April 2025 – Page 4 – BACKSTAGELENSES

How I Write Effective Knowledge Base Articles [+Templates]

My early days as a customer support agent really drove home the importance of having clear, accessible knowledge base articles that let customers solve problems on their own, and this became a consistent part of my support ethos.

My journey in customer support has taken me through startups and larger corporate organizations where I’ve implemented knowledge bases that cut support tickets by as much as 70%, boosted customer satisfaction scores, and even improved organic search for terms like “knowledge base articles.”

Now, as a seasoned customer experience (CX) professional writing this guide for HubSpot, I’m excited to share the lessons I’ve learned about creating and using a knowledge base effectively.

Whether you’re a business owner, a support team lead, or someone passionate about CX, this guide will walk you through everything you need to know to leverage knowledge bases for customer success.

Table of Contents

What is a knowledge base article?
Benefits of Knowledge Base Articles
How to Create Knowledge Base Articles
Examples of Knowledge Base Articles
Knowledge Base Article Templates

From my years of working in CX, I’ve come to see these articles as the backbone for effective customer support. Depending on the audience, they can take various forms:

Step-by-step guides
FAQs
Troubleshooting instructions
Detailed feature breakdowns

I’ve used text-based articles most often, but do love incorporating screenshots, videos, and infographics to make complex topics easier to understand. This is especially important considering people have different learning styles.

What makes knowledge base articles different from other content?

What makes a knowledge base article unique, in my experience, is its focus on practicality and clarity. Unlike blog posts, which might aim to entertain or inform, these articles prioritize delivering solutions in a straightforward way.

For example, I’ve written an article about how to reset your API key that included numbered steps and a screenshot of the dashboard. Within weeks, support requests for that particular issue dropped.

Knowledge base articles also differ from other types of content because they’re highly targeted. Each one addresses a single problem or question, and they are organized for easy access and searchability, often under categories like Account Management, Billing, or Troubleshooting.

Next, I’ll explain why knowledge base articles are so valuable and how you can create them effectively.

Benefits of Knowledge Base Articles

I’ve seen how knowledge base articles deliver tangible results for both customers and businesses. They’re necessary for any organization serious about customer success.

Below, I’ve outlined six key benefits, each backed by recent data and my own experiences in Silicon Valley’s fast-paced tech environment. These advantages extend beyond support –– they affect productivity, consistency, and even aspects of marketing.

Reduces Support Ticket Volume

One of the core benefits of introducing knowledge base articles is their ability to lighten the load on support teams. When a self-service resource is able to handle the inquiry alone and does not need to escalate a ticket, we refer to this as a deflection.

For example, at Skybound, I analyze ticket data weekly and look for any repeating patterns in customer inquiries. If I notice there’s a consistently higher volume around a particular question or issue, I’ll create a knowledge base article and add it to the knowledge base.

Typically what’ll find is that tickets around that subject slowly become deflected, as customers learn to navigate your knowledge base. In fact, according to 2024 data, businesses with well-crafted knowledge base articles can see a 23% reduction in customer support ticket volume.

Improves Customer Satisfaction

When customers can solve problems on their own, they feel empowered, and that significantly boosts their satisfaction. This empowerment comes from several things.

A sense of control. Customers can take control of their problems without waiting for support.
Increased autonomy. Customers appreciate a sense of independence.
Enhanced trust. When customers can solve their own issue, it builds trust with a brand because they perceive the company as proactive and customer-focused. This can lead to loyalty and positive word-of-mouth.

Historically, whenever I’ve introduced a robust knowledge base, the business has seen increased CSAT scores and a rise in NPS.

Enhances Employee Productivity

Knowledge base articles don’t just help customers — they make life easier for employees, too.

At a company I worked with in 2022, our sales team used articles like “Understanding Subscription Tiers” to answer prospect questions during live demos, saving them time as they prepared for each new opportunity. Similarly, our technical support team relied on internal knowledge base articles to document bug fixes and feature requests.

Similarly, at Skybound, my current support team was able to cut their average handle time by 40% as of Q4 of 2024, simply by using centralized troubleshooting guides.

In other words, your knowledge base ends up serving your customers and becoming a training resource for your team. Research has found that your average worker spends about 30% of their workday searching for information. So, this not only helps drive efficiency but reduces the potential for lower morale.

Standardizes Information

Consistency matters, especially as teams grow. Early in my career, I quickly noticed how there would often be a knowledge gap as customers moved down various funnels in their customer journey. By the time they reached customer support, everyone involved had conflicting information. This not only leads to confusion but also a spike in support tickets.

In contrast, when everyone delivers the same message, customers feel more confident in your brand.

Supports 24/7 Availability

In a global and digital market, customers don’t stick to your time zone. Knowledge base articles provide around-the-clock support without extra staffing costs. I love waking up to check our knowledge base queries from the previous night, typically from Asia-Pacific customers, to see that many of them deflected and did not escalate into a ticket.

There’s also a growing demand for self-service that complements this. A 2024 study found that 67% of customers prefer using some form of self-service over talking to a live agent.

In my view, a well-crafted knowledge base article is a strategic asset for streamlining support operations.

Boosts SEO and Organic Traffic

One benefit I didn’t anticipate early on was the SEO power of knowledge base articles, as 52% of keywords people search for have informational intent.

By optimizing titles and content for long-tail keywords like “How to fix integration sync errors,” you can actually end up ranking in Google search results, thus driving more traffic to your website because of people finding your knowledge base –– and ultimately driving new leads. By creating content that addresses specific user inquiries, you can improve your search engine rankings and establish yourself as an industry authority.

The benefits are convincing, as they not only enhance customer satisfaction and operational efficiency but also contribute to long-term business growth through improved SEO and reduced support costs.

For more ideas, check out this HubSpot article on knowledge base examples.

How to Create Knowledge Base Articles

Creating effective knowledge base articles is a process I’ve honed over years of trial and error. You really need to focus on solving problems efficiently.

Below, I’ve detailed a nine-step approach, complete with tools and tips from my experience. This method ensures your articles are clear, actionable, and results-oriented.

Step 1: Identify common customer queries.

You can’t solve problems you don’t understand, so I start by digging into support ticket data to find recurring issues and general common questions.

Try to pinpoint as many frequent topics as you can and then mentally bundle them into categories — topics like “How do I update my account information?” and “Why did my payment fail?” Then, create a diagram chart mapping out the categories and the associated topics.

Pro tip: Use tools like HubSpot’s Service Analytics to spot trends. You can also run keyword searches in your ticketing system for phrases like “how do I” or “error.” If available to you, don’t stop at just tickets –– survey customers or use AI tools like Gong.io to analyze call transcripts for unlogged pain points.

Step 2: Define a clear structure.

A logical structure makes articles easy to follow. I like to promote doing this early on and taking it seriously because your ability to scale knowledge management depends on it. Otherwise, you’ll have to come back and make changes that might take time to overhaul.

My go-to format includes:

A keyword-rich titles (e.g., “Why was my order canceled?”).
A short intro (2-3 sentences on what the article covers).
Numbered steps or sections with clear headings.
Visual aids like screenshots or videos.
A brief conclusion or next steps.

Pro tip: Test your structure with a small user group. You might learn some things that need adjusting to improve comprehension. I recommend keeping sections short, aiming for around 75-100 words each. This helps avoid overwhelming the readers. Consistency is key to scalability.

Step 3: Write for your audience.

Your audience dictates your tone and depth. For developers and product managers, I use technical terms; for the average user, I stick to plain language.

A Statista study shows that 60 to 65% of website traffic comes from mobile devices, suggesting people are more likely to access knowledge base articles on mobile.

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Pro tip: Use tools like Hemingway App to target a particular grade level of reading for broad accessibility. I think grade 6 through 8 reading level is good in that it does not assume a high level of literacy. Also, define any unavoidable jargon in a sidebar or tooltip –– don’t assume prior knowledge.

Step 4: Incorporate visuals.

Sometimes, words alone are not enough to describe complex tasks. How difficult would it be to put together your newly purchased IKEA furniture if it only included written instructions instead of images? Knowledge base articles are no different. I always add screenshots, annotated diagrams, or 30-60 second videos to clarify steps.

Research shows that 36% of people have struggled to process information without visuals since elementary school –– and 50% are actively looking for visual aids when reading informational content to improve their understanding. Adding screenshots, diagrams, or short videos to your knowledge base articles can make complex steps clearer and more digestible.

Pro tip: Use tools like TechSmith Capture or Loom for screenshots and videos — and remember to optimize your content for mobile and add alt text for accessibility and SEO.

Step 5: Optimize for SEO.

Search engines can lead users to your knowledge base articles, so I like to include primary keywords in titles and headings, and long-tail phrases in the body.

HubSpot’s Knowledge Base Software has AI-driven keyword suggestions, which are very powerful for boosting search rankings.

Pro tip: Research your competitors with Ahrefs or Semrush to find high-volume, low-competition terms. Write your meta descriptions between 150 to 160 characters, summarizing the article and including your keyword.

Step 6: Categorize and tag.

A well-organized knowledge base is important for both customers and employees. I group content into clear categories like “Getting Started,” “Billing,” or “Troubleshooting,” and use tags like “login error” or “refund request” to make searching easy.

Keep your categories and tags straightforward. This helps everyone find answers quickly, reducing customer frustration and agent handling time.

Pro tip: I’ve always found that a simple navigation menu with 3 to 6 core categories is a good starting point. Too many options can overwhelm users, while too few can make finding specific information harder.

Step 7: Review and update regularly.

Outdated content loses trust. It’s important to manage your knowledge base and optimize your content for accuracy, freshness, or even new media formats depending on what you’re seeing in the visitor traffic data. I personally review knowledge base data weekly and make small adjustments as needed. For larger overhauls, I’ll take notes and go back to step 2 if required.

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Pro tip: Try applying the Pareto principle, also known as the 80/20 rule. It talks about how roughly 80% of outcomes come from 20% of causes. Using this in a knowledge base context, start with the top 20% of viewed knowledge base articles –– this typically addresses 80% of user issues.

Step 8: Gather feedback.

While you can see a lot in the data, sometimes it’s helpful to turn directly to your audience. Sending a quarterly survey can help gauge how much your customers value your self-service resources and identify any gaps that need to be filled.

One way to do this directly in the knowledge base article is by using those little “Was this helpful?” buttons. This will give you a general overview of which articles are working and which are not. Then, review the feedback and prioritize the most high-value opportunities while addressing the low-rated articles for updates.

Pro tip: Add a free-form comment field alongside the “Was this helpful?” buttons so you can capture specific improvement suggestions. This makes the binary feedback a bit more actionable.

Step 9: Leverage AI tools.

AI can really help speed up this entire process without completely sacrificing quality. Don’t get me wrong, it requires your effort and guidance, but by using large language models to help you create drafts and get started, you can get moving more quickly than ever before.

For example, you can feed the LLM various customer issues or how-tos and then have it start compiling a foundation that you can build upon. Support teams are finding a lot of success leveraging AI for knowledge base management.

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Pro tip: Use AI to suggest related articles or keywords to enhance user navigation and SEO, but always edit AI output for accuracy and brand voice –– don’t just publish “copypasta.”

This approach consistently transforms overwhelming support backlogs into efficient self-service resources that delight customers and reduce operational cost.

Examples of Knowledge Base Articles

Let’s look at a few examples of knowledge bases that implement these principles. Knowledge bases come in many forms, but the best ones have common characteristics that make them useful.

Greenhouse Support Center

My alma mater Greenhouse Software has a support center that shows many knowledge base best practices. Notice that the homepage has multiple entry points, with a search bar, popular searches, and visual categories.

This recognizes that different users have different preferences for finding information –– some want to search directly, while others like to browse categories.

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I think this homepage’s effectiveness lies in its clean and minimal design, which puts the most used information front and center. The “Most popular subjects” section has visual thumbnails with straightforward article titles, so users can find what they are looking for easily.

This follows the 80/20 rule I mentioned earlier — tackling the 20% subjects that solve 80% of user problems directly on the homepage.

Looking at a specific knowledge base article, this jobs manual from Greenhouse shows how to organize step-by-step instructions efficiently. The article breaks down what could be a complex process into manageable parts with easy navigation, highlighted notes,and visual elements that enhance the written instructions.

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I really like how this article uses green info boxes to highlight important exceptions or edge cases. And the table that compares different job creation options allows users to see their choices.

These visual cues reduce the mental load on the user, making it easier for them to understand the choices and make a decision. In my experience, this kind of thoughtful formatting can reduce tickets and enhance customer experience.

When you’re building your knowledge base, these are some elements I think you should consider:

Clear organization.
Visual support.
Minimalist design.
Highlighting the most common user paths.

Remember, the best knowledge base articles are discoverable, clear, and solution-focused.

Slack Help Center

The Slack help center is a great example of a well-organized knowledge base. The site feels friendly right away thanks to a conversational header that says, “Hi. How can we help?” and gives you a number of ways to get information.

There’s a big search bar, quick links to popular topics, and categories that are easy to see. It’s great that they incorporate different learning styles.

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I like that the layout is simple but still very useful, and the common questions and categories are easy to see right away. It’s clear that when designing this, Slack wanted to make it easier for people to quickly find and solve their own problems.

Diving into one of their knowledge base articles, I took a look at their piece on “Managing your organization’s connections.” First thing that I tested was whether it appeared in search engine results. We talked earlier about the importance of optimizing for SEO, and it looks like Slack took this into consideration.

As you can see, the knowledge base article appears at the top of the SERPS, even recognized by the native Google Gemini search labs AI overview. This means customers don’t even need to visit your knowledge base directly to find their answers — they’ll be led there by the search engine, thanks to your knowledge base articles focusing on primary and keyword structure.

What I like most about this knowledge base article is that it tells you what to expect right away. It also lets users know which roles can use the tool, so they don’t waste time if they don’t have the right permissions.

The process doesn’t feel too difficult as each step is short, clear, and shown visually. I also like the quick feedback buttons at the end. As I mentioned earlier, that’s a smart way to get feedback from real users to improve the material.

The way Slack does things is a great example for anyone who wants to build or improve a knowledge base. Some great takeaways to remember are:

Use friendly language.
Organize visuals clearly.
Keep things simple and step-by-step.
Include a feedback loop that keeps content changing.

Answers should be simple to find, simple to understand, and simple to improve over time.

HubSpot Knowledge Base

Okay, I know I’m writing this for HubSpot –– so of course I have to plug the HubSpot Knowledge Base. But honestly, even if I wasn’t, it would still make the list (I promise they didn’t make me say that). Here’s why.

Right from the homepage, it’s clear HubSpot wants to make things easy. Much like Slack’s, there’s a prominent search bar, quick links to popular topics, and organized categories covering everything from marketing and sales to CRM setup and beyond.

Plus, there’s a little chat widget in the bottom-right corner, which I love. I like these widgets because they’re like a safety net — they’re great to use when you’re convinced you’ve looked everywhere but still can’t find what you need.

What stands out to me most is how HubSpot balances practical guidance with education. It’s not just a bunch of questions and answers, their knowledge base is packed with actionable marketing, sales, and service strategies. It feels less like a support resource and more like a learning hub that happens to solve your problems along the way.

One article I keep coming back to is the guide on setting up automation workflows. This could easily be a complicated mess, but the article breaks it down into consumable sections that are action-oriented. It makes everything feel less overwhelming.

What I really like about this article is that it doesn’t just tell you how to build a workflow –– it explains why certain steps matter. It’s part tutorial, and part strategy guide, which makes it more useful than a basic troubleshooting page. You walk away knowing not only how to set things up, but how to make them work better for your business.

The biggest takeaways for me are:

Clear structure.
A balance of technical and strategic guidance.
Scannable formatting.
A focus on empowering the user –– not just fixing the problem.

A truly great knowledge base article helps people get smarter.

Knowledge Base Article Templates

I’ve created these two templates to help you easily build effective knowledge base articles. My goal was to make them simple to use, so you can quickly structure your information and get it out to your users.

Whether you need to explain a process or help someone fix a problem, these templates give you a foundation to get started. (You can also download HubSpot’s free knowledge base articles template, too.)

Here are two templates you can apply today.

Template 1: How-To & Educational Articles

Title: [What the user will learn to do/understand]

Intro: [One or two sentences. What’s the goal?]

Section 1: [First Step or Concept]

If it’s steps:

Do this first.
Then do this.
And so on…

[Screenshots]

[What should they see after the steps?]

[Screenshots]

[Possible problem? How to fix it?]

If it’s explaining something:

Explain it simply.
Use short sentences.
Use bullet points.

Section 2: [Next Steps or Concept] (Repeat the format above)

…(More sections if needed)…

Related Articles:

[Link 1]
[Link 2]
[Link 3]

Still Need Help? (How to contact support)

Was This Helpful? Yes / No (Optional comment box)

The first template is your go-to for creating a step-by-step approach to explaining concepts. This second template is for troubleshooting articles, and helping users identify and fix problems on their own.

Template 2: Troubleshooting Articles

Title: [Problem the user is having]

What’s Happening? [One or two sentences describing the problem]

Possible Causes:

[Cause 1]
[Cause 2]
[Cause 3] (Add more if needed)

How to Fix It:

Solution 1:

Try this first.
Then try this.

[Screenshots]

What Should Happen? [Short description of expected behavior]

[Screenshots]

If that didn’t work do this:

Try this.
Then try this.

Still Not Working? [Link to submit ticket]

Related Articles:

Link 1
Link 2
Link 3

Was This Helpful? Yes / No (Optional comment box)

Your Knowledge Base, Your Success

Knowledge base articles are for building a resource that empowers your customers and frees up your team. As you work on your own knowledge base articles, don’t be afraid to experiment. Try different formats, gather feedback relentlessly, and keep iterating.

And one last tip: start small. Focus on the top 20% of questions and issues, and build from there. The most important thing is to start, keep learning, and always put your customers first.

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

50+ Small Business Ideas for Anyone Who Wants to Run Their Own Business

Choosing the right small business idea can feel overwhelming when you’re exploring different business ideas. I know because I’ve been there. My first business as a salsa dance class instructor taught me a tough lesson: passion alone isn’t enough.

Without a sustainable small business model, I struggled to keep up with expenses and attract potential clients. Like many small business owners, I learned that having a proper business plan is crucial.

So, how do you choose the best path forward? Let me walk you through a breakdown of small business ideas grouped by category to help you find your perfect match.

Table of Contents

What makes a good small business idea?
Best Small Business Ideas
Best Businesses to Start With Little Money (Service-Based Ideas)
Home Business Ideas
Online Business Ideas
Easy Businesses to Start
Business Ideas for Students
Creative Small Business Ideas
How to Start a Small Business at Home
Starting a Small Business: FAQ

What makes a good small business idea?

When I tried turning my love of salsa dancing into a business, I rented a small space, promoted my classes, and poured everything into making it work.

At first, it was exciting. I had a skill people wanted to learn, and I was passionate about teaching.

But pretty soon, I ran into problems. The overhead costs ate into my profits, getting students to commit was harder than I expected, and I found myself spending more time trying to fill classes than actually teaching.

Eventually, I realized the business model wasn’t sustainable, and I pivoted to freelancing instead.

Looking back, I can see exactly why my salsa business struggled. And I’ve learned that the best small business ideas share a few key traits. If an idea checks these boxes, it has a much better shot at success.

Uses your existing skills. Starting with what you already know cuts down the learning curve.
Low startup costs. Less financial risk means you can test product-market fit and adjust without huge upfront expenses.
Scalable and flexible. A good business can grow with demand and adapt to your lifestyle.
Minimal overhead. Avoid high costs like rent, inventory, or large staffing needs.
Online potential. A business that can operate remotely opens up more opportunities.

Best Small Business Ideas

Now that you know what to look for in a great business idea, let’s explore some options that might suit your needs. Whether you’re starting a side hustle or going all-in, the best small business ideas are affordable to launch, scalable, and aligned with your skills.

Below, I’ve rounded up some of the most practical and profitable small business ideas grouped by category to help you find the right fit.

Best Businesses to Start With Little Money (Service-Based Ideas)

Some of the most successful businesses today are built on skills, expertise, and services people already need. Service-based businesses are practical, scalable, and often require little more than time, effort, and a well-structured approach.

Even better, the way we work has changed. Remote services are more common than ever, making it possible to reach clients far beyond your local area.

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Whether you’re offering professional expertise, home services, or something more specialized, there’s a way to structure your business for a steady, reliable income.

Experience Needed: Low to High (Varies by Service)

Entry Level. Cleaning, pet sitting, basic organizing.
Medium. Personal training, home services.
High. Consulting, professional services, personal chef.

Key Skills:

Customer service, time management, reliability.

Growth Path:

Start with basic services, then specialize and build recurring clients.

Consulting and Coaching

If you have specialized knowledge in digital marketing, graphic design, or as a personal chef, consulting can be a powerful small business opportunity to turn expertise into income.

Businesses, professionals, and individuals all seek expert guidance on whether to improve operations, navigate career changes, or reach personal goals. What you focus on depends on your strengths and interests.

Business consultant. Small business owners constantly look for ways to improve efficiency, avoid costly mistakes, and scale without chaos. If you have a background in operations, finance, or marketing, consulting in a specialized area can be highly profitable. Start by offering an introductory strategy session to pinpoint the biggest challenges your clients face.
Career coach. With workplaces evolving fast, more professionals are looking for guidance on career shifts, salary negotiations, and job market positioning. If you have experience in hiring, HR, or personal branding, this can be a great way to help people advance while building a business of your own.
Life coach. General life coaching is oversaturated, but there’s a real demand for specialists. Coaches who focus on specific transitions such as career changes, major life adjustments, or personal development stand out more and attract higher-value clients.
Branding consultant. Every business needs a strong brand position strategy, but most don’t know how to create one that stands out. If you understand messaging, design, or social media strategy, you can help businesses define their identity and connect with the right audience.
Fitness and wellness coach. The fitness industry has expanded beyond just workouts. Clients want structured programs that combine exercise, nutrition, and mindset coaching. If you have expertise in this space, you can create tailored plans that help people achieve long-term results.

How to Get Started:

Instead of jumping straight into selling services, the best way to start is by establishing credibility.

To build testimonials and results, work with a few initial clients either at a discounted rate or in a case-study format.
Share insights online through content, posts, or workshops to position yourself as an authority.
Develop a clear framework or methodology that makes your service stand out.
If your industry requires certifications, get the necessary credentials to build trust with potential clients.

As you grow, focus on structuring your services in a way that creates stability:

Start with smaller, accessible offers to bring in new clients.
Develop tiered pricing for different levels of engagement.
Offer both one-time strategy sessions and ongoing support packages.

Success in consulting isn’t about selling time. It’s about selling results. The clearer your service’s value, the easier it becomes to attract clients who need exactly what you offer.

Cleaning and Home Services

With busy schedules and shifting priorities, more people are outsourcing household tasks than ever before. Cleaning and home services offer consistent demand and, in many cases, recurring revenue from regular clients.

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Small Business Ideas:

Residential cleaning. Many homeowners prefer to hire a professional rather than keep up with deep cleaning themselves. Recurring clients who book weekly or bi-weekly services create a stable income stream.
Commercial cleaning. Offices, clinics, and commercial spaces need consistent upkeep, so they often sign long-term contracts for reliable service.
Home organization. Professional organizing has grown in popularity, with more people seeking functional, clutter-free spaces.
Landscaping services. Beyond lawn care, homeowners and businesses need seasonal landscaping, maintenance, and design services.
Moving and packing. Moving is a hassle, and many people are willing to pay professionals to handle the packing, transportation, and unpacking process.

How to Get Started:

A home service business doesn’t require special degrees or expertise, but strong systems make a difference.

Build a strong local presence. A well-optimized Google Business Profile and strong online reviews help clients find and trust you.
Standardize services. Creating checklists and training materials ensures every job meets a high standard.
Use scheduling tools. A reliable booking system keeps appointments organized and minimizes missed opportunities.
Encourage long-term clients. Offering subscription-based services, seasonal promotions, and referral discounts helps create steady revenue.

Many successful home service businesses start small and grow through word-of-mouth. A reputation for quality and reliability goes a long way.

Pet Services

Pet owners are willing to spend on quality care, making pet services a business category that thrives in almost any economic climate.

Small Business Ideas:

Dog walking and pet sitting. These are services that many pet owners need. They may work long hours or travel frequently and need reliable pet care.
Mobile pet grooming. Grooming services that come to the client offer convenience and command higher rates.
Pet training. Obedience training, behavioral coaching, and specialty training services have strong demand.
Luxury pet services. Some pet owners seek premium care, from overnight stays with added perks to specialized grooming and training.
Pet transportation. A service for taking pets to vet appointments, groomers, or daycare can be a valuable niche.

How to Get Started:

Trust is the biggest factor in pet services. To establish credibility:

Get pet first aid certification and proper insurance.
Create detailed service agreements to set clear expectations.
Use booking and scheduling tools for convenience.
Build strong relationships with veterinarians and pet businesses for referrals.

Many successful pet businesses expand by offering multiple services under one brand. A business that starts with dog walking, for example, can add grooming, training, or pet-sitting to increase customer lifetime value.

Service-based businesses are among the most accessible ways to generate income, but the key to success is not just offering a service but structuring it to attract the right clients and keep them coming back.

Start by focusing on what you do well. Build a strong foundation, create consistent systems, and refine your offerings based on real demand.

Successful businesses aren’t always the most complex or groundbreaking. They solve real problems in a way that customers appreciate and trust.

Home Business Ideas

Online Reselling and Flipping

If you have an eye for value, reselling products can be a great way to build a business without manufacturing anything yourself.

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Experience Needed: Low to Medium (Varies by Market)

Entry Level:

Online marketplace reselling.
Thrift store flipping.
Basic retail arbitrage

Skills: Market research, photography, pricing.

Medium Level

Furniture flipping.
Electronics refurbishing.
Collectibles dealing.

Skills: Value assessment, restoration, authentication.

Growth Path:

Start small by picking a niche, then scale your inventory.

Popular Reselling Niches:

Thrift Flipping. Finding and restoring vintage clothing, furniture, or collectibles.
Amazon FBA (Fulfillment by Amazon). Selling new or private-label products through Amazon’s logistics network.
Tech and Electronics. Refurbishing and reselling used electronics.
Sneaker Reselling. Limited-edition sneaker drops can be resold at premium prices.
Furniture Restoration. Turning secondhand furniture into high-end pieces.

How to Get Started:

Learn how to spot valuable products and price them correctly.
Use platforms like eBay, Poshmark, or Facebook Marketplace to test demand.
Start with a small inventory and reinvest profits into higher-value items.
Develop efficient shipping and inventory management processes.

Reselling requires patience and knowledge, but those who master it can build a steady, scalable business.

Catering and Personal Chef Services

If you love working with food but don’t want the overhead of a full restaurant, a personal chef or catering business offers a way to work directly with clients without the high costs of a traditional food business.

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Profitable Small Business Ideas:

Personal chef services. Clients hire personal chefs for in-home dining experiences, specialized meal prep, or dietary-specific cooking.
Catering business. Smaller events and gatherings need high-quality food services without the scale of a large catering company.
Meal prep services. Many busy professionals and families want healthy, customized meals prepared for the week.
Custom baking. Cakes, pastries, and specialty baked goods are always in demand, especially for events and celebrations.
Specialty food products. From sauces to snacks, niche food products can become a brand of their own.

How to Get Started:

Before launching, ensure everything is set up legally and professionally:

Obtain necessary food safety certifications and permits.
Test your menu with small events or sample offerings.
Invest in branding — clients often choose based on presentation as much as taste.
Build partnerships with event planners, venues, and businesses that can refer clients.

The most successful food businesses don’t just sell meals. They sell experiences. Whether through beautiful plating, personalized service, or unique flavors, the goal is to create something memorable.

Online Business Ideas

The internet has made it easier than ever to build a business from anywhere. Unlike traditional businesses, digital and freelance businesses aren’t tied to a location, physical inventory, or high startup costs.

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They allow for flexibility, scalability, and, in many cases, uncapped income potential.

The key to success? Choosing a service or digital product that solves a real problem and structuring it in a way that allows you to scale beyond just trading time for money.

Experience Needed: Low to Medium

Entry Level. Virtual assistance, data entry.
Medium. Content creation, digital marketing.
High. Specialized programming, high-end consulting.

Key Skills:

Digital literacy.
Self-management.
Online communication.

Growth Path:

Start with platforms, build a portfolio then look for direct clients

Small Business Ideas:

Writing and copywriting. Businesses need content for blogs, marketing, and sales. Copywriters who specialize in persuasive writing, such as email marketing or sales pages, can command higher rates.
Graphic design and branding. From logo creation to full brand identity packages, companies always need professional visuals to stand out.
Web development and programming. If you know how to build or optimize websites, this skill is always in demand. Specializing in platforms like Shopify or WordPress can make you even more valuable.
Virtual assistance and operations support. Many business owners need help with tasks like email management, customer service, or project management.
SEO and digital marketing. Businesses need help attracting customers online. If you understand SEO, paid advertising, or social media growth, there’s plenty of opportunity here.

How to Get Started:

Freelancing is simple to start but competitive. To stand out:

Choose a niche instead of offering general services. It’s easier to market yourself when you’re known for something specific.
Build a portfolio, even if that means starting by doing a few projects for free or at a discount.
Set up a professional website or landing page where potential clients can see your work and contact you.
Use platforms like LinkedIn, Upwork, or direct outreach to find your first clients.
Create long-term client relationships instead of relying on one-off projects.

The highest-paid freelancers aren’t just task-doers. They position themselves as experts who solve specific problems.

Ecommerce and Digital Products

Selling digital products allows you to create something once and sell it repeatedly. Unlike physical products, there’s no inventory or shipping involved, making it one of the most scalable business models.

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Experience Needed: Low to High (Varies by Model)

Entry Level:

Digital downloads, printables.
Basic drop shipping.
Simple digital products

Skills: Basic design, digital marketing, customer service.

Medium Level:

Online courses.
Established ecommerce stores.
Custom digital products.

Skills: Content creation, inventory management, sales funnel optimization.

High Level:

SaaS products.
Complex e-learning platforms.
Multi-channel ecommerce

Skills: Technical development, advanced marketing, systems management.

Growth Path:

Test simple products, build systems then scale with automation

Digital Products That Sell Well:

Templates and tools. Digital planners, business templates, and design elements save people time, making them valuable.
Printables and downloads. From worksheets to artistic prints, downloadable products can be sold with little overhead.
Software and apps. If you have programming skills, creating a niche software product can generate recurring revenue.

How to Get Started:

Validate your idea before creating a full product. Survey potential buyers or start with a smaller version first.
Focus on solving a real problem rather than just making something for the sake of it.
Build an email list so you have a direct way to market your product.
Optimize your sales page. Make it clear what problem your product solves and why it’s valuable.

The best digital product businesses evolve over time. Start with one strong offer, refine it based on feedback, and then expand into related products.

Online Education and Coaching

The demand for online learning has skyrocketed, but the biggest opportunities aren’t in mass-market courses. They’re in highly specialized programs that deliver clear results.

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Profitable Business Ideas:

Online courses. Teaching a step-by-step process in a structured way can attract buyers willing to pay for expertise.
Group coaching programs. Combining education with live interaction provides both value and scalability.
Membership sites. Offering exclusive content or community access on a recurring basis creates predictable income.
High-ticket consulting and VIP days. Providing deep, customized guidance can be highly profitable.

How to Get Started:

Identify a specific transformation you can help people achieve rather than just teaching information.
Start by working with clients 1:1 to refine your process before turning it into a course or group program.
Use WordPress or Teachable to structure your content for engagement through interactive elements, live calls, and accountability to help students stay committed.
Price based on the outcome you provide, not just the length of the course or program.

The best online education businesses don’t just sell information. They sell results.

Digital businesses offer the flexibility to work from anywhere, but success isn’t just about having a great idea. It’s about execution.

If you’re considering freelancing, focus on building credibility and finding your first clients. If you want to create digital products or content, start by identifying a real need and providing value. And if you’re drawn to online education, think about the transformation you can help people achieve.

No matter which model you choose, the key is consistency. A great idea won’t succeed without action, but small, strategic steps can turn a side project into a full-time business.

Easy Businesses to Start

Ecommerce and Physical Product Businesses

Selling physical products offers a different kind of opportunity compared to service-based businesses. Instead of trading time for money, you’re building something that can scale, often without direct client interaction.

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The key is to choose the right model based on your risk tolerance. Some businesses require upfront investment in inventory, while others (like dropshipping or print-on-demand) let you start with little stock.

Experience Needed: Low to Medium

Entry Level. Dropshipping, print-on-demand.
Medium. Handmade products, custom goods.
High. Private-label manufacturing.

Key Skills:

Basic business operations.
Inventory management.
Marketing.

Growth Path:

Assess demand for your products, optimize operations, then scale successful lines.

Dropshipping and Print-on-Demand

Dropshipping and print-on-demand (POD) allow you to sell products without managing inventory or handling shipping. Instead, you work with suppliers who fulfill orders as they come in while you focus on branding and marketing.

Dropshipping and POD Business Ideas:

Niche dropshipping stores. Selling curated, high-demand products in a specific category (e.g., ergonomic home office gear, eco-friendly kitchenware).
Print-on-demand apparel and merchandise. Custom t-shirts, mugs, posters, and accessories featuring unique designs.
Branded merchandise. Partnering with influencers or brands to create exclusive collections.

How to Get Started:

Research profitable niches instead of selling random trending products.
Choose suppliers carefully. Quality and shipping times affect customer satisfaction.
Create a responsive ecommerce website, differentiate with branding, customer experience, and strong product descriptions.
Invest in marketing. Dropshipping success depends on how well you attract and convert customers.

Low upfront costs make this a great starting point, but it requires strong marketing skills to stand out.

Subscription Box Businesses

Subscription boxes offer curated products on a recurring basis, creating predictable revenue. The best subscription businesses focus on niche audiences who are willing to pay for a curated experience.

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Experience Needed: Low to Medium (Varies by Niche)

Entry Level:

Curated existing products.
Niche-specific boxes.
Local product collections

Skills: Product sourcing, packaging, fulfillment.

Medium Level:

Custom/branded products.
Multi-tier subscriptions.
International shipping.

Skills: Vendor relationships, logistics, retention.

Growth Path:

Test your idea for viability, optimize fulfillment, and then scale subscribers.

Subscription Box Ideas:

Beauty and skincare. Focused on clean beauty, K-beauty, or men’s grooming.
Snack subscription. International snacks, health-conscious treats, or specialty diets.
Book and stationery boxes. Pair books with themed items for a full experience.
Pet subscription. Toys, treats, and pet care essentials.
Hobby and DIY kits. Crafting, gardening, or painting supplies with instructions.

How to Get Started:

Choose a niche that encourages repeat purchases.
Create an unboxing experience that makes customers look forward to each delivery.
Plan logistics carefully. Subscription businesses need strong fulfillment systems.
Offer customization to increase retention (e.g., personalized book genres, dietary preferences).

Subscription models work best when they provide ongoing value beyond just the products inside. Ecommerce and product businesses take more upfront work to set up than freelancing or services, but they also offer greater potential for automation and scalability.

The key is choosing a model that fits your strengths whether that’s crafting, curating, or marketing.

If you want flexibility without inventory, digital products and print-on-demand are great options. If you prefer building something tangible, handmade goods or subscription boxes might be a better fit.

Whatever path you take, focus on strong branding and customer experience. These are what separate successful product businesses from the rest.

Hybrid and Brick-and-Mortar Business Ideas

While digital businesses dominate the conversation, there’s still huge value in businesses with a physical presence, especially when they combine the best of online and offline worlds.

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Hybrid businesses use digital tools to enhance in-person experiences, creating stronger customer relationships and more predictable revenue.

Experience Needed: Medium to High

Entry Level. Small retail operation
Medium. Service-based storefront
High. Full-service establishments

Key Skills:

Business operations.
Staff management.
Local marketing.

Growth Path:

Start small, build a local presence, then expand locations or adopt a hybrid model.

Local Service Businesses With an Online Component

Many traditional service businesses are now blending in-person and digital elements to attract more customers and operate more efficiently.

Examples of Hybrid Service Businesses:

Event planning and wedding coordination. Offering virtual consultations, 3D venue previews, and digital mood boards to simplify planning.
Photography and videography. Combining in-person shoots with digital add-ons like online galleries and video editing services.
Home staging and interior design. Helping homeowners and real estate agents enhance spaces, whether through virtual consultations or full-service interior design and staging.
Personal training and fitness coaching. Offering both in-person sessions and digital programs for ongoing guidance.
Tattoo and beauty studios. Using online booking, virtual consultations, and social media marketing to attract clients.

How to Make a Local Business More Scalable:

Build a strong online presence. Many customers search for services before ever making contact.
Automate scheduling, payments, and client management to save time.
Offer digital add-ons (courses, virtual consultations, or exclusive memberships) to create additional income streams.
Use content marketing to stay engaged with your audience and sales email templates to convert potential clients.

Hybrid service businesses offer the personal touch of local business with the efficiency and reach of digital tools.

Storefront-Based Retail and Food Businesses

Physical retail is evolving, but businesses that offer unique experiences continue to thrive.

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The key is to create a reason for customers to visit beyond just the products themselves.

Examples of Profitable Storefront Businesses:

Coffee shops and cafés. Spaces that double as community hubs with events and experiences.
Boutique or specialty retail. Highly curated stores that focus on niche markets.
Bookstores and creative spaces. Retail blended with experiences like workshops and author events.
Juice bars and health food stores. Combining grab-and-go convenience with wellness education.
Bed and breakfasts and boutique hotels. Creating unique, shareable experiences beyond just a place to stay.

Keys to Success in Modern Retail:

Focus on experience. Why would someone visit your store instead of ordering online?
Create multiple revenue streams (events, memberships, online orders).
Optimize for convenience such as easy online ordering, delivery, or subscription options.

Retail businesses succeed when they offer something customers can’t get elsewhere.

Franchise and Licensing Businesses

For those who want a structured business model with built-in support, franchising offers a lower-risk option than starting from scratch.

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Experience Needed: Medium to High

Entry Level. Small franchise operations (cleaning, pet services)
Medium. Retail and food service franchises
High. Multi-unit franchises, complex service operations

Key Skills:

Operations management.
Team leadership.
Following systems.

Growth Path:

Start with a single unit, then expand to several units.

Types of Franchises That Work Well:

Fast food and cafés. Established brands with loyal customer bases.
Fitness and wellness studios. Boutique fitness brands that offer strong community engagement.
Home and cleaning services. Recurring revenue businesses that benefit from brand trust.
Education and tutoring centers. Blending in-person and online learning.

How to Choose a Franchise:

Research profitability and long-term viability.
Understand the financial requirements and ongoing fees.
Look for franchises with strong training and support.

Franchises aren’t for everyone, but for those who want a proven system, they can be a great way to start a business with fewer unknowns. Hybrid and brick-and-mortar businesses are all about combining physical presence with digital efficiency.

The most successful ones don’t just sell products or services. They create experiences customers want to return to.

Business Ideas for Students

Digital Content Creation

Creating digital content has grown from a passion project into a full-time business model for many. Unlike freelancing, content creation doesn’t involve working directly with clients.

Instead, the goal is to build an audience and monetize through multiple streams.

Ways to Monetize Content:

Blogging. Build a blog that generates income through ads, affiliate marketing, sponsored content, or co-marketing. It takes time to grow, but once established, it can be a great long-term asset.
YouTube and video content. Video creators can monetize through ad revenue, sponsorships, and their own products or services.
Podcasting. While podcasts don’t generate revenue immediately, they can attract sponsorships and lead to premium memberships or consulting opportunities.
Social media and newsletters. A strong following on platforms like Instagram, TikTok, or an email newsletter can lead to sponsorship deals, brand collaborations, and product sales.

How to Get Started:

Define your niche to narrow down on your expertise. Trying to write about everything will water down your portfolio, but honing in on what you do best makes you stand out to potential clients.
Learn SEO and keyword research fundamentals.
Create a clean, professional portfolio using tools like Canva.
Build credibility by publishing sample pieces on Medium, LinkedIn, or guest posting.
Add case studies and client testimonials as you grow.

Focus on one platform and master it before expanding.
Provide content that educates, entertains, or solves problems tends to grow the fastest.
Monetize strategically by layering different income streams instead of relying on one.
Be consistent. Gaining an audience takes time, but the more you show up, the more trust you build.

Successful content creators don’t just post for engagement. They create a system that turns views into income.

Creative Small Business Ideas

Handmade and Custom Products

If you enjoy creating things, selling handmade or custom products offers a way to turn craftsmanship into income.

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Unlike mass-market goods, handmade products often command higher prices because of their uniqueness and personal touch.

Experience Needed: Low to High (Varies by Product)

Entry Level. Print-on-demand, basic crafts
Medium. Custom apparel, jewelry making
High. Fine woodworking, custom furniture

Key Skills:

Craftsmanship
Design skills
Production management

Growth Path:

Start with small items, build your reputation then make custom orders

Small Business Ideas:

Jewelry and accessories. Unique, high-quality pieces stand out in a crowded market.
Custom apparel and embroidery. Small-batch clothing, custom hats, or embroidered designs.
Handmade beauty and skincare. Natural soaps, lotions, and candles have strong demand.
Woodworking and home decor. Furniture, wall art, and personalized home goods.
Art prints and digital downloads. Selling artwork in both physical and digital forms.

How to Get Started:

Define a unique style or signature design that sets you apart.
Focus on high-margin products. Pricing too low makes growth difficult.
Use strong photography and branding on product pages to enhance perceived value.
Leverage platforms like Etsy, Shopify, and Instagram for marketing.

Handmade businesses thrive on craftsmanship and storytelling. People buy not just the product but the meaning behind it.

How to Start a Small Business at Home

1. Identify your small business idea.

Choosing the right business idea is more than just picking something you like. It’s about ensuring there’s a market for it.

Many businesses fail not because the idea is bad but because it doesn’t align with what people actually need and are willing to pay for.

To evaluate your small business idea, consider:

Market demand. Are potential clients actively looking for solutions in this space? Every successful business idea needs clear market validation. A quick search on platforms like Google Trends or industry forums can provide insights into long-term viability. Here’s an example of interest over the past five years for “pet care.”

Customer behavior. Are potential buyers making repeat purchases, or is this a one-time transaction? Businesses that generate recurring revenue tend to be more sustainable.
Industry growth. Is this a growing market, or is demand declining? Emerging trends in technology, consumer behavior, and economic shifts can signal where opportunities exist.

For example, if you’re considering starting a daycare but have never stepped into a successful one, spend time researching. Visit established centers, talk to experienced owners, and assess whether this aligns with your expertise and interests.

Understanding the industry firsthand will help you validate whether it’s a practical and profitable venture.

HubSpot’s Business Startup Kit simplifies the early stages by helping you map out key elements like your business plan, goals, and target market. It provides structured templates and guidance so you can move from idea to action without getting stuck in the planning phase.

2. Start as a side business or hobby.

Instead of immediately quitting your job, consider starting your business as a side project. This allows you to experiment, refine your approach, and test the market without putting financial strain on yourself.

Many successful businesses, from handmade product shops to consulting services, began as small weekend or evening projects.

Before making a full commitment, ask yourself:

Can I find paying customers without aggressive marketing?
Does this business model allow for sustainable long-term growth?
Have I tested my pricing and seen real demand?

Starting small allows you to test different angles, adjust your strategy based on real customer feedback, and determine whether your idea has long-term potential. If demand grows and revenue becomes consistent, you have the green light to scale.

3. Validate your business idea before investing.

One of the biggest mistakes new entrepreneurs make is spending time and money on a business before confirming that people are willing to pay for it. Instead of assuming demand, look for proof.

Here are a few ways to validate your idea:

Pre-selling. Offer a beta version of your service or take pre-orders before fully launching. If customers are willing to pay upfront, that’s a strong sign of demand.
Market research. Go beyond friends and family and talk to potential customers, join industry groups, and use market research tools to analyze what competitors are already selling.
Landing pages and ads. Create a simple landing page describing your offer and run a small ad campaign. If people sign up or express interest, you have early validation.

This approach ensures that when you fully invest, you’re doing so with confidence in your market.

4. Decide on your software.

The right software isn’t just about convenience. It can make or break your ability to scale. Many businesses struggle because they don’t have the right tools in place early on.

Some essential categories to consider:

Customer relationship management (CRM). Organizes leads, customers, and interactions in one place. A CRM like HubSpot helps track sales and automate communication.
Financial tracking. Software like QuickBooks or Wave makes it easier to manage cash flow, expenses, and taxes.
Automation and marketing tools. Email marketing, scheduling, workflow automation, and AI tools save time and keep operations efficient.

While it can be tempting to manage things manually at first, investing in the right systems early can prevent future problems.

5. Create a business plan.

A well-structured business plan serves as a roadmap for your business. Without one, it’s easy to lose focus, mismanage finances, or struggle to position yourself in the market.

A strong business plan includes:

Executive summary. A high-level overview of your company and its market placement.
Business model. Who you serve, what you offer, and how your business is structured.
Market analysis. A competitor assessment and industry outlook.
Products and services. What makes your offerings unique, and how they meet customer needs?
Operations and management. Key roles, responsibilities, and organizational structure.
Marketing and sales strategy. Your approach to attracting and retaining customers.
Financial plan. Start-up costs, revenue projections, and funding strategies.

Even if you don’t seek external funding, having a structured plan keeps you on track and makes decision-making easier as you grow.

6. Choose the right business structure.

The legal structure you choose affects everything from taxes to liability protection. Here’s a breakdown of common options:

Limited liability company (LLC). Provides personal asset protection and tax flexibility, making it a popular choice for small businesses.
Sole proprietorship: This is the simplest structure and requires little paperwork, but it doesn’t offer liability protection.
Partnership. Suitable for businesses with multiple owners, where profits and liabilities are shared.
Corporation (S Corp, B Corp). Offers legal separation between business and owner but involves more regulations.

Your decision should be based on liability protection, tax implications, and long-term business goals. The Small Business Administration offers resources to help you determine the best fit. Pick one structure then go ahead and register your business.

7. Open a business bank account.

Keeping business and personal finances separate is crucial for tax purposes, expense tracking, and financial clarity. A dedicated business bank account also adds professionalism when handling client transactions.

Consider these factors when choosing a bank:

Low or no monthly fees.
Online banking capabilities.
Access to business credit options.

A business checking account allows unlimited transactions, while a business savings account helps manage reserves and emergency funds. Many banks also offer integrations with accounting software to streamline record-keeping.

8. Assess whether your business works well from home.

Not all businesses are suited for a home-based setup. If your idea requires specialized equipment, in-person client interaction, or a retail storefront, you may need a different approach.

For example, if you want to start a dog boarding business but live in a small apartment, a dog-walking or pet-sitting service may be a more practical alternative. On the other hand, businesses like content writing, digital marketing, or consulting can operate seamlessly from a home office.

Consider whether your business can:

Be run effectively with a laptop and internet connection.
Avoid zoning restrictions or home-office limitations.
Provide a professional customer experience without a physical location.

9. Set up a dedicated workspace.

Even if you’re working from home, having a structured workspace is critical for productivity. A dedicated office area reduces distractions, creates a professional environment, and helps with work-life balance.

If a full home office isn’t possible, set up a designated area in a quiet corner of your home. If you need a more professional setting for client meetings, explore coworking spaces like WeWork or PeerSpace, which offer conference rooms and networking opportunities.

10. Take action.

Many entrepreneurs get stuck in the planning stage, tweaking their logo or perfecting their website while avoiding the real work of selling and testing.

Instead of waiting for everything to be perfect, start small:

Reach out to potential customers.
Make your first sale, even if it’s just to a handful of people.
Gather feedback and improve as you go.

The sooner you start, the sooner you’ll know whether your business has real potential.

Starting a Small Business: FAQ

How do I implement a business idea?

Start by listing your skills and passions. What do you love doing? Next, assess market demand using tools like Google Trends and industry reports.

Finally, assess feasibility: Do you have the budget, time, and resources to make this idea a reality? Balancing passion with practicality ensures a business that’s both enjoyable and profitable.

How do I fund a small business?

Here are a few funding options:

Bootstrapping. Use personal savings to retain full control.
Small business grants. Free money from government or private sources.
Angel investors and venture capital. In exchange for equity or a return.
Bank loans and SBA loans. Traditional financing options with repayment terms.
Crowdfunding. Use platforms like Kickstarter and Indiegogo.

How can I protect the copyright of my creations?

Include copyright notices. Label your work with “Copyright © [Year] [Your Business Name].”
Register your work. Formal registration can strengthen legal claims.
Consider licensing. Let others use your work under specific terms.

The Smart Way to Start a Business

Just as my journey from struggling salsa instructor to freelancer taught me, starting a small business isn’t just about following your passion — you need to create something sustainable that meets real market needs.

But I have to admit, I was shocked by what I discovered while researching this guide.

Traditional brick-and-mortar businesses are reinventing themselves. Who would have thought tattoo studios would offer virtual consultations or that local art studios would thrive on subscription models?

It challenged everything I thought I knew about “traditional” business.

What really hit home was seeing that successful businesses often start much smaller than I imagined. Just like my own path from a dance instructor to freelancing, sometimes scaling down is actually scaling up.

Success comes from careful planning and strategic execution rather than passion alone. The key is to start small, test your assumptions, and be willing to adapt based on what you learn.

Managing Partner: Who They Are and What They Do

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

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

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

Table of Contents

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

What is a managing partner in an LLC?

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

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

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

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

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

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

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

Managing Partners in Partnerships

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

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

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

Managing Partner vs. CEO

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

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

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

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

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

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

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

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

Managing Partner vs. Owner

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

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

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

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

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

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

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

Managing Partner vs. Limited Partner

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

Limited partnerships have two types of partners:

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

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

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

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

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

General Partner vs. Managing Partner

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

A General Partner:

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

A managing partner:

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

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

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

Why is a managing partner important for a business?

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

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

1. Steering the Ship

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

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

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

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

2. Improved Decision-Making and Growth Potential

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

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

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

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

3. Talent Development and Employee Retention

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

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

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

4. Adaptability in a Changing Business Landscape

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

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

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

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

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

Managing Partner Role and Responsibilities

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

Here’s what they actually do:

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

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

How Managing Partners Divide Responsibilities

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

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

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

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

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

Using Tools to Manage Growth

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

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

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

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

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

Get started with Sales Hub today.

How to Become a Managing Partner

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

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

1. Moving From Specialist to Leader

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

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

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

2. Scaling a Business as a Managing Partner

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

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

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

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

3. Reinventing Leadership After Setbacks

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

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

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

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

4. Leaving Corporate to Build Something New

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

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

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

Common Steps to Becoming a Managing Partner

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

1. Educational Foundation

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

2. Gaining Practical Experience

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

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

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

3. Strategic Networking

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

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

4. Taking on Leadership Roles

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

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

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

5. Understanding Business Operations

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

6. Continuous Learning and Adaptability

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

Key Takeaways From Managing Partners’ Career Paths

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

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

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

Managing Partner Agreement

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

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

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

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

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

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

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

Managing Partner Compensation

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

Distributive Share

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

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

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

Guaranteed Payment

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

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

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

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

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

Equity

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

Compensation in an LLC

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

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

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

What It Really Means to Be a Managing Partner

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

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

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

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

Shortcuts Salespeople Should Never Take, According to Experts

Not all sales shortcuts are created equal. Some, like scheduling follow-up emails or creating a repeatable framework for researching prospects, streamline your day without harming the quality of your work. Others save you time but damage your results — meaning you’ll ultimately be less productive for using them.

As the expression goes, “If you don’t have time to do it right, you won’t have time to do it again.”

Steer clear of these nine shortcuts, or you’ll only create more work for yourself.

Sales Shortcuts

1. Researching Your Prospect During the Call

Researching your prospects while you’re on the phone with them is better than not researching them at all — but barely.

If you’re scrolling through their LinkedIn profile and company website, you can’t pay attention to what they’re saying. Not only will you miss valuable information, but you’ll sound distracted. Few buyers will be interested in scheduling another meeting with someone who’s not paying attention right now.

Remember that 96% of consumers do their research before talking to a rep, so they already have a pretty good idea of what you offer. Don’t let them out-research you. Be equally ready.

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My former colleague from Serpstat’s sales team learned this the hard way.

During an enterprise software pitch, a prospect threw out an unexpected question — one that shifted the conversation in the wrong direction.

Caught off guard, Alex fumbled to find the answer mid-call. That awkward silence and frantic searching cost him the deal. Later, the prospect admitted they chose a competitor who seemed to understand their business better.

Determined not to let that happen again, Alex built a pre-call research system covering:

Prospect’s LinkedIn profile lookup
Company news
Leadership changes
Industry challenges

When another prospect asked about field expertise, he had detailed notes ready. This led to much deeper conversations about their pain points and, ultimately, more successful deals.

Pro tip: Make sure you space your calls far enough apart so you can prepare before each one (e.g., 15-20 minutes). Better yet, review your scheduled meetings for the next day before you leave at night. Doing your research after regular business hours (rather than during) frees up additional selling time.

2. Trying to Connect With Prospects at the Same Time Every Day

Some salespeople settle into rigid calling and emailing routines. For example, they might call new prospects every morning, send emails in the afternoon, and contact existing opportunities in the hour before they leave the office.

The problem with sticking to a schedule? It’s difficult to connect with a buyer who’s on a different one. If your prospect never gets into the office before 10 a.m., they’ll miss your 9 a.m. call every day. If another prefers to check their emails at the crack of dawn, your mid-day messages will always get buried.

I explored this topic with Shannon Smith O’Connell, Operations Director (Sales & Team Development) at Reclaim247. She pointed out that sticking to a strict schedule backfired and killed her chances of real engagement.

O’Connell suggests using AI to get personalized insights that lead to authentic conversations.

“Craft your communication to reflect individual needs based on data insights (e.g., determining the best times to reach based on activity), and you’ll definitely enhance your connection potential,” she explained.

Pro tip: Use the email tracking tool in HubSpot Sales to see when individual contacts engage with your emails. Then, schedule yours to arrive when they’re typically online.

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3. Running Your Demo and Discovery On the Same Call

Conducting discovery and a demo on the same call is like killing two birds with one stone, right?

Wrong. Your demo should be highly customized to your audience’s needs, desires, and goals — and you can’t achieve that level of customization without doing prep work.

Or as Rizala Carrington, CEO and Growth Executive at MyGrowthAgent.com, says:

“Discovery should be all about listening, while the demo should be all about demonstrating value based on what you’ve learned. Mixing the two dilutes both.”

Rizala described those calls as a messy, all-over-the-place conversation that never really landed. Instead of tackling real pain points, she just dumped a bunch of generic info. No surprise — the prospect lost interest, and the deal went nowhere every time.

Once she separated discovery and demo calls, everything changed. Now, she has time to really understand the prospect, tailor her pitch, and create real engagement during demos.

Pro tip: Use the discovery call to diagnose the buyer’s current situation and what they hope the future will look like. In between discovery and the demo, identify which product features will help them reach this better future. Then, craft your presentation around these features and their benefits.

4. Not Making a To-Do List

It might feel more efficient to keep track of undone tasks in your mind rather than on paper or in a virtual list, but you’ll end up losing precious hours. No one’s memory is faultless: Inevitably, you’ll forget details or entire tasks.

While adding an item like “Send Jamie Hills the blog post we discussed” takes an additional 10 seconds, failing to execute on that could delay the deal. You’ll spend far more time re-engaging your prospect than if you’d followed through on your commitment in the first place.

Daniel Cook, Business Development Specialist at KM Philly, was one of those who thought it was possible to pull up facts on the fly. But that led to prospects sensing his lack of preparation. Now, he swears by a to-do list — especially the one before the call.

“When you enter a call already aware of their industry challenges, you don’t sell — you consult,” says Cook.

After the call, create another to-do list to keep the momentum going:

Write down key takeaways.
Define next steps.
Plan follow-up strategies — when, how, and what to say.

By the way, according to Belkins, the first follow-up email is the most effective, boosting reply rates by 49%.

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So, if you don’t set a reminder for follow-ups, the chances of overlooking them and losing those opportunities are pretty high.

Pro tip: Don’t waste time writing down a to-do list for every lead. Set your CRM to automatically prompt a series of tasks after you complete, say, a discovery call. Create follow-up templates and personalize them after the call takes place.

All that frees you even more time and keeps leads engaged on semi-autopilot.

5. Sending the Same Content to Every Buyer

It may be easy to send the same content to every buyer, but it’s not effective. Imagine the majority of your prospects are finance managers. One might be focused on developing accounting processes for her company’s global expansion, another is concerned with reducing operational expenses, and the third is prioritizing rewriting her company’s expense policy.

If you forward an ebook about decreasing overhead to all three of these managers, it will only resonate with the second. Content should add value and help you establish credibility. To do that, it must be relevant to the individual prospect’s situation.

At the end of the day, only a personalized and individual approach will create a real connection and strong relationship, and we know that’s the only way to close deals.

Our research shows that 82% of sales pros say building relationships is not only the most important part of selling but also the most enjoyable. So, don’t let laziness or the urge to close a deal too quickly cost you those relationships.

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If we take into account that 72% of revenue comes from existing customers while only 28% from new customers, the importance of building relationships is quite apparent.

Here’s what Cook from KM Philly thinks of it:

“Bulk emails can save time but murder engagement. I used to send the same generic sales message to everyone on my lead list, hoping the value prop alone would win them over. Response rate? Horrible.

“These days, I qualify my emails by industry, company role, and pain point. Then, personalize them with meaningful case studies or observations. Making this simple tweak boosted my response rate 3x over and gave my pitches the tone of dialogue, not junk mail.”

Pro tip: Hone in on your prospect’s likely priorities by looking at their site, browsing their company’s open jobs (which tells what areas they’re expanding in), reading specific job descriptions for your prospect’s department (which gives you granular insight into their team’s goals), and checking out their social media profiles.

6. Relying On a Single Point of Contact

There’s an average of five decision-makers involved in the sales process today. For enterprise deals, the number can jump as high as 10-15 stakeholders. And 28% of sales professionals say the biggest reason prospects back out of deals is because the sales process takes too long.

A solid approach to handling this is multi-threading, aka building relationships with multiple stakeholders at your target companies.

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I dare to say that relying on a single point of contact within the company is a recipe for disaster: If they get sick, go on vacation, or leave their job, you’ll probably need to start from scratch.

And that’s not factoring in your contact’s internal influence. Maybe they don’t have a lot of social capital in their organization, or they’re new and ultimately unwilling to recommend any big changes. The wrong customer champion dramatically reduces your chances of closing.

Realtors know all too well how frustrating this can be. Adam Chahl from Vancouver Home Search shared his hard lessons:

“In real estate, I‘ve seen many agents make the mistake of building a relationship with just one person in a decision-making group, only to realize too late that they weren’t the final decision-maker. Early in my career, I put a ton of effort into nurturing a relationship with a client, only to find out that their spouse had completely different priorities when it was time to move forward,” Chahl said.

“The deal fell apart because I hadn‘t engaged both parties from the start. Now, I always make sure to connect with all stakeholders in a transaction, whether it’s a couple buying their first home or an investment group purchasing multiple properties.”

Pro tip: Ask your original contact to connect you with their coworkers so you can learn more about their individual priorities, buying criteria, and objectives. These details will help you tailor your message to each stakeholder and build consensus.

7. Trying to Go Around the Gatekeeper

Some salespeople try to avoid the gatekeeper at all costs. They’ll call the decision maker at odd hours, ask for their cell number instead of the office line, and remain vague about their intentions whenever they do end up talking to an executive assistant.

However, the gatekeeper doesn’t need to be your enemy — in fact, he can be your ally. Your prospect trusts him. If you get the gatekeeper’s approval, not only will you have an easier time connecting with the buyer, but you’ll also have more credibility from the get-go.

Another example from real estate goes to Amber Couron, Transaction Coordinator at Home Buying Hounds.

“I learned the hard way about bypassing gatekeepers when I tried going directly to a property owner, only to have the deal fall through because I’d alienated their trusted office manager,” she said.

“Gatekeepers often have valuable insights about the property and decision-making process that can make or break a sale. These days, I build genuine relationships with everyone involved, from receptionists to property managers, which has helped me close deals more smoothly and get better referrals.”

With that in mind, always treat gatekeepers with respect and courtesy. Instead of circumventing them, go out of your way to talk to them.

You might even ask the decision maker, “Is it okay if I ask [gatekeeper] a couple of questions about [prospect’s company] so I can get another perspective?”

If they say yes, you’ll have a valuable opportunity to learn from a true insider.

8. Relying Too Much on AI

A recent Gartner study reveals that 76% of sales leaders are either already using or planning to roll out generative AI this year. No doubt AI helps in sales with routine tasks.

However, AI tools can lack nuance, so failing to refine prompts or integrate real-time customer context can make interactions awkward or irrelevant.

Also, if you’re planning to fire a couple of your salespeople just because “AI can do it now,” think twice. AI is an assistant, not a closer. It can streamline tasks, generate insights, and automate outreach, but at the end of the day, relationships and trust close deals. AI helps, but sales is still a people game.

What you can use AI for:

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Explore and test, but let’s not let AI take over the human part.

9. Ignoring Past-Due Follow-Up Calls to Focus on Other Tasks

I’ve been in sales, and I’ve made my fair share of mistakes, too. One of the biggest? Avoiding follow-up calls to check on deal status. The task is daunting by its nature, and a sales rep can find a million reasons to push a call to tomorrow when it’s due today.

Early in my career, I had 53 deals in the pipeline — each with necessary follow-up calls and emails. For the latter, I used templates and adapted them to fit every prospect. For calls, I had to pick up the phone. No shortcuts. So, I kept delaying them.

Unfortunately, it resulted in lost opportunities and was noticed by my manager.

In the end, I had to overcome my fear of “being pesky” and make those calls without having them piling up. To my surprise, my conversion rate from prospect to deal increased.

Don’t let something get in the way of following up with your potential clients. It can make or break a deal.

Pro tip: Hone the craft of sales calls by reading sales books, role-playing with your peers and managers, and attending webinars/courses. These all help a salesperson become a better negotiator and seal more deals.

Mistakes should be lessons, not patterns.

After chatting with experts, I was once again convinced that we learn best from our own mistakes. It’s tough, no doubt, with missed opportunities, wasted time, and money, but that’s how we move forward.

So, I hope you’ll at least take away something from these nine mistakes others made and try not to repeat them.

The big thing to remember? Even though AI is tempting to rely on for everything, we still need to stick to some old-school sales processes. And by “old-school,” I mean solid research, prepping your calls, staying focused, and personalizing your approach with each prospect.

Customer Feedback Management — Turning Desperate Comments Into Strategy

The companies I work with care deeply about their customers, and it shows. That’s especially true when I’m updating the UX of a site or overhauling knowledge base content. However, customer feedback management is often lacking.

Companies either think they know their customers so well that they don’t need to formalize the feedback loop, or they’re collecting a lot of feedback and have no way to understand the data. That’s why a structured approach to managing feedback from customers is essential.

Below, I’ll discuss the approach I recommend for recording and acting on customer feedback. I’ll also share helpful channels to keep and eye on, as well as best practices.

Table of Contents

What is Customer Feedback Management?
How to Implement Customer Feedback Management
Customer Feedback Management Software
5 Customer Feedback Management Best Practices
3 Examples of Customer Feedback Management
Get Started with Customer Feedback Management

At its core, CFM is a customer-centered approach to doing business that uses customer feedback as a means to deliver a better service experience and product. It’s helpful to visualize customer feedback management as a loop that includes the following steps:

Ask — solicit customer feedback.
Categorize — sort feedback into separate groups.
Act — share feedback with relevant parties and develop solutions.
Follow-up — Follow up with customers to gauge the effectiveness of your efforts.

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You can use customer feedback software at each stage of the loop. This can be really useful if you have a large amount of data.

Now you know how customer feedback management works, let’s talk about the types of feedback. There are two distinct categories I think about — direct feedback and indirect feedback — which I’ll discuss below.

Types of Customer Feedback

Direct customer feedback comes from explicit requests that you send to customers. For example, I might ask customers to complete surveys post-purchase or leave reviews. Indirect feedback is given but not asked for, like social media posts, comments, or even product returns.

Other types of customer feedback include:

Product or service sales.
Support tickets.
Technical issues and bug reports.
Requests for product or service walkthroughs.
Customer complaints.
Suggestions.

With the feedback gathered from CFM, I can work cross-departmentally to identify key customers, streamline improvements, and increase revenue.

Customer feedback management is not just about finding ways to keep customers satisfied. It’s also about turning negative experiences into opportunities for positive engagement. After all, more than half of customers will switch to a different brand after just one negative experience.

The Difference Between a Customer Complaint and Customer Feedback

Before I move on, let’s look at the differences between a customer complaint and customer feedback. This distinction makes a difference when you go to put your customer feedback strategy together.

A complaint is delivered after a customer experience and is — by definition — negative. Meanwhile, feedback can be solicited before, during, or after a customer experience. This information could be bad, good, or neutral.

Customer complaints are mostly due to product or service issues, a lack of empathy in interactions with support staff, and inadequate responses to reviews or appeals for assistance. On the other hand, customer feedback can include praise, suggestions for product improvements, or comments on the effectiveness of a customer service interaction.

Companies need to be sensitive to the power of customer complaints, as rage-filled customers are more vocal than satisfied ones. In fact, 56% of customers don’t complain at all — they just quietly switch to another brand without so much as a “goodbye.”

The sad truth is that most customer complaints never get reported, which means that complaints aired publicly are just the tip of the iceberg. It’s part of the reason I advocate strongly for structured feedback requests in any company — you don’t know what you don’t know.

Why is Customer Feedback Management Important?

Customer feedback management benefits include:

Reduced churn.
Increased revenue.
Improved products and services.
Stronger customer relationships.
Data about key customer groups.

I’m all about growth, and I’d be the last person to deny there is value in acquiring new customers. But there is even more value in retaining existing customers. A 2022 research study found that ecommerce brands lose $29 for every customer they acquire — a 222% increase in just eight years.

Customer feedback management is also critical to letting customers know that you care about their satisfaction. People leave companies for many reasons. However, two-thirds of consumers who feel a brand cares about their emotions will likely turn into repeat customers.

Customer Feedback Management Channels

No matter what you sell or how customers buy, there are many avenues to gather customer insight. Here are some of the most common customer feedback management channels:

Focus groups.
Customer interviews.
Surveys.
NSA.
Third-party reviews.
Email.
Live chat.
Text.
Social media.
In-product requests.

In the past, focus groups and customer interviews formed the backbone of most CFM efforts. I think they still have their place, especially for gathering qualitative information about a specific product or aspect of your company.

But these days, things are mostly digital. CFM is no exception. I find more and more companies are hyper-focused on digital channels because they cost less to analyze, and the data is easier to synthesize at scale.

For example, net promoter score (NPS) surveys make it easy and affordable for companies to automate CFM. They help businesses understand how customers feel overall about their brand. Although different software score their results differently, all NPS surveys measure customers’ loyalty to a brand.

Source

Live chat, text, and email are the most direct customer feedback management tools. With the increasing digitalization of customer service experiences, people want to be able to communicate with businesses quickly and efficiently when a problem arises.

Let’s not forget third-party reviews and social media sites. Here, people air their grievances and discuss their favorite brands. I love how organic these channels are. You can see what people say without any solicitation. So, if you’re a beginner to CFM, I recommend starting with review sites and social media to gauge customer sentiment.

How to Implement Customer Feedback Management

Good customer feedback is important for everyone from sales and marketing to product and customer success. This information can help inform everything from day-to-day operational changes, right up the chain to strategic financial decisions.

With the whole organization clamoring for customer feedback data, it’s easy to go overboard. So, before you implement a customer feedback management strategy, I recommend taking a step back and ensuring you plan a structured approach. Here’s how.

1. Set clear objectives.

It sounds like an obvious step, but I’m always amazed at how many teams jump straight into data collection. This is how I’ve ended up sifting through disparate customer feedback for hours. In these scenarios, I’m looking at information from multiple channels, trying to make sense of it.

Basically, if you don’t have objectives, it’s more difficult to make your customer feedback actionable.

I recommend defining what you want to know and why. This could be broader business objectives or relate to something highly specific. For example, you might want to:

Improve the features of your product.
Understand whether your brand resonates with the target market.
See if your pricing is too high or too low.
Validate a new product line or feature before launch.
Optimize the user experience.
Get an overall sense of how happy your customers are with the company.

You might already see how these objectives might then feed into my next step.

2. Select your feedback channels.

Some feedback channels, like social media and review sites, are always worth keeping an eye on. I sometimes use social listening or sentiment analysis tools designed to automate data synthesis on these sites.

Other channels need a bit more consideration. Some objectives, like validating a new product, might be best met with a focus group. Others are broader and better suited for one-off mass surveys.

The other item I recommend thinking about here is frequency. How often should you gather fresh data? It depends on what you’re gathering. For example, some SaaS brands I’ve worked with send quarterly surveys to gauge their NPS. Other channels, like a “how did we do” email, can be sent continuously to new customers.

3. Use automation.

There are lots of methods and tools you can use to automate the collection of customer feedback.

Let’s say I’m looking at a site with an ecommerce store. I might recommend implementing a drip email sequence so customers receive a purchase confirmation and a couple of follow-ups asking how they like the product. Each of these emails can include links to surveys, opportunities to leave a review or quick star-rating apps. Now, customer feedback management is fully automated.

Other areas I recommend you consider for automation include:

Chabots on your website to ask people about their experience (like HubSpot’s Breeze).
In-app surveys if you’re working with a software product.
Requesting reviews on platforms like Google or Trustpilot.

Remember to automate when to request feedback. Right after purchase is one obvious trigger. However, there are plenty of other interactions worthy of feedback. For example, if a new feature is released on a SaaS platform, I recommend triggering a request for feedback when a user first interacts with the feature.

4. Set a schedule for focus groups.

I think focus groups still have their place in CFM, regardless of industry. They don’t have to be formal affairs conducted through two-way mirrors. I’ve run focus groups over video calls that provided tons of really valuable, qualitative feedback.

But here’s the thing: Your customer’s time is valuable. Finding available participants who represent your target personas can be difficult. If you run them too often, you might run out of worthwhile customers to interview, particularly if you work with a smaller customer base.

Instead, I recommend planning focus groups that are in line with your overall strategic planning. They should coincide with significant events in the calendar, like a new feature release or the launch of a new service portal.

5. Centralize and categorize the data.

Where you have control over the questions you ask your customers, try to keep them consistent. Let’s say you have a website chatbot and a post-purchase survey email. They should both direct customers to the same survey with the same set of questions and response options.

I’ve seen companies collecting simple star ratings from one platform while using detailed questions in surveys elsewhere. It’s all good data, but it makes analysis to get to the heart of your customer sentiment extremely difficult.

There are also tools available, like MonkeyLearn or Chattermill, that use AI to help you synthesize sentiment and survey data from multiple channels in one place.

Either way, make sure you can compile your data. But remember that, without insights, data is just words and numbers on a page. Try to align how you categorize and organize the feedback closely with the objectives I spoke about earlier.

6. Make a plan for implementation.

When I get to a place where I can take objective-focused insights from feedback, the time comes to transition to decision-making. This often means compiling and passing reports to other departments that use the feedback in their own strategic decision-making processes.

During this phase of customer feedback management, you’ll uncover room for improvement. Internal stakeholders might request more information moving forward or deeper insights into a particular area. In those cases, I recommend revisiting the structure of a survey or seeing if a focus group or one-off survey is worthwhile.

Customer Feedback Management Software

Customer feedback management software helps you automate feedback collection, aggregate data, and analyze metrics to form actionable decision-making. Here are a few high-quality software tools I recommend beginners check out.

1. Service Hub

HubSpot’s Service Hub features a customer feedback software tool that helps you truly understand customer perception and uncover areas of opportunity for taking action to satisfy your audience.

Service Hub also allows you to automate customer surveys, making it easier for users to gather feedback after every interaction. Being able to define clear survey triggers allows me to gauge how customers feel at key moments in the customer journey. Beyond that, sentiment analysis tools have helped me find feedback patterns I may have otherwise missed.

What I find most helpful? Service Hub helps teams see what feedback looks like in context. I can see other products a customer has purchased and other feedback we received from that buyer before

2. Survicate

Survicate helps you reach customers where they are most engaged, allowing you to deploy surveys on desktop, mobile, in-app, or via email. With multiple touch points, you’ll have visibility into the experience at every step of the customer journey.

However, what I like the most about Survicate is its real-time feedback dashboard. I can see how customer sentiment is changing at any time. So, if there’s ever a dip, I can more easily investigate what happened in our ecosystem that caused the shift. There’s even a visualization tool that makes seeing this information even easier.

Beyond that, this platform seamlessly integrated into my tech stack. Actionable customer feedback automatically synchs with our CRM and ticketing system. I can then make sure a member of our feedback team can follow up, ensuring a better service experience.

3. SurveyMonkey

You’ve probably interacted with SurveyMonkey at least once before. It’s one of the most common surveying tools. In the world of customer success, SurveyMonkey can help you create surveys for different areas of your business (products, customer loyalty, service interactions, etc.), allowing you to gather information about the customer experience.

My favorite thing about SurveyMonkey is the interface’s simplicity. I can create a survey in a matter of minutes intuitively. I just choose what type of question I want to ask and how I want to elicit a response (open-ended, sliding scale, multiple choice).

When results come in, I can filter by demographic information or customer segment. SurveyMonkey also offers sentiment analysis and a word cloud feature, making information easy to understand.

5 Customer Feedback Management Best Practices

1. You need both quantitative and qualitative data.

Quantitative data typically tells me the “what,” but qualitative data backs that up with a “why” that makes feedback from customers actionable.

Net Promoter Score is a good example. A three out of ten rating is concerning, but not knowing why a customer feels that way makes it almost useless information. It’s best practice to leave space for customer comments along with the rating request to get more context. I’ve uncovered issues with user experience this way, where the data revealed customers just didn’t understand how to use certain features optimally.

Essentially, quantitative data gives you something to investigate. Qualitative data helps you solve the case.

2. Make it easy for your customers.

Time is precious for everyone, and your customers are no different. Plus, the more people I get to fill out a survey, the more reliable the data. So, I recommend making feedback collection as simple as possible for your customers.

Written reviews take time, but a couple of multiple-choice questions with a short open text field for more details takes no time at all.

The best part of this strategy is you’re more likely to capture your middle-ground customers. Highly satisfied and highly unsatisfied customers are likely to leave a review. But what about people in the middle who find your product or service fine but have valuable insights about what to improve?

Easy feedback methods make it much easier to capture feedback from this segment.

3. Track patterns and trends.

Patterns or trends in your customer feedback data can provide really useful insights to pass along to other departments and improve business outcomes.

Maybe I notice that increased levels of customer dissatisfaction correlate with recent pricing increases, or customers who buy a product online have more negative (or positive) feedback than in person. A new competitor might be getting more mentions than before, causing customers to churn.

If you aggregate your data well, these types of trends can help you get ahead of those that can have pretty severe consequences for the business.

4. Keep customer data protected.

This is true of all interactions, of course. But if you’re collecting customer feedback, you’re often collecting personal or sensitive data along with it. When it comes to using this information, even internally, make sure you’re staying compliant. Include opt-ins for storing customer data.

5. Use A/B testing.

It can be difficult to compose feedback questions. I’ve often wrestled with deciding how many questions to include and at what point I’m asking too much.

Just like in marketing campaigns, you can A/B test certain aspects of your CFM strategy. Here are some things I would consider testing:

Survey length (and question length).
Timing and frequency of feedback requests.
Format of surveys (multiple choice, open text, or star ratings).
Delivery channels.
Personalization.

Acting on the test results can greatly improve the quantity and quality of responses from your customers.

3 Examples of Customer Feedback Management

Let’s take a look at some customer feedback examples to see how global brands do it efficiently and effectively.

1. Uber

Ridesharing startup Uber has made measurement-based customer feedback a core part of their CX design.

After each trip, users can use in-app surveys to rate their driver between 1 and 5 stars. They then choose from several preset categories to explain their rating. What I like best is that, if a driver goes above and beyond to deliver an exceptional customer experience, customers are encouraged to give a specific compliment.

Source

It’s a quick and easy mechanism, but it allows Uber to quickly identify a problem driver and take corrective action. It also provides insights into what customers like when a driver performs well. This helps Uber maintain the quality of its driver base and reduce the likelihood of negative experiences.

2. Zappos

Ecommerce giant Zappos is well-known for responsive and helpful customer service. The online shoe retailer makes it easy to get in touch by offering 24/7 chat, text, and phone service. By keeping multiple lines of communication open both day and night, Zappos ensures that it can nip problems in the bud before they escalate into full-blown complaints.

But what I particularly like is the feedback options under “Help & Support.” Not only is customer service easy to access but there is also a “Give Us Feedback” link. Customers then get a detailed survey so the brand can collect all feedback, not just get ahead of complaints.

Zappos’ commitment to free delivery and returns for 365 days demonstrates its willingness to innovate based on customer feedback. This, in turn, has ensured that the company enjoys a dedicated following, even in the crowded online retail marketplace.

3. Apple

Few companies took product and service innovation more seriously than Apple. Over the years, the tech giant has built up a rabid fan base, largely because it knows what its customers want.

Apple consistently ranks highly in customer satisfaction surveys because of its reputation for continuously seeking and employing customer feedback. After every purchase, Apple sends the buyer an email to gather feedback related to the sale.

Source

Apple also relies on NPS surveys to measure customer satisfaction related to products, services, and in-store or online shopping experiences. It then uses these scores to tailor features for new products to satisfy the widest number of consumers.

Get Started with Customer Feedback Management

I’m a big believer in using customer feedback management in a way that works best for your brand. If you’re a beginner to CFM, take a look at your existing channels, even if it’s just your social media or presence on review sites. Then, see how you can aggregate the data for worthwhile insights.

As you progress, I recommend exploring new channels and formal feedback mechanisms. Don’t forget to use software to automate your processes, too. You’ll be surprised how much time you can save and how having a formal strategy can work wonders for strategic decision-making.

Editor’s note: This post was originally published in January 2022 and has been updated for comprehensiveness.

Making the B2B Customer Funnel Work for Your Team — Proven Strategies

If you run a SaaS business, you may have hit a wall where your network and initial traction aren’t enough to keep growing. Maybe you’re generating leads but struggling to convert them into long-term customers. Or worse — you’re bringing in new customers, but they don’t stick around.

This is where a strong B2B customer funnel comes in.

Many companies focus too much on lead generation without considering what happens after someone signs up. A good customer funnel helps at every stage, from first hearing about you to becoming loyal fans.

In this guide, I’ll break down the five key funnel stages, outline proven strategies for each stage, and share some examples to help you optimize your funnel and accelerate your growth.

Table of Contents

What is the B2B customer funnel?
Why the Customer Funnel Matters in Customer Service
The B2B Customer Funnel Explained in 5 Stages
How to Use the B2B Funnel in the Customer Journey
B2B Customer Funnel Strategies
How I Think About Customer Funnels

What is the B2B customer funnel?

A B2B customer funnel is the journey a customer takes from learning about your business to becoming a long-term user.

It’s different from a sales funnel, which only focuses on getting new customers. The customer funnel goes further, making sure those customers:

Stay engaged.
Get value from your product.
Recommend you to others.

P.S. You might also see terms like a marketing funnel and customer acquisition funnel. While these all share similarities, each will differ slightly by the end goal and what exact metrics you’re measuring for.

Key Differences Between the Sales and Customer Funnel

Sales Funnel	Customer Funnel
Focuses on lead generation and conversion	Continues through the entire customer lifecycle
Ends at the point of sale	Focuses on retention, loyalty, and expansion
Managed by sales and marketing teams	Managed by customer success and support teams

Why the Customer Funnel Matters in Customer Service

A well-structured B2B customer funnel improves customer satisfaction, reduces churn, and increases lifetime value.

What the data says:

Better upsell & cross-sell opportunities. Companies focusing on post-sale engagement see up to 30% higher revenue per customer.
Consumers are loyal. 95% of consumers say that customer service impacts their brand loyalty.
Personalization is key. 78% of reps agree that customers expect more personalized experiences than ever before, and consumers are more loyal to brands that offer those experiences and value their opinions.
Saves you money. Acquiring new customers is five times more expensive than retaining existing customers. Additionally, customer-centric companies are 60% more profitable than companies that aren’t.

Knowing your customer journey matters more than ever. Too often, I see startups that focus too much on acquisition alone and ignore the post-sale experience.

Pro tip: If you’re looking to improve your customer journey, start with a customer journey map. I recently wrote a guide on how you can use AI to level up your entire process. (It’s easier than you think!)

The B2B Customer Funnel Explained in 5 Stages

Every customer moves through five key stages:

Awareness. They realize they have a problem.
Consideration. They explore possible solutions.
Onboarding. They buy your product and need help getting started.
Retention. They actively use your product.
Advocacy & Expansion. They tell others about your product.

Each stage requires tailored customer service strategies to keep users engaged and drive long-term success. What makes this successful, I’d argue, is being able to take a step back and look at the big picture. How do customers flow between each stage? Why do they take the next step, and what factors influenced them? All of these things will help you zero in your customer funnel.

Below, I’ll go over each stage in more detail so you can see examples in action.

How to Use the B2B Funnel in the Customer Journey

Meet AcmeTech, a fictional company that sells AI-powered customer support software.

Their problem? They get lots of leads, but many customers don’t stay long-term. Here’s how AcmeTech could use the customer funnel to solve this problem.

P.S. I used ChatGPT here to illustrate some of these examples!

Awareness

At this stage, your goal is to make potential customers aware of your brand and educate them about a problem they may not even realize they have. This means:

Publishing high-quality SEO-driven blog content.
Running targeted LinkedIn and Google ads.
Partnering with industry influencers or guesting on podcasts.
Offering free tools, templates, or research reports that attract potential buyers.

Business Example: AcmeTech’s Approach

AcmeTech realizes that many customer support teams don’t know how much time they waste on repetitive queries. To raise awareness, they create an interactive AI ROI Calculator that helps companies estimate how much money they could save by automating responses.

They also publish a thought leadership article titled:

👉 “The Hidden Cost of Slow Customer Support — And How AI Can Fix It.”

This educational-first approach positions them as a trusted expert rather than just another software company pushing a product.

Consideration

Once potential customers know about your solution, they start evaluating their options. This is where they compare vendors, request demos, and read case studies. At this stage, businesses should:

Offer free trials or personalized demos.
Provide case studies that show measurable success.
Engage in conversational marketing (e.g., live chat, webinars).
Address objections with comparison guides and FAQ pages.

Business Example: AcmeTech’s Approach

Since AcmeTech struggles to keep customers around long-term, leads may not fully understand AcmeTech’s value or how it stands out from competitors.

To solve this problem, AcmeTech decides to strengthen engagement by publishing a case study from one of their most successful clients. They begin to offer regular webinars and free trials for interested prospects. They also give the sales team sales enablement materials to effectively communicate ROI and success stories.

Onboarding

Onboarding is where many B2B companies lose customers. A confusing setup, lack of training, or slow implementation can lead to frustration and high churn rates. A smooth onboarding experience should include:

A structured onboarding sequence (checklists, welcome emails, guided walkthroughs).
A dedicated customer success manager (CSM) for high-value accounts.
Access to self-service resources (knowledge base, video tutorials).
A kickoff call to define success metrics and usage goals.

In my experience, great onboarding is what separates my favorite tools from the rest and what makes me a long term customer. Make it extremely easy to get started, help me see the value of your product, and give me a “quick win” — it’s that simple.

As Patrick McKenzie, a strategic advisor for Stripe, says, “I can tell you with a fair degree of certainty that no matter how great your product is, 40-60% of your free trial users never see the product a second time. Which makes that first use of the software really, really freaking important.”

Business Example: AcmeTech’s Approach

Optimizing the onboarding process is key for AcmeTech to retain their customers once they convert. They decide to revamp onboarding with hands-on training, personalized setup, and proactive support to ensure customers see immediate value.

Gamified Tour. AcmeTech installs a guided tour with gamification features so new clients can learn how to use the software quickly.
Access to Knowledge Base. They provide easier access within the software to their already-established wealth of self-service resources so customers can find an answer to any question.
Milestone-Based Engagement. They start sending emails when users reach key actions (e.g., “You’ve handled 100 tickets with AI — see your impact!”).
First 30-Day Health Score. AcmeTech starts tracking engagement metrics (logins, features used, response time improvements). If a customer isn’t engaged, they intervene early with personalized training.

Retention

Once a customer is onboarded, the next challenge is keeping them engaged so they renew their contract or expand their usage. This requires:

Proactive support (regular check-ins, feature updates, success reviews).
Exclusive training (invite-only webinars, advanced user groups).
Community engagement (forums, Slack groups, networking events).
Usage-based nudges (automated alerts when engagement drops).

Pro tip: If you want to learn more about retention fundamentals and best practices, check out HubSpot Academy’s course on the topic. It’s a great starting place to refine your strategies.

Business Example: AcmeTech’s Approach

AcmeTech already has a customer success team available for any questions their clients might have, but they decide to implement a more proactive approach by having reps reach out to clients on a regular basis.

They also integrate AI-driven insights to optimize clients’ use of the software and provide ongoing educational content that is delivered monthly to users’ inboxes.

Advocacy

Loyal customers can become your biggest growth channel — if you give them a reason to advocate for your brand. Key strategies include:

Referral programs (offering discounts or perks for successful referrals).
Customer spotlights (featuring them in blog posts, podcasts, or events).
Co-branded content (partnering on whitepapers, webinars, or case studies).
User-generated content (UGC) (testimonials, LinkedIn shoutouts, customer success stories).

Business Example: AcmeTech’s Approach

Because AcmeTech has been struggling with retention, they have few referrals and testimonials, but are missing out on this key part of the customer funnel.

They decide to go the classic route and create referral incentives. They further encourage satisfied customers to share reviews and case studies.

B2B Customer Funnel Strategies

To optimize each stage of the customer funnel, I recommend trying some of these key engagement strategies.

Awareness: Using Educational Content to Build Brand Authority

At the awareness stage, our goal is to educate and engage potential customers. Content marketing is a powerful way to do this, providing value upfront without asking for anything in return.

At HubSpot, that’s our secret sauce — and likely the reason you’ve arrived at this post.

We focus heavily on inbound marketing, using SEO-driven blog posts, free courses, and downloadable resources to attract potential customers. The HubSpot Academy, which offers free certifications in marketing, sales, and CRM management, helps people learn valuable skills while also introducing them to HubSpot’s ecosystem.

My takeaway: If you consistently provide high-value content, you create a natural inbound funnel where potential customers seek you out rather than being chased down. No matter what company or industry you’re in, you can easily replicate this playbook.

Consideration: Personalized Demos and AI Chat Support

When potential customers are in the consideration stage, they’re actively comparing solutions. A frictionless, personalized experience can be the difference between a sign-up and a lost lead.

Drift revolutionized B2B sales funnels by replacing static lead forms with AI-powered chatbots. Instead of asking customers to fill out a form and wait for a demo, Drift’s chatbot instantly connects them with a sales rep or provides an interactive, personalized demo experience based on their needs.

My takeaway: Using AI chatbots and real-time demos reduces friction and guides potential customers faster toward a purchase decision.

Onboarding: Structured Plans and Guided Walkthroughs

The onboarding process is where many potential users drop off if the experience is frustrating or overwhelming. A well-structured onboarding flow ensures users quickly see value from your product.

Asana, a platform I use almost daily for project management, provided a straightforward onboarding experience that helped me understand how to use it and start getting value from it immediately. I learned how to create projects from scratch or using a template. I can then break the project down into specific tasks with assignees and due dates.

My takeaway: Having a clear onboarding plan is vital for customer success. Use a template or make a plan with experts to ensure your customers succeed.

Retention: Proactive Customer Support and Exclusive Training

Customer retention is everything you do to keep existing customers coming back. Customer success and support teams play a significant role in customer retention as they continually nurture relationships and ensure the customer’s ongoing success with your brand.

According to our research, a 5% increase in customer retention can increase company revenue by 25-95% and ultimately grow your customers’ lifetime value (LTV).

Source

When asked in a survey about what “customer loyalty” means, 74% of respondents said it’s about feeling appreciated and understood rather than receiving special offers. Additionally, 64% mentioned that they are willing to spend more on a brand that remembers them and offers a personalized experience.

My takeaway: Customer service software like Service Hub makes it easy to provide timely and proactive customer support that keeps track of all interactions in one place.

Advocacy: Leveraging Referral Programs and Community Engagement

Turning satisfied customers into brand advocates creates a powerful organic growth engine. One of the best ways to do this is through referral incentives and an engaged user community.

I can think of so many companies that have done referral programs really well — Dropbox, beehiiv, Morning Brew.

Referrals are an awesome approach for several reasons:

They help build trust and social proof. Buyers trust peer recommendations more than marketing materials.
They lead to higher close rates. Referred leads convert 3-5x more than cold outreach.
They have a lower CAC. Referral-driven customers cost significantly less to acquire.

A great example of the power of referrals is Slack. Slack initially scaled by encouraging users to invite teammates, leveraging network effects. This organic approach helped them grow to $1M ARR within 8 months before layering in paid acquisition — and eventually became the fastest-growing business app of all time by relying on word-of-mouth.

Source

My takeaway: If you make referrals easy and rewarding, your customers will sell for you, creating a cost-effective, scalable growth loop.

How I Think About Customer Funnels

If there’s one thing I’ve learned, it’s that customer acquisition is only half the battle. A steady stream of leads won’t get you far if those customers don’t see value, stay engaged, and ultimately advocate for your brand.

That’s why I always look at the full customer journey — not just the sale.

If you focus only on awareness and lead generation, you’ll struggle with conversions.
If you don’t invest in onboarding, customers will churn before they ever see value.
If you neglect retention and advocacy, you’ll always be chasing new customers instead of growing through referrals and renewals.

I’ve seen time and time again that companies that prioritize the full funnel — especially retention and advocacy — outperform their competitors.

At HubSpot, we’ve built our entire strategy around this. Try Marketing Hub to get more leads and build your client acquisition, use Sales Hub to close more potential customers, and use Service Hub to earn loyalty and keep those valuable customers.

The Buyer Motives Every Salesperson Should Know (+Tips from the Field)

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

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

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

Table of Contents

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

What is buyer motivation?

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

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

The Customer Journey

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

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

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

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

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

1. Need

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

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

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

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

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

2. Imitation

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

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

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

3. Fear

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

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

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

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

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

4. Health

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

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

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

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

5. Impulse

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

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

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

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

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

6. Pleasure

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

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

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

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

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

7. Financial Gain

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

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

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

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

8. Aspiration

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

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

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

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

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

Emotional vs. Rational Buying Motivations

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

Emotional Buying Motives

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

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

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

Rational Buying Motives

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

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

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

Example: Two Kinds of Car Buyers

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

A Rational Buyer Example

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

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

An Emotional Buyer Example

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

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

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

When can rational and emotional buying motives overlap?

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

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

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

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

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

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

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

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

Understand Buyer Motives to Increase Sales

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

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

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

Grants for Black-Owned Businesses and Other Funding Resources for Black Business Owners [+ Deadlines for 2025]

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

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

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

Table of Contents:

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

Black Owned-Business Statistics You Should Know About

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

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

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

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

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

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

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

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

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

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

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

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

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

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Grants for Black-Owned Businesses

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

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

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

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

1. Shea Moisture Grants

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

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

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

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

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

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

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

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

3. FedEx Small Business Grant Program

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

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

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

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

4. Ladies Who Launch

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

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

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

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

5. National Association for the Self-Employed Growth Grant

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

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

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

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

Eligibility: Applicants must be a NASE member to apply.

6. FedEx Entrepreneur Fund and Boost Camp Program

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

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

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

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

7. The Coalition to Back Black Businesses Grant

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

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

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

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

8. Nike x Jordan Black Community Commitment Grant

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

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

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

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

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

Economic Justice
Education
Narrative Change
Social Justice

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

9. Joseph Beam Black Gay Men’s Wellness Grant

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

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

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

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

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

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

Fiscally-sponsored organizations are encouraged to apply as well.

10. Wish Local Empowerment Grant

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

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

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

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

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

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

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

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

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

12. Just Thrive Grant Program

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

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

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

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

13. Ulta Beauty’s Muse Accelerator Grant/Program

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

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

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

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

14. Black Ambition Prize

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

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

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

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

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

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

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

15. The Black Ambition HBCU Prize

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

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

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

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

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

16. Lenovo’s Evolve Small Grant

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

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

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

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

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

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

17. Start.Pivot.Grow Micro-Grant

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

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

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

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

Additional Resources for Black-Owned Business Owners

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

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

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

1. Start Small, Think Big Inc.

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

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

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

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

2. Farm Aid

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

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

3. Sales Hub

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

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

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

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

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

4. Venturize

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

Source

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

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

5. SCORE

Source

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

Source

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

We Need More Black Businesses, So Start Yours

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

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

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

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

Outcome-Based Selling: An Overview + Practical Tips

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

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

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

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

Table of Contents

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

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

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

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

How Outcome-Based Selling Works

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

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

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

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

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

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

Outcome-Based Selling vs. Solution Selling

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

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

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

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

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

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

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

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

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

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

Benefits of Outcome-Based Selling

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

1. Improved Customer Satisfaction

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

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

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

2. Higher Upselling Potential

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

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

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

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

3. Sustained Long-Term Relationships

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

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

4. Increased Perceived Value of Your Business

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

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

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

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

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

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

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

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

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

5. Discovery of New Business Opportunities

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

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

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

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

Challenges of Outcome-Based Selling

1. Defining and Measuring Outcomes

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

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

How to overcome it:

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

2. Longer Sales Cycles

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

How to overcome it:

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

3. Higher Expectations From Customers

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

How to overcome it:

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

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

4. Risk of Uncontrollable Variables

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

How to overcome it:

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

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

How To Do Outcome Selling

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

1. Create your ideal customer profile and buyer persona.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Here’s what I do:

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

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

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

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

4. Provide supporting information for your pitch.

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

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

Here’s what I do:

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

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

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

5. Present your outcome-based solution.

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

Here’s what I do:

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

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

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

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

Examples of Outcome Selling

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

1. Content Marketing Services

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

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

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

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

2. E-Learning Platform

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

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

My pitch can include a paragraph like this one:

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

3. Customer Service Management Software

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

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

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

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

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

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

Increase Your Win-Rate Through Outcome-Based Selling

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

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

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

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

HubSpot’s 2025 State of Cold Calling Report [Data From 350+ Sales Professionals]

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

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

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

We answer questions like:

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

Important Context

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

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

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

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

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

Do sales orgs still cold call?

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

Luckily, that didn’t happen.

As per our survey:

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

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

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

How much do salespeople still cold call?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

What resources do salespeople use for cold calling?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

When is the best time to cold call?

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

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

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

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

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

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

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

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

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

Why do salespeople cold call?

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

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

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

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

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

What results are sales orgs seeing from cold calling?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

How can you get better at cold calling?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

What might the future of cold calling look like?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

What is the state of cold calling in 2025?

In a breath? Very much alive.

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

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

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

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

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