hiring and invite people to apply.

This is optional, but it will serve you in several ways. First, it will show that you’re a team player, and second, it will show that you’re committed to both your professional growth and your current company’s growth.

It’s a must-have if you’re looking to recruit, as this can serve as an excellent recruiting tool. For example, are you a team manager using LinkedIn to recruit for job openings? Your summary should speak to the fact that you have openings, the type of work you do, and why a candidate would want to work at your company.

Hiring Example

“We‘re currently hiring account managers for our Pacific Northwest territory. The ideal candidate has 5+ years of sales experience and a demonstrated familiarity with the region. We’re a fast-growing team with no cap on commission. Click here to learn more and apply.”

8. Highlight your professional interests.

Giving a little bit of a personal edge to your summary tends to be a good call — but the operative term in that sentence is “a little bit.” You can highlight some bits and pieces about what you help others do or what your goals are but don’t get too caught up here.

Your professional interests are slightly different from your skills — the former isn’t necessarily as quantifiable or fact-driven as the latter. You don’t have to prove that you’re interested in something the same way you’d have to prove that you’re good at something. There’s no need for hard data on this front.

Still, you should show that you’re committed to pursuing your interests, and be sure to sound passionate about them.

Professional Interests Example

“I’m a sales coach that’s interested in assisting small teams (five-10 people) optimize their time and workflows so businesses can grow without adding more headcount and reps can advance their careers.”

9. Include a call-to-action with your contact information.

Last but certainly not least, include a call-to-action and potentially share your contact information. Are you a freelance or contract worker hoping to find more work on LinkedIn? Your summary should end with how to get in contact with you. If you want to seal the deal, include a list of your most impressive clients.

CTA Example

“Reach me at email@address.com or book time on my calendar here: [Calendar link]. Previous clients include [Your most impressive client], [Your second most impressive client], and [Your third most impressive client].”

If you’re not looking for more work, you can also simply end with, “Feel free to message me — I’d love to chat.”

10. Break up large blocks of text.

If you find your summary is on the longer side (which isn’t always a problem as long as it’s compelling), try breaking up large blocks of text to make it easier to read.

When initially viewing a profile, many people are scanning for high-level context. If you are posting long paragraphs, some of your notable highlights can get lost. Try keeping your text blocks to two or three sentences max, making your summary easier to read and digest.

11. Try to keep it concise.

I just mentioned that your summary can be on the longer side if it’s compelling, but that can be a tall ask. Making a rundown of your professional life worthwhile

LinkedIn summary should be exactly that — a summary. It’s an opportunity for you to provide valuable context about your professional life, but there’s such a thing as too much context in this … context (I swear I didn’t do that on purpose).

Don’t get carried away exploring every angle I referenced in the previous points — lock in on a theme for your summary and keep things concise and straightforward. You’re trying to hook your profile viewers. A long-winded, borderline novel under your profile picture is an easy way to make them lose interest.

12. Don’t get too jargon-y.

Getting overly technical and too deep in your field’s verbal weeds often turns profile viewers off. Your LinkedIn summary is a resource for generating immediate interest from the people on your page. Hook them with something engaging — they’ll see the extent of your technical knowledge when they dig deeper into your resume and qualifications.

13. Be conversational.

In a similar vein as the previous point, you want to keep your summary approachable — so write the way you talk. Don’t get too caught up trying to pack your description with SAT words and rigid sentence structure. A LinkedIn summary is a conversation starter, so be conversational when putting yours together.

Being conversational is one of the most important things to Tracie Crites, CMO at HEAVY Equipment Appraisal, when evaluating a LinkedIn summary.

“Writing in a conversational and engaging tone will help your profile stand out in a sea of formal, generic summaries,” says Crites. “It demonstrates personality … This is very important for early-career professionals, as it helps them appear relatable and engaging, which can set the tone for future interactions.”

A LinkedIn Summary That Incorporates All of the Elements

Now that you know all of the key elements to incorporate, let’s look at a summary that covers all of them:

I’m going to level with you — right now, I’m updating an article about LinkedIn summaries, and as a part of that, I’m expected to provide a screenshot of the summary on my profile. The thing is, I’ve never actually had one up to this point, and I’m bumping up on deadline for the post. I guess we’ll see how this goes.

Now that I’ve hooked you with my zany, self-aware humor, it’s time to lock in.

I’ve been a content writer and an editor, specializing in the sales space for about five years now — a career trajectory born out of two facts.

First, I’m kind of good at writing. Second, I have a real affinity for and an oddly solid “in-tuneness” with the sales community.

I love what I do — it’s pretty neat to have the opportunity to pursue your passion (writing) for an audience you weirdly resonate with (sales professionals).

I’ve been focused on content writing and sales since college and been the Editor of The HubSpot Sales Blog — an esteemed publication that takes a funky, badass, truth-to-power approach to educational content about sales-related and sales-adjacent topics — since 2021. I’m bylined on over 250 articles for the blog and have updated more pieces than I can count.

I‘m also going to throw in a quick flex and say that I’ve overseen most of the property’s most productive months — with monthly traffic hitting over 4 million views at points. I’ve also done other stuff, but that’s detailed below.

I’m interested primarily in piloting and up-leveling content strategies, hard writing, writing coaching, copy editing, and just being the best gosh-darn colleague I can be.

If you’ve I’ve kept you on page long enough to get to this CTA part, here are a few things I want you to know: First, I appreciate you. Second, my team isn’t hiring, but I will promptly update this summary when we are. Third, let’s connect! Yeah!

Here’s a beat-by-beat breakdown of the summary’s elements:

how to write a linkedin summary, sample linkedin summary

Think of your LinkedIn summary as your digital elevator pitch. In just a few sentences, it should give the reader a clear idea of who you are, what sets you apart, and what you’re looking for from the viewer.

how to write a linkedin summary, what to put in a linkedin summary

Here’s an example:

“I’m a sales rep dedicated to helping local Oklahoma City services businesses grow their customer base and decrease customer churn. I have 6 years of experience in local sales, and I’ve consistently met and exceeded my quota throughout my career. Within the last year, I’ve topped our leaderboard six out of 10 months. On average, I close business 10% faster than my peers.”

Now, let’s discuss what to avoid when crafting your LinkedIn summary.

What (Not) to Put in a LinkedIn Summary

Your Resume

Avoid copying and pasting points from your resume to your LinkedIn summary. Not only is it redundant because your work history should be up-to-date on your profile, but recruiters and potential connections are looking for a brief introduction to who you are, not a regurgitation of your resume.

how to write a linkedin summary, your resume

Cheesy or Cliche Terminology

Your profile should be free of terms such as “guru” or “master.” These terms are highly subjective and don’t speak to your actual skills or abilities.

Matthew Franzyshen, business development manager at Ascendant Technologies Inc., calls these words “LinkedIn-ese.”

“Please refrain from adding any ‘LinkedIn-ese’ or cliched business lingo in your summary,” Franzyshen says. “Yes, you want to capture attention, but, more often than not, using hyperbolic statements and overly-cliched keywords won’t be compelling.”

Instead, Franzyshen suggests using numbers! “Quantify the results you’ve achieved in straightforward language. It’s much more believable and easily understandable that way,” Franzyshen says.

I agree wholeheartedly. Instead of trying to be a self-proclaimed “guru,” share a tangible piece of work you’ve done that demonstrates your expertise, or describe a specific initiative where your work drove business results.

how to write a linkedin summary, cheesy or cliche terminology

Spelling or Grammatical Errors

We’re all human, and spelling mistakes happen. Before publishing your profile, make sure you review it a few times to catch any misspellings or grammatical errors. Having typos on your profile can challenge your credibility and can be a distraction from your positive attributes.

how to write a linkedin summary, spelling or grammatical errors

Your Full Life Story

LinkedIn summaries are not the place to publish your autobiography (though I’m sure your autobiography is lovely). If users are scanning your profile looking for relevant information pertaining to a role or opportunity, you want those points to be front and center.

When you update your LinkedIn summary, aim to include information that’s relevant to the jobs and opportunities you’re open to, keeping things clear and concise.

how to write a linkedin summary, your full life story

LinkedIn Summary Templates

Below are several templates you can customize with your own details for a succinct and effective LinkedIn summary. Make sure to add personal details to make it memorable for readers.

Feel free to download the entire LinkedIn bio template kit first, then follow along as I review a selection of my favorites.

Free Download: LinkedIn Summary Sample Templates

1. Friendly LinkedIn Summary Template

how to write a linkedin summary, friendly linkedin summary template

👋Hi there! I’m [Name] — and I’m obsessed with all things [area of expertise].

Since [date], I’ve been a [role] at [Company], where I’ve focused my time on [primary responsibility]. While at [Company], my biggest accomplishment has been [accomplishment], which has [outcome].

Download and customize the full version of this LinkedIn bio for free.

I should clarify, right off the bat, that the emoji here is optional. This one is all about being friendly and approachable, but in some industries, the difference between “friendly and approachable” and unprofessional is pretty thin. If that’s the case, maybe the tiny hand waving at your profile viewers isn’t the move.

With that in mind, let’s get into the nitty-gritty of why this one works. With or without the emoji, this template generates immediate interest by addressing the reader directly. From there, it uses soft but compelling language to highlight some of the elements you want to see addressed in a LinkedIn summary — roles, responsibilities, professional interests, accomplishments, and KPIs you’ve delivered.

If you decide to go with this one, I recommend focusing on your most salient accomplishment — or the one that best encapsulates what you’d like to do in a future role.

With its friendly greeting (feel free to drop the emoji if it doesn’t fit your personality or industry), this LinkedIn bio template right away captures the reader’s attention, showcases your enthusiasm and expertise, and establishes a personal connection. That way, you attract connections who could help you live up to your career aspirations.

2. Recent Graduate LinkedIn Summary Template

how to write a linkedin summary, recent graduate linkedin summary template

My name is [Name], and I’m currently seeking [ideal role].

I graduated from [School] with a major in [major]. While at [School], I established and grew my passion for [area(s) of interest]. Some of the courses that fascinated me the most were [first course], where I first learned to [skill] and [second course], where I [project or accomplishment].

Download and customize the full version of this LinkedIn bio for free.

Given their lack of work experience and need for visibility, recent graduates should always have a solid LinkedIn bio. This template is a great example for recent graduates to follow. If you fit that bill, this one touches on some central aspects job seekers need to cover.

First, it lets readers know exactly what kind of role you’re most interested in — along with your area of expertise to demonstrate you have knowledge relevant to that field. It also gives you an opportunity to show a little personality and shed some light on who you are.

By stating your areas of interest and giving some context about why you’re interested in them, you’re essentially demonstrating that there’s a solid basis for why you want to work in a field — and referencing specific courses allows you to show that you have the kind of background needed to learn and apply the right skills.

This template allows you to easily position yourself as a well-rounded candidate who brings a unique blend of skills to the table. Customizing the bio with additional details about your specific interests, projects, or internships will make it even more impactful and tailored to your desired role.

3. Sales LinkedIn Summary Template

how to write a linkedin summary, sales linkedin summary template

Customers need to know how [purpose you serve] — that’s where I come in.

As a [role] at [company or team], it’s my job to help people [purpose]. I’ve been doing it for [number of years in role] years and have loved every minute of it.

[Professional interest] is truly a passion for me. When I was young, I loved [related passion]. Naturally, this developed into a career in [career trajectory], which has led me to where I am today.

Download and customize the full version of this LinkedIn bio for free.

Though the example above covers a role in content marketing, I can really see this template working for sales professionals. Why? Because it effectively positions you as a valuable resource who’s committed to customers’ success and emphasizes your dedication to helping people do something.

For a salesperson that could be any number of things: Drive leads, improve a process, or streamline operations using the product they sell. The full version of this bio template includes space for a call-to-action, prompting readers to shoot you a message.

You can also customize it with additional details about your specific sales experience and achievements, showcasing your ability to drive results for clients and positioning you as a knowledgeable and customer-focused sales rep.

4. Job-Seeker LinkedIn Summary Template

how to write a linkedin summary, job-seeker linkedin summary template

I’m on the hunt for my new role in [area of interest].

For more than [number of years in workforce] years, I’ve been learning the ins and outs of [area of expertise] — what it is, how to be better at it than the rest, and how to help others with it.

It’s for these reasons that I spent [number of years in previous role] years with [Company] as its [previous role].While there, I focused my efforts on [responsibilities] — which ultimately resulted in [results].

Download and customize the full version of this LinkedIn bio for free.

If you’re a job-seeker, it’s essential to optimize your LinkedIn bio with keywords. That way, recruiters and companies can find you via LinkedIn search.

This bio template is perfect for that. It effectively conveys the experience and expertise you’ve built during your career but also gives you space for keyword optimization (I used “SEO content marketing,” “content SEO,” and “SEO content writer”).

It mentions right away that you’re actively searching for your next role — a piece of information you shouldn’t feel shy to share. The most important part? The template gives you space to describe the results you’ve achieved for previous employers. That creates a clear professional identity, showcases your abilities, and increases your chances of securing relevant job opportunities.

5. Catchy LinkedIn Summary Template

how to write a linkedin summary, catchy linkedin summary template

I’m an [big picture description of your role]. I’m a [another big picture description of your role]. But most importantly, I’m [your role].

For more than three years, I’ve helped HubSpot capture thousands of leads and sign-ups via educational, evergreen content. Now, I work on [current primary responsibility] with [description of team] to improve [primary goal/KPI]

Download and customize the full version of this LinkedIn bio for free.

This LinkedIn bio template right away highlights the individual’s roles as an educator, blogger, and SEO, but you can also be humorous with that first line. For instance, I might write:

  • I’m a self-proclaimed foodie. I’m a so-so weight-lifter. But most importantly, I’m a marketer at HubSpot, where I drive hundreds of monthly leads and sign-ups via content optimization.

If you want to showcase your expertise in a catchy way, this template is the way to go. Despite being so short, the bio effectively positions you as an authoritative figure in the industry. It also provides a space to include a link to your personal website or another social media profile, allowing interested readers to learn more about you and your work.

6. Simple LinkedIn Summary Template

how to write a linkedin summary, simple linkedin summary template

I joined [your company] in [year] as a [first role].

Prior to [company], I was [previous role] at [company] and the [other previous role] at [company]. During my tenure at [first company], I helped [accomplishment] and [another accomplishment].

Download and customize the full version of this LinkedIn bio for free.

I love this LinkedIn bio template because it’s simple and to the point, yet it showcases my (and your, if you end up using it) career trajectory and notable accomplishments. You can easily establish your credibility and expertise across different organizations with that second paragraph.

Plus, the bio’s focus is on specific outcomes. I put information about gaining backlinks, driving organic visits, and achieving high search engine rankings. This allows you to underscore your ability to drive tangible results for a business.

I recommend using this template to showcase your track record of success. By sharing specific achievements and mentioning the companies you’ve worked with, you can right away create a sense of trust and expertise, which is essential for a LinkedIn summary.

LinkedIn Summary Examples

If you need some inspiration, good news. These LinkedIn summary examples will help you find the right words.

1. Adam Buchbinder, vice president of sales and marketing at Boclips, effectively demonstrates his passions and top competencies in the field.

how to write a linkedin summary, adam buchbinder linkedin summary

My Favorite Lines

  • I have been responsible for over 90% of the company’s sales, creating processes and strategies for building repeatable sales across new business, expansion, and renewals.

Why I love it: With this line, Buchbinder covers some key bases. First, he gives some hard (but accessible) data to give him some instant clout. Second, he establishes the key activities he delivered to see those results.

  • I am driven by the mission to support teachers and advance opportunities for all students, especially those who face learning challenges or other barriers.

Why I love it: Here, Buchbinder speaks to the “why” behind his career ambitions — proving himself to be a thoughtful, well-rounded professional who’s in his lane for the right reasons.

Why This Summary Works

Buchbinder speaks to virtually every aspect of his role and why he’s effective in it. He addresses his professional history, his accomplishments, some hard figures that illustrate how he’s fulfilled his responsibilities, his mission, what his business does, and the breadth of his skill set.

Try It Yourself

Again, this bio covers a lot of bases. If you want to do it yourself, you need to speak to those key elements without presenting them as a laundry list.

2. Darrell Evans, owner and CEO of Yokel Local Internet Marketing, speaks to his prospect’s pain and showcases his strong copywriting skills.

how to write a linkedin summary, darrell evans linkedin summary

My Favorite Lines

  • “For businesses earning $3M-$50M annually, the challenges of stagnant growth, digital complexity, and the ever-evolving competitive landscape are real.”

Why I love it: This is a strong opener that not only gets people’s attention but also defines the kinds of clients Evans is looking for (companies with $3 million to $50 million in annual recurring revenue). This filters out unqualified leads and ensures that Evans only gets DMs from companies his company is likely to work with.

  • “As someone who’s owned six businesses, I understand the stakes Founder-CEOs face every day. My team and I are committed to delivering solutions that aren’t just innovative — they’re actionable, measurable, and transformative.”

Why I love it: With these two sentences, Evans puts himself in the shoes of his prospects. By showing them that he’s experienced what they’re likely experiencing at the moment, he positions himself as someone who has effective solutions which is exactly what his prospects are looking for.

Why This Summary Works

This summary effectively hooks readers, walks them through who the LinkedIn profile owner is, and shows them how they can benefit from reaching out to the bio owner. The writer effectively shows the ROI of working with his firm while showcasing his copywriting skills.

Try It Yourself

Write an introductory paragraph that appeals to your customer’s pains and emotions without mentioning yourself. You can offer advice or ask a question.

3. Dan Sally, HubSpot growth specialist, uses humor to show his fun personality.

how to write a linkedin summary, dan sally linkedin summary

My Favorite Lines

  • “Spent 8 years pursuing a career in stand-up comedy, appearing on Comedy Central and in the Boston Comedy Festival, before realizing my children liked seeing their father and not starving.”

Why I love it: Maybe he should have stayed in standup, because this is a hilarious opening line. It’s guaranteed to get a chuckle from the reader and keep them engaged.

  • “It’s been a fun ride so far. Looking forward to it not stopping.”

Why I love it: At the time of writing, Dan Sally has been with HubSpot for 15 years and 3 months. These two closing lines show how much he loves his job and how dedicated he is to it.

Why This Summary Works

This short but hilarious summary showcases the writer’s personality and top accomplishments without winding on for a long while. It exemplifies what a LinkedIn bio should achieve and how to do it using the minimum amount of words.

Try It Yourself

Begin your summary with an unexpected, interesting fact about yourself. In your next paragraph, tie it into your sales career.

For example, you might write, “I was the third runner-up of the National Spelling Bee in 1997. (You better believe the spelling of ‘euonym’ is now etched into my memory.) These days, I use my innate desire to learn to help customers.”

4. Joyce Guan West, career coach at Coaching With Empathy, indicates to prospects that they’re in the right place.

how to write a linkedin summary, joyce guan west linkedin summary

My Favorite Lines

  • “I love change management, turnarounds, and strategically fixing problems and fueling growth.”

Why I love it: This line effectively highlights the writer’s problem-solving mindset, which makes her a desirable candidate to work with.

  • “I can play a CRO role or a VP of Sales role. I have extensive experience with creating aggressive finance strategy, managing cash flow, and optimizing pricing, costs, and revenues.”

Why I love it: While these are technically two lines, they work well together to demonstrate the range of skills she offers her potential employers.

Why This Summary Works

This summary takes us through the various roles the consultant has taken on, all the way to her career coaching role now. Most notably, she ends with a prompt to book time on her calendar and includes a link right then and there.

Try It Yourself

Identify your buyer persona and then include a description of them in your summary. Don’t be afraid of expressing the types of roles you could play at a company, and be clear about what you want readers to do once they reach the end of the bio.

5. Fernando Silva, senior account executive at Imagen from Reuters, uses his hobbies to look more personable and approachable.

how to write a linkedin summary, fernando silva linkedin summary

My Favorite Lines

  • “A city dweller who loves to travel and find new adventures along the way.”

Why I love it: In this line, Silva summarizes who he is outside of work, reeling in the reader.

  • “I have found that nothing satisfies me more than meeting new people, developing new relationships, solving problems, and contributing to the growth of businesses.”

Why I love it: It shows the LinkedIn user’s passions at work while hinting at how he can help a potential employer or client.

Why This Summary Works

This LinkedIn summary keeps it short while incorporating the key parts of a bio: Silva’s personality, professional experience, and most desirable attributes.

Try It Yourself

List a few of the things you like to do in your free time (steering clear of anything controversial, of course). Then, explain why you chose your current role and how your customers derive value.

6. Chaniqua Ivey, revenue coach at Stimulyst, demonstrates vulnerability and communicates her passion for her mission.

how to write a linkedin summary, chaniqua ivey linkedin summary

My Favorite Lines

  • “Fewer than 50% of teen moms graduate high school. I did.”

Why I love it: What a fantastic hook — one that’s bound to make you sit straighter in your seat and want to keep reading about both her life and professional experience.

  • “My path has not been linear. My passion has never cared about the odds. My perseverance said don’t you ever give up. Don’t shrink. Don’t settle. Just soar.”

Why I love it: We get to see her personal mission in a succinct and effective way, made all the more impactful by her opening line.

Why This Summary Works

Ivey opens her summary by speaking to the bigger picture and paring things down to speak to her specific experience. It simultaneously touches on her life story, her determination, and her professional qualifications.

Try It Yourself

Speak to a bigger mission but also touch on how you’ve contributed to it through your personal struggles and professional life.

7. Jonah Silberg, senior account manager at Vimeo, keeps it short and engages prospects.

how to write a linkedin summary, jonah silberg linkedin summary

My Favorite Lines

  • “I grew sales-assisted revenue at Wistia from $0 to $4m+; spearheaded 6-figure expansions at Vimeo with leading global brands; and collaborated on experiments across every facet of the customer journey.”

Why I love it: This line does a great job of showing Jonah’s extensive experience and ability to drive measurable results for companies.

  • “If your focus is to scale retention & expansion efforts, let’s chat. :)”

Why I love it: With this call-to-action (CTA), Jonah deftly specifies the kinds of clients he wants to work with and how he can help them (by scaling their retention and expansion efforts).

Why This Summary Works

It’s brief, personable, and professional — all while showing the LinkedIn user’s personality. Plus, the mention of his parents is a unique touch, showing his background without much elaboration or fanfare.

Try It Yourself

In the simplest words possible, explain your experience and the kinds of projects you’ve participated in or led for the companies you’ve worked at before. Prospects are mainly concerned with hiring people who can deliver results, so show that you can (“I grew our website from zero views to 300,000 monthly page views in 8 months”, “I closed $5m in deals in 6 months using innovative sales techniques”).

Then, end with a CTA that succinctly defines the kinds of clients you want to work with.

8. Raphael Parker, owner of Milton Studios, intrigues readers with his work history.

how to write a linkedin summary, raphael parker linkedin summary

My Favorite Lines

  • “Ex-corporate lawyer, ex-non-profit founder, ex-round-the-world cyclist, ex-SaaS sales leader, ex-Nigerian federal gov’t employee.”

Why I love it: This opener shows how interesting the author’s career has been up until this point, making you wonder what he might be doing now (a question he answers in the last line).

Why This Summary Works

This LinkedIn bio flips expectations and delights with its one-line run-through of the author’s work history. The variety of the roles demonstrates that he can thrive at any employer if he were to ever come out of retirement. We love that he ends with his current status.

Try It Yourself

List your former jobs. If you’ve always been in sales, get creative. Did you ever have a lemonade stand as a child? Were you a camp counselor as a teenager? What was your college gig?

For example, you might write, “Ex-lemonade stand CEO, CMO, and COO; ex-juggler; ex-college tour guide. Currently helping prospective homeowners in Arizona find their next dream place to live. (And still juggling when asked nicely.)”

9. Allison Zia, manager of strategic planning at Herbalife Nutrition, creates immediate credibility and lists her specialties.

how to write a linkedin summary, allison zia linkedin summary

My Favorite Lines

  • “Whether it’s finding a perfect song for a film or finding a rare product for a rocket, I’ve been able to quickly uncover a customer’s pain point and identify a strategic solution.”

Why I love it: This line shows Zia’s diversity of skills, high level of professionalism, and key strengths.

  • “I have since leveraged my learnings and holistic experience in my current Strategic Planning role at Herbalife, where I align short-term business objectives with long-term vision, prioritize strategic projects, establish guardrails, prioritize strategic projects, establish guardrails, advise internal teams on execution, and track results.”

Why I love it: Zia does an excellent job reconciling thoroughness with flow when describing her responsibilities here. She seamlessly covers her key, most impressive professional activities — offering readers plenty of perspective without being too inaccessible or clunky with her writing.

Why This Summary Works

Zia manages to detail her skill set and how she applies it with frank language and engaging syntax. She conveys a lot of insight and perspective into her professional life while keeping everything streamlined and readable.

Try It Yourself

Use a short, impactful one-liner to highlight why you’re successful or what you’re best at. Give two to four examples of how this skill or desire has manifested itself throughout your life. Discuss your areas of expertise, then wrap it up with your favorite topics of discussion.

10. Abbey Louie, leadership trainer and coach at Abbey Louie, LLC, highlights her passions and shares how they fuel her work.

how to write a linkedin summary, abbey louie linkedin summary

This Boise-based consultant and business owner displays her sources of expertise. Louie concisely shares what inspired her work and gives potential clients a preview of the benefits they can expect from working with her.

My Favorite Lines

  • “I believe that the strongest organizations are those in which employees feel connected — to each other and their work.”

Why I love it: We get to see the core belief that drives the author’s current work in a succinct and clear way.

  • “Along with my consulting work, I’m the founder of The Management Essentials, a comprehensive leadership development program for new managers.”

Why I love it: While readers could potentially look at her work history to see her founder role, we love seeing it in her own words.

Why This Summary Works

The summary is connected to the author’s mission from top to bottom — you never feel like her points are disjointed or disconnected. She then leads into her current work as a founder and instructor and ends with a list of specialties for readers to scan.

Try It Yourself

Do you have an origin story related to your career path? Share a brief description of what has inspired your work and what makes you want to do the work you do.

11. Cynthia Pong, founder and CEO of Embrace Change, speaks directly to who she wants to serve.

[alt text] how to write a linkedin summary, cynthia pong linkedin summary

For consultants, business owners, and sales reps, speaking directly to who you want to serve in your LinkedIn summary is a smart approach to take. This career strategist and author does this masterfully in the first few sentences of her LinkedIn summary.

By immediately calling in who she aims to serve, Pong can hook the right readers, increasing her chances of connecting with the right people.

My Favorite Lines

  • “I am on a mission to get all women of color–and people of color– the money, power, and respect we deserve in the workplace.”

Why I love it: The natural response to a line like this is “Sign me up,” encouraging visitors to continue reading and reach out to the author.

  • “I regularly partner with organizations to support BIPOC employees and leaders to success – through coaching, consulting, and workshops.”

Why I love it: This line effectively summarizes what the author can do for organizations that work with her.

Why This Summary Works

The author opens with an effective and visionary hook, then describes her mission and how she works to fulfill that mission every day. She then describes what organizations and clients stand to gain from working with her.

Try It Yourself

In the first few sentences of your summary, try writing a hook that would appeal to your ideal customer or client and keep their attention.

12. Kimberly Hill, go-to-market and communications lead at TikTok, highlights her wins.

[alt text] how to write a linkedin summary, kimberly hill linkedin summary

Have you received any notable awards or had exciting features highlighting your work? Include them in your summary to build credibility. This senior business development manager shares relevant awards and accolades in her LinkedIn summary to provide valuable context around her skills and abilities.

My Favorite Lines

  • “In 2018, I was selected by Jeff Bezos and his leadership team to receive Amazon’s Just Do It Award.”

Why I love it: We love how this user explicitly shares her major accolades and how she opens with the most impressive one.

  • “Giving back to my community through volunteering and mentoring is one of my favorite ways to contribute to my community.”

Why I love it: Not only does this line showcase the author’s key strengths, but it also shows the roles an organization could hire her for.

Why This Summary Works

Your LinkedIn bio isn’t the space to be shy — and this summary exemplifies that down to the last sentence. It showcases the author’s key accomplishments without sounding arrogant and mentions her non-profit work at length.

Try It Yourself

Highlight accolades and wins specifically related to roles you would like to be considered for.

13. Basha Coleman, HubSpot Principal Program Manager, demonstrates her friendly personality while showcasing her strong content writing skills.

[alt text] how to write a linkedin summary, basha coleman linkedin summary

You don’t have to be rigid and cold in your LinkedIn summary, and this bio is proof. It’s professional, succinct, and well-written — not to mention friendly, which is a breath of fresh air on a platform like LinkedIn. She effectively shares her expertise and invites users to engage with an attention-grabbing call-to-action.

My Favorite Lines

  • “How many content writing, video producing, graphic designing, SEO white hats who can’t whistle do you know? No guesses?”

Why I love it: This is a fantastic opener that lists the author’s key areas of expertise while showcasing her sense of humor.

  • “Tell me your least favorite through a private message.”

Why I love it: One of the most creative calls-to-action we’ve seen, this line effectively asks users to engage with an icebreaker built in.

Why This Summary Works

This LinkedIn bio effectively subverts expectations, engages readers, and describes the author’s specialties in content creation. The bio remains professional while still communicating a high level of openness and friendliness.

Try It Yourself

Strike a different sort of tone in your LinkedIn bio that shows the fun side of your personality, while still communicating your value proposition and what you can offer potential employers and clients.

14. Desiree Thompson, Talent Development Onboarding Specialist at Acxiom, harnesses the power of storytelling.

[alt text] how to write a linkedin summary, desiree thompson linkedin summary

As you write your LinkedIn summary, consider how your past experiences have led you to your current position. For instance, maybe your summer job as a teenager sparked a passion for sales, or your degree in Film informs how you shoot social media marketing videos.

My Favorite Lines

  • “One of my first memories is going to a parent-teacher conference in kindergarten and having my teacher tell my parents, “Desiree is definitely my most talkative. No matter where I move her in class, she communicates with everyone!”

Why I love it: We’re not sure where the story is going at this point, but the hook is intriguing enough to continue reading.

  • “I have developed a passion for not only being a voice of those that cannot communicate themselves but also teaching people to communicate effectively.”

Why I love it: She weaves a common theme throughout her bio: effective communication. This ties the entire bio together.

Why This Summary Works

This bio is far from cold or stuffy. The writer adds warmth by presenting personal tales that explain her journey to the present day. Further, the same theme echoes throughout the entire story (the importance of communication).

Try It Yourself

Weave a common thread through your academic and professional experiences (if one exists). Leverage the power of storytelling to bring your bio to life and add a touch of warmth.

15. Katie Clancy, sales vice president at William Raveis, intrigues readers with her local know-how.

[alt text] how to write a linkedin summary, katie clancy linkedin summary

Clancy does a great job positioning herself as the “go-to” person for recommendations in the Cape Cod area, especially as she lives there with her family. It’s her passion and enthusiasm that lets real estate buyers and sellers know she’s deeply connected to the local area.

My Favorite Lines

  • “Katie is a nationally recognized speaker, appearing at multiple National Associaton of REALTORS® conventions, Inman Connect Conferences, Realtor.com Results Summit, NAGLREP annual conventions, Women’s Council of REALTORS® events, as well as keynotes for various brokerages and REALTOR® boards.

Why I love it: While Clancy is a real estate professional, she uses her LinkedIn summary to show that she’s also an experienced and nationally recognized speaker.

  • Peak life experiences include singing Orff’s Carmina Burana with a full chorale and orchestra, completing her first triathlon, and giving birth to her fourth daughter.

Why I love it: This sentence shows who Katie Clancy is outside of real estate and public speaking. It lets you know where her priorities lie, what her hobbies are, and what aspects of her life she holds most dear.

Why This Summary Works

Let’s face it: It’s hard to write about yourself and your accomplishments. The author hits the right note by folding her local expertise and know-how into a delightful summary of her work and life.

Try It Yourself

If you’re in real estate, it’s important to flex your knowledge about the area. After all, real estate is a local game. Make sure to identify yourself as an expert and enthusiastic fan of where you live and work, while also giving people a glimpse into your life.

Stand Out with an Exceptional LinkedIn Summary

With these LinkedIn summaries to draw on, I think you’ll be armed with plenty of ideas and inspiration for your own description. My biggest advice that you should remember is this: Make it personal, unique, and engaging — and prospects and potential employers will feel like they know you already.

Editor’s note: This post was originally published in August 2017 and has been updated for comprehensiveness.

Choosing a Business Model — Here’s My Guidance Along with Thoughts From Experts

In a previous role selling software, I gained insight into the importance of choosing the right business model. In an effort to appeal to the entire marketplace, from enterprise users to solopreneurs, our product was priced based on usage—the more API calls we had to handle for a customer, the bigger their bill.

Unfortunately, selling the product without a minimum price created a situation where a majority of customers placed substantial demands on our support team while contributing very little to revenue. We had just a few major users left propping up the entire business.

The situation stabilized when we implemented a monthly minimum price, but since then, I’ve paid much closer attention to business models. I’ll never again take for granted that a company has found the best one for its product and market.

To help you avoid similar situations and run a business better from the start, I’ve put together a guide about different business models, examples of companies that rely on them, and best practices for choosing the best fit for your business.

Download Now: Free Business Startup Kit

Table of Contents

What Is a Business Model?

A business model is a cornerstone of a broader business strategy that describes how a company will create value and monetize its offerings to generate a profit. If you’ve ever paid for a streaming subscription or purchased a one-off disk with software, you’ve encountered different business models.

Choosing the right business model is essential for every business. You have to assess if your product makes sense as a subscription, a retail offering, or a pay-per-use service. Equally as important, salespeople like myself need to know what the business model is so we can sell more effectively.

Business models offer different ways to make money, and it takes careful thought to hone in on the right space for your business to operate profitably. Consider these seven as you decide how your business will go to market (GTM) — or how you might pivot to stay afloat.

7 Business Models You Need to Know

business models to choose from

1. Retailer

Likely the most common business model around the world, retailers source products from manufacturers or wholesalers. These businesses then mark them up and sell them to the consumer either online or through brick-and-mortar locations.

Product originators give up some of the margins they could theoretically capture because working with a retailer offers a host of benefits. The retailer buys in bulk, simplifies logistics, markets products, offers post-sale support for consumers, and more.

This division allows product designers and manufacturers to focus on their own strengths.

Example: Car Dealerships

With a few exceptions, car manufacturers don’t sell their products directly to the consumer. Instead, they ship vehicles to a network of dealership retailers who help customers find the right vehicle. Dealerships also offer coverage plans and warranties beyond what the manufacturer provides, present financing options to customers, and perform regular maintenance for their primary brands.

2. Subscription

Once primarily the domain of milkmen and magazines, the subscription business model has pretty much become inescapable. In fact, there are now subscription services like Rocket Money that help you find and cancel your other subscription services.

With a subscription, you pay at a set interval so you can access a product or service. The subscription model might annoy consumers who really just want to be able to use the heated seats in their BMWs, but it’s ubiquitous for a reason.

For one, subscriptions help buyers split hefty expenses into smaller, more predictable chunks. At the same time, sellers can reinvest resources into products that continue to produce revenue. Investors also quickly gravitated to subscription sales because the model generated such a reliable revenue stream.

Often, buyers can choose from different subscription packages. That pricing flexibility is a key advantage of subscriptions — according to Bastien Paul, CEO of Hublead.

“We chose a subscription model with per-seat pricing to make the tool accessible to businesses of all sizes while supporting their growth. This flexibility allows companies to add or remove seats as needed, ensuring they can scale with us and only pay for the benefits based on their team size,” Paul says.

Example: Netflix

I’m old enough to remember renting a single DVD from Netflix by mail, but Blockbuster’s fate was truly sealed when its upstart competitor embraced the subscription model. Today, the streaming giant has more than 282 million paying subscribers, and customers can choose from cheaper, ad-supported options or premium, commercial-free viewing.

3. Freemium

In a freemium business model, a version of the product is given away for free. Then, a version with more features can be purchased for a price. The idea is to lower the barrier to entry to entice users to try something. Over time, the company shows them paid tools and upgrades that will make a good experience even better.

The freemium model is a good option for gradually introducing complex or expensive products to a user base. It’s especially great for audiences who wouldn’t consider buying if they had to eat the whole elephant (both its features and price) on day one.

Example: Ecobot

HubSpot itself has always had a freemium model, giving away key functionalities from each of its six hubs for free and betting users will want to gain access to other more powerful tools.

Thanks in large part to a presentation by former HubSpot CRM Mark Roberge at SaaStr, HubSpot customer Ecobot decided to pursue the same model when launching its software platform for environmental consultants.

According to CEO and Co-Founder Lee Lance, the decision centered around a GTM strategy emphasizing product-led growth (PLG). He elaborates, “By leveraging marketing to drive high-quality customer targets to a valuable free version of the product, we could let the value of the product pull the customer through the subscription pricing journey.”

In his mind, “the only impactful way to sell B2B software top-down is after there’s critical demand within the end-user base at a company.”

It takes time to tell if a business model is working as intended, but Lance is seeing early signs that they made the right decision. “We just closed a significant enterprise license agreement with a customer that started off with just a handful of free users about a year ago.”

4. Pay-Per-Use

In the pay-per-use business model, a company charges for its products based on how much a customer uses them. This practice is common when higher usage puts a higher demand on the seller. This model also allows sellers to give their best customers discounts by lowering the cost at higher volumes of usage.

Some pay-per-use services will have a minimum bill, ensuring that the smallest customers don’t end up costing a provider more than they generate.

Example: Amazon Web Services (AWS)

Many AWS products, including virtual servers and storage solutions such as Simple Storage Service (S3), are priced according to a customer’s usage. This flexibility allows small businesses to use the same products as leading enterprises without incurring the same bill, while major users benefit from economies of scale.

5. Marketplace/Brokerage

In direct-to-consumer ecommerce, a seller does business directly with the end-buyers of its products. Meanwhile, a company with a marketplace or brokerage business might not have any of its own products at all.

Fundamentally, the marketplace business model revolves around connecting buyers and sellers. The marketplace can then capture some of the value created with that connection, whether that’s a cut of each transaction or a cost to join the marketplace.

Example: BikeExchange

BikeExchange is a platform offering the digital infrastructure for small, local bike shops to sell products online.

According to Chris Cosgrove, head of BikeExchange North America, “The BikeExchange platform was designed with a low barrier to entry, providing an easily accessible way for retailers to reach a broader audience.”

BikeExchange provides simple integration options with the retailer’s POS system, allowing the seller to get the product online in minutes. The BikeExchange team handles the rest. “By leveraging our marketplace, even the smallest shops can significantly increase the visibility of their products, attract more traffic, and ultimately drive conversions,” Cosgrove says.

BikeExchange offers access to its platform at three different price points depending on the features and add-ons a shop is looking for. This allows retailers to start small online and then scale their ecommerce over time.

6. Retainer

Under the retainer model, a company allocates a specific portion of its capacity to individual clients each month. The retainer model allows marketing agencies, legal teams, accountants, and PR firms to anticipate how much time they’ll need to devote to specific clients each month.

This model also allows for flexibility with overages billed by the hour. In many cases, these service providers will acknowledge the importance of dedicated retainers by discounting these pre-allocated hours from the company’s established billable hourly rate. Think about the retainer as a subscription for services instead of a software product.

Example: ALINE

My current company, ALINE, is a web design and digital marketing agency that serves clients ranging from real estate investors to insurance groups to local nonprofits. We’ll occasionally take on clients for one-off projects, but we’re built around the retainer model. This ensures expenses are predictable for the client and their demands are more predictable for the agency.

Without retainers, many agencies are forced to rely on freelancers or contractors, but our business model lets us bring talent in-house.

7. White Labeling

For brands that have a strong product but might not have the expertise or budget to break into a market and attract customers, the white label option provides a compelling alternative. A white-label product can be rebranded and sold under a different name, allowing the creator to benefit from a reseller’s robust marketing and distribution arm.

Example: HighLevel

HighLevel is a software platform for marketing agencies that combines many different capabilities into a single solution. Because HighLevel is a white-label product, marketers can resell it to their clients under their own brand names. With customers doing much of the work marketing the product, the HighLevel team can focus on developing new features on the roadmap.

How to Choose a Business Model

You can pivot between different business models, but it’s obviously disruptive (and not in a good way). Lots of other parts of your business plan depend on your business model, so a change that fundamental might require you to recode your billing system, rewrite standard operating procedures, and notify your customers of potentially major changes.

To avoid that chaos, it’s best to get your business model right the first time. If you’re not sure what business model you should use, here are a few questions you can ask yourself to help narrow things down.

1. What are competitors in my space doing?

It’s important to differentiate yourself from your competitors, but that doesn’t mean you have to reinvent the wheel. Look at how the incumbents in your space are operating and decide if your solution should be set up in a similar way.

If everyone in your industry is selling a service under a certain business model, there may be a very good reason for it.

2. Is my product or service a one-time transaction or an ongoing relationship?

If a sale is a one-off event, the transaction probably should be as well. If landing a new customer is instead the beginning of a long relationship, a subscription model is a much better fit.

While paying for HubSpot isn’t necessarily my favorite part of doing business, I would never give up the 24/7 access to support, ongoing product development, and incredible educational resources that come with the software. It’s an ongoing need, so a subscription makes sense.

3. How price-sensitive are customers?

In the example I gave at the beginning of the article, I mentioned that I worked for a pay-per-use company without a minimum cost. This choice was made to appeal to price-sensitive customers, and it had exactly that effect. Ultimately, a huge portion of the software platform’s user base wasn’t profitable and cost the company money.

Factor in price sensitivity as you decide on a business model, but make sure you aren’t inadvertently creating a nonprofit. Use a subscription or monthly minimum fee to split major costs for your customers up into smaller, more manageable chunks. You can also offer financing options through your own company or a third party if it helps expand your audience.

4. What are the major costs associated with the business?

If costs are ongoing, like server capacity, cloud storage space, and a customer support team, the subscription model is a good way to build a revenue stream that offsets the cost of goods sold. If most of the costs incurred in each sale are one-time expenses, such as the costs to manufacture and ship a physical product, you probably won’t want to charge customers over and over (and they’re unlikely to see the value).

Bringing Home the Bacon

I’ve seen firsthand how the wrong business model can cripple a company’s chances of success and how changing it — painful as it may be — can right the ship almost overnight. The lesson? What seemed appropriate at a company’s inception might have unintended consequences at scale.

If you have any doubts about your business’s path, don’t put off more in-depth consideration of your current business model and how it might be inadvertently hindering your growth.

AI Business Strategy: A New Opportunity or a Risky Bet? Here’s My Take

“Do you use AI? What AI tools are you using? Do you see any ROI?” If you’ve scrolled LinkedIn or Reddit recently, these questions regarding AI business strategy are everywhere. Here’s the catch: there’s no universal answer. AI has proven its potential, but it also comes with risks.

Unity, a game development platform, suffered a $110M loss when bad data corrupted its machine learning (ML) algorithm. Meanwhile, Snack Brands, a snack food supplier, cut its weekly SKU runs by 62%, using AI to streamline production. So, should you invest in AI? And if so, how can you approach it smartly?

Download Now: 100 ChatGPT Prompts for Marketers [Free Guide]

To find out, I dug into 17 companies across industries, pulling together actionable insights on the benefits and challenges of AI in business. Let’s dive in.

Table of Contents

AI and Business Strategy: Before vs. After

Before AI, business strategy often relied on slow processes and incomplete data. Teams made decisions based on gut instincts, outdated spreadsheets, and chasing trends that had already peaked. Predicting market changes, understanding customer behavior, or optimizing workflows felt like shooting in the dark.

Add AI to the mix, and now everything’s changed. Businesses can harness real-time insights, automate repetitive tasks, and predict outcomes with incredible precision. Let’s look at a few key areas where AI has transformed business strategy:

1. Decision-Making

  • Without AI: Decisions rely on old reports or gut instinct. By the time you act, the situation has likely already changed. A good example would be decisions about stock replenishment based on outdated weekly sales reports and seasonal trends.
  • With AI: You get real-time data, and even weather patterns, so decisions are always current. You can adjust marketing or inventory on the fly based on market changes.

2. Data Processing

  • Without AI: You’re stuck manually sorting through endless spreadsheets, complex formulas, surveys, and reports. The process is slow, and it’s easy to miss key insights or trends buried in the data.
  • With AI: AI sifts through mountains of data in seconds and finds patterns and insights that would take humans weeks or even months to catch. For example, it can spot shifts in sales trends in real time, so you can act before things go sideways.

    Pro tip: HubSpot Academy offers a free course on collecting and acting upon transactional data with AI curated by Senior Professor Crystal King. Check it now.

ai in collecting transactional data – screenshot from the hubspot academy

3. Customer Understanding

  • Without AI: Marketers collect data through surveys and focus groups and rely on static analytics and social listening tools. This method provides data but is not as polished or thorough as AI.
  • With AI: AI monitors customer behavior across platforms, tracking everything from website visits to social media interactions and their sentiment. This produces a more segmented and precise vision of your customers, opportunities, and messages that resonate with them most.

By letting AI study search queries from within your ecommerce website, you will also discover opportunities to widen your stock with new products.

4. Predictions

  • Without AI: Forecasts were based on historical data alone, often with long delays. Anticipating market shifts required weeks of manual analysis.
  • With AI: AI combines past data, real-time trends, and factors like weather or politics to predict outcomes and market shifts. Need to know next quarter’s sales? AI gives you the insights to plan confidently.

HubSpot recommends: Predicting Customer Behavior and AI: My Journey to Understanding the Customer Mind [+ Pro Tips]

5. Resource-Intensive Processes

  • Without AI: Laborious. Exhausting. Running key operations like fraud detection, R&D, screening resumes, pricing strategies, or competitive analysis requires a whole team and hours of work, and is still error-prone.
  • With AI: AI automates these processes, from flagging anomalies and predicting potential risks to adjusting ads’ bets in real-time and moving budgets to top-performing channels.

6. Scalability

  • Without AI: Scaling means hiring more people, investing in more infrastructure, and adding costs across the board. It’s a slow and expensive process.
  • With AI: AI grows with you. As your business scales, AI handles more data, customers, and tasks without you needing to hire a huge team.

Watch how a centralized HubSpot Service Hub reduces the time of customer reps while maintaining stellar customer service.

7 Benefits of Using AI for Business Strategy with Real Examples

Still doubt AI is a thing for your business? Historically, breakthroughs like the printing press or railways started as speculative bubbles but completely transformed how information is consumed and how people travel. (Austria almost ditched their emperor for spending on railways instead of wars!)

AI follows a similar trajectory — what might look like a trend now could, and will, create entirely new industries and markets.

The list of benefits is long, but I’ll focus on a few that matter most:

Competitive Advantage

AI gives businesses an edge by automating tasks, speeding up decisions, and spotting hidden insights. Automotive tech group Forvia realized their larger competitors were pulling ahead, and they needed to scale fast.

To do so, they turned to AI with the Eightfold Talent Acquisition tool. The results were impressive: a 3.5X increase in visitor-to-applicant conversions, 90,000 applications from 70 digital recruiting events, and a 30% productivity boost — all thanks to AI.

forvia’s case study

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Predictive Analysis

AI boosts predictive analytics by processing huge amounts of data and making accurate predictions on pretty much anything in your business — even customer attrition and the “whys” behind it.

Case in point: A fitness app with 75 million users partnered with InData Labs to integrate AI and enhance user experience. InData Labs revamped the app’s data storage using PostgreSQL, Kafka, and Apache Spark, adding 10 dashboards for real-time insights on key metrics. They also built a machine learning-based recommender system that personalized workout plans based on user data.

The result? A smarter, more engaging app that delivers personalized experiences and scales way better than before.

Pro tip: What I love most about AI in prediction is how it fits perfectly into lead generation. Take HubSpot’s predictive AI lead scoring to automatically analyze and adjust lead scores based on metrics like email engagement and pricing page visits. Strike when the iron is hot.

Predictive lead scoring software by HubSpot

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Personalized Marketing

Personalized content at every stage is the user journey isn’t a “nice-to-have” anymore; it’s a “must-have.”

Your customers wanna feel like you’ve created content just for them. But it’s not just about those catchy lines anymore. Today’s content needs examples and visuals like a well-crafted video to really grab their attention.

Over 80% of consumers want more video content from brands, but creating videos at scale has always been a pricey move, usually reserved for big companies with big budgets.

customers want more video content according to idomoo study

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So, if you wanna add videos to your business strategy, there’s a cheaper way — and I gotta say, after testing Idomoo for one of my clients, it’s straight-up magic.

With tools like Idomoo’s, you can turn any written document, like customer support guides or web pages, into a cool AI-generated video in no time. This “doc-to-video” feature is just one of many ways AI’s shaking things up — you can also turn knowledge bases, websites, and more into personalized videos voiced human-like.

Plus, this type of AI learns your brand’s story, picking up your style like a pro designer. You can scale up video production while staying on-brand, and all without the hefty price tag.

Better Customer Support

Customer support and engagement have never been easier thanks to AI. It handles routine questions and fetches relevant articles from the knowledge base. It reroutes requests to relevant agents, labels them with priority, asks follow-up questions, and more.

This not only keeps customers happy but also sharpens the whole business strategy by improving efficiency and opening doors for upselling.

Take Camping World, for example.

They turned their call center around with IBM’s AI-powered assistant, Arvee.

The results? A 40% boost in customer engagement and wait times slashed to just 33 seconds. Plus, agent efficiency jumped by 33%, giving agents more time to handle complex inquiries and generate extra revenue. It’s a win all around.

Camping World x IBM case study

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Smarter Inventory Management

AI assistance made it much easier for businesses to keep up with demand, reduce waste, keep products in stock, and make smarter restocking decisions.

Walmart proves my point. They use AI to track 500 million events and handle 1 million transactions every day, giving them a clear, up-to-date picture of their inventory across all stores. Their advanced replenishment system processes billions of messages daily, creating detailed restocking strategies in just hours.

Improved Operational Efficiency and Agility

AI in business automates tasks, speeds up workflows, and helps make quicker decisions. This lets businesses stay flexible, optimize resources, cut costs, and increase overall productivity.

For instance, Delta Air Lines uses AI to make its operations smarter and faster. On the customer service side, AI helps agents quickly access answers to common questions, cutting down wait times and improving the customer experience.

This tech also helps optimize pricing by analyzing data and recommending what customers are willing to pay for premium services.

Production Optimization

Finally, AI is revolutionizing production.

It predicts demand, streamlines workflows, and adjusts when needed. This reduces downtime, improves resource use, and avoids delays. It also helps plan maintenance and aligns production with demand.

The best example here is Snack Brands. This major Aussie snack food supplier used RELEX AI-powered planning tools to solve tough production challenges.

With many products and constant updates, their schedules were getting messy. By using AI to optimize sequencing, they cut the number of SKUs run weekly from 40 to just 15. This reduced plan generation times by 50%, improved production flow, and aligned output with customer demand.

snack brands x relex case study results

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4 Challenges of Using AI for Business Strategy

There’s no doubt about AI’s potential to transform operations and drive growth. But it’s not all smooth sailing. Issues like data bias and poor-quality inputs can derail even the best strategies.

Here are four challenges I’ve seen businesses face when bringing AI into their plans.

Data Quality, Accuracy, and Availability

For AI to work, it needs clean, reliable data. If the data is poor or incomplete, it can throw off AI, churning out bad predictions and wrong decisions. And let’s be real: we still run into issues with made-up or inaccurate info.

To safeguard themselves, businesses need strong data pipelines and observability tools to catch and fix problems quickly. Without that, AI won’t be able to deliver the competitive edge it promises.

For example, Unity, a leading game development platform, suffered a $110M loss when bad data corrupted its machine learning algorithm for ad placements.

This error not only impacted growth but also required costly fixes to restore functionality, highlighting the risks of poor data management.

Pro tip: HubSpot’s Breeze AI simplifies tasks across marketing, sales, and customer service. Breeze Copilot helps automate your work, while Breeze Agents handle everything from content to outreach. Breeze Intelligence keeps your data fresh and actionable and helps you make better decisions without the extra effort.

Safety and Security

AI brings innovation, but it also opens doors to new risks, particularly in cybersecurity. So, you’ve got to protect sensitive information before incorporating machine learning.

In 2023, global malware attacks hit 6.06 billion — a 10% jump from the year before, according to Statista. The market suggests AI had a sheer influence on it.

annual number of malware attacks worldwide from 2015 to 2023

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The Creativity Crisis

Our marketing and AI survey found that 43% of marketers use AI to create content. Since content is a big part of almost every business strategy, this brings us to the problem: AI can totally mess with creativity.

It works by analyzing patterns and spitting out content based on what it’s learned. While that’s great for efficiency, it makes everything feel a bit … unoriginal.

Don’t lean too much on AI; the unique, human spark that makes content stand out can fade. Over time, it risks turning bold ideas into cookie-cutter results.

AI Bias

Since AI learns from past data, it can inherit existing biases. This can lead to skewed results, unfair decisions, or even the exclusion of certain groups, damaging your brand’s reputation. Left unchecked, AI bias can ruin your strategy entirely.

Actually, according to DataRobot’s 2022 survey, data bias can result in up to 62% lost revenue.

negative impacts of ai bias

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How to Implement AI into Your Business Strategy in 6 Steps

AI can completely change how you work and make your business better. But only if you do it right. So, how do you incorporate AI into your business development strategy so it works in your favor?

Let me take you through a practical 6-step guide.

1. Identify areas that can benefit from AI.

First things first: not everything in your business needs AI. Focus on areas where automation or data-driven decisions can make the biggest impact.

Ask yourself these questions:

  • Are there tasks that are repetitive and prone to errors? AI can automate these, freeing up your team for more important work.
  • Do you have tons of data that could reveal valuable insights? AI can process it quickly and spot patterns that might get missed by humans.
  • Can AI improve customer interactions? Chatbots offer 24/7 support, and personalized recommendations can enhance shopping.
  • Can your operations be streamlined? AI can optimize logistics, predict equipment failures, and improve quality control.

2. Choose the right tools and technologies.

There are tons of AI tools out there. Roll up your sleeves to pick those aligned with your tech stack and business needs.

More things to focus on when selecting the AI tool:

  • Choose a tool that can scale as your business expands. You don’t want to “outgrow” it too quickly.
  • Look for something your team can pick up fast.
  • The best tools let you tweak them to match your brand’s style and strategy.
  • Make sure there’s reliable support and resources to help you make the most of the tool.
  • Ensure the tool meets security standards and keeps your data safe and compliant.
  • Check negative reviews to see if it’s working for other businesses and if it actually delivers results.
  • The right tool should give you solid insights and reports to track performance and fine-tune your strategy.

Pro tip: HubSpot’s AI tools cover a range of functions designed to streamline marketing and sales, including content generation for blogs and social posts, automated website building, professional email drafting, reporting, and a chatbot that provides 24/7 customer service, all helping startups boost efficiency and customer engagement.

Hubspot’s AI sales and marketing tools

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3. Start small and test.

You don’t need to implement AI across your whole business overnight. Start with a pilot project. This lets you test what works without putting too many resources on the line.

For instance, if you’re in retail, you can begin with AI-powered product recommendations on your website. Track how your conversion rate changes and gather customer feedback before expanding to other areas, like inventory management or customer service.

4. Train your team.

AI is a tool, but it‘s your team that makes it work. Invest in training them to use AI tools and understand the data they provide. Your team doesn’t need to be AI experts, but they should understand the tool’s core principles.

For example, if you’re using AI for marketing, make sure your team understands what input the tool works on, how to interpret the AI insights, and tweak strategies accordingly.

I watched an amazing video by Jason Staats on using AI roleplay to help teams understand how it works. Here are his juiciest takeaways:

  • Practice tough client conversations and develop better communication strategies in a fun, low-pressure way.
  • Analyze meeting transcripts to get feedback from your team on what went well and what can be improved.
  • Use a custom GPT to simulate client interactions, especially for challenging situations like negotiations.
  • Apply AI roleplay to scenarios like client complaints or pricing debates to refine your team’s approach for actual meetings.

5. Monitor and optimize.

Implementing AI isn’t a “set it and forget it” deal.

Continuously monitor performance and refine your AI tools. The more data the AI gets, the smarter it becomes. Over time, you may need to adjust how you’re using AI as trends and technology evolve.

6. Maintain the human touch.

AI can do a lot, but there’s still no substitute for human expertise. Use AI to back up your team, not replace them.

Example? AI can help with lead scoring, but people build connections and seal the deals.

Best example? Zappos. It uses AI for tasks that can be handled efficiently at scale — answering basic customer queries, providing shopping suggestions, and even assisting with past orders through AI-powered chatbots.

However, when AI can’t give a satisfying answer or the customer needs more detailed help (like with a complex issue or personalization), Zappos makes it easy to reach human support.

AI in Business Strategy? The Extra Gear, Not the Driver.

When we break it all down, one thing’s clear: AI is an awesome tool for shaping business strategies, but it’s not a panacea.

What I love about AI is how it speeds up the stuff that used to take forever, like real-time data analysis from different channels. It also takes care of boring, repetitive tasks and saves time.

But no, it’s not here to replace us. It’s here to help us focus on what we do best: being creative and strategic. Find that sweet spot, and you’ll be unstoppable.

Training AI Chatbots — The Guide for Service Teams

Ever tried chatting with a bot that seemed more confused than helpful? I know I have, several times. And while it may seem like a good idea to take out the frustration on the poor bot — forgive me, AI — the problem is almost never with the bot itself. AI chatbots, like human beings, are only as good as their training.

In our State of Service report, one recurring theme we heard from leaders was how the advent of the AI-powered chatbot transformed customer service. According to our data, AI chatbots have become so vital that they are now not only the most effective but also the most preferred customer service channel. But while they may be changing the customer service game, their (continued) success depends on how well they’re trained.Get Started with HubSpot's Chatbot Builder for Free

In this article, I’ll share insights I found on how to train AI chatbots effectively, ensuring they deliver seamless, human-like service experiences every time.

Table of Contents

How AI Chatbots Help Service Teams

AI chatbots are revolutionizing customer service. But how? What exactly do they do for the human agents already tasked with the responsibility of addressing the needs and concerns of the organization’s customers?

1. Respond to Questions and Inquiries 24/7

To borrow the words of Kieran Flanagan, HubSpot’s senior vice president of marketing, “In an AI world, support is live 24/7.” This couldn’t be more relevant in today’s always-online environment where customers expect immediate responses, whether it’s 3 p.m. or 3 a.m.

What this means is that if your company is setting up a pop-event with amazing offers and discounts and you’ve done all the hard work of attracting the customers, someone — something — is there to ensure that your business never sleeps, providing instant (and reliable) answers to customer inquiries around the clock.

2. Personalized Customer Interactions

Today, 78% of customers expect more personalization in interactions than ever before. They don’t want to be just another ticket in the queue — they want to feel seen, understood, and valued. I learned that this need is driving how businesses approach customer service, and AI chatbots are at the forefront of this shift.

Many Customer Relationship Management (CRM) leaders (86%) already confess that AI makes customer correspondence more personalized, especially as it can do things like analyze customer data to tailor responses and recommendations in real time. These are things a human agent may be unable to do, especially at scale.

3. Lead Qualification and Escalation

An AI system can handle hundreds or even thousands of support tickets per day compared to a human agent. Still, some requests are best handled by a human support agent.

In this case, the chatbot acts as a first line of engagement, ensuring only the most valuable or complex inquiries reach human reps. AI chatbots can also engage with potential customers, ask qualifying questions, and pass along valuable leads to human agents when necessary.

4. Collect Customer Feedback More Efficiently

Which would you respond to faster — a lengthy email with an embedded link asking you to please respond to a survey? Or a message that pops up right after your interaction, asking for quick feedback? Instead of relying on traditional, time-consuming methods like email surveys, I love how chatbots can seamlessly integrate feedback collection into the customer journey.

For instance, after completing a purchase or resolving a support issue, a chatbot can instantly prompt the customer with simple questions like, “How satisfied are you with our service today?” or “Is there anything you would like us to improve on?”

How to Train Service Chatbots

Now that it’s clear what service chatbots do, how do you train them to do these tasks well? Here’s what I found.

1. Clarify the goal of your service chatbot.

AI chatbots could serve service teams in many different ways. Therefore, the first step in the process is clearly defining what you want the chatbot to achieve. Do you want the chatbot to answer frequently asked questions (FAQs)? Process transactions? Help customers troubleshoot?

Remember that this is determined by your customers’ overarching needs. There is no need to build a chatbot that solves the wrong problems.

2. Gather relevant data.

Like I said earlier, your chatbot is only as good as the data it’s trained on. Start by compiling FAQs, past customer interactions, support scripts, conversations on social media, online reviews and other feedback data, live chat transcripts, conversations in online industry forums and communities, and even publicly available datasets relevant to your industry.

The chatbot can pull from this knowledge base during conversations with your customers.

3. Categorize the data.

Two key categories your data needs to be sorted into are intents and entities. Intents represent the specific goal a user wants to achieve when interacting with an AI system. This means that every user query falls into different intent categories.

For example, if a common need among your customers is tracking their package, you may organize that intent this way:

Intent Category + Name

Possible User Queries

Track order

“Where is my order?”

“Can you help me track my package?”

“What is the status of my delivery?”

“Has my order been shipped yet?”

“When will my order arrive?”

It’s not set in stone how many intent categories your service chatbot should have, but ideally, you should aim to cover the most frequent requests.

Entities, on the other hand, are specific pieces of information in the user’s input that provide context to the intent. Check for nouns or named objects within a query — often specifying people, organizations, locations, etc. — and you’ve found an entity. Extracting these entities helps the chatbot tailor each response to the specific needs of each user.

4. Design conversational flows and generate natural responses.

“Just like in any conversation flow design, it is important to know the persona of the customers, the domain of the expected question, goal of the chatbot, etc.,” Srinivas Njay, CEO of Interface.ai, shared in an interview with HubSpot.

During this stage, you map out the structure of interactions to ensure the chatbot can guide users effectively. This means anticipating user intents, designing logical pathways for different scenarios, and deciding when and how the chatbot should ask clarifying questions or redirect users to human agents.

train ai chatbot with hubspot’s ai chatbot builder

Check out HubSpot’s AI Chatbot Builder

But just structure is not enough. Companies like Interface.ai, which have spent over a decade fine-tuning a library of conversation flows, emphasize the importance of combining structure interaction design with personalization.

“A combination of fine-tuned standard flows with personalization and recommendations makes the conversation very natural,” Njay continues. Using conversational language, adding some personality, and even incorporating some multimedia elements go a long way in making customers feel better supported during the entire process.

5. Test your service chatbot.

Testing is a critical part of training your AI service chatbot. Run it through a variety of scenarios to see how well it handles different intents and user queries.

During this stage, I suggest checking for metrics like accuracy, response time, how long it takes to complete a request/goal, relevance of the responses, and so on.

6. Monitor and update continuously.

“We collect detailed data on customer’s experience with our chatbots across our customer base and have created powerful analytics to track the performance of each engagement. This data includes customer feedback, transcript of the call, tone and emotions on the calls, type of intents, ability of the chatbot to answer all questions, and much more,” Njay offered when I asked how his company evaluates the performance of a chatbot they have deployed for a specific use case.

Constantly collecting, analyzing, and updating their system is how they make sure their chatbots are up-to-date with evolving customer needs and language patterns.

When to Get Your Tech Team Involved

While training a service chatbot may seem like a customer service initiative, the tech team plays a crucial role at various stages of the process.

1. Selecting a Platform and Integrating It

Choosing the right platform or chatbot service is a technical decision. I recommend your tech team helps evaluate and select the tools that align with your existing systems, such as CRM software, databases, and other APIs.

After selection, the tech team will also need to integrate the chatbot into the relevant platforms to ensure smooth data flow. Customers already using HubSpot’s CRM, for example, may find selecting HubSpot’s free AI Chatbot Builder more useful because it integrates directly with the CRM, allowing for streamlined data management and customer interactions.

how to train ai chatbot with hubpsot’s ai chatbot builder

2. Monitoring Performance and Optimizing the System

We’ve established that monitoring the performance of the chatbot and improving the system based on the feedback received is crucial. Whether it is tracking response times, ensuring uptime, handling any technical issues that arise, troubleshooting, or implementing improvements, this process is best handled by your tech team for optimum efficiency.

At Interface.ai, Njay says their “AI platform team is constantly collecting and analyzing the LLM and Execution Manager data and retraining the LLM to improve accuracy and performance and improving the conversation flows and transaction workflows.”

3. Ensuring Security and Privacy

A lot of data is exchanged throughout the customer journey, and technical expertise is required to ensure that the chatbot is not just compliant with relevant data protection regulations but also capable of safeguarding sensitive customer data during conversations.

Because Interface.ai deals mainly with financial institutions (FIs), securing authentication to ensure security and privacy could be a major challenge — one that only the tech team can mitigate. “Most customers contact FIs for banking transactions. Depending on the type of transaction, the customer needs to be authenticated with one or more factors.

“Using voice and device authentication can help make it easy for the customer to authenticate and also provide a very secure way to authenticate the out-of-the-wallet questions,” Njay comments. Additionally, they’ll also monitor the system for vulnerabilities to avoid breaches of any sort.

To gain your tech team’s support, don’t just stop at listing how AI chatbots can help the service team resolve more queries faster. I suggest involving them early in discussions to ensure they feel valued and heard in the decision-making process.

Keep the buzzwords and technical jargons aside, and use a common language of business objectives and business metrics. By positioning the project as a collaborative effort, you are more likely to get their full commitment.

Tips for Training a Service Chatbot

Njay graciously shared some tips with me for training a service chatbot, and I’d like to share them with you.

1. Streamline training with structured data.

The first tip Njay shares is to reduce the chatbot’s training needs. “Training the chatbot on full conversational input/output text is inefficient and requires a large data set for LLM to infer the underlying knowledge.”

Using a semantic knowledge graph tailored to your specific domain can simplify the training process and enhance the chatbot’s understanding. This reduces the volume of data needed and improves the chatbot’s accuracy in interpreting user queries.

2. Leverage domain-specific AI platforms.

Choosing an AI platform designed for your industry can significantly boost training efficiency. This is also relevant for automatic speech recognition (ASR) accuracy. According to Njay, “Choosing a vendor that supports a client-specific voice model, especially if your customer base has very specific regional dialects, is important.”

Because Interface.ai is designed for FIs and employs a Mixture of Experts (MoE) architecture with task-specific models, the chatbot’s performance in handling specialized financial/banking tasks is specifically improved.

3. Consider partnering with managed service providers.

“Choosing a vendor that provides managed service for chatbots eliminates the training needed for you, and training becomes the responsibility of the vendor.” Doing this, as Njay recommends, alleviates the burden of not just training but subsequent maintenance, allowing your team to focus on core business activities.

Building an AI Bot

If there’s one thing I’ve learned, it’s to start small and iterate. You don’t need to train your chatbot to do everything right away. Focus on a few key tasks that will make the biggest difference to your customers and team, test them out, and build from there. It’s like teaching a kid to ride a bike — you start with training wheels, and once they’re steady, you can take them off and watch them go!

Thankfully, tools like HubSpot’s free AI Chatbot Builder make the entire process seamless. Whether you’re new to chatbots or just looking to upgrade your current setup, this tool integrates with your CRM and helps you create a chatbot that’s smart, responsive, and totally on-brand. Plus, it’s free — so why not give it a shot?

10 Ways to Use AI for Sales Lead Generation

Before starting my career in marketing, I worked in business development. I had some of the best times and work experiences during those years. But, oof, I don‘t need to tell you how challenging life in sales can be. For every exhilarating win — yay, you closed a deal — there’s an all too humbling loss … Boo, you were ghosted by a prospect you thought for sure would convert.

Whether you win or lose, it doesn’t stop the sales targets from rolling in each month.

Long and skinny? You need a healthy pipeline of leads to meet those targets. And when there are a million things to do, it might be time to enlist tech to help you carry the burden. That‘s why I’ve contacted some sales pros and AI experts to learn how they or their clients use AI for sales lead generation.

Download Now: The State of AI in Sales [2024 Report]

Table of Contents

How to Use AI for Sales Lead Generation

From drafting cold outreach emails to discovering ideal prospects through fair-use data collection, here’s how to use AI to help you generate leads.

How to Use AI for Sales Lead Generation

1. Draft cold outreach emails.

Let’s face it: There‘s a lot of spam out there. (Understatement of the year, right?) Because of that, cold outreach has a bad reputation. But don’t be fooled! According to HubSpot’s 2024 State of Sales Report, 23% of sales pros find cold emailing the best way to reach prospects. Further, 21% cite cold email as their most successful lead-gen method.

I can also attest to that. When I was in business development, I had a ton of success with cold outreach emails. It’s no wonder, then, that many folks turn to tools like HubSpot AI to streamline their cold outreach processes. For a start, these AI sales tools can help you quickly draft and personalize prospecting emails.

 AI sales lead generation: The first screen of HubSpot's AI cold email generator

I recently tested HubSpot’s AI Email Copy Generator for another article. Even as an AI skeptic, I was impressed. The fact that the tool made me think about my offer’s key selling points when I tested it was a big win.

 AI sales lead generation: Choosing the selling points of your marketing email with HubSpot's AI cold email generator

Pro tip: Specificity is key if you want your cold outreach emails to convert. Instead of making generalized points, get specific about your offer. Think about what would genuinely help the folks you’re targeting with your outreach.

2. Create self-service resources.

Want to generate more inbound leads? It’s simple, (kinda) … The trick is to think like your prospects. In the context of using AI in sales, this means helping customers do their own research before interacting with a sales rep from your organization. You only need to look at recent data to see why that’s important.

HubSpot’s 2024 B2B buyer survey finds that 81% of B2B professionals are likelier to buy a B2B product from vendors offering self-service tools. Further, 57% of B2B buyers purchased a tool in the last year without a single meeting with the vendor’s sales team. Meanwhile, 65% of B2B buyers say they prefer to do most or all of their research entirely independently.

But what do self-service resources look like in practice? According to 75% of B2B buyers, independent research means gathering information through self-service tools like chatbots. Blog posts from third parties, industry-specific data, case studies, and customer stories also have the biggest influence on B2B buyer decision-making.

Pro tip: AI tools like HubSpot’s Content Assistant can help you create self-service resources like blog posts and case studies. Here’s a friendly word of warning, though: Yes, autopilot can be great. However, the human touch is still very much needed in the content creation process. With that in mind, always keep a human in the editorial loop.

3. Re-target churned customers.

ChartMogul’s 2022 SaaS Growth Report finds, “The top quartile of SaaS companies reactivate close to a quarter of their lost customers.” Sometimes, winning back old customers is easier than winning over new prospects unfamiliar with your products or services. So, having some form of reactivation campaign can help you re-acquire these new-old leads at a lower cost.

Here’s how Freelance Growth Manager Boris Malinov uses AI to re-target churned customers. “For one of my clients, we used Fireflies AI notes to summarize the exit interviews with customers that have churned,“ says Malinov. ”We noticed that ~40% of the churned customers struggled with defining their Ideal Client Persona (ICP), which led to unsuccessful marketing campaigns.”

AI sales lead generation: A screenshot of Fireflies AI notes

Image Source

The team prepared a two-week LinkedIn content campaign based on the exit interview information. According to Malinov, the campaign focused on:

  • The importance of ICPs.
  • A how-to guide for finding your ICP.
  • How to use AI to help you with defining your ICP.
  • Showcase success studies from our previous, related clients.

Malinov adds, “We knew that all of our churned clients were our first-degree connections on LinkedIn, and we interacted with them — so the chance of them seeing our content was high. We are still gathering the results from the campaign, but so far, it has led to:

1) “Booked a meeting with one churned customer for a new contract.

2) “Restarted conversations to discuss old campaigns and how we potentially can achieve better results in the future with clearer ICP.”

4. Find prospects by extracting review data.

HubSpot’s 2024 Sales Trends Report highlights that 42% of B2B sales pros find researching a prospect’s company to determine its challenges and opportunities is the most effective way to close a sale.

I recently spoke to Joe Fletcher, a Marketing Consultant at Scaled, who uses Google shopping product reviews, Trustpilot, and Google reviews, in general, to identify prospects for cold outreach. Fletcher then uses AI to discover their challenges.

“Utilizing Clay, I scraped 1,000 SaaS businesses Google/Trustpilot reviews and then highlighted companies with more than 20+ reviews who had an average review score of below 4,” says Fletcher.

“I then reached out to them utilizing Clay again by creating a cold email which would scrape their LinkedIn company bio so I could craft a relevant message about their SaaS and then inject a couple of the poor reviews into the copy.”

According to Fletcher, his goal was to work with these companies to fix the reviews. To achieve this, they could look at updating their product offering, pricing, etc. He also wanted to help them reach out to current customers to increase their positive reviews.

5. Find prospects by ads library URLs.

Aside from using AI to uncover prospects‘ challenges, Joe Fletcher has also used AI to identify their opportunities. In this case, companies that aren’t running Facebook ads, but their current competitors are. To do this, he extracted data from thousands of Facebook pages using Clay.

Here’s a play-by-play of the whole process from Fletcher: “In Clay, you can do this by scraping their [a prospect] specific ads library URL, and if it returned 0, I knew no ads were running. But then I would find 5/10 of their competitors who were running ads.”

He continues, “Then I would upload a video into Pitchlane showcasing half of the competitors, the ads they were running, and what landing pages the ads were leading to. The Pitchlane video would allow me to basically talk to the potential client directly whilst showcasing the ads their competitors were running in the background.”

Aside from Clay’s AI involvement, Pitchlane’s AI platform allowed Fletcher to “create cold outreach videos at scale.”

6. Turn evergreen content into interactive lead-generation tools.

Earlier, I discussed how important it is to give prospects enough self-service resources to research your products and services independently. In case you missed it, here’s a quick stat recap: 65% of B2B buyers say they prefer to do most or all of their research independently, according to HubSpot’s 2024 B2B buyer survey.

Part of empowering a prospect’s independent research starts with your website content. Think blog posts answering top-of-funnel queries, sharing industry-specific data, and highlighting case studies or customer stories.

To take it a step further — aka help convert those cold leads to warm ones — Tom Winter, Chief Growth Officer (CGO) and Co-founder at SEOwind, suggests turning your evergreen content into interactive lead gen tools.

“If you already have evergreen content on your website that answers specific user needs and consistently attracts organic traffic, AI can elevate it to the next level by making it interactive,” says Winter. “A great way to do this is by upgrading content that answers ‘how-to’ questions, which are often highly valuable to your audience.”

He adds, “By integrating a custom-built GPT (or similar AI model) into these pages, the AI can guide users through the exact processes described in your content or even perform the task for them. This turns your evergreen posts into interactive tools, where the AI acts as a personal assistant. Instead of just providing a written guide, the AI helps users actively navigate the task step-by-step, offering real-time responses to their questions.”

Winter explains that this level of interaction not only enhances the user experience but also keeps potential leads more engaged. Further, “It creates a more personalized journey, increasing the likelihood of converting visitors into leads or customers.”

7. Analyze lead source data.

HubSpot’s 2023 State of AI in Sales Report found that 73% of sales pros agree AI can help them pull insights from data they otherwise wouldn’t find. It’s no surprise, then, that the second most popular use case for AI in sales was offering data-driven insights. One place you can access these hidden gems is your lead source data.

According to Dexter Chu, Head of Marketing at data enablement platform Secoda, growth teams can use AI tools “to analyze lead source data without writing a single line of code.” More specifically, you can use Secoda’s AI chat interface.

“By simply asking questions in natural language, they [growth teams] can access insights on which lead sources are performing best, identify trends, and understand how different channels contribute to conversions,” says Chu.

By following this no-code approach, you can explore and visualize data, making it easy to spot opportunities for optimization — even if you lack technical expertise. He adds, “With instant responses, growth teams can quickly adjust marketing strategies, focus on high-performing sources, and ultimately enhance lead acquisition and revenue growth.”

8. Summarize sales calls.

According to HubSpot’s 2023 State of AI in Sales Report, sales pros save around two hours and 15 minutes daily using AI to automate manual tasks. Nearly 80% also agree that AI can help them spend more time on the most critical aspects of their role.

Using AI to summarize sales calls is one way to claw back your or your sales reps’ time. Plus, when done well, you can take this one step further and use the tech to help you create custom sales strategies. Michael Walker, the CMO at SmythOS, tells us more.

“At SmythOS, we’ve taken AI-driven sales processes to the next level with our Deal Pilot agent, seamlessly integrated with HubSpot CRM,” says Walker. Walker explains that after every sales call, the Deal Pilot agent delivers a detailed summary, follow-up recommendations, and — most critically — a step-by-step custom closing strategy for each prospect.

He adds, “What makes this so powerful is that it doesn’t just rely on the call transcript; Deal Pilot combines the insights from those conversations with rich data from HubSpot, giving our sales reps a clear roadmap on what needs to be done to close the deal. The recommendations are hyper-targeted, offering the most likely path to success based on previous interactions and HubSpot activity.”

By integrating AI in this way, the sales team at SmythOS has been able to maximize every opportunity. Further, no lead is overlooked, and they can automate follow-up tasks like sending emails. The result? “With its direct integration with HubSpot, Deal Pilot has become an indispensable tool in accelerating our sales pipeline and boosting our closing rates,” says Walker.

9. Organize internal sales collateral.

Aside from automating tasks, streamlining your sales documentation is another way to save your sales pros time … Time that they can reapply to generate, nurture, and close leads. To achieve this, Dexter Chu recommends using AI-empowered tools.

 How to use AI for sales lead generation: Asking Secoda's data catalog a question

Image Source

In the context of Secoda, sales teams can “efficiently search their internal repository of sales collateral, streamlining access to key documents and resources.” The tool also offers AI-powered search functionality. That allows team members to “quickly locate presentations, case studies, pitch decks, and other essential sales materials by simply typing relevant keywords or phrases.”

He adds, “This reduces the time spent digging through folders and outdated files, ensuring they always have the most up-to-date content at their fingertips.”

10. Coach your sales team.

After training salespeople only, Wilson Learning data shows a 43% increase in performance — with performance measured in sales revenue. When you add manager coaching into the mix, sales performance (revenue) increases by 24% to 67% overall. But it can be tricky to fit sales and manager coaching into schedules when you’re already spinning multiple plates.

You‘ve got to close leads, you’ve got to do outreach, and don‘t forget about nurturing existing customers so they don’t churn. And that‘s just the tip of the iceberg. That’s why I love Tom Golubovich’s use case for AI sales lead generation. Golubovich is the Head of Marketing at Ninja Transfers.

“I can relate to all the hype around AI in sales, but our team has found little benefit in most use cases,” says Golubovich. “AI-powered lead generation could take over, but at this point, it’s much less transformative than we imagined. Even AI-generated templates need more tweaking than they’re worth in the end.”

He adds, “One use case we’re loving is AI-powered sales coaching. Conversational intelligence platforms can analyze sales calls and give real, valuable feedback to our team that helps us close more sales.

“We‘ve even found some luck with Lavender, which does real-time, AI-driven email coaching. AI isn’t the best solution to every lead generation challenge, but it has its place in helping us improve and scale processes to become an even stronger sales team.”

AI for Sales Lead Generation: It Doesn’t Have to Be Complicated

Some of my favorite use cases for using AI to generate leads are more like simple time savers than massively complex multi-agent systems. (To clarify, I mean simple for the end user, not necessarily simple for the people creating the agents or tools. Props to you, folks!)

As someone who has created sales documentation for others, I love how Secoda can help you organize your internal collateral and make it easy to find. Sometimes, no matter how well you file documentation, sales reps may struggle to locate it, especially if they’re out and about in meetings rather than at their desk.

I also love the idea of using an AI notetaker or AI SDR tool to summarize prospect meetings. For context, I‘ve always been a scrupulous notetaker. But I worry this can appear like my mind is elsewhere. So, I can imagine this is an incredible way to stay truly present when talking to prospects — without worrying you’ve missed something from the meeting.

That said, this isn‘t about me. It’s about you. And I sincerely hope you’ve found something in this article that helps you improve your sales process — even in a small way!

Why Feasibility Studies Matter (With Examples)

For every project a company pursues, those in charge want to ensure it generates a return on investment. Before you launch into a new venture, it’s essential to complete a feasibility study.

Feasibility studies help to determine the success (or failure) of your proposed project or plan. These types of studies help you make better, informed business decisions. As a result, you can save time and money by starting a plan or a project that you know has a high ROI.

In this post, I’ll share the importance of feasibility studies, the different types, and some effective feasibility studies examples I found.

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Table of Contents

There are two types of sales forecasting data that are appropriate for feasibility studies:

  • Quantitative forecasting data. Uses historical business data to predict trends.
  • Qualitative sales forecasting data. Takes customers’ opinions, market research, and survey results into account.

The type of feasibility study you run determines which type of data you will need. Consider using qualitative forecasting data to determine how well your audience might receive your product. Quantitative data can help you predict revenue.

What are the advantages of conducting a feasibility study?

As a team leader, it’s your job to ensure your team hits yearly sales revenue goals. That may include deciding to take on a project based on projected sales forecasting data.

However, you do not want to take on a proposed plan or project without being sure the project will benefit your organization. Companies with accurate forecasts are 10% more likely to increase revenue yearly, according to Argano.

That’s why feasibility studies matter. When you combine sales forecasting data with the insight from a feasibility report, you’ll be able to gauge the success rate of your proposed plan before you start.

I was curious to find out what specific insights can come from a feasibility study, so I asked the experts. Here’s what industry leaders say are the advantages of conducting a feasibility study.

Helps you identify new opportunities.

Sidharth Ramsinghaney, Director of Corporate Strategy and Operations at Twilio, suggests that a feasibility study isn’t just a matter of forecasting but can also help companies identify opportunities.

“In my experience leading Fortune 100 transformations, feasibility studies are invaluable strategic tools that go beyond simple go/no-go decisions,” says Ramsinghaney. “They reveal hidden opportunities and risks that aren’t apparent in initial strategic discussions, essentially serving as an early warning system for major investments.”

Prevents wasted resources.

Michael Taylor, the CEO and Co-Founder of SchellingPoint, an applied research organization specializing in group decision-making, suggests that feasibility studies can prevent teams from spending unnecessary resources.

“Feasibility studies help companies understand before investments of time or money are made and before action is taken, how many of the goals will be realized, why they can’t be, where the sensitivity points exist, and other considerations that allow the implementation plan to have the greatest likelihood of success,” he said.

Provides confidence.

Taylor also shared an intangible benefit of a successful feasibility study. “Decision makers can move into implementation confident their use of scarce company resources will produce a worthwhile ROI, and they and their team can be successful beyond the plan looking rational and logical,” he says.

Other feasibility benefits include:

  • Determining if the project is appropriate for your team.
  • Making sound decisions for your team.
  • Avoiding mistakes.
  • Narrowing the focus of the project.
  • Determining project and team needs.
  • Determining which departments need to be involved in the project.
  • Calculating the amount and source of appropriate funding.
  • Assessing the success or failure rate of your project.
  • Estimating ROI.

Not only do feasibility studies help determine if a proposed plan or project is viable, but they also help narrow the focus of the project. Overall, feasibility studies can help keep your project on track from the start.

Types of Feasibility Studies

Now that you understand the benefits of feasibility studies, I want to break down the different types, so you know which kind of feasibility study is best for your team.

types of feasibility studies

Technical Feasibility Study

A technical feasibility study looks at your project’s technical aspects. This type of study answers the question: do you have the specialized resources and capabilities to carry out this project?

You might have the appropriate funding for a project, but a technical feasibility study will help you determine if you have the right processes, systems, and staffing for the job.

Best for: Software development teams and project development teams.

Financial or Economic Feasibility Study

Financial feasibility studies can help you determine if you have the funding for your project. You’ll also learn whether or not the venture is an overall good investment for your team and your company. These kinds of feasibility studies ask: is the allotted funding amount appropriate for this project?

By completing a financial feasibility study, you’ll have already identified funding sources, expenses, your budget, any potential risks, and expected revenue.

Best for: In my opinion, this type of study benefits not just financial managers but also project managers since they oversee the budget.

Operational Feasibility Study

As the name suggests, an operational feasibility study analyzes whether or not your team is equipped to carry out the proposed plan or project. This feasibility study answers the following questions:

  • Does your team have the means to complete the project?
  • Will the project add value for your team or your customers?

I recommend conducting an operational feasibility study if you have developed a solution for a potential problem. This kind of study will help you determine if the solution solves the problem or creates more issues.

Best for: Project managers and stakeholders.

Legal Feasibility Study

This feasibility study should be performed to determine if your proposed project is legal and ethical. Legal feasibility studies are designed to keep you and your team aligned with local, state, and federal laws.

If you are unsure if your project is unethical or unlawful, a legal feasibility study will help you make the appropriate decision before you begin.

Best for: I recommend both legal departments and project managers be involved in a legal feasibility study.

Scheduling Feasibility Study

Anytime I start a new project, I’m often asked by clients, “When can we reasonably expect this project to be completed?”

If you and your team are working for clients and are on a deadline, a scheduling feasibility study looks at the project’s timeline. That can help your team determine a reasonable completion date.

After completing a scheduling feasibility study, you might find the plan requires more time than you thought. This is helpful to know before you begin a project.

Best for: In my opinion, key stakeholders and project managers should be involved in this type of feasibility study.

Feasibility Study Template

If you’re like me, you prefer to use templates when conducting a new strategy or approach for the first time. There’s something about using the guidance of a template that feels more approachable than starting from a blank page.

Look no further than HubSpot’s feasibility study template. The template is one of nine templates included in the free business startup kit — an essential resource for any startup.

What I like best about this feasibility study template is that it can be customized to fit the needs of you and your team.

hubspot study feasibility template

Before you jump into writing your feasibility study using this template, I want to go over each section of the template so you know exactly how to use it.

How to Write a Feasibility Study

Use HubSpot’s free feasibility study template and follow these steps to conduct your own study.

1. Executive Summary

Your executive summary should be a one-page summary of the entire study. Make sure to include the following:

  • The project name.
  • A description of the project.
  • The goals of the project or plan.
  • The target market.

executive summary section of feasibility study templatehttps://offers.hubspot.com/business-startup-kit

2. Business Explanation

This section of the feasibility study is your space to introduce the business concept of your project or plan. Consider discussing:

  • The purpose of the project or plan.
  • Products or services.
  • Competitive advantages.
  • Experience of its founders.

If your project is feasible, you’ll want to be as specific as possible in this section and discuss the project’s projected success.

business explanation section of feasibility study templatehttps://offers.hubspot.com/business-startup-kit

3. Market Overview

This section of your feasibility study should discuss your target market and why your project or plan will (or will not) succeed. You’ll want to discuss your target market in-depth, its pain points, and how your proposed product or service will solve the problems.

You’ll want to include valid data in this section. Consider featuring:

  • The market size and demographics.
  • The market psychographics.
  • Competitors and substitutes.

market overview section of feasibility study templatehttps://offers.hubspot.com/business-startup-kit

4. Financial Projections

Every good business endeavor is meant to make a profit. Your feasibility study should determine if the project or plan is a financially wise investment. The financial projections section of the feasibility template outlines and discusses critical financial metrics.

Considering including and discussing:

  • Capital needs.
  • Projected revenue and expenses.
  • Projected revenue needed to break even.

financial projections section of feasibility study templatehttps://offers.hubspot.com/business-startup-kit

5. Feasibility Assessment and Conclusion

In your conclusion, be as clear and specific about your proposed project or plan as possible. Use statements like, “Based on our assessment of (X), we have deemed this business project feasible.” It’s also a good idea to include your proposed next steps so readers know what to expect going forward.

assessment and conclusion section of feasibility study templatehttps://offers.hubspot.com/business-startup-kit

Feasibility Study Examples

Feasibility studies can be helpful across different industries and even your entire organization — from the sales team to the product development team.

To help you see the impact of a feasibility study, I’ll break down a few examples of feasibility studies conducted in various industries.

1. Marin Municipal Water District

Marin Water Municipal Water District conducted a general feasibility study to evaluate its facilities, services, and programs. While the organization shared a general vision, it also used this study to focus specifically on recreation management along one of its watersheds.

a feasibility study conducted by marin municipal water district https://www.marinwater.org/sites/default/files/2024-02/recreation%20management%20planning%20feasibility%20study_02-26-2024.pdf

What I love most about this feasibility study is the fact that the organization relied heavily on public opinion and engagement to inform its goals and decisions. Marin Water outlined its engagement efforts before completing the study, which included:

  • Six community workshops
  • Two site visits
  • Over 20 interviews with stakeholder groups
  • Individual interviews with park rangers
  • AWatershed-wide visitor survey

What I love: This level of community engagement and participation is valuable for a public resource. I’m impressed at the actions taken by the organization and even more impressed with how those actions are outlined in this feasibility study.

2. U.S. Fish and Wildlife Service (USFWS)

In this example, the U.S. Fish and Wildlife Service explores the feasibility of reintroducing sea otters to areas of the Pacific coast. I found this study interesting because it addresses multiple feasibility categories that are unique to its needs. The study breaks down the biological, socioeconomic, and legal feasibility of its species reintroduction plan.

a feasibility study conducted by the us fish and wildlife service

Source

Here’s what’s covered in the full study:

  • An introduction to the reason, scope, and purpose of the report.
  • The history and background of the sea otter population and past reintroduction attempts.
  • A feasibility assessment of biological, socioeconomic, and legal feasibilities.
  • Estimated costs involved in the reintroduction program.
  • A full risk assessment.
  • An outline of recommendations and next steps.

Another strength of this feasibility study is that it provides a solid model for how to structure a comprehensive study, especially when addressing multiple feasibilities. I’d recommend taking a look at the full document to see how informational it is.

What I love: The U.S. Fish and Wildlife Service distinguishes what the study covers (potential options for reintroduction) and what it cannot accomplish (projected population growth from reintroduction).

3. Westmass Area Development Corporation

In this feasibility study, a development company created a feasibility study for the town of Northfield, Massachusetts. The study was created to assess the viability of developing a business park in the town.

a feasibility study for a business park in northfield, massachusetts https://www.northfieldma.gov/sites/g/files/vyhlif991/f/uploads/northfield_business_park_public_meeting_ppt_5.1.24.pdf

While the study is brief and presented in succinct, easy-to-read slides, it also shares comprehensive information. The study includes:

  • Site feasibility analysis
  • Market opportunities
  • Financial, legal, and regulatory considerations

What I love: Images and graphs are easy to read. You can absorb important information with a quick skim. If you want to incorporate more imagery into your feasibility study, I’d recommend using infographics and avoiding generic stock images that don’t add value to the report.

What I Learned About Running a Feasibility Study

Accurately predicting the success of a project might seem like a daunting task. But it doesn’t have to be. After reading through the feasibility studies I shared above, I learned that there are many ways to conduct a feasibility study.

There isn’t a one-size-fits-all formula. Sure, there are helpful feasibility study templates and suggested structures to follow. However, how you approach your feasibility study and what you include in the report are unique to your project’s needs and goals.

Start by leveraging the tools you already have, like HubSpot’s Forecasting Software and the free feasibility study template. With the use of sales forecasting data and feasibility studies, you’ll be able to pursue the projects that will yield the highest ROI.