Salesloft's (quiet) acquisition of Drift in February is the first shoe to drop. CROs need to do more with less, and will remove many tools from their stack. Expect massive consolidation in the sector over the next 5 years. Full article in the comments, but TLDR: - Most sales/marketing platforms are sold on a "per seat" annual contract, which was great for revenue when their customers were growing their sales teams. -After the post-COVID boom, sales org's quickly hollowed out which significantly impacted growth + retention. - CXO's are figuring out how to accelerate growth with less. There is no longer a need to hire a fleet of reps, leaving the "per seat" revenue model in the dust. - Adopting alternative revenue models like consumption-based pricing is imperative for sustained growth. - These models aren't good for VC's who like more predictable revenue models, but in the age of AI, companies will not need VC to start, run and manage a profitable tech company.
Nate Nurmi’s Post
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One of the reasons that revenue SaaS is in a mess is this: The entire model is predicated on seat expansion. More growth funding equals more sellers, which equals more seats. The bitter irony is that... If these companies do their jobs expertly as vendors, they cauterise that growth requirement, meaning seat expansion isn't happy according to the hockey stick on their VCs model. The cognitive dissonance is real.... PipelineHeroes consume consumption...
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SaaS founders are increasingly being directed by investors to defer hiring salespeople and close their first deals themselves. While this demonstrates commitment, drive and fiscal stewardship, it often overlooks a critical element - expertise in penetrating large enterprises effectively. Founders are visionaries, experts in innovation, not necessarily in the nuanced art of enterprise sales. This gap can be the difference between a deal that closes and several that stall indefinitely. An Enterprise SaaS Deal Coach possesses deep insights and a proven track record in navigating the complexities of enterprises, helping founders: 💡 Have conversations that matter, centered on business outcomes vs. product jargon. 💪 Empower customer champions to sell internally, using the language of the C-Suite. 🤯 Align stakeholders to manage the impact of disrupting the status quo. 🔮 Identify blind spots and prepare contingency plans in anticipation of roadblocks and gatekeepers. 💵 Negotiate the right deals the right way. 🙌 Close more, higher value deals, faster. ⭐️ Establish a sound foundation to onboard sales teams at the right time. Now is the time for SaaS founders to close initial deals quickly, while setting a trajectory for sustained growth and liquidity. #SaaS #Founder #EnterpriseSoftware
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Director, Sales
7mohttps://www.bluebirdanalytics.co/p/21-drift-salesloft-and-the-great