If you're building a B2B SaaS product, one of the biggest decisions you'll have to make is if/when/how to layer in a sales team.

Lucky you: @Kazanjy just dropped a 🔥 step-by-step guide to help you navigate this transition.

Summary in thread below 👇
lennyrachitsky.com/p/sales-bottom…
2/ One of the most surprising takeaways from my own research into early B2B growth was that *100%* of the bottom-up B2B companies ended up layering on a sales team. It’s rarely a question of if — it’s more a question of when, and how.
3/ First of all, should I even start with a self-serve product?

Yes, if:
1. Is the product simple enough for self-serve?
2. Is this truly new and differentiated? 
3. Can this co-exist with a (less good) incumbent in a given company’s stack?
4. Will you focus on small orgs?
4/ Should I ever involve salespeople?

There are 2 primary reasons to add salespeople to a self-serve motion:
1. To facilitate the penetration or expansion
2. To help raise conversion rates of your self-serve offer 

Key Q: “will it help” and “will the juice be worth the squeeze”
5/ When should I add a salesperson to the mix? 

First, make sure that you have a “Contact Us” or “Contact Sales” call to action on your home page. This is how you’ll start to see if you get inbound requests asking for help.

As you start seeing more of these come in, ...
5b/ maybe one or two a week, now’s probably the time to dedicate someone to handling those – a salesperson!

Once you have that person in seat, handling those inbound inquiries, they can also start going outbound (“warm outbound” versus pure cold outbound) into the customer base.
5c/ Having someone in seat is almost a 2-for-1: Inbound inquiries indicate that you need someone helping with commercial transactions, and their extra bandwidth (to start) can be used to proactively engage customers where your solution has an initial foothold.
6/ How do I set myself up for success during the transition?

First, figure out if the initial focus of this salesperson will be:

1. “Scooping up” pods of successfully activated customers in large organizations and facilitating expansion, OR
2. Helping with the conversion
6b/ First, do it yourself
As a foremost expert in the problem space you’re addressing, you’re best positioned to have the first few dozen of these sales conversations.
6c/ Second, provide data insights for sales
If you’re focusing on “scooping up pods” and expanding into orgs, then analytics or alerting that notifies you, proactively, to the fact that a larger organization has multiple successful instances of your offering deployed will be key.
7/ Common pitfalls to avoid when layering in sales:

1. Having someone else do sales
2. Not starting
3. Going top-down
4. Not allocating product resources
8/ That was just a taste. Don't miss the full post courtesy of the one and only @Kazanjy
lennyrachitsky.com/p/sales-bottom…

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More from @lennysan

17 Nov
Data points from Airbnb's S-1 that get me excited about its future:

1. *91%* of all traffic comes organically from direct or unpaid channels. This is the key to Airbnb's strategy (winning at direct traffic, avoiding paid growth), and it's working.

More in thread 👇
2/ Not only is traffic cheaper (since it's mostly organic), but guest cohort retention is also much higher than the competition. It's also a rare "smiling curve" – it goes UP over time.
3/ Similarly, host cohort revenue retention hits *100%* over time, and also increases after year two. That doesn't mean tons of hosts don't leave (note: this is revenue retention, not user retention), but this is promising.
Read 6 tweets
17 Nov
What DoorDash, Faire, Substack, Eventbrite, and Cameo have in common? They all have what I call "magical" growth loops: loops where most of your growth comes from existing users. I've collected 30+ examples of these loops in action.

A few examples below👇
lennyrachitsky.com/p/magical-grow…
1/ Context: Normally, to grow your business, YOU need to go find every new users or customer. For example, if you’re building Google, you need to go tell people about Google and convince them to use Google. Each additional Google user doesn’t directly drive more Google users.
2/ However, if you’re building a product like DoorDash, Faire, Substack, Dropbox, Eventbrite, and many of the companies I cover in this post, a very cool thing can happen: your users grow your business for you. THEY recruit your new users. Magical!
Read 12 tweets
13 Nov
Some things I've learned about the newsletter'ing life, so far 👇
1/ It's really easy to start a newsletter. It's very hard to keep it going.

The key to keeping it up, at least for me, is (1) being genuinly curious and energized about the topic, (2) having a broad enough topic to keep it novel, and (3) having consistent time to write.
2/ Optimize for a topic YOU'RE excited about, not what you think other people will be excited about.

This is so important. It's the reason I went against the classic advice of finding a single focused niche. I would have been so bored thinking all day about just one thing.
Read 15 tweets
13 Nov
Every week, @KiyaniBba pulls together the best conversations from our subscriber Slack community into a weekly "Community Wisdom" email, synthesizing the best advice from the community. This week's email was SO good. Some highlights in the thread below 👇
lennyrachitsky.com/p/-community-w…
1/ Running monthly business reviews
2/ Does the startup grind ever end
Read 8 tweets
12 Nov
Update: If you are *not* a product manager but work closely with PMs (e.g. eng, designer, PMM, etc.) could you also take this survey?

This will let us to see how PMs see their role vs. non-PMs, at the same company.

P.S. Please share the survey – the more data we get the better!
Over 400 responses already, how fun!
Thank you so much to everyone who's RT'd this and/or shared the survey with colleagues ❤️
Read 5 tweets
11 Nov
🙏 ASK: If you are a Product Manager at a big tech company, can you take this quick survey (<3 mins)?

I'm looking into how the PM role differs across companies. If you take the survey you'll get the results first.

Please RT so that we can get more data
lennysan.typeform.com/to/uXQI1tFD
We're already at over 100 responses 📈

Let's keep it going! Some suggestions:
1. If your team has a PM Slack channel, can you share the survey there?
2. If you're in Blind, consider posting a link
3. If you have PM friends at other companies, share the survey with them

Go team!
A peek at some early results Image
Read 5 tweets

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