5 Simple Tips to Improve Sales Rep Performance in the early-ish days
These always work: 🔽🔽🔽🔽🔽
#1. Concentrate leads in those who can close
If you have a rep or two that just can’t close, that doesn’t work in early days. Leads are too precious. Let them go. Not to save money, but to concentrate leads you do have in those that can close them
The best reps close 2x-9x more
#2. Be more involved as the CEO with sales. Prospects and customers love to talk to CEO. They love it
If you get more involved, at least in bigger deals, you will close more
Top mistake I see CEOs make is to scale back time they spend in sales once they hire few reps.
#3. Build them better collateral and get them more air cover.
Most reps are pretty bad at building sales decks, etc. They can do it, but it’s pretty awful. Most sales reps don’t know how to put on a webinar for prospects and customers. Do more marketing for them.
#4. Put an SLA in place.
Make sure every lead is called back — fast. Always. And if not, the lead goes to someone else.
Prospects inbound when they have a need. Get back to them right now, ideally. Time kills deals, on all levels.
#5. Pay more — per deal closed.
Are you paying enough per deal? It’s OK to overpay per deal in early days, when sales is harder. Everyone needs to build up confidence, and earn a living wage. Later, reps need to bring in 3x-5x what take home. But not necessarily in early days
Just moving on from the lowest performer (or two) gives you a 10%+ boost right then and there
Leads are precious for quite a while
Once you hire a strong VP of Sales, this problem will solve itself. She’ll make the calls, and backfill her team, and cover all the leads one way or another.
But if you’re still running sales yourself after 2 reps or so, you’ll usually hire a few reps that simply can’t repeat the quirky playbook of the 2 you hired that can close
That’s your fault, not theirs. But it happens in almost every startup I’ve worked with.
Datadog is the latest Cloud leader to grow faster than ever
It's now growing 75% at $1.2 Billion in ARR!!
The key? Getting customers to buy 4+ products
5 Interesting Learnings: 🔽🔽🔽🔽🔽
#1. 1,800 customers with ARR of $100,000 or more, a year-over-year increase of 66% from 1,082.
Datadog isn’t leaving smaller customers behind, but they are increasingly a smaller % of revenue. $100k+ customers have gone from 50% of revenue in 2016 to almost 80% today:
#2. More product, more products, more products.
10 new products this year. Almost all the Cloud leaders accelerating after $100m ARR, let alone $1B ARR, are multi-product.
#1. The classic high volume cadence-based outbound playbook is declining in effectiveness — but you still need to run it.
It still works. Just not nearly as well as a few years back.
#2. Your VP of Sales needs to own outbound themselves.
The toughest hire is a “Director of Outbound” today. You can’t outsource great outbound, & a VP of Sales that’s not good at it or has never done it can’t just go find a unicorn Director of Outbound.
#3. Top CROs and late-stage SVPs of Sales are getting better and better at retaining that first VP of Sales that got the company to scale.
The best CROs and such don’t replace a winning leader when they join — they augment them and help them scale further.
Amplitude is the first pure-play analytics SaaS company to IPO in quite a while
It's growing a stunning 57% at $150m+ ARR ... and that's up from 50% just a year ago
It's a $7B leader so many of us rely on in our products
5 Interesting Learnings: 🔽🔽🔽🔽🔽
#1. 1,200 total paying customers, with 300 of them at $100k ARR and 22 at $1m+ ARR
Amplitude has consistently gone upmarket, but not radically. This is the sort of organic upmarket path a lot of us see, growing more enterprise each year:
#2. Customer count growing as fast as revenue — rare, & a great sign for future
New customers grew from +41% in 2020 to +51% in 2021! Most leaders at scale with high NRR get more & more revenue from existing base. Having that high a ratio is a strong sign of future growth.