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SaaStr Q&A
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Q&AIs it possible to build a successful SaaS B2B business in the UK/Europe, or should you move to the US to maximize your success?
This is a more nuanced question than it was a few years back. The vast majority of the very successful European SaaS CEOs from one SaaS generation ago will tell…
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Q&AWhat percentage of software sales reps have earned over $1m in the last 3 years?
For sure, these are some of the best deals — investing in something that is just starting to break out, but before everyone else can see it, and/or before it’s…
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Q&AWould Jason Lemkin invest in a post seed/almost series A company growing fast that is targeting series A in 3-4 months? What are the ownership/valuation targets?
For sure, these are some of the best deals — investing in something that is just starting to break out, but before everyone else can see it, and/or before it’s…
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Q&AWhat drove the most referrals to your business?
Every app / start-up will be different, but looking back, here’s the approximate mix we had: 15% from partners. No individual partner did 5%, but as a group, they drove…
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Q&AWhat do consumers prefer more – lower prices or higher quality?
In SaaS, it is very difficult to win simply being cheaper. The biggest burden is simply getting anyone to buy yet another web product. But within a range, is it…
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Are Apple and other tech companies getting too big?
No. I think what we all missed is just how big “tech” got. 60% of Apple’s revenue is from the iPhone. But the iPhone only launched in 2007/2008, and those…
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As a SaaS startup, how fast should your MoM growth be from $0 to $1M ARR?
I can tell you after 23 SaaS investments … it doesn’t really matter how long it takes you to get to the first $1m ARR, per se. I’ve invested in…
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What is the most critical thing a new sales leader can do in a SaaS company to scale revenue once they get to 1M ARR?
Bring in a few good reps. and Put in decent processes to train and scale them. Even at just $1m ARR, it’s a hiring game. To go from $1m to…
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Q&AWhat is the typical conversion from paid pilot to annual contract in B2B SaaS?
I’m not sure there is a “typical” number for only one reason … as you grow and scale and become a bigger player and a more established brand … you…
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Q&AAs a CRO of a fast growing SaaS series A startup with $3m ARR, how much equity should I ask?
There’s a bit of a rough Catch-22 in VP/C-level equity comp these days. At least in the Bay Area, there has been a ton of inflation the past 3 years….
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Blog Posts, Growth, Q&A, Sales Strategy5 “Sharp Elbow” Tactics That Do Work in Competitive Spaces
Most of us want to take the high road, and let the best product win. Sometimes that does work, and it’s a place to start from. But here are 5 “cut-throat”…
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What is the strategic importance of Slack and Atlassian’s partnership?
My strong guess is that it drives much better alignment in and at the two leading independent SaaS companies for developers. Slack’s #1 competitor today? Microsoft, probably. Who did Microsoft…
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Blog Posts, Growth, Q&A, Sales, Sales StrategyWhat Core Metric Should Your VP of Sales Be Responsible For? It Really Matters What You Pick.
Congratulations on finally hiring your VP of Sales! That’s the hardest part of all. But next up is a more nuanced choice — what should her core goal / KPI…
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The legendary executive business coach Bill Campbell believed CEOs should never hire friends. Do you agree and why?
I think this is too simplistic. This friends-from-school partnership seems to have worked out well: https://www.theaustralian.com.au… Obviously, hiring friends, like working with a spouse / S.O., adds several extra elements….
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Q&AWhat was the lowest point of your successful startup?
I think for me, and for many founders up maybe even to $20m ARR or so, it’s losing key people you really needed in senior positions. Other lows are tough….
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What’s a typical price increase I can expect when renewing my SaaS subscriptions?
Let’s first start with Salesforce. Salesforce is the #1 SaaS company in the world by revenues and market cap. So that’s always a good place to start. In Salesforce’s current…
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What are some examples of SaaS that have a reseller program?
One great example is Atlassian. Approximately a third of their revenues come from resellers and “the channel”: A tough part for SaaS is channel conflict. Why buy from a reseller…
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Q&AHow should an uncollectible invoice factor into MRR calculations?
Generally, you take some reserve ratio for bad collections. It’s often fairly small once you have data to back it — a few percent. Once you have a reserve (which…
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Q&AWhy Would You Not Want to Work in a VC Fund?
A few thoughts specifically focused on folks who are founders or otherwise have good executive roles but see VC as the greener, more genteel grass: You likely will never be…
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As the president / CEO of an SaaS based startup, what do I wear to meetings?
Self-service SaaS CEO. Not important, b/c never needs to meet customers: Moving up-market, wants to get enterprises to take the company seriously: Solidly enterprise now, but still want to be…
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Q&AI’m a third time entrepreneur. My last venture didn’t work and I want to apply for a job. Does my 5 years as a CEO and founder of startups valuable, or do I have to restart from scratch?
I do think it’s tough. Many employers will be skeptical you really want the job — versus just needing one. They’ll be skeptical you can still be a role player…
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Q&AWhat’s something on an employee’s first day that sets off red flags?
At a manager level, my #1 red flag is if they don’t quickly move to integrate the team they inherit. This is different than changing things up, or even deciding…
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Q&AWhat is a situation that will get you fired in a large company but promoted in a startup?
Saying that “we aren’t doing enough” and pointing out shortcomings. In a start-up, this can be OK — if you own the problem. i.e., if you are senior enough to…
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Q&AIn SAFE, can I give the money back and terminate the contract, or does an investor have to agree with it?
Probably not easily. But … every SAFE is different (unfortunately — this is my #1 issue with them). One convertible note I was given to sign (not a SAFE, but…
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Q&AWhen should a Freemium SaaS start charging users?
Generally, as soon as possible. One of the top mistakes I/we made in the early days was launching only with a free version, and not adding a paid version for…
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Popular Q&A
What is the best piece of advice on closing deals for a new, inexperienced salesman?
Add value. Most new salespeople focus a lot on the transaction. What’s your budget? Do you need a discount? How big a discount? Can I give you a bigger discount? What questions do you have? If I give you an even bigger discount, can you sign right now? Your discount...
What is the difference between running a 10 person startup and a 100 person startup?
The biggest structural difference is you have to hire all the VPs by employee 50–100. You won’t be able to scale this far without a full management team — VPs of Sales, Marketing, Product, Engineering, Customer Success at least. But the toughest personal challenge for...
What were aspects of your startup that were easier than you anticipated?
The part I didn’t originally get was how relatively easy is it to grow exising accounts and account size if your customers are happy. We segmented customer retention by Small, Medium and Large accounts after about 24 months and saw a pattern that I now know is fairly...
What should B2B SaaS companies do to ensure the success of their customers and reduce churn?
I know this sounds overly simple, but the answer is: Measure it. Set goals to improve it. Pay people to improve it. Too many start-ups don’t even know their CSAT and NPS. Too many start-ups don’t even visit their customers in person. Too many start-ups don’t know why...
What are some rookie mistakes founders make during VC meetings?
A few that are easy to fix: Not standing (when you present to > 2–3 folks). When you stand, you present better. Period. Standing turns you into the center of the audience, into the owner, the presenter. Sitting is great for a small convo, but sucks all the energy out...
How should I design sales reps compensation plans at $10k MRR?
Figuring out your very first sales comp plan when you don’t have a repeatable process or much revenue is confusing. I was exactly in the place you were (first rep at $10k MRR) and everyone faces some similar challenges: There’s no way this early you can expect a rep...
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