Your startup is just getting off the ground. You might have a few account executives and a sales leader in place; maybe some revenue and a handful of customers. The sales team costs real money, and the question before the company is: how do you know what quota plan to assign to the account executives?
I’ve seen four stages in early stage software companies. Some businesses employ all four, others just use one or two. Knowing about the options ahead of time may help you figure out the right sales plan for your startup.
Stage 1: Management by Objectives
In the very earliest stages, the company doesn’t know how to sell or how to price. The most important goal isn’t price maximization, but just closing some business. Many teams in this stage guarantee a draw/salary for the account executives, instead of assigning a commission, while the company figures out the Continue reading "The Four Stages of Sales Compensation Structures in Early Stage Startups"
Welcome to Episode 200! Brad Birnbaum is the Founder & CEO @ Kustomer, the first intelligent platform for customer experience that enables you to know everything about every customer. To date, Brad has raised over $38m in funding for Kustomer from some of the very best in the SaaS business, including Tomasz Tunguz @ Redpoint, Ed Sim @ Boldstart, Canaan Partners, Box Group and Social Leverage, just to name a few. Previously, he was the Co-founder of Assistly, which was acquired by Salesforce and became Desk.com. Prior to that, he was CTO for Talisma and Co‑founder & CTO of eShare Technologies. In addition, Brad was also the CTO @ Sean Parker’s Airtime and VP of Engineering with Salesforce.
In Today’s Episode We Discuss:
How Brad made his way into the world of customer experience and SaaS over 20 years ago.
Editor’s Note: This article was first published on LinkedIn here.
For almost a decade, I worked with innovation and transformation teams at four large banks in Canada and the US. As they say, it was the best of times, and it was the worst of times.
Prior to the financial crisis, leading change was fun, as it involved thinking about emerging technologies, online experiences, and new ways to generate revenue. In contrast, being on the “change the bank” team during the dark days of the crisis required quick utilization of every method possible to reduce costs while managing risk. Regardless of the time or the bullish or bearish nature of the market, driving innovation inside these behemoths was a daily lesson about what happens when an unstoppable force meets an immovable object.
Today, I live in Silicon Valley and work in technology. Despite being immersed in this wondrous place
Getting your customers to buy more from you is awesome.
Remember, you’re in business here and getting customers you’ve already spent money to acquire and serve to then expand their relationship with you – giving you more revenue – just seems like a super-efficient way to grow.
And it is.
But if you think for one minute you’re going to build a sustainable growth engine off the backs of unsuccessful customers, you couldn’t be more wrong.
Stop trying to upsell unsuccessful customers.
Unsuccessful customers don’t need – or want – to buy more of your stuff.
Obviously, right? Maybe… let’s explore this together.
Trying to upsell unsuccessful customers can have a lot of results, but none will involve you actually making the sale (without excessive concessions, undue pressure, and other things that don’t actually help the situation long-term).
Rather, by trying to sell more stuff to an unsuccessful customer,
We recently released Part 1 results of our private SaaS company survey in partnership with KBCM Technology Group (formerly Pacific Crest Securities). This is the sixth annual survey we’ve produced together, which provides data to help SaaS companies benchmark their performance against their competition. In Part 1, we covered growth rates, go-to-market trends, and CAC Rations and CAC Payback. We’re excited to share Part...
On November 7 (yes, the day after the midterm election), we hosted leaders from some of the fastest growing software companies for our 3rd Product Led Growth Summit. Each speaker had their own unique take on the topic. Some came from companies that had been product led from inception (e.g. Trello, Lucidchart) while others have more recently pivoted their businesses to embrace product led growth (e.g. HubSpot). Some speakers rose through the ranks from the product or technical organization while others started in marketing, design or even industries outside of SaaS.
Despite these differences in perspectives, one thing was clear. Companies of all types and sizes are becoming much more sophisticated in their adoption of product led growth. They’ve done so not just because it promises more efficient growth (which, by the way, it does), but rather as a matter of necessity. Customer expectations are simply changing.