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?
Web sales Telesales Inside sales Field sales
Product complexity
Friday, August 9, 13
14. Commission plans
Compensation
• Base salary
• 50-100% commission / quota
• Equity
Onboarding / Ramp
• Management by objective (MBO)
• Recoverable & guaranteed draws
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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
Friday, August 9, 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
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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
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21. Rule of thumb
CAC =
sales/mktg
expenses
# of customers
acquired
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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.
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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
Friday, August 9, 13
