From developer adoption to enterprise dollars

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Presentation I gave at Heavybit Industries (www.heavybit.com), describing the optimal business model for a B2D (business-to-developer) company.
For example, when is the right time to build a sales organization?

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From developer adoption to enterprise dollars

  1. 1. From DeveloperAdoption to EnterpriseDollarsGeva PerryPresented @ HeavybitJune 4, 2013
  2. 2. @GevaPerryThinkingOutCloud.com
  3. 3. The Question:What is the most effectivemodel for growing revenuesfor developer-focusedcompanies?
  4. 4. About
  5. 5. The Problem:There is an inherent conflictbetween dev adoption andenterprise sales
  6. 6. Historical Barriers toDeveloper Adoption in theEnterprise• Access to Software• Access to Hardware• Cost / Pricing• Setup, Config, Integration• Proof-of-Concept• Budget• Politics
  7. 7. 1990s Early 2000s 2010sSoftware fordevelopers becomesmainstream categoryWebTop-Down,High-TouchSaleHigh Friction“Enterprise Software”Friction Removal:DownloadsOpen SourceMove to Lower-Touch, Bottom-Up SaleFriction Removal:IaaSPaaSSaaSCloudLate 2000sWeb 2.0Friction Removal:FreemiumFree TrialPay-as-you-goSocial MarketingMarketingAutomation
  8. 8. The Buying ProcessStatusQuoPriorityShiftResearchOptionsValidationSelectionSource: eMarketing Strategies for the Complex Sale, Ardath AlbeeLow/No-Touch High-TouchNegotiate &Purchase
  9. 9. Dev as Buyer• Early in the lifecycle• De facto decision on purchase• Efficient, low-cost sales model
  10. 10. Barriers Removed,the Pendulum Swings
  11. 11. But Reality ProvedMore Complex• Devs have limited budgets• Devs have limited control
  12. 12. Founded: 1998Year 6: $96mYear 8: $309mYear 10: $748mFounded: 2008Year 5: $40mYear 6: $80m-$100m2013 Employees: 270Sales Org: 70Founded: 2002Year 8 (2009): $60mYear 10 (2011): $102m2011 Employees: 400Sales Org: 0
  13. 13. A New ModelEmergesCustomer Developmentand Low-Touch SalesTriaged Sales
  14. 14. The New Model:Early Phase• Early phase:• Inbound marketing• Low Touch, Bottom-Up (self-service, creditcard, free trial, etc.)• Emphasis on removing friction, e.g.:• Marketing automation• Product onboarding• Measurement
  15. 15. The New Model:Transition & LatePhase• Build sales org and processes• Triage sales• Gradually move to inside sales and fieldsales
  16. 16. Why not transitionsooner?• Sales people need a clear value propand a repetitive process• Sales people influence productdevelopment• Sales people influence marketing• Sales people distract from frictionremoval
  17. 17. When to make thetransition?• Self-selected queries about large deals• Somewhere between $50K-100K MRR• Year 2 from GA
  18. 18. When to make thetransition?• We have a clear understanding of:• Positioning• Pricing / Usage Metrics• What an “elephant” lead looks like(how to triage)
  19. 19. Thanks

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