Why is Google worth so much?

  • If you ask a room full of financial advisers, you will get a bunch of answers related to the valuation of various parts of their business.
  • If you ask a room full of IT people, you will get a bunch of answers related to their algorithms.
  • If you ask a room full of venture capitalists, they will just curse, unless they were among those who funded Google early on.

But here in this room, where I am writing today, the focus is on selling.  From that perspective, the reason that Google is worth so much is the same thing that could make you worth more as a salesperson.

Needs Analysis.

Google recently got some heat because Google+ didn’t seem as sticky as Facebook.  According to a new comScore report as reported on CNN, it was noted that the average Google+ user spend only 3.3 minutes per month using the service compared to 7.5 hours for Facebook.

[NOTE: I wonder if any of those heavy Facebook users (pun intended) are making excuses about not doing important things in their life (like exercising) for lack of time?  If the average is 7.5, imagine how much time the top 20% of users are spending!]

But I digress…

In a much more insightful article on Techcrunch, readers were enlightened to a different perspective on the amount of monthly usage statistic.

Google doesn’t care.

Google isn’t about social networks.  At the bottom line, neither is Facebook for that matter.  Both companies make their money with targeted internet advertising.  Once you sign up for Google+, you are being tracked.  With Google’s new privacy policy, you are being tracked across your usage of all Google properties from Gmail to YouTube.

So what does this have to do with Needs Analysis?

Needs Analysis is about finding out what is important to your prospective customers.  When you use Google products, you search for things you are interested in using the Google search engine, or the one on YouTube.  You write about things you are interested in your emails that you send on Gmail.

By mining this data about you across all of these internet properties, Google is conducting needs analysis on what is important to you.  As an internet advertising company, this is the core needs analysis that they need to do in order to be most successful.  The more Google knows about you, the better they can target advertising to you.  By doing a really good job of understanding what is important to you, they can sell advertisements directed at you for more money, because they are more targeted and more relevant, and therefore more valuable to advertisers.

And that is where we come full circle to sales.  Needs analysis is the vehicle in the sales process for creating value.  Your proposals and your products or services will be more valuable when they are more important to the people you are trying to sell them to.  The more you know about the people you are trying to sell your stuff to, the more likely you can make your stuff more valuable to them.

If you can improve your needs analysis effectiveness, you will increase your success ratio with clients.  They will be more enthusiastic about buying what you have to sell, because the work you do in understanding their needs and baking that understanding into your offering will increase the value to them, the likelihood that they will buy it from you, and the price they will pay for it.

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Authors note (AKA shameless plugs)

So, this 7-step sales process and associated topics…. Yup, I write about that a lot. I’ve been working with it since I developed it about 25 years ago – in my own diverse work experiences, with my teams when I had them, and with clients ever since.

If you would like to develop you own personalized and customized, highly effective and efficient B2B selling system, here are some further steps you can take:

The Salesman’s Guide to Dating is a free or very cheap (depending on Amazon) Kindle book that walks you through the sales process using the familiar analogy of dating. It’s a good, fun and quick way to get your mind around the whole process and how the pieces fit together.

Building Your Sales Process (BYSP) is a free and very thorough exploration of the same 7-step process that will walk you through the development of your own customized, personal B2B selling system. When you are done, you will know exactly what to do to get new business.

The Momentum Selling System® is an inexpensive but very robust online sales training course that is similar to BYSP, but goes deeper into the concepts behind each of the steps, and also helps you develop a plan not only for the 7-step process but also addresses mindset, repeat business and client base management.

If none of that sounds right, I do personal coaching and offer a free 30-minute intake session so that we can both learn if it makes sense to work together 1-on-1. If this sounds interesting, click over to the coaching page on this site and sign up for the free session.

Here’s to your success!

-David