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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.

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