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How is that company doing today?

I think there’s a balance to it. You have to meet the customer, and also understand your boundaries. I’ve sold non-existent features that I was unsure if I could deliver, but always solved it since I’m good at smooth talking. I’ll make sure what I deliver brings value, and keep a dialogue with the client. Sales relations are rarely static from my experience.

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I work in consulting and have been in many projects where the client was sold promises and features that don’t exist in reality. If I had a firm I would have a rule that whoever sells a project worth > $5M would also be responsible for delivering it.
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And consequently, you'd most likely have no projects worth > $5M :)
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Or link sales commission to delivery success, and have no sales people...
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I was doing contract work last year for a young solo founder, and he promised a feature to a big customer who only signed up because of this one feature. It was a feature he vibecoded and was able to demo in ways that made it look like it was working, when in reality it was a buggy POS. The customer was going to go live on the platform in a few weeks, and this kid expected me to work over my pre-planned holiday to actually get this (frankly rather complex) feature built properly. I told him good luck, ended the contract, and enjoyed my holiday. No time for that BS.
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> There seems to be no downside.

If you don’t see the value of your own word, I can’t give it back to you.

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This is just one of the many reasons I don't have the disposition to be in sales
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