Is that new sales rep going to make it? It can be so hard to tell for sure during an interview process

In the early days, until you have a great VP of Sales, it's your job to figure that out

Here are 8 Signs of a Sales Rep That Isn't Going to Make It: 8⃣⬇️⬇️
1/ Immediate, massive discounting

Mediocre and failing sales reps do this because they have no other idea how to close a deal or create urgency.

Discounts don't create urgency, they create agency. They get the deal from the red zone to the end zone.
2/ Don't truly understand the product.

Way too many AEs don’t even really understand, let alone use, the product they are selling.

They don't know how to tweak it, configure it, sell to different personas, and more.

Early reps have to be product gurus. And evangelists.
3/ Fear of the competition.

This is different than respect. The best salespeople deeply respect the competition ... and see it as a challenge and game to beat them. Especially to beat them when sometimes maybe they’d otherwise deserve to lose.
4/ Blame others.

Sales is hard. It's a lot of No's and a lot of pressure.
So failing reps, when they come up short, they blame marketing, or the leads, or the lack of support. It’s usually all true in part ... but still a sign when it's too much blame.
5/ No updates, or the same update again and again and again.

A terrible or even mediocre salesperson just plain has no updates to share. They're quiet in team meetings and deal reviews.
6/ Bad mouths their boss.

This accomplishes nothing. It’s really another type of excuse.
7/ Doesn’t know a lot about their top deals.

A bad salesperson doesn’t know who their key buyer is in a big deal. Or who the other stakeholders are. Or how far along the deal is. Or if or when it will close.

This is more common than you'd think. Ask.
8/ Doesn’t believe.

It’s really hard to sell a product you don’t believe in. Sales is hard enough as it is. And the competitor is always better somewhere.

It can be easy to stop believing. But a rep that doesn't believe, can't sell.
A bit more here:

saastr.com/8-signs-of-a-f…

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More from @jasonlk

30 Nov
1/ Lots of talk from folks about "Down Rounds" in venture but the reality is these are pretty uncommon

Bridge rounds and No Round at All are more common than Down Rounds

But what is pretty common and less discussed "Weak Rounds"
2/ "Weak Rounds" are rounds at < 2x the price per share of the last round

They get done all the time and much more easily, but the VCs rarely hit the IRR goals from the last round with a raise like this

And they are often very dilutive on top of it
3/ A Weak Round or even two, and VCs can end up making half of what they expected, even with the nominal valuation going up

This isn't the end of the world, but bear in mind VCs are looking for the next round to be at least 2x-3x the price per share of the last round
Read 4 tweets
28 Nov
If you've hired your first 10+ sales reps, you're now seeing how different their playbooks are

Probably 2 of them close 2x-5x more than the rest, and a few struggle to close much at all

Here are the 9 Qualities of a Great Sales Rep: 9⃣⬇️⬇️
#1. The Best Reps Really Listen.

Mediocre sales reps just start diving immediately into their script, and try not to deviate from it. Great salespeople learn their prospects’ needs, issues, and pain.
#2. The Best Reps Adjust the Pitch and Story to Suit the Prospect.

Every prospect is a bit different, and sometimes, a lot different. The best reps tailor the pitch, the demo, the functionality shares, the case studies, etc. to suit the needs of the prospect.
Read 11 tweets
16 Nov
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.
Read 7 tweets
15 Nov
The key to a good financial plan for 2022 IMHO:

1/ Start with a base plan, one you have about 60% confidence in.

This literally can just be based on your average growth and burn for the past 4 months

Just roll that forward. It's usually pretty predictive.
2/ Then build your stretch plan. One you have 10%-20% confidence in. That will be hard, but can be done. I call this a C-10 plan.

Usually it about 20% higher in revenue than the C-60 / Base plan
3/ Finally, build your It's Harder Than We Thought Plan -- the one you are 90% sure you'll hit.

This is 20% less revenue than the base plan -- but with the same burn.

Your zero cash date will shrink. This is just for worser case planning.
Read 5 tweets
15 Nov
Usually if you have > 2 and < 10 sales reps,

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.
Read 4 tweets
13 Nov
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.
Read 10 tweets

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