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and we were right to do so.<br />
Was our sales strategy the<br />
same thing? Or were we<br />
re fusing to change course<br />
Starting NetApp | 37<br />
The Best Sales Advice Ever<br />
Never buy anything from someone<br />
who is out <strong>of</strong> breath.<br />
when the terrain demanded it? We did have some sales but not<br />
the groundswell we had hoped for. It was a difficult debate.<br />
Mike Malcolm was leaning toward the direct sales model,<br />
but Charlie Perrell disagreed. That wasn’t surprising, since we<br />
had hired him precisely because <strong>of</strong> his strong indirect experience.<br />
As much as I respected Charlie, I agreed with Mike that it<br />
was time to hire a direct sales force. Mike decided to try doing<br />
both at once. We would continue working with resellers, but<br />
also hire salespeople to call on larger accounts directly.<br />
We needed to find someone with strong direct sales experience<br />
to head up the effort. One <strong>of</strong> our first salespeople was Kathy<br />
Mendoza, and she suggested we talk to her husband, Tom Mendoza,<br />
who had left Auspex as VP <strong>of</strong> sales a year earlier. Tom met<br />
with James and me, and he was very impressed with our product<br />
strategy. His meeting with Charlie did not go so smoothly. Tom<br />
thought the indirect scheme was doomed to fail.<br />
Tom deconstructed our indirect sales model for Mike. We<br />
were mostly working with small resellers, and Tom felt that we<br />
were doing all the work, and they were making all the money.<br />
NetApp would help make the sale, and maybe help again later<br />
if there was a problem, but we sometimes got less than half <strong>of</strong><br />
what the customer paid. Tom told one <strong>of</strong> our board members,<br />
“You’re dead. This is toast. Great group <strong>of</strong> guys. I really think<br />
it could be a great company. But if you go down this path, you<br />
won’t make it.” Tom convinced Mike and the board that the<br />
math just didn’t work.