Neil McLean

In the vertical SaaS industry, the allure of becoming a Payment Facilitator (Payfac) can be tempting for founders looking for an easy boost to their revenue streams. However, it's crucial to understand the significant investments and focus required to successfully implement this strategy. Owning the payment process and the customer experience could offer substantial advantages, but as Wade Arnold insightfully points out, it's not without its challenges and potential impacts on financial metrics. #SaaS #Fintech

10

4 Comments

A new SDR Game (Soon to be Outbound Kitchen) episode is out: How this top BDR averages 134.33% with finance leaders and CFOs. Featuring Celine Hoyle‎, top BDR and BDR Team Lead at Mosaic.tech. Celine's performance: - Q1 '24: #1 BDR (144% of quota) - Q4 '23: #1 BDR (122% of quota) - Q3 '23: Ramping (137% of quota) Here’s more information about Celine’s accounts and buyer personas: - ICP: B2B SaaS companies with 50-500 employees - Buyer Personas: Finance leaders, and CFO - Market: English-speaking countries Watch or listen to the episode: link in the comments. PS: That was the last episode under the name SDR Game. I'm cooking... I'm rebranding SDR Game to Outbound Kitchen with a new logo, artwork, colors, etc. In the next few weeks, I'll be traveling, working on the rebranding, and prepping new episodes for the show. So, no new episodes for the next few weeks. But we will get back, we will be back with more episodes about outbound, and what's working today! I'll let you know when we're back. ✌️👨‍🍳

55

12 Comments

Hot Take… RIP #PLG, Long Live #SLG But before you throw shade, let me explain… 🔹 There are undoubtedly exceptions, I’m sure many will highlight monday.com, Freshworks, etc. 🔹 PLG works well for low ACV deals with low CAC… think SMB and mid-market customers. Target CAC payback <12 months 🔹 PLG is a fantastic top of funnel marketing channel for enterprise sales ⭐ But for 6-figure enterprise sales, you need enterprise salespeople pressing the flesh with customers

81

16 Comments

7. That's the median employee headcount for SaaS companies under $1m in ARR. Nearly half of those positions are in engineering. I'm often asked about headcount planning and it's so helpful to provide data to drive decisions. The High Alpha SaaS Benchmark Survey is live and it's full of data like this. Download the report now. (Link in the comments)

16

1 Comment

The first version of the SaaS GTM playbook was written twenty years ago. Salesforce championed it. Mark Roberge published The Sales Acceleration Formula about Hubspot’s journey. Over the next two decades, we analyzed, quantified, instrumented, & optimized many aspects of the SaaS GTM. Account executive to SDR ratios, sales cycle lengths, conversion rates, customer acquisition costs, customer lifetime values, net dollar retention. The new software GTM playbook has yet to be written. But the companies who figure it out will become the next wave of massive businesses. On Tuesday, Theory held an event with [Dave Morse] formerly at Hebbia & Scale AI, Flo Crivello from Lindy, Paul Yacoubian from Copy.AI, & Chris Changfrom Gradient to discuss how AI changes these practices. These were my take aways : - Selling AI is being discovered because the technology is new. Buyers don’t know how to use it or how to buy it. - Because the sales motions are new, we can’t apply the previous playbook to the new sales process. The CEO/founder should hire a sales leader that they fully trust who focuses on ultimate success. The sales process is a part of the product : using both the customer’s language & the ultimate use of the product through success efforts - Between PLG vs sales led, more companies were sales-led. If starting with PLG, the template sells the product. Fight the empty box problem with great concrete templates that demonstrate how to use AI. If selling top-down, most of the conversations today are at the C-suite rather than the mid-market predominantly because the buying process is new. - Figuring out how to consistently produce wow moments with non-deterministic software is essential. - The room was split on pricing model : seats, usage, or some hybrid. Ultimately, pricing captures 15-30% of the value the software/AI creates. Developing a strong case for this with buyers will be key because the ROI question from buyers is real especially as the broader software market feels pressure. - Only VCs care about the word agents / agentic : for most enterprises, agents mean a customer support agent. Many teams don’t care about the underlying technology, they seek a solution to their problem. Tomorrow, we’ll be publish the results of the 2024 GTM Survey which we’ll reveal at Saastr in which we dig into the use of AI on sales processes & the impact to efficiency. Thanks to the panelists & attendees for a great discussion.

181

16 Comments

we're making progress with a Slack app that automates driving more & better practice / outputs / behaviors with your AEs & other sellers… goal: make role-playing practice more manageable, realistic, & consistent while applying it to actual deals during prep ofc we're plugging into AI for some fun feedback loops too 😊 our next phase is seeing how more teams react to decide what to build for early customers. we can focus on anything you're looking to improve right now: outbounding, cold calling, disco, negotiation, storytelling, improv, forecasting, testing champs, etc... let me know if you want to test it out with your team, or it's easy to get started with the link below. thx!

17

As CS is getting increasingly aligned with the revenue function, this conversation is happening a lot... CRO: "I just took over customer success, can someone explain to me what our CSMs do?" VP CS: "We make sure that our customers are getting value from the product..." CRO: "OK, what does that mean?" VP CS: "We answer all of their questions and log support cases." CRO: "Isn't that support?" VP CS: "Well no, because we have QBRs" CRO: "OK, well what do we talk about in the QBRs?" VP CS: "All the tickets we fixed and the features that we rolled out" CRO: "Ok, what other things do our CSMs do?" VP CS: "We help with implementations and continuous improvement!" CRO: "Isn't that professional services?" VP CS: "Well we read an article that says that we shouldn't charge for services, so our CSMs just do it." CRO: " 🤯 " VP CS: " 🤯 "

9

Building Weflow, I've spoken to 200+ #RevOps folks the last 12 months about common Salesforce data capture challenges. Here are things that come up: 1) Poor Salesforce adoption - Shadow tooling - Reps avoid Salesforce - 42% forecast in sheets 2) Poor activity capture - EAC not reportable, nor stored - Missing activities on opportunities - Limited insights based on activities 3) Missing contact data - No contact roles - Buying committees unclear - Multi-threading happening? 4) Process in-compliance - Missing stage entry/ exit criteria - MEDDIC (etc.) not populated - Close date pushed/ overdue 5) CRM bloat - Ops-debt (fields, integrations) - Over customization - Consolidation nightmares after acquisitions 6) Historical data - Opportunity snapshots missing - Process change, data worthless - No unlimited field history tracking Takeaway: Poor Salesforce data quality > missing insights > poor visibility > ineffective deal execution > low predictability > broken revenue engine. What would you add? Comment 👇 -- ➕ Follow me for RevOps content 🔊 Listen to the "RevOps Lab" podcast - link in profile 👀 Visit my free RevOps content library - link in profile ♻️ Share with your friends #RevOps #GTM #Sales

34

16 Comments

Outbound isn’t dead, but it does require a lot more tech and revenue orchestration now. Wanna learn how to build a Signal Led Engine at an early stage org or how to evolve your current GTM process into a signal based machine? I’m joining Trinity Nguyen💎 of UserGems 💎 and Matt Lyman 🦦 of LeanData to chat about how to optimize your team’s outbound efforts and make their journey to full pipeline is smooth sailing. ⛵ Join us tomorrow, Wednesday, August 7th @ 11 am PT / 2 pm ET  to learn more about: - How to craft messages around the most appropriate combinations of signals. how to execute!  - Strategies for combining  inbound and outbound channels - How to boost pipeline with a people signal-based strategy - How to nail down the best combination of signals for your business - Playbooks you can deploy Adopt a signals strategy —your pipeline will thank you! 🤙 Register: https://lnkd.in/gsdMDWPz #sales #khantent #management

56

14 Comments

I have an axe to grind. It’s about compensation for SaaS sales positions. Too many salespeople have unrealistic comp expectations. If you are a a SaaS Account Executive and you are trying to increase your OTE, here's my #1 piece of advice: If you want to make more money, carry a bigger quota. Your total comp is relative to how much revenue you bring in. Forget what your friends are telling you about how much you "should" be making. Here's the deal: The golden ratio for quota to OTE is 5x. Said differently, the fully loaded cost of sales should be around 20-25% of each new dollar in ARR. That means you need to close $500k in ARR to earn $100k in TOTAL compensation. The standard OTE breakdown is 50% base salary / 50% variable compensation. So a $500k annual quota should offer a $50k base salary and $50k variable compensation. Beware of companies that are paying more than this. These companies do not last long. Go do the math for your own compensation. If your annual quota is 3x your OTE, be careful. Your company is trying to buy revenue growth. This kind of comp plan is temporary. Either the company will change the comp plan or they will go out of business. I have seen dozens of salespeople jump from job to job every 9-12 months because they are chasing a higher base salary. Your base salary is not where you get ahead in SaaS sales. Instead, focus on these 2 things: 1. A good variable comp plan with quotas that are attainable. Make your money by hitting accelerators. 2. A good sales leader who will build your sales skills. Find a role where you can learn and you can crush your number. The money will follow.

152

33 Comments

6 ways to build a 100€ million ARR business. Why is it helpful to know what you're hunting? Each of the 6 ways require a different GTM strategy 👉 Different ICP 👉 Different Messaging 👉 Different Channels 👉 Different sales motion 👉 Different pricing Because of this requires a different way to build your company. ✅ Teams & Skills ✅ Product ✅ Metrics ✅ Growth tactics Thanks CJ Gustafson for sharing.

13

5 Comments

At every org I've been a part of, one common theme remains the same: 𝐀𝐥𝐥 𝐬𝐚𝐥𝐞𝐬 𝐫𝐞𝐩𝐬 𝐝𝐞𝐟𝐚𝐮𝐥𝐭 𝐭𝐨𝐰𝐚𝐫𝐝𝐬 𝐭𝐚𝐥𝐤𝐢𝐧𝐠 𝐚𝐛𝐨𝐮𝐭 & 𝐝𝐞𝐦𝐨𝐢𝐧𝐠 𝐟𝐞𝐚𝐭𝐮𝐫𝐞𝐬. Whether they're SDRs or AEs. Even founders. Everyone wants to talk about the shiny cool widgets, and streamlined workflows, and insurmountable capabilities. Why? Because that's the product we're offering. It's the product they're ultimately buying. And as consumers, that's how WE buy products. Think about when you purchase something on Amazon or when you're buying a new car. You look at all the features that it has, all the capabilities it possesses, all the advantages that they provide... 𝐖𝐞'𝐯𝐞 𝐛𝐞𝐞𝐧 𝐩𝐫𝐨𝐠𝐫𝐚𝐦𝐦𝐞𝐝 𝐭𝐨 𝐭𝐡𝐢𝐧𝐤 "𝐌𝐨𝐫𝐞 = 𝐁𝐞𝐭𝐭𝐞𝐫". So we end up dumping all our features on our prospects. Because "More = Better". But subconsciously, you're not buying "more". You're filling a need and solving an (unrealized) problem. 🚗 Maybe you wanted leather seats in your car because 𝐲𝐨𝐮 𝐯𝐚𝐥𝐮𝐞 𝐜𝐨𝐦𝐟𝐨𝐫𝐭. ⚡️ Maybe you wanted an EV because 𝐲𝐨𝐮'𝐫𝐞 𝐭𝐢𝐫𝐞𝐝 𝐨𝐟 𝐰𝐚𝐬𝐭𝐢𝐧𝐠 𝐲𝐨𝐮𝐫 𝐭𝐢𝐦𝐞 & 𝐦𝐨𝐧𝐞𝐲 𝐠𝐞𝐭𝐭𝐢𝐧𝐠 𝐠𝐚𝐬. 🍦 Maybe you wanted an ice-cream maker because 𝐲𝐨𝐮'𝐫𝐞 𝐭𝐢𝐫𝐞𝐝 𝐨𝐟 𝐛𝐮𝐲𝐢𝐧𝐠 𝐬𝐭𝐨𝐫𝐞-𝐛𝐨𝐮𝐠𝐡𝐭 𝐢𝐜𝐞-𝐜𝐫𝐞𝐚𝐦 𝐚𝐧𝐝 𝐰𝐚𝐧𝐭 𝐭𝐨 𝐦𝐚𝐤𝐞 𝐬𝐨𝐦𝐞𝐭𝐡𝐢𝐧𝐠 𝐡𝐞𝐚𝐥𝐭𝐡𝐢𝐞𝐫 (yes, I just bought one). Whatever it is, the underlying reasons are all the same: 1. Maintain & improve upon status quo 2. Fill a gap, pain, challenge, need 3. Improve quality of life Understanding & talking about your product is easy. Deeply understanding your prospect's challenges, business needs, and objectives is hard. And most folks aren't willing to do the hard work. Which is why I always prioritize industry training first before ever looking at the product with my new reps. 💡 Remember: 𝒀𝒐𝒖𝒓 𝒔𝒐𝒍𝒖𝒕𝒊𝒐𝒏 𝒊𝒔 𝒔𝒊𝒎𝒑𝒍𝒚 𝒂𝒏 𝒂𝒏𝒔𝒘𝒆𝒓 𝒕𝒐 𝐲𝐨𝐮𝐫 𝐩𝐫𝐨𝐬𝐩𝐞𝐜𝐭'𝐬 𝒏𝒆𝒆𝒅𝒔. 𝒀𝒐𝒖 𝒏𝒆𝒆𝒅 𝒕𝒐 𝒌𝒏𝒐𝒘 𝒕𝒉𝒆 𝒒𝒖𝒆𝒔𝒕𝒊𝒐𝒏 𝒕𝒉𝒂𝒕'𝒔 𝒃𝒆𝒊𝒏𝒈 𝒂𝒔𝒌𝒆𝒅 𝒃𝒆𝒇𝒐𝒓𝒆 𝒚𝒐𝒖 𝒄𝒂𝒏 𝒑𝒓𝒐𝒗𝒊𝒅𝒆 𝒂𝒏 𝒂𝒏𝒔𝒘𝒆𝒓. ✌️ #sales #salestips #b2bsaas

17

4 Comments

This is a fabulous memo from Bessemer Venture Partners regarding scaling SDR/BDR teams. I urge all B2B SaaS founders to dig into this one. #founders #entreprenuers #startup #seedfunding

5

2 Comments

F*** is my favorite four-letter F-word. F*** = Free...obviously. 😏 Speaking of free, here's something I'm really excited about. Over at RevOps Co-op, we've got not one, but TWO complimentary RevOpsAF conference passes to give away courtesy of our friends at Enlyft. 🎁 Maybe you're a revenue operator in between gigs who wants to expand your network? 🤝 Or an employed RevOps pro who wants to attend #RevOpsAF 2024 in San Diego but your company isn't able to sponsor you? If this sounds like you then throw the 🙋 emoji in the comments and DM me to toss your name in the literal raffle hat. Sound like someone you know? Tag 'em on this post and have them do the same! Big shout out to Michael Schultz and Phil Gray from Enlyft for making this happen. ❤️ PS - learn more about RevOpsAF 2024 at revopsaf(dot)com #revops #revenueoperations #salesops #salesoperations #marketingops #marketingoperations #mops

33

16 Comments

Too many SaaS leaders are still trying to upsell their way to higher Net Retention Revenue. It only makes things worse. 👇 Improving NRR starts with less churn, not more upsell. I've had the same conversation with 5 leaders in the last month. --> I'm under pressure to improve NRR. --> I need more upsell. --> How do I uncover upsell opportunities fast, and get the team to close them? Look, I get the importance of upsell. But if this is your primary focus, you're missing a critical point. You need to EARN THE RIGHT to sell more to customers. ________________ The truth is upsell only happens when customers are already getting 10Xs ROI from your product. These are your healthiest customers. You've earned the right to solve new problems for them. Upsell is easy with them. When you try to upsell to less healthy customers, you'll fail. And you usually do more harm than good. --> Damage key relationships. --> Increase churn. --> Lose your best people. Instead, try this... Bucket customers into Red/Yellow/Green based on likelihood to renew. 🔴Red: No upsell. Focus on saving what ARR you can. 🟡Yellow: Identify opportunities for upsell but do not include in any forecast until you get them to Green. 🟢Green: Identify opportunities for upsell and forecast based on renewal/sales stages. This simple approach keeps the focus where it belongs for customers at risk - on retention. It provides a path to upsell these customers, but only after their renewal health improves. Most importantly, it allows your team to focus on the upsell opportunities that will actually close. Earn the right, and see how much easier it is. Your customers and your team will thank you. P.S. If you want to chat about how this could work for you, DM me. 📩 Want more? Try my free newsletter. Click the link in my profile. ♻️ Repost if this helped or inspired. 🔔 Follow me, Bob Mathers, for more.

49

27 Comments

The old rules for scaling subscription SaaS: - Charge based on seats - Charge more for premium features - Pay reps on first year bookings - Hand customers off to CSMs post-close - Get customers to commit upfront The new rules for scaling outcome-as-a-service products: 1. Charge based on units of work 2. Don’t put gates in the way of adoption 3. Pay reps on adoption (estimated/actual) 4. Every team plays a role in customer success 5. Invest in becoming predictable Moving from selling *access* to selling *work delivered* isn't a simple pricing change you can just announce in a press release. It's a business model evolution that looks a lot like the shift from on-prem to SaaS in the first place. — 🎁 For more check out Growth Unhinged, my free newsletter that’s sent to 58,624 readers every Wednesday: https://lnkd.in/exTbjKaM #ai #saas #monetization

815

82 Comments

The latest episode of the 20VC Sales podcast is a great listen. Dan Fougere shares his experience building sales teams and processes. Also a quick reference to the challenges of illiquid employee shares and the impact it has. Forge played a key role in helping him find a solution—an interesting perspective for anyone in private markets or sales leadership. Worth checking out. #Sales #Liquidity #PrivateMarkets

18

The New SaaS Playbook: Why Great Products AND Sales Teams Win Amplitude CEO Spenser Skates explains how blending intuitive software with strong sales execution redefines success in business tools. Evolving SaaS Playbooks: Early SaaS relied on powerhouse sales teams to drive adoption, even with subpar user experiences (think Omniture). Today, customers demand intuitive, self-serve tools that empower entire teams. Product-Led Meets Sales-Led: The future isn’t one-size-fits-all. Companies like Datadog, HubSpot, and Amplitude succeed by blending world-class products with strong sales execution. Momentum at Amplitude: A 40% increase in customer data flows shows how prioritizing usability and accessibility can drive adoption—even in a challenging market. How do you think SaaS companies can best balance intuitive products with strong sales execution to stay ahead?

21

4 Comments

It's finally shipped. The top direct integration request for Inari (YC S23) is live now: Gong! You can now directly integrate Gong with Inari to ingest all sales call transcripts from specific workspaces then Inari will automatically analyze each conversation for useful customer quotes, sales blockers, feature requests, and praises. Instead of manually sifting through Gong calls transcript by transcript, Inari automatically surfaces clusters of top trends in your sales convos so you know exactly what problems and feature requests are blocking new deals, praises your customers are sharing, and provides metrics to make prioritization and reporting easier. Try this out and let me know how we can improve the integration or make better use of sales calls and insights for improving product development!

37

3 Comments