Startup Sales Fundamentals

Demand Capture 101. This is actual data from a $60MM ARR SaaS company. Let’s break it down 👇   How a lead/account enters your pipeline is the biggest predictor of sales velocity metrics - win rates, sales cycle lengths, even ACVs.    Because how they enter your pipeline is a surrogate for buying intent & indicator of how far they are complete in the buying process.    Here’s how to measure it & use it to drive your revenue strategy:   1. Measure the Opportunity Source in Salesforce on the opportunity record.    Campaign Source = What campaign type did they convert on to move this opportunity into pipeline? (e.g. demo request, e-book download, cold call, trade show, etc.)   Source / Channel = What source or channel did they come from in order to convert? (e.g. LinkedIn ad, organic search, account intent data, ZoomInfo, etc.)    Using both of these data points combined will literally guide your strategy.    This shows you the optimal paths to *capture demand* and is easily measurable using software-based attribution.   2. Separate conversion sources between *Declared Intent* and *Low Intent*.    Declared Intent = The buyer declares intent to buy from you (e.g. Demo Request, Contact Sales) Low Intent = You assume the buyer has intent based on their digital behavior (e.g. ebook download, webinar attendee, trade show badge scan, intent data, etc.)    3. Calculate core sales analytics between the two sources.    Calculate conversion rates, lead-to-win rate, net new ARR, sales velocity, and more.    4. Visualize how much conversion intent matters to sales velocity and sales productivity.    149X higher lead-to-win rates for declared intent conversions   Declared intent = 26 “leads” to win 1 deal for $54k ARR Low Intent = 3,868 “leads” to win 1 deal for $130k ARR   18X greater sales velocity for declared intent conversions   Declared intent = $14.2MM annual sales velocity Low intent = $781k annual sales velocity 5. Recognize not all MQLs are created equal Measuring on MQLs incentivizes teams to get the most volume of MQLs for the lowest cost (low intent conversions), which is entirely misaligned with sales productivity and sales goals. Separate these into two Pipeline Sources (Declared Intent, Low Intent). Plan and build your goals for these two sources separately.   __   Now you know exactly HOW you want buyers to enter pipeline (capture demand) for maximum sales velocity & sales team efficiency. You also know exactly WHY buyers choose to take those paths to enter pipeline & WHAT triggers / channels / tactics move them to conversion. And with all of these insights, you can re-architect your strategy that optimizes for REVENUE. #revenue #sales #marketing #b2b #gtm p.s. Every SaaS company’s data looks like this, because it’s universal to how buyers buy. Most just don’t take the 3 hours of time to analyze their own data and see it for themselves.

Dear startups, stop hiring VPs of Sales in APAC. Regards, VPs of Sales. You’ve secured funding, established your presence in the US and Europe, and now you're eyeing APAC for expansion. Naturally, you hire a VP of Sales, expecting them to be a coach/player, add a few support roles, and wait for success. Six months in, progress is minimal. A year later, with only a few leads, your board questions the APAC investment. Soon, APAC gets cut for being "not worth it." We know, the APAC is appealing on paper with its high population, growth, and stability. But it's different from the US or EU - there are traps! 1. Appealing on the outside, tough on the inside: the largest economies, China, Japan, and India, are hard to penetrate due to local preferences, cultural/language barriers, and fierce competition. Australia is easier but small in scale, and ASEAN markets, with the exception of Singapore, are less developed. 2. You think you've cracked it open, but not really: APAC's wildly varied cultures, development stages, and business practices make it hard to replicate success. Unlike the US or EU, there’s no unified cultural, legal, or language frameworks. Success in one country doesn't mean success in another 3. The initial investments are easy, until you stall: hiring a VP of Sales expecting them to handle both strategy and hands-on sales won’t yield the best ROI. The roles of VP and account manager are mutually exclusive, making the hire poor at both. So what’s a startup to do? Consider one of the following: 1. Bullish Approach: if markets are solid and you can afford it, hire a full team (VP, salespeople, channel person, marketing/BD) in 2-3 countries. Expect minimal revenue in year one and some traction in year two. 2. Cautious Approach: experiment with the market by hiring an account manager for each country, managed remotely by HQ. Strategize for 1-2 years with lower investment and risk. Eventually, hire a VP or promote an effective AM for the role 3. Hybrid Approach: use a fractional leader for strategic input a few days a week. This gives you the best of both worlds: keeps costs down and resources fit for purpose. What have I missed? Share your thoughts in the comments.

Most founders think speaking faster shows confidence. It's actually killing their pitch. One of the reasons Steve Jobs became such a legendary presenter was his masterful control of pace and silence. He took time to build tension, to let ideas land, and to respond thoughtfully. This video shared by Fadi Amoudi is a perfect example of his approach. After coaching hundreds of technical founders, here are three unexpected patterns that transform how investors perceive your pitch: 1. Master the Power of Silence Don't rush to fill every second with words. Instead: • Take a full 3-second pause after stating your value proposition • Let key metrics land before explaining them • Breathe between major transition points The silence feels uncomfortable. That's exactly why it works. 2. Lead with Questions, Not Answers Stop opening with solutions. Instead: • Start with a thought-provoking industry question • Frame the problem in a new way • Let the tension build before revealing your approach The best questions make investors rethink their existing assumptions. 3. Break the Flow Intentionally Perfect polish isn't always perfect. Instead: • Change your pace when highlighting key differentiators • Lower your voice for crucial insights • Use strategic pauses before important revelations These subtle pattern breaks command attention naturally. Powerful communication isn't just about what you say. It's also about how you say it. These patterns trigger psychological principles of attention, tension, and memory. They work beyond fundraising – they work in board meetings, team presentations, and customer pitches. Want to master these? Schedule a call with me: https://t2m.io/xqsqyBoV #communication #storytelling #publicspeaking #fundraising 

"We're about to hire our first sales rep. Any pitfalls to avoid?" Got this text last night from a founder. Told him I could write a book on all the mistakes I've made/seen other make, but I'd try to give him the fast stuff. 1. 𝗗𝗢 𝗧𝗛𝗘 𝗠𝗔𝗧𝗛 𝗢𝗡 𝗚𝗢𝗔𝗟𝗦 Set clearly defined and attainable targets. Actually run the numbers. Can they realistically hit what you're expecting? Most founders set impossible goals then wonder why reps fail. 2. 𝗬𝗢𝗨𝗥 𝗥𝗔𝗠𝗣 𝗜𝗦 𝗪𝗥𝗢𝗡𝗚 Whatever timeline you're thinking, double it. Then add a month. First reps take longer than you think. Always. Even if they have 'industry' experience. They have zero experience in your org. 3. 𝗧𝗛𝗘 𝗙𝗢𝗨𝗡𝗗𝗘𝗥 𝗗𝗜𝗦𝗖𝗢𝗨𝗡𝗧 Take YOUR sales performance and cut it by 30%. That's what your first rep will do. Initially. You have founder magic. They don't. You know every objection by heart. They're learning. Stop expecting them to sell like you do. 4. 𝗗𝗢𝗖𝗨𝗠𝗘𝗡𝗧 𝗪𝗜𝗧𝗛 𝗖𝗢𝗡𝗧𝗘𝗫𝗧 Record all your demos. But here's what most miss: Do a second recording breaking down WHY you did what you did. "I asked this question because..." "I pivoted here when they said..." "I ignored that objection because..." The context is more valuable than the demo itself. 5. 𝗕𝗨𝗜𝗟𝗗 𝗧𝗛𝗘 𝗪𝗚𝗟𝗟 What Good Looks Like. Document it all: - How leads should be worked - What discovery should accomplish - How demos should flow - Follow-up cadence and messaging If it's in your head, it doesn't exist. 6. 𝗛𝗜𝗥𝗘 𝗧𝗪𝗢, 𝗡𝗢𝗧 𝗢𝗡𝗘 There's no perfect sales hiring process. Two reps create competition. Comparison. One rep? You'll never know if it's them or your process that's broken. 7. 𝗖𝗛𝗔𝗥𝗔𝗖𝗧𝗘𝗥 > 𝗦𝗞𝗜𝗟𝗟 Don't get blinded by experience. Hire for character traits first, skill second. Coachability. Curiosity. Grit. Work ethic. You can teach product. You can't teach character. 8. 𝗠𝗔𝗡𝗔𝗚𝗘𝗠𝗘𝗡𝗧 𝗜𝗦𝗡'𝗧 𝗢𝗣𝗧𝗜𝗢𝗡𝗔𝗟 If you can't manage them, don't hire them. Real management means: - Weekly 1x1s - Call reviews - Coaching sessions - Deal prep - Skill development Not just "checking in" on Slack. 𝗕𝗢𝗡𝗨𝗦: 𝗧𝗛𝗘 𝗙𝗔𝗦𝗧𝗘𝗦𝗧 𝗥𝗔𝗠𝗣 𝗛𝗔𝗖𝗞 Customer interviews. By far the quickest way to get a rep up to speed. Have them interview 20-30 customers with these 6 golden questions: 1. Why did you buy? 2. What problem were you hoping to solve? 3. What were you afraid of before buying? 4. What's your favorite part of the product? 5. What's changed the most since having it? 6. How would you describe what we do to another [persona]? Record every single one. This gives them real voice of customer. Real objections. Real value props. In their customers' actual words. -------- Knock out these steps (even if you're far beyond the first sales hire) Your first sales hire sets the tone for everything that follows. Get it right, and you build a machine. Get it wrong, and you'll be selling solo for another year.

Founder-led sales shouldn’t stop until you’re hitting at least $1-2M ARR.   At least in my book. Few people - if any - understand the nuance of what a company’s building better than the founder. And if your product is truly innovative, education is a huge part of the selling process. You need to teach buyers, help them understand not just what your product does, but why it matters, how it fits into their world, and what changes because of it. Also, as a founder, you need to hear first hand what your product is missing, where the value is being created and synthesize those lessons. When you’re pitching customers, you get immediate feedback from watching how they react, and seeing where they get stuck. Realizing “This button should be over here,” or “We need an integration for that.” Any of those conversations could offer valuable insights for the next iteration. Palantir does this insanely well—embedding themselves next to customers, solving in real-time, and refining as they go. Once you’ve gone through the cycles—pitched, tested, failed, refined—then you have a real sales motion. Then you can bring in an AE or SDR and hand them the blueprint. But if you delegate too soon, you may be missing out on long term gains. I know from experience! When we first started emailing our music to blogs, it allowed us to improve substantially because we were hitting up writers and not a label press release. We heard first hand what they liked or didn’t about our work or its promotion, and iterated fast. 

In 27 months, we grew Retention.com from $1M-$13M ARR with only 1 salesperson (me) doing 1,000's of sales calls. Here are my 10 biggest pieces of advice for any startup who wants to book and close more sales calls: 1. Ask for 15 mins, but book 30 When booking a meeting outbound, you have a better shot at getting a meeting by asking for 15 mins than 30. You may have piqued their interest but with a busy schedule, they are going to weigh learning about your business vs their time. Ask for 15 but send a meeting invite for 30.  If they can’t do the full 30, they will let you know, but from my experience, this rarely happens. 2. Tell your story People remember a story more than a product  Figure out your short story that you can tell prior to getting into the product pitch. How does your story connect to your business / product? 3. 5X5 Pitch Keep your product deck for your initial call to 5 slides / 5 minutes and make sure you answer any of the common questions you get from prospects. You can always book a follow up call to share more detail once you hook their interest. 4. Always Be Pitching Take control of the call and the sales cycle. You will only learn what does and doesn’t work by actually pitching.  5. Tell a customer story Again, people remember stories more than they do stats. Tell a story of a customer before implementing your product and the business outcome after implementing it. Don’t just talk numbers. Talk about how people felt, what they said, etc. 6. Create Urgency Attach an incentive if the deal is done by the end of the week or month.  (Example: 20% more credits or a 15% discount)  This also sets you up well for follow up as it now makes them feel like you are on their team to try and help them get the deal in for their benefit. 7. Land and expand We all want to close the big ACV deals, but the truth is most buyers don’t want to make a big commitment without seeing how your product works. Find a way to get them on for a small $ amount, with the plan to expand if the product meets their expectations. 8. Opt-Out Period Reduce buyer friction by offering a 90 day opt out period if you are trying to close 12 month agreements. It shows confidence that your product will drive the results you say it will. 9. Deck Recap Create a 1-2 pager highlighting the most important parts of your sales deck that you can send via email after every call (even if they don’t ask for it). The prospect won’t remember all details from the call, so this gives them something to look back on and will help sell internally if other stakeholders are involved. 10. Video for FAQs Create short form talking head video answering all FAQs. This will add value in your follow up, show you listened to the questions they had and that you care about making sure they understand the answers. It also helps internally as others will likely have the same questions as the person on the phone. Have questions about how to book/close more calls? AMA anything 👇

During my career, I’ve secured tens of millions in funding. But looking back there are some things I wish I’d known before I started. Here are four tips I’ve learned the hard way about approaching potential investors with your business idea: 1️⃣ Know your numbers inside out Investors want to see not just passion but also a deep understanding of your business model. It doesn’t matter if you’re not a “numbers person”. Frankly neither am I. I just work hard to master them. Be prepared to discuss your financials in detail: multi-year revenue projections, cost of sales, fixed expenses, and break-even points. Comfort with your numbers demonstrates that you’ve done your homework and are serious about your venture. 2️⃣ Tailor your pitch to the specific investor Not all investors are created equal. Research who you're pitching to and adjust your message accordingly. What do they value? What sectors do they invest in? Who else have they backed and why? Use part of your pitch meeting to ask them about their history and motivations. This is absolutely not about changing your business plan or finances, but thinking about what you emphasise to align your narrative with their interests. 3️⃣ Have a clear exit strategy Investors will back enterprises for all sorts of reasons: a passion for the sector, enthusiasm for the founder, or market potential. But the number one reason they’ll back you is to yield an attractive rate of return. Be ready to discuss how and when they’ll make money from investing in you. Whether it’s through acquisition, IPO, or another exit strategy, showing that you have a plan to return a multiple of their initial investment will instil confidence. It’s not just about the immediate future; it’s about how you envision the long-term growth of your business. 4️⃣ Practice your storytelling People connect with stories, not just facts and data - important as those are. Use storytelling to convey your vision, the problem your business solves, and why you’re the right person to tackle it. A compelling narrative that links to the forecast performance of your business will engage investors emotionally, making them more likely to remember you and your pitch long after the meeting is over. What’s your experience of pitching for funding? What are you still wary of with investors? Share your tips or questions in the comments below!

Founder friend of mine called last night to pick my brain on transitioning from founder-led sales -> building a sales team. Have had this convo dozens of times, and always top of mind for first-time B2B Founders, so here are my thoughts: DO:  ✅ Close at least $100k-$200k ARR yourself before bringing on AEs to help. It's important to have a repeatable motion before you train someone else to do it.  ✅ Hire 1 AE you have extreme confidence in and do everything you can to make them successful or 2 AEs and have them start at a similar time. 2 AEs is generally safer because if 1 AE isn't working out, it de-risks whether it's the AE or your product-market-fit that's broken.  ✅ Make sure the AEs you bring onboard 1) are experienced hunters who are going to build most of their own pipe 2) have experience with a similar motion (e.g., sales cycle length, ACVs, selling to LoB, etc.) and 3) industry experience optional IMO (vs #1 & #2), but a nice bonus.  ✅ Once you hire AEs, give them all your pipe, try to make them wildly successful, and start to think of yourself as a super-SC 💪 ‎ DON'T:  ❌ Don't bring on a sales rep because you're struggling to figure out sales**. A lot of founders think they're struggling to do sales because they don't have the right sales experience, but 9 times out of 10, it's because you haven't figured out PMF.  ❌ ‎Don't hire a VP Sales right away. Most VPs are going to want to hire & scale and you're not ready for that. You need to prove that you can get a few AEs selling instead of a founder first.  ❌ ‎Don't hang onto all the deals once you bring onboard your first 1-2 AEs. Too many founders cling to all the deals they're working or the most important deals that come in to increase the odds of closing them, optimizing for short-term revenue. That's short-sighted. Once you have AEs, your only priority is to de-risk whether someone else can do sales, bc then you can add more 🚀  ❌ ‎Don't be completely hands-off either. Reverse-shadow in the first 1-2 months, continue to inspect every deal in forecast calls, and have them tap you in for their most important deals (esp. with economic buyers).  ** As a founder, you're going to be the best salesperson for your company because you can share your vision, you deeply understand your product & customer, can promise features on the spot, etc..  -> the two places AEs are going to be better than you are 1) qualifying out deals not worth their time (as founders, we think every company should use our product 😅 ‎) and 2) negotiation. Never be in the room while your AE is negotiating 👎 ‎ Bonus early-stage GTM benchmarks from Gem‎:  - Year 1: $100k -> $1M ARR in 9 months with 2 AEs  - Year 2: $1M -> $4M ARR with 4 AEs  - Year 2 (early): added marketing (dir demand gen) and SDRs.  - Year 3-7+: 🤐 ‎ Wdyt? For founders scaling from 0->$1M does this match what you're seeing? Founders who have found PMF and scaled past $1M, keep me honest. What did I miss?

Ever wondered why despite immense potential, some SaaS companies struggle to scale and achieve profitability? I recently went deep into a compelling discussion that shed light on the vital role of business metrics in SaaS growth. One anecdote stood out: the story of Salsify, a company that enhanced its trajectory by relocating its European headquarters to Lisbon, symbolizing a strategic shift in optimizing operations. The central theme was crystal clear: "If you can't measure it, you cannot improve it." Accurate metrics are not just numbers; they shape strategies, align teams, and spark growth. But what's the secret formula? Key takeaways include: - The Rule of 40: A SaaS company's growth rate and profitability combined should exceed 40%. - Net New ARR: Monitor bookings via net new Annual Recurring Revenue (ARR), encompassing new customer ARR, expansion ARR from existing customers, and losses from churned customers. - Sales Funnel Efficiency: Deploy a holistic funnel that includes onboarding, retention, and expansion. - Sales Team Metrics: Productivity per salesperson and timely hiring are crucial to meet growth targets. - Customer Economics: Balance the Customer Acquisition Cost (CAC) against the Lifetime Value (LTV). Aim for an LTV to CAC ratio of 3:1 and recover CAC within 12-18 months. - Negative Churn: Expansion revenue should ideally outpace revenue losses from churned customers for sustainable growth. Metrics like these can transform a SaaS company from merely surviving to thriving. It's fascinating how strategic measurement and adjustment can turn potential into proven success. How do you leverage metrics to steer your SaaS business towards growth and profitability? Share your experiences and insights! #SaaSMetrics #GrowthStrategy #BusinessAnalytics #SaaS #CustomerRetention #StartupGrowth #ScaleYourBusiness

Sales is a numbers game. But NOT in the way you think. Here are 4 key metrics I like to measure to ensure funnel efficiency. #1 Curation Rate Since we have a 100% inbound funnel, not every booked call is quality. We range between a 60-65% curation rate. Ex: 100 inbound booked calls on the calendar. We'll cancel 35 of them on average as they are not a good fit. If we are below 60%, chances are good we are OVER qualifying prospects out. If we go above 65%, we are allowing too many in and that can waste my team's time. #2 Show Up Rate We average a 90% show up rate. Ex: Out of 65 calls, we'll run 58-59 calls. We do this through automation mixed with manual touches. If we dip, it's almost a guarantee that we didn't follow the process. #3 Offer Rate This is the percentage we "make an offer" to. We average 85%. If it's either too high or low, it could mean issues with the sales or marketing process. #4 Close Rate This is how many deals we close based on how many discovery calls we run. Depending on the salesperson, it ranges from 15-43%. This tells me how efficient and effective each rep is for the entire sales process. So here's the cool part with these 4 metrics: → Gives me a clear view from COLD to CLOSED. → Helps me prioritize the biggest constraints. → Now I can go deep to find the root issues. → And find the "story" behind the data. As the saying goes: "What gets measured, gets improved."📈