There’s a term within the marketing industry -“other people’s money.”
This segment of the business community is the stated target audience of many marketers. It simply refers to businesses who’s decision maker is not spending their own money. It is the money of the company they work for. They are an employee NOT the owner. There is a huge difference in attitude. Some good, some bad.
From a brand perspective the best situation is OPM (other people’s money). These people are quicker to spend the necessary funds to get the job done properly. They are not guided by an emotional attachment to the money. They are focused entirely on results. An owner’s focus is on the money.
From a Sales perspective, these people like to deal with the owner, (TM or Their Money) because the owner answers to no one. They are spending their own money. They ARE the decision maker. Sales is also better understood by an owner, because they view themselves as the firm’s greatest salesperson. Marketing is alien to them, and it is typically the first thing cut during tough times. It all seems like so much air to them.
But top businesses understand that a strong brand is exactly why your company can weather tough times. It is what separates you from the other guy. To ignore its potential will hinder sales and cost you more to promote. Taking emotional decisions out of your marketing equation will benefit your brand immediately.
Do you prefer TM’s or OPM’s? Do you find any difference in attitude between the two?
I prefer TM, OPM is just to make some easy money.
You are right about the whole spending other people’s money thing. Whether it is good or bad, that is the best way to make money for yourself. If you can turn $2000 into $200,000 without using a dime of your own money, i only see that is good, as long as it is legal.
Ed,
I agree that there are pros and cons to both the OPMs and TMs in this process. On the one hand OPMs are not attached to the money emotionally so they are more apt to pull the trigger. On the other hand they are possibly apt to be more careless in the decision making process as it’s not their money. I have seen situations where people take chances because they assume the company they work for has endless resources. From the TM side they are more emotional about the money that is spent which tends to lead to looking at too many different vendors and weighing too many variables. It always either kills the process or slows it way down. On the plus side I have seen better, more thought out decisions made in the right hands by the TM.
Brandon
Just for the record, I should have mentioned most of my customers are TM’s. I feel it is a stronger relationship. From my experience OPM’s are less loyal (for the most part). Having a strong relationship with an owner means no other levels of approval are in play. They cannot be over ruled.
But I know some consultants who preach OPM’s as the only way to go. They say you should target this business group. I think it’s more healthy to have a bit of each in your stable.
Janet – I’ve never felt OPM’s are easy pickin’s. Why do you feel that they might be too easy?
Brandon, odd for me, I’ve found OPM’s love tendering. I think it’s harder (for me) to build a relationship, although not impossible. You seemed to have discovered the opposite. The two camps are an interesting study eh?
It is hard to find someone that will have trouble spending large amounts of another person’s money. The benefit is that one has less worry about spending another person’s money, but the downside is that they may not care as much about it as the person who owns it. I am glad that you separated out which one is better from a sales or branding viewpoint.
Armen, depending on which person appeals to you more, it is one more consideration when targeting prospects.