Just as we explored how compliance risks can quietly erode your business, certain sales behaviours can create "revenue debt" that eventually comes due.
Here are three critical sales risks that can undermine your firm’s stability and how history warns us of their impact.
1. The Failure to Cross-Sell Services
Many organizations fall into the trap of "siloed selling," where they successfully land a client for one service but fail to integrate them into the broader ecosystem of the firm’s offerings. This creates a missed opportunity for revenue growth and, more importantly, leaves the client relationship "thin." Without multiple touchpoints across various services, a client is far more likely to churn.
Real-World Impact: Microsoft’s Mobile Struggle In 2014, Microsoft faced a monumental challenge in cross-selling its Windows Phone operating system. Despite owning the dominant desktop OS and a powerful suite of enterprise tools, they couldn't effectively bridge that success into the mobile market. Because they failed to gain traction and integrate their services into a cohesive mobile-first experience for users already in their ecosystem, the OS failed to compete with iOS and Android, leading to its eventual discontinuation.
The Risknado Perspective: Cross-selling isn’t just a sales tactic; it’s a risk mitigation strategy. By diversifying the services a client uses, you increase the "cost of switching" and deepen institutional loyalty.
2. Failure to Own Client Relationships (The "Key Person" Risk)
Who owns your clients? If the answer is "the Account Executive" rather than "the Company," you are sitting on a ticking time bomb. When a firm allows individual employees to maintain exclusive, "single-threaded" relationships with strategic accounts, they lose their biggest asset the moment that employee decides to walk out the door.
Real-World Impact: The Tesco Departure In 2003, the advertising world saw a stark example of this risk. British advertising pioneer Frank Lowe left the Interpublic Group to start his own agency. He didn't just leave with his desk; he took the £50 million Tesco account with him. This highlighted the massive financial vulnerability firms face when a multi-million-pound relationship is tied to a single executive’s personality rather than the firm’s brand and infrastructure.
The Risknado Perspective: Institutionalizing relationships - through multi-layered contact points and team-based account management - is essential. You must ensure that the client is in love with your firm, not just your salesperson.
3. Overpromising Service Capabilities
The pressure to "win at all costs" often leads sales teams to sell "vaporware" - features that don't exist or service levels the fulfilment team can't possibly meet. While this might boost the current quarter’s numbers, it creates a trail of dissatisfied clients, legal disputes, and a tarnished brand reputation that can take decades to repair.
Real-World Impact: Oracle’s Early 90s Crisis In the early 1990s, Oracle’s sales culture became legendary for its aggression. Sales teams frequently promised non-existent product features to close deals, leading to a massive gap between client expectations and reality. The fallout was catastrophic: widespread client dissatisfaction, an accounting scandal in 1990, and the company’s first fiscal loss in 1991.
The Risknado Perspective: A sale isn't a "win" if it results in a contract dispute or a refund six months later. Aligning sales promises with operational capacity is a fundamental pillar of sustainable risk management.
Arm Your Business Against 160+ Hidden Risks
$3,999: One-time payment for lifetime access & up to 50 team members
Get AccessManaging the "Sales Side" of Risk
Growth is the lifeblood of any business, but it must be sustainable. By identifying the risks of siloed services, individual-dependent relationships, and over-extended promises, leadership can build a sales engine that doesn't just grow fast, but grows strong.
At Risknado, we help you identify these hidden vulnerabilities before they impact your bottom line. Are you ready to see the risks your sales team might be overlooking?
