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SALES BLACK• In first dotcom boom, it was the Idea
(Yahoo!)
• In late 2000’s, it was Users (Facebook)
• Now, it’s Sales (and growth of sales)!
“The series A valuation picture, according to [big VC], goes something like this based on month revenue rate (MRR):
$40-$70K MRR translates to a $7M-$14M pre-money valuation
$100K+ MRR translates to a $15-$20M pre-money valuation”
isthenew
What is a Sales Process?
http://500hats.typepad.com/500blogs/2007/09/startup-metrics.html
Process is different based on your product/strategy• B2B vs. B2C
• Enterprise vs. SMB
• Early stage vs. Early growth vs. Scaling
• Velocity deals vs. Elephant hunting
What we think Sales does
What Sales really is
Marketing Engine Overview
Integrated Marketing Engine
Campaign/Scoring
Leads
Lead Qualification
Drip/Nurturing
Pipeline Management
http://www.g2crowd.com/categories/marketing-automation/compare
QualifiedOpportunities
Marketing’s goal is to create Qualified Leads/Oppty
Leads Leads can be Implicit or Explicit
}Scores over 125Go to top priority
and guarantee a callw/in 24 hrs
CMO
CRO
Sales Enablement Tools
Sales’ goal is to create quantifiable deal-movement
SalesMarketing
Use a Sales Methodology to create consistency
Sales Comp Structure
• Enterprise rep = $7-$10k new MRR/month
• Mid-market rep = $4-$8k new MRR/month
#RepsBase/
Variable Target
Equity MRR Notes
Early Stage 1-2 75/25
Same as early
employee
<$25kCompany-wide goal
focus. Significant product co-creation
Early Growt
h2-5 50/50 Sliding
Scale$25-
$100kIndividual quota. Sell
what you have
Scaling 5+ 35/65 Low
equity>$100
kIndividual quota.
Specialized
Other Sales Tips• Hire slow, Fire fast
• Evaluate in weeks/months, not quarters
• Don’t accept excuses from your reps
• Sell what you have. Everyone blames marketing/product/service
• Sales will “respect what you inspect”
• Beyond closed sales, pipeline integrity is critical to maintain. Managers are responsible for Inspecting the data in Salesforce (or other CRM)
• Hire for the process, not the person
• Don’t buy the rolodex (unless you have to). I choose a rep that fits my process every time vs. someone with a rolodex.
Summary• MRR (Monthly Recurring Revenue)
• Marketing Automation (CRO, not CMO)
• Lead Scoring (Implicit/Explicit scoring)
• Sales Playbook (1-liner, competitive zingers, etc)
• Sales Automation (Pipeline, forecasting)
• Sales Methodology (MEDDIC)
• Sales Compensation
About Me• Co-founder Fogdog Sports, B2C E-commerce site,
IPO 1999
• VP Product GSI Commerce, B2B E-commerce platform, $2.4B acquisition by ebay in 2011
• Head of Product, Yahoo! Shopping. B2C Marketing/lead-gen site
• Co-founder PowerReviews, B2B Enterprise SaaS Solution, acquired in 2012 for $168M
