The Equity Sales Plan is another critical document the company should consider before starting the sales process. Just as in product marketing, it makes sense to focus the sales strategy before exposing the company and risking the loss of confidential information. This helps the company conserve limited cash, which can otherwise be spent very quickly on cross-country plane trips to unqualified investors.
This Equity Sales Plan is about the "go to market" strategy for the company. It takes the messages designed in the Equity Marketing Plan and tailors the sales messages to each investor sector properly. It often requires designing the equity sales channel, including a range of compensation methods for various "distributors" and "value-added partners" (i.e. gatekeepers) who are an essential part of the investor's buying process.
While certain channel partners (e.g. intermediaries, "broker / dealers") generate revenues from transaction fees for successful financing, these fees often affect the capital structure. Therefore the Deal Model should account for equity-based transaction fees to ensure that they understand how the fee structures affect all shareholders.
VenLogic provides tools for CEOs to design their equity channel maps and model various compensation methods of channel partners. VenLogic has also partnered with leading experts in private equity investing and sales channel design (e.g. Channel Ventures LLC), to assist CEOs in exploring a wide range of channel options before beginning the equity sales process.
