What is the psychology behind the B2B enterprise sale?


This post is by Jason Lemkin from SaaStr


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In 2019, the average enterprise buyers has deployed over 100+ SaaS apps, per Okta numbers. And the average SMB buyer has already purchased 50+ apps. So your prospects and customers are veterans. The general pyschology thus is different than it used to be in SaaS. The ideal flow is:
  • Marketing generates awareness.
  • Marketing (demand gen) and/or Sales (outbound) generates leads.
  • Leads initially do discovery on their own. They look at your website. They do a Google search. They talk to their peers. They check out your blog.
  • Then, sales’ job, the account executive, is to help them understand why an initial decision they’ve already made— to maybe buy your product — is the right one.
Salespeople in 2019 that employ high pressure, rip-off tactics. That mislead prospects. That claim the product does things it doesn’t. That trick customers into contracts that are bad for them. That playbook doesn’t work so
Continue reading "What is the psychology behind the B2B enterprise sale?"

Why is a “large overhang of convertible debt resulting from numerous convertible note rounds” bad for startups before a series A round?


This post is by Jason Lemkin from SaaStr


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Debt can be good for SaaS. The key is — just not too much of it. For convertible debt, a little can help you make that extra hire, extend the runway, go more upmarket. But when it comes time to raise a Series A, assume that anything much more than 20% of a debt:equity ratio for the next round will spook Series A investors. In other words, assume for each $1 in SAFEs and convertible debt you raise, you’ll probably need to raise 4x than in the next round. So if you raise say $1m-$2m in debt+SAFEs, you are probably OK. Once start-ups these days raise $4m-$6m in SAFEs though, you’re gunning already for a $15m-$20m+ Series A. Put differently: it’s really, really hard to raise $5m in SAFEs and then raise a “normal” round of $5m in equity (a 1:1 ratio). Like, close to impossible. Investors will just see Continue reading "Why is a “large overhang of convertible debt resulting from numerous convertible note rounds” bad for startups before a series A round?"

How did Saleforce got so big as a company?


This post is by Jason Lemkin from SaaStr


Click here to view on the original site: Original Post




Salesforce was an outlier (as you’d) expect from the #1 largest player in the industry. Look at their growth rate in the early years — even when Cloud was 100x smaller than it is today: Winning Strategies for Scaling Your Sales Team | SaaStr Today, this type of growth, while crazy, is more common. See, e.g., Zoom, Twilio, Slack, Dropbox, etc. By growing so quickly, so early in the cycle of Cloud and SaaS, Salesforce was able to rocket to $1b in ARR before most SaaS apps really came into their own. Today though, the story is a bit different. It’s original market, SFA/CRM, is very mature. Today, a bit portion of growth is from M&A and growth in new categories. The core CRM/SFA segment is now growing < 15% a year: Salesforce’s master plan through fiscal 2022 by the numbers | ZDNet View original question on quora Continue reading "How did Saleforce got so big as a company?"

How did Saleforce got so big as a company?


This post is by Jason Lemkin from SaaStr


Click here to view on the original site: Original Post




Salesforce was an outlier (as you’d) expect from the #1 largest player in the industry. Look at their growth rate in the early years — even when Cloud was 100x smaller than it is today: Winning Strategies for Scaling Your Sales Team | SaaStr Today, this type of growth, while crazy, is more common. See, e.g., Zoom, Twilio, Slack, Dropbox, etc. By growing so quickly, so early in the cycle of Cloud and SaaS, Salesforce was able to rocket to $1b in ARR before most SaaS apps really came into their own. Today though, the story is a bit different. It’s original market, SFA/CRM, is very mature. Today, a bit portion of growth is from M&A and growth in new categories. The core CRM/SFA segment is now growing < 15% a year: Salesforce’s master plan through fiscal 2022 by the numbers | ZDNet View original question on quora Continue reading "How did Saleforce got so big as a company?"

Is SaaS Sales really that lucrative?


This post is by Jason Lemkin from SaaStr


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It can be if you are very good at it (like many things). Why? Well, SaaS combines three things that make it attract for salespeople:

SaaStr Crosses 50,000,000 Views on Quora; Our Top Recent Answers


This post is by Jason Lemkin from SaaStr


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We passed a new milestone on Quora — crossing 50,000,000 total views. As you can see, views dropped a bit and then rebounded strongly in the past few months. With that, here are the top/most popular recent answers:

Have you ever bought something you really didn’t want or need because you were pushed by a sales person?


This post is by Jason Lemkin from SaaStr


Click here to view on the original site: Original Post




The “trick”, such as it is, in SaaS is add-ons. It’s pretty tough to get a business buyer to buy a product they don’t need. But … in most enterprise deals, the buyer budgets another 20%-40%+ for add-ons:
  • Professional services. Most BigCos budget another 20% to help deploy and administer the software they buy.
  • Additional products. Most BigCos assume they need to add say 10 more products to a Salesforce deployment to make it do what they want. They often budget at least another 20% of the core Salesforce ACV here.
  • Enhanced functionality, especially in Years 2–10. Even if the budget is maxxed out for Year 1, if you offer customers that love you more functionality, a suite of services, etc. … they’ll tend to buy more from you in the coming years.
So try to tap into that budget, if you want it. View original question on quora Continue reading "Have you ever bought something you really didn’t want or need because you were pushed by a sales person?"

Would Salesforce and Adobe ever merge?


This post is by Jason Lemkin from SaaStr


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It would be tough today. Both are worth about the same — $130b, plus or minus. Mergers of equals sometimes work, but generally when it’s a huge bet that either 1+1=3, or more often, that for both, the world is changing so quickly, they need to bulk-up together. If Adobe was worth 3x or more than Salesforce, it might make sense. Adobe’s Marketing Cloud is enterprise-enough and adjacent-enough, for a combo sort of kind of to make sense. Still, the DNA is pretty different. With identical market caps, it’s pretty tough. View original question on quora The post Would Salesforce and Adobe ever merge? appeared first on SaaStr.

Check Out 190 of the Top VCs Attending SaaStr Europa Next Week!!


This post is by Jason Lemkin from SaaStr


Click here to view on the original site: Original Post




We’ve hit venue capacity of 2,500 for SaaStrEuropa 2019 next week in the Left Bank in Paris, 12-13 June! As cancellations come up, we will release a handful of final tickets, so if you want one, check SaaStrEuropa.com and either grab one if there is one available, or sign up for the waitlist if not. We’ve got 200+ VCs attending, which is awesome!  They’re from the best firms, from Accel to Bessemer to Index to Atomico and more, and from great corporate partners like Salesforce Ventures, Workday Ventures, Unilever Ventures, and many more! Check out the partial list here and below.  (Sorry if we missed folks, let us know). To reach out, download the “SaaStr Events” mobile app and schedule an appointment!!  And/or check the Braindates to see if they are doing mentoring sessions. And a huge special thanks to Notion Capital, our special sponsor for
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