Selling un$exy - Insights on building a sales team

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Selling un$exy - Insights on building a sales team

  1. Beautiful accounting software Selling un$EXY Insights from building a sales team Sunday, August 11, 13
  2. “If you hire clowns you’ll end up with a circus” Sunday, August 11, 13
  3. President, Xero US @sutherlandjamie Hi! I’m Jamie Sutherland. Sunday, August 11, 13
  4. Sunday, August 11, 13
  5. • Global leader in online accounting • 193,000+ paying businesses • 7,400+ Xero accounting partners • 400+ staff (US HQ in San Francisco) • Bank feeds from 5000+ institutions 2007 2008 2009 2010 2011 Introducing Xero 2012 Sunday, August 11, 13
  6. Insight 1 Define your business goals Sunday, August 11, 13
  7. Business goals Business goals Sunday, August 11, 13
  8. Business goals Business goals Market share Sunday, August 11, 13
  9. Business goals Business goals Revenue Market share Sunday, August 11, 13
  10. Business goals Business goals Profitability Revenue Market share Sunday, August 11, 13
  11. Sunday, August 11, 13
  12. Insight 2 Appropriate sales structure Sunday, August 11, 13
  13. Team structure • What are you hiring for? • Web sales → can you sell with no-touch? • Telesales → can you contract a telesales agency to do your sales? • Inside sales → can you product be sold with phone calls, emails, and online demos? • Field sales → does the sale of your product require in-person meetings? Web sales Telesales Inside sales Field sales Product complexity Sunday, August 11, 13
  14. Commission plans Compensation • Base salary • 50-100% commission / quota • Equity Onboarding / Ramp • Management by objective (MBO) • Recoverable & guaranteed draws Sunday, August 11, 13
  15. Insight 3 Sort out your recruit strategy Sunday, August 11, 13
  16. Define the role • Spend the time to create a job description • What are the goals for the role? 1st month, first 3 months, full year • What exactly are you hiring for? • define the optimal skills • define the optimal experience • define the optimal domain knowledge Sunday, August 11, 13
  17. Hiring models Philosophies • Hire really smart, amazingly talented people and they’ll figure it out • Hire people based on experience, previous success, domain expertise Hiring strategies • Do-it-yourself • In-house recruiter • Outsourced recruiter • Retainer • Fee for placement Sunday, August 11, 13
  18. Insight 4 Metrics matter Sunday, August 11, 13
  19. Metrics matter Sales rep metrics # calls # connections # closes % Web metrics # unique visitors # trials # paid % % % Sunday, August 11, 13
  20. Important SaaS metrics 1. Monthly recurring revenue (MRR) 2. Churn rate 3. Lifetime Value of a Customer (LTV) 4. Cost to acquire a customer (CAC) 5. Months to recover CAC Sunday, August 11, 13
  21. Rule of thumb CAC = sales/mktg expenses # of customers acquired Sunday, August 11, 13
  22. CAC = sales/mktg expenses # of customers acquired LTV = ARPU cost to serve 1 x churn Rule of thumb Sunday, August 11, 13
  23. CAC = sales/mktg expenses # of customers acquired LTV = ARPU cost to serve 1 x churn Rule of thumb Sunday, August 11, 13
  24. Rule of thumb → LTV should be 3x greater than CAC → Salesforce / Constant Contact are at 5 x greater than CAC → recover CAC in under 12 months David Skok, Matrix Partners 1. 1. Sunday, August 11, 13
  25. But, I’m just getting started... → don’t waste time with fantasy spreadsheets → use as a guiding principle → get a sense of your annual contract value → set up a quick scenario analysis around potential churn rates and cost to serve Sunday, August 11, 13
  26. Insight 5 Have fun Sunday, August 11, 13
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  31. No matter how great of a product you build, it only matters if people buy it Sunday, August 11, 13
  32. “If you build it, the people will come”.... Maybe. Odds go up if you have a great sales team to help make that happen. Sunday, August 11, 13
  33. Beautiful accounting software Thank you Jamie Sutherland President, Xero US @sutherlandjamie Sunday, August 11, 13

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