The #1 hiring mistake founders make after $1M ARR:

A manager instead of a VP of Marketing
A manager instead of a VP of Product
A manager instead of a VP of Customer Success
A player-coach instead of a true VP of Sales
A product manager for now, not a VP of Engineering
First, the junior hire costs >more<

They aren't accretive. They don't pay for themselves. They don't generate more leads. Close more deals. Ship more features.

A true VP is accretive.
Second, you get burned out

A true VP takes 80%-100% of the function off your plate

Vs. a junior hire just helps you implement stuff

Do not confuse the two
This is #1 and #2 of the Top 12 things you'll look back on ... and regret:

saastr.com/12-things-youl…

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More from @jasonlk

31 Jan
ServiceNow is a $100B (!) SaaS company most of us know only a little about

Its original product manages IT workflows in the enterprise

It's now at $5B in ARR, and >still< growing an incredible 32% YoY!

5 Interesting Learnings:
#1. Still growing 32% at $5B in ARR (!) This is pretty stunning, and justifies the $100B market cap.

Even at $5B in ARR, ServiceNow is still growing at 32% year-over-year.

This is as fast as Slack at $1B ARR. Image
To do this, ServiceNow has dramatically expanded its TAM, its deal size, and its product footprint over the years.

The "original" ServiceNow couldn't have gotten to $5B in ARR growing 32%.

Still, it shows TAM is what you make it.
Read 14 tweets
30 Jan
Still think Slack could have been a $100B company
At 40% YoY growth at $1B, Slack is growing much faster than most of its peers at $1B

And looks undervalued now as a result
Just as importantly, Slack's growth at $1B ARR wasn't just off the existing customer base

New customer logos still growing 35% at $1B ARR

Few have this new logo growth at $1B ARR

It shows a long run ahead
Read 5 tweets
29 Jan
On Wednesday, we had SaaStr University: Spring Semester and I led a convo with @kyleporter @SalesLoft on the learnings to the journey from SDR app ... to Unicorn

My Top 5 Learnings from the convo:
#1. Kyle sat with 30+ prospects and customers in the early days, literally next to them.

Many of the early competitors really didn’t understand the needs of SDRs and sales teams enough.

Do you do enough of this?
#2. Salesloft sees platforms that do most of what 1 customer wants, in 1 core vendor, as the future.

We’re seeing more and more of this. But also, more innovation. If nothing else, it raises the bar to break out for new niche vendors.
Read 9 tweets
26 Jan
Dropbox is certainly one of the most interesting SaaS case studies. It was the fastest of its generation to get to $1B in ARR.

But after that, ARR growth has slowed to 12% year-over-year as its space has matured.

5 Interesting Learnings:
#1. 15m+ Paying Customers and 600M+ Registered Users.

These are stunning numbers for a non-consumer app (although arguable Dropbox blurs the lines somewhat), and at some point ... you can almost run out of businesses to sell to.
#2. 85% of paid teams have linked to a third-party app.

A vivid reminder of how important a partner ecosystem is as you scale. And how defensible it can be. Partners want to integrate with the #1 platform in an ecosystem first, and sometimes, only
Read 7 tweets
24 Jan
I remember when I invested in Pipedrive, my first venture investment, in 2013 I Iooked at all the low-end, SMB CRM Solutions

It was hard to tell which one was “best” .. they all looked a bit like Trello, and all were pretty feature poor

Pipedrive was growing the fastest, though
Pipedrive was just acquired by Vista for $1.5B, so clearly being the early break-out lead in this large niche paid off

But ...

I just connected with one of The Others.

It’s 7.5 long years later

They are finally at $20m ARR, growing 80% now
So this other CRM, they aren’t worth $1.5B >today<

The most value went to the fastest growing player

But they hung in there for another 7.5 (!) years to get to $20m ARR and 80% growth

They’ll get to $100m+ in ARR if they keep going

You don’t always have to be #1 to win
Read 9 tweets
23 Jan
A lot of CEOs now do detailed First 90 Day plans with potential VP hires, and those are great

You learn so much

But there’s something even more important — and simpler — to do:

The Top 5 Priority List
It’s a simple exercise

Ask your VP candidates, after they get to know the company, to list their top 5 initiatives

What they plan to do first

You don’t even have to ask them to force-rank them. Everyone does this without thinking.
Then, just look at he Top 5 list

Do you think this is the right list?

E.g., if you are hiring a VPM, and you don’t believe in paid search, or it’s wrong for your business ... and that’s their #1 or #2 priority. Pass.

It won’t work out
Read 8 tweets

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