One of my biggest surprises from researching B2B growth is that 100% of successful bottom-up B2B companies eventually add a sales team. It's not a question of if – it's a question of when and how.

Below are my fav 5 tips from @Kazanjy for setting this transition up for success👇
1/ First, do sales yourself. As a foremost expert in the problem space, you’re best positioned to have the first few dozen sales conversations.

Later on, these sales tasks will be handed to a specially hired salesperson but only after the initial motion has been roughed out.
2/ To get a sense of the need for a full-time salesperson, add a “Contact Us” or “Contact Sales” CTA to your home page in a place that wouldn't distract the user from self-sign up. Watch for inbound requests asking for large-company-type needs (e.g. SOC 2, consolidate billing)
3/ To figure out the ROI of a potential salesperson, use this model. Generally speaking, you want to see a salesperson delivering 4x their fully loaded cost in incremental revenue.
docs.google.com/spreadsheets/d…
4/ There are 2 reasons to add salespeople to a self-serve product:

1. “Scooping up” pods of successfully activated customers and facilitating expansion
2. Helping with conversion of unactivated customers

Before hiring, be clear on the initial focus of this salesperson.
5/ Avoid going top-down. Your current strength and asset is that you have a self-serve product that users love. A top-down motion will mean interacting with decision-makers who are so far removed from the day to day work your product facilitates. Do this later.
6/ For so much more, don't miss the full post below. And for EVEN MORE, don't miss @Kazanjy's definitive and highly-actionable book on startup sales: foundingsales.com

lennyrachitsky.com/p/sales-bottom…

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More from @lennysan

24 Nov
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?
Read 12 tweets
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

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