[HN Gopher] How to sell a B2B product
       ___________________________________________________________________
        
       How to sell a B2B product
        
       Author : polote
       Score  : 322 points
       Date   : 2020-05-02 14:32 UTC (8 hours ago)
        
 (HTM) web link (calv.info)
 (TXT) w3m dump (calv.info)
        
       | jjguy wrote:
       | I frequently recommend https://openviewpartners.com/blog/founder-
       | led-selling/ as a good early stage enterprise sales framework. It
       | is addressing a different, but complementary, set of questions to
       | this post. If you're at a stage to need this kind of feedback,
       | you should read it too.
        
       | aloknnikhil wrote:
       | Thanks for sharing this. For me, this was the biggest takeaway.
       | 
       | > In every case, a viable option for the customer will be to "do
       | nothing". They don't have to buy your product, or any product for
       | that matter. The best way to prove the case for your product is
       | with your metrics. Doing nothing should be a very expensive
       | option.
       | 
       | That fundamentally speaks for having a problem to solve and not a
       | solution looking for a problem. I think this key distinction is a
       | good sieve to filter out potential ideas especially if you're in
       | the business of SaaS.
        
         | bob33212 wrote:
         | In enterprises there are plenty of problems that are just not
         | important enough to spend money on. For example there may be a
         | yearly reporting process which takes 30 days for an accountant
         | to complete, which could be automated by a SaaS product. That
         | is less than $20k a year of cost. The CFO may be perfectly fine
         | with the manual process. Just because someone could save money
         | with your product doesn't mean that they will want to.
        
           | yoshyosh wrote:
           | Assuming I'm paying that accountant less than 20k for those
           | 30 days, it doesn't make much business sense to switch when
           | presented that way. Businesses don't always optimized for
           | saved time even if it's obvious, it has to make business
           | sense on an ROI level aka that solution only costs me 2k
           | rather than the $20K I spent on the accountant. Also like you
           | said they just may have bigger fish to fry since 20k is
           | nothing compared to their other issues
        
             | goatherders wrote:
             | That's not how you sell that product. You sell it by saying
             | that once a decade the accountant is going to make an error
             | that costs your company a billion dollars during due
             | diligence before an IPO or sale. In the enterprise 20k isnt
             | cost savings at all and, agreed, not going to result in
             | many sales.
        
         | netcan wrote:
         | eh...
         | 
         | In enterprise/saas... you eventually always have a solution
         | looking for a problem. You have a salesforce or whatnot, and
         | you have to sell it.
        
       | abtom wrote:
       | > my #1 rule for this is teach people something they didn't
       | already know.
       | 
       | You just went full meta
        
       | seneca wrote:
       | Due to person experience, this strikes me as pretty ironic. My
       | company had a very bad experience with Segment, so much so that
       | we changed product roadmaps to move away from them. In my mind
       | they're an example of how not to sell a product. Very much not a
       | company I would want to partner with again.
        
         | calvinfo wrote:
         | Author here. I'm sad to hear this and want to understand how we
         | can do better.
         | 
         | Do you mind following up over email? I'm calvin at segment.
        
         | piranha wrote:
         | Hey, I'm really interested what is wrong with Segment if you
         | don't mind (not affiliated with them). Email is in my profile.
        
       | coderintherye wrote:
       | Having been on both sides of this, I think this is great advice,
       | but misses something key. If you are selling a relatively high-
       | cost product (>$10k min spend), then there needs to be some
       | acknowledgement of that up front. It's a waste of everyone's time
       | if I'm running a startup that can easily spend $100s/month on a
       | product, but simply have no way to invest tens of thousands in a
       | product. Whereas, when I'm leading an established company that
       | can easily afford tens of thousands of dollars, then I care about
       | the value. In short, know your customer should include, know when
       | your customer is a 2-3 person seed stage startup and either offer
       | some version of the product at a price that they can afford and
       | growth into/with you on, or just be upfront that it's out of
       | range right now. A great example of this would be Looker. Great
       | product (in my opinion) and provided a ton of value to Kiva, but
       | it's a significant investment. I'd love to use it at my small
       | startup but the price is out of range so for now we use Google
       | Data Studio instead. And yet the sales agents come knocking
       | anyways. Understand your customer, know when something would
       | provide value they can afford vs. is way out of current range for
       | current budget/scale.
        
         | polote wrote:
         | Well, in enterprise Saas usually the pricing is not shown on
         | the website without contacting a sales rep, so it usually
         | eliminates companies which don't have a lot of money.
         | 
         | But even if a small company is reaching to you, as a
         | salesperson, this is your job to qualify the lead, and to not
         | loose your time on a lead that has low chance of signing
        
           | sebslomski wrote:
           | What's the reasoning behind not putting the prices up? For me
           | that's always a huge downer and means ,,that's going to be
           | quite expensive".
        
             | jlokier wrote:
             | If "that's going to be quite expensive" is a downer for
             | you, that's fine because you aren't the target audience. If
             | you saw the actual price you'd probably think "no way am I
             | paying that", so showing the price doesn't help the seller.
             | 
             | The target audience is companies that don't really care
             | about the price, as long as it's in some vague order of
             | magnitude they are used to paying for other things.
             | 
             | Also the price is usually not fixed if it's not listed. The
             | answer to "how much is it" is implicitly "who's asking and
             | what can you afford". I.e. it's negotiated, and
             | negotiations are much easier when the buying side doesn't
             | know what everyone else is paying.
        
             | magicalhippo wrote:
             | We have lots of small companies with 1-3 employees sending
             | a handful of messages a month, to big multi-national
             | corporations sending many thousands of messages a day.
             | 
             | For the big companies we're typically a crucial part of
             | their business and they typically require several
             | integrations and other specialized modules which have
             | upkeep. So we charge a bit more for the software. On the
             | other hand, they typically have a very high message volume
             | so they get a decent message volume discount.
             | 
             | For smaller companies the software is typically a bit
             | cheaper, but with a significantly higher per-message cost.
             | 
             | Then of course there's negotiation for each contract which
             | would make "web prices" rather moot anyway. Maybe a company
             | wants lower fixed cost but can accept a higher per-message
             | cost, as messages are often directly linked to their
             | revenue, or vice versa.
        
             | polote wrote:
             | In enterprise sales, the price is not the main decision
             | maker, you will usually only disclose the price at the end
             | of the sales cycle.
             | 
             | Not showing the price on the website is one way to push
             | people to contact you. You don't want people to decide on
             | their own if they should buy your product, you have a big
             | sales team to help them do that.
             | 
             | I've wrote about it here, if you are interested :
             | https://blog.luap.info/why-most-saas-companies-cant-be-
             | succe...
        
       | [deleted]
        
       | airnomad wrote:
       | I was on a call with their sales rep and he was awful. Even if I
       | told him what kind of volume we're looking at, the guy didn't
       | want to talk costs, over two meetings. Very poor experience.
       | Seems like they're designing pricing around how much money you
       | have.
        
       | harrisonjackson wrote:
       | My brother and I cofounded a company together. We're both
       | engineers and by far the hardest part has been learning sales.
       | We're not full-on nerd stereotype engineers who can't talk to
       | customers or network but a master's in comp-sci covers exactly
       | zero sales or marketing.
       | 
       | We finally embraced that we are not going to be the best at sales
       | or "always be closing" but the things we are really good at are
       | automation, experimenting, and iterating which has enabled us to
       | talk with more prospects and slowly improve conversion rates. In
       | non-sales speak that means we have more customers having more
       | success on our platform which is awesome.
       | 
       | We honestly believe we are offering something powerful to our
       | customers to change their lives. That belief doesn't put food on
       | the table though and shameless sales tactics like cold emailing,
       | LinkedIn messaging, Instagram DMing, etc DO. (though we are super
       | respectful and won't hound anyone that isn't interested)
       | 
       | I have a friend who works for transamerica selling financial
       | packages and recruiting other people to transamerica. His ability
       | to talk to anyone anywhere is constantly amazing and
       | embarrassing.
        
         | goatherders wrote:
         | I think there is some slant against "shameless sales tactics"
         | here because many HN'ers aren't in a position to recognize
         | exactly how valuable sales is. There are some well known and
         | well loved "tech companies" that grow to be 90% sales and
         | marketing and 10% engineering after they put their funding to
         | use. And for those here that arent familiar, quite often VC
         | money is meant for growth via sales and marketing, not via
         | hiring more engineers.
         | 
         | What's interesting is that if you do think what you are
         | providing is actually useful or meaningful, then there is
         | nothing shameless about promoting it directly to those that
         | might get use from it. And you promote it to people where they
         | are: in their inbox, DMs, LinkedIn, etc. (We actually get
         | tremendous results by supplementing cold email with phone
         | simply because people are so surprised that we went through the
         | trouble to call. But that's a discussion for another time.)
         | 
         | All that is to say that reaching out to people that might
         | benefit from what you offer isnt sleazy in the slightest and is
         | a practice as old as time itself. They will let you know if
         | they arent interested, usually by ignoring you. Doesnt mean you
         | should stop or feel bad about it.
         | 
         | Best of luck to you.
        
       | orasis wrote:
       | Beautiful. Thank you.
        
       | raghava wrote:
       | > The infrastructure used to run our Salesforce instance probably
       | costs somewhere on the order of $100 per month. Yet, they charge
       | us tens of thousands of dollars per month... how?
       | 
       | Not really. Unless the subscription is in tens of hundreds, that
       | benefit-of-volume is not possible. Even more so when the solution
       | involves bleeding edge stuff (AI/ML/real-time analytics etc).
       | Easy to say, very very very hard to even achieve decent margins
       | on such infrastructural cost. It's always a tradeoff between {
       | feature-richness, time-to-market } and cost-efficient SaaS. Only
       | the players who got a solid customer base would ever get to enjoy
       | that privilege.
       | 
       | > Though it's far down in the acronym, the identified pain is
       | really where you should start with the customer. You should be
       | able to answer in great detail why their life is currently
       | painful, and how they handle the problems you solve today.
       | 
       | There's a slippery slope. Any "solution" won't help, in the era
       | of "disruptive solutions". During the initial stages of
       | industrial revolution, cities were scared of all the horseshit
       | they thought they'd have to deal with. A 'con'sultant would've
       | typically come up with an efficient way to dispose off all that
       | manure into the sea. Only a mad scientist working on an
       | automobile somewhere ended up solving that poop of a problem
       | really. And in hindsight, every mildly lucky person would
       | consider themselves "disruptive" without actually having to be
       | one though. Such is our world! :D
       | 
       | [edit] just noticed that all comments in this thread that are
       | critical of the narrative are voted down. one is fine, all of
       | them?
        
         | ec109685 wrote:
         | The author was talking about the marginal cost of Salesforce
         | running their instance. If they stopped being a customer, it
         | would save Salesforce $100 in server costs, but Salesforce
         | would lose $10k's. That means, Salesforce needs to deliver that
         | much value to the customer in order to keep them. In addition,
         | they need to deliver that much value over any lower cost
         | competitors.
        
           | raghava wrote:
           | That's what am saying as well. Such thing works for SFDC. Not
           | for any ordinary B2B firm that's struggling to gain their
           | 10th/100th customer.
        
       | ThePhysicist wrote:
       | A rule I gave myself after running a company for several years is
       | that I never reply to incoming offers or sales pitches. In my
       | opinion it's very rare that someone really offers something that
       | my company needs at that exact moment, so most interactions
       | resulting from such offers will be a waste of my time. In the
       | past I reacted to such incoming offers, but I always regretted it
       | and usually burned some money and time as well. Now they only way
       | I pick suppliers is by sourcing them myself exactly when I need
       | something.
       | 
       | I think many executives / entrepreneurs have developed a similar
       | adversity towards incoming offers, and my own experience with
       | cold outbound selling seems to confirm this. I've contacted
       | hundreds of companies myself trying to sell our service, but the
       | only deals we closed so far were either with companies we already
       | knew via our network or ones that did actively seek out our
       | services themselves. It's of course possible that an experienced
       | sales person would be able to generate outbound interest, but as
       | a founder without much sales experience it is very tough. I
       | therefore think inbound sales is the future, at least in B2B.
        
         | Advaith wrote:
         | Thats an interesting perspective. Maybe narrow down the cold
         | outreach based on research such that you're sure your product
         | will fit into their stack?
         | 
         | It just seems hard to believe that cold outreach won't work for
         | SaaS
        
           | goatherders wrote:
           | I'm telling you flat out it works EXTREMELY well.
        
         | AndrewKemendo wrote:
         | Agreed.
         | 
         | Unsolicited inbound requests go into the spam folder without
         | looking.
         | 
         | Where things are getting bad now is with cold calls, LinkedIn,
         | Twitter etc messages. There isn't a channel that salespeople
         | aren't using. They'll come by the office or send you a letter.
         | If they can't get to you directly they'll go to your
         | subordinates or peers... It's neverending.
         | 
         | It's to the point where it's just exploiting the urge of
         | business managers and leaders to not be jerks.
        
         | tarsinge wrote:
         | I've been at a startup with strong sales people and it
         | definitely work to get clients, and pretty big ones. But the
         | catch is that they were selling at a higher level than the
         | operational teams, to not very technical buyers. Needless to
         | say the usage was then often disappointing.
        
         | stingraycharles wrote:
         | C-levels and other executives of large enterprises typically
         | approach companies like Gartner for this. As a SaaS startup,
         | we've been quite successful partnering with Gartner which
         | opened doors to us we otherwise would never be able to.
         | 
         | In general, I think it's better for a technology provider to
         | partner with organizations to handle this tough enterprise
         | sales process than to do it yourselves, but it depends upon
         | your market and organization (we're a database provider).
        
         | kristianc wrote:
         | > I think many executives / entrepreneurs have developed a
         | similar adversity towards incoming offers, and my own
         | experience with cold outbound selling seems to confirm this.
         | 
         | This article wouldn't disagree with you. When you're building
         | the product the trick is to build your product almost alongside
         | your first customers - invite them in and show them Figma
         | mockups and ask what would provide them value, and bring them
         | on the journey with you. Come with a compelling enough value
         | proposition and solve for a large enough pain point and you'll
         | absolutely get executives of at least SMEs on calls.
         | 
         | Once you have that first customer, the outbound motion becomes
         | a lot easier as you have references. It's easy to fall into an
         | 'if you build it they will come' attitude with inbound sales.
         | In truth it rarely works on its own. (Work in sales / marketing
         | for a large vertical SaaS)
        
           | ghaff wrote:
           | >When you're building the product the trick is to build your
           | product almost alongside your first customers
           | 
           | I agree with you up to a point. Real customer use cases are
           | important and good references are gold--both for getting
           | other customers and for getting onto some analyst radars.
           | However, it's important not to pivot towards building what a
           | customer wants so much that you basically end up being a
           | consulting company doing a bunch of one offs. (Assuming
           | that's not what you want of course.)
        
             | kristianc wrote:
             | Of course - you'd want to do validation with 4 or 5
             | companies, and identify common pain points, as well as
             | separating 'nice to haves' from 'table stakes'.
             | 
             | Usually by the time you've done 3 or 4 calls with customers
             | in a good target segment, you start to hear some common
             | themes again and again. As you say though, you have to
             | avoid the temptation to wrap yourself around the weird edge
             | cases of one customer (especially if that customer is a
             | 'big fish').
        
         | goatherders wrote:
         | Well said, and I appreciate your perspective.
         | 
         | I also 100% disagree.
         | 
         | Inbound is a waiting game. Referrals are a waiting game. And
         | hoping to be found at the right time by the right buyers ENOUGH
         | times puts external factorsnin charge of your business but just
         | thriving, but surviving.
         | 
         | My business exists precisely because we believe so strongly in
         | outbound as a strategy. But wherein you are right that random
         | cold outreach is distracting and a waste of time, outbounding
         | that is targeted well and focused on problem solving can be the
         | best ROI you have all year.
         | 
         | The difference, we have found, is between prospects who are
         | aware their businesses are imperfect AND are curious about
         | solving problems and prospects who know their businesses are
         | imperfect and willing to live with those imperfections until
         | such time they become intolerable. Those that choose the status
         | quo until such time that they choose to go looking, as you have
         | self-identified.
         | 
         | Candidly, there are a lot more of the latter than former but
         | there are still plenty of the former.
        
           | PopeDotNinja wrote:
           | Another way to say this is that if you wait for customers to
           | come to you, you are not in control of your own destiny.
        
           | katzgrau wrote:
           | Agreed. I use Hubspot as a model - stellar inbound strategy,
           | but still has a very strong outbound strategy too.
           | 
           | And tbh, the majority of sales I've ever made were from
           | outbound. Usually very targeted outbound where I had the
           | prospect more/less pre-qualified (after talking to lots of
           | prospects you develop an instinct)
           | 
           | Been in business for 8 years, dev turned sales
        
           | ThePhysicist wrote:
           | Maybe I just didn't get any good inbound requests so far
           | then. We're a small startup so I think we don't attract a lot
           | of outbound interest, this might be different for larger
           | companies of course. Taking time to learn about the specific
           | interests and needs of a small startup with little budget is
           | probably overkill, so we just get the "spray and pray"
           | treatment I guess.
           | 
           | Do you have a good strategy for identifying open-minded
           | companies that are willing to learn about new approaches?
        
             | kristianc wrote:
             | > Taking time to learn about the specific interests and
             | needs of a small startup with little budget is probably
             | overkill, so we just get the "spray and pray" treatment I
             | guess.
             | 
             | > Do you have a good strategy for identifying open-minded
             | companies that are willing to learn about new approaches?
             | 
             | The answer to both your questions is segmentation,
             | segmentation, segmentation.
             | 
             | The trick with segmentation is to find clusters of
             | companies who are likely to share like-minded problems,
             | hone your messaging and positioning to reach them (Basecamp
             | is a classic example of how to do this well, they have
             | always had a very clear idea of who Basecamp is for and who
             | it is not for), and then identify the _individuals_ within
             | those organizations who are most open to change.
             | 
             | Again, the temptation is to head straight to the C-suite -
             | this is usually a bad place to start. C-suites are time
             | poor, usually quite cynical about new software, and removed
             | from the problems of the people on the front line. Usually
             | better to start in middle-management with PMs, and arm them
             | to build a business case to take further up the org.
        
         | marcosdumay wrote:
         | > It's of course possible that an experienced sales person
         | would be able to generate outbound interest
         | 
         | I am at the receiving side of them, with currently no way to
         | escape. (Ouch!) But well, the strategies I see them using are:
         | 
         | 1 - If you see some large change on society (laws, tech, etc),
         | focus on solving the problem those bring. That way, everybody
         | will have the same problem at the same time, and you can pitch
         | for it.
         | 
         | 2 - Keep in contact until they need it. Maybe even try to help
         | your possible clients in solving the problems that make your
         | tool "not our largest problem today".
         | 
         | 3 - Have a portfolio. Discover what problems the client has
         | first, so you can decide what to sell second.
         | 
         | That said, I still didn't buy nor have seen anybody buy
         | anything from a company that approached us first. As I said,
         | those are techniques I see the experienced sales people using.
         | I didn't see them working, but I assume sometimes they do,
         | otherwise those people wouldn't have a job. Also, all of them
         | look very expensive in some way.
        
       | thinkingkong wrote:
       | Not sure why the negativity here. This is actually a great post
       | that sets up a high level framework for thinking about the
       | problem. Regardless of your personal experiences with Segment its
       | good advice.
        
       | xwdv wrote:
       | I wish I could even start a B2B startup, but I have zero
       | experience in any other industry beyond software, which pretty
       | much limits my possibilities to just making software tools.
       | 
       | God I wish I had knowledge in more domains.
        
         | pault wrote:
         | Isn't this the reason that non-technical founders are a thing?
        
         | thestepafter wrote:
         | Just start, you can read about starting all day long and doubt
         | yourself or you can start, today. Decide on your first step and
         | complete it, then choose your next step. You will have
         | sleepless nights and tearful days but once you start, you
         | learn. You don't have to have it all figured out or a plan,
         | just start in the general direction.
        
         | dreamer7 wrote:
         | Having experience in other domains would be great. But it is by
         | no means the only way to build successful companies.
         | 
         | You only need to have passion for a particular domain to then
         | engage with people who share your passion and also have more
         | experience in that field.
        
       | qnsi wrote:
       | Why is the CTO talking about selling? Dont mean to be harsh just
       | curious
        
         | rhizome wrote:
         | Because revenue is dependent on the "T" in "CTO."
        
         | neeleshs wrote:
         | I'm a CTO and I work closely with our CRO. In my experience,
         | being involved in the sales process is an eye opener for a CTO.
         | In early stage startups (heck, even in a billion dollar
         | company), a CTO cannot be disconnected from sales. This allows
         | help bridge gaps in product and how engineers think about
         | product features. It also makes the CTO leave their ivory tower
         | of technology and be more grounded to reality. I'll probably do
         | a blog post on my experience some day
        
         | bgilly wrote:
         | A good CTO is at least involved in the pre-sales process if not
         | the entire sales process of large deals. Especially when the
         | product being sold was built by the CTO's team. That's been my
         | experience anyways.
        
           | qnsi wrote:
           | Thank you for explaining! Makes a lot of sense
        
         | rdli wrote:
         | Every executive in a company at a minimum should have a general
         | understanding of other functions. If the CTO knows what selling
         | looks like, then the CTO can better assist the sales team.
         | Likewise, if the sales team understands how software
         | engineering works (at a very high level), they'll generally
         | understand that "getting a very complicated feature RIGHT NOW
         | for one deal" is ... not realistic.
         | 
         | etc.
        
         | goatherders wrote:
         | The CTO should start every program or problem by thinking "how
         | does this generate more revenue for the business?" And that
         | means thinking through a sales lens. I would want to work with
         | a CTO that DOESNT think about sales.
        
         | nickpinkston wrote:
         | I don't know, but I want more of them.
        
       | OlgaAgility wrote:
       | I love these drawing!
        
       | psaux wrote:
       | Know your customer, works well for me. I focus on Fortune 500 at
       | my job, and people forget to ask what the customer wants and go
       | straight into a sale. Meta: not sure about this blog, it is in
       | itself a sales page.
        
         | wrnr wrote:
         | A miserable sales page, I still don't know what Segment does,
         | something with analytics and apis?
        
           | psaux wrote:
           | I have no clue, always magic.
        
       | nojito wrote:
       | Segment is backed by a ginormous sales operation from its
       | multiple successful funding rounds.
       | 
       | This article is very fluff heavy and contains almost no
       | actionable insights.
        
       | AndrewKemendo wrote:
       | > At the end of the day, selling well means that you are helping
       | the customer actually understand their problem, and the path to
       | evaluate a solution.
       | 
       | Lipstick on a pig in 99% of cases.
       | 
       | I've been a CEO, CDO, a consultant, a middle manager and an IC.
       | Well functioning high output teams (in any sector of business)
       | almost never need a new tool/service to provide value. On the
       | flip side, poorly functioning teams are constantly chasing new
       | tools and processes as fixes to their broken organizations. So
       | the vast majority of sales are convincing broken organizations to
       | buy organizational nudges.
       | 
       | The single place where I am consistently happy to spend money is
       | on things that our organization cannot internally build that we
       | need to scale immediately. In the long run though, I want to
       | eliminate as many outside dependencies as possible, so my goal is
       | to either absorb you or build processes and systems that replace
       | your service.
        
         | [deleted]
        
         | tomnipotent wrote:
         | > Well functioning high output teams (in any sector of
         | business) almost never need a new tool/service to provide value
         | 
         | High output teams benefit as much, if not more, from new
         | tools/services than anyone else.
         | 
         | - Accounting is much more effective with an ERP
         | 
         | - Sales is much more effective with a CRM
         | 
         | - Engineering is much more effective with CI/CD
         | 
         | None of these things are necessary, but they make good people
         | even better.
        
         | thinkingkong wrote:
         | That advice only applies to a narrow set of functionality
         | within the organization though. It's usually not cost effective
         | or wise to write custom marketing systems if you can get one
         | off the shelf. Your teams turnover rate, documentation,
         | support, and feature creep all contribute to the maintenance of
         | that system. No way it makes sense in the short or long term
         | for non-core business functions.
        
         | polote wrote:
         | So no sales high output team needs a CRM ?
         | 
         | no engineering high output team needs a versioning tool ?
         | 
         | no designer high output team needs a design tool ?
         | 
         | High output teams _always_ need several tools
        
           | mikst wrote:
           | I think we picture "high output team" differently.
           | 
           | The way I see it, a "high output team" usually knows all the
           | tools in their respecive field, and knows 99% of them are
           | trash and this fundamental thing has to change before a
           | better tool becomes possible. Which in turn makes
           | conversations with salesmen mostly pointless.
           | 
           | On the other hand not a "high output team" don't know exactly
           | what they need and just chase hype.
        
           | rhizome wrote:
           | You're thinking in black and white. This is all hypotheticals
           | of course, but the teams you speak of probably already have
           | _something_ , but why should they switch to yours? What do
           | you even know about what they might already be using?
        
         | vladf wrote:
         | I think "vast majority of sales" is too cynical, though there's
         | undoubtedly some merit to your sentiment in certain cases.
         | 
         | I manage a high-output team, and we _love_ Mode. Could we write
         | our own connectors to our BI warehouse to extract tables into
         | pandas and jerry-rig streamlit to make our own Mode? Eh, maybe.
         | We actually did dumber versions of this in the past. But we can
         | stay lean by not having to worry about all the stuff Mode
         | worries about for us, like credentials, auto-updating, pushing
         | to slack, setting up a python environment? Absolutely, as long
         | as it makes financial sense.
         | 
         | Again, maybe we're just disagreeing about software being shitty
         | 99% of the time vs just 80% of the time. But I think my point
         | would be that it doesn't have to be a sophisticated tool to be
         | a pain point.
        
         | billyhoffman wrote:
         | I too have had those roles, starting my career as an IC, then a
         | middle Manager, then a consultant, then a CEO/founder, and now
         | a CTO. What I've focused on is how to help my teams and then my
         | company operate as efficiently as possible while spending our
         | resources where it benefits our customers the most.
         | 
         | Some examples of decisions I've made:
         | 
         | - IT/engineers won't spend time building and maintaining email
         | servers, we'll spend $5/month/employee on G Suite and use their
         | time on things that make our products more valuable
         | 
         | - We won't outsource support even though that would dollar for
         | dollar be more efficient, because understanding and building
         | empathy for the customer is more important
         | 
         | - no we won't spend money on email lists, but yes we will spend
         | money on tools that allows our outbound sales team to more
         | quickly determine prospects that fit our ideal customer profile
         | 
         | - bringing finance in-house much sooner than other people
         | recommended because being more efficient at Accounts
         | Receivable, Renewals, and thus cash flow allowed us to grow
         | faster than we otherwise would have
         | 
         | - paying for a third party SSO solution for our products and
         | instead using engineering time to build first class
         | integrations between our products and complementary products,
         | because having an artisanal SSO System doesn't benefit our
         | customers
        
           | mikst wrote:
           | > IT/engineers won't spend time building and maintaining
           | email servers, we'll spend $5/month/employee on G Suite and
           | use their time on things that make our products more valuable
           | 
           | In-house email servers are not constrained by the time to
           | build them, but rather by reputation/spam considerations.
           | Sorry, but that's a lucky guess ;-)
           | 
           | > paying for a third party SSO solution for our products and
           | instead using engineering time to build first class
           | integrations between our products and complementary products,
           | because having an artisanal SSO System doesn't benefit our
           | customers
           | 
           | That's one of vendorlockiest vendor lock out there, which is
           | a very YOLO decision.
           | 
           | The idea that buying stuff is more efficient then building it
           | yourself is at the cornerstone of the modern economic theory,
           | but that's only a theory. In the wilds there's much, much
           | more factors to consider then just comparing cost of building
           | versus cost of buying.
        
           | AndrewKemendo wrote:
           | I'd venture to guess that for the tools and services that you
           | buy, you weren't sold them, you sought them out and bought
           | them because you recognized a need to buy vs build. I'm not
           | saying don't buy things. I'm saying, if you're being
           | successfully sold to in this fashion then you likely have
           | more fundamental organizational problems.
           | 
           | My Dad told me something when I was little that stuck with
           | me:
           | 
           | "You never see ads for broccoli"
           | 
           | Of course while that's not strictly true (weekly grocery
           | flyer) his point was that, if you actually need something to
           | survive you'll figure out how to get it without having to be
           | sold to.
        
             | ScottFree wrote:
             | > if you actually need something to survive you'll figure
             | out how to get it without having to be sold to.
             | 
             | And if you don't know what you need to survive?
        
         | kristianc wrote:
         | > On the flip side, poorly functioning teams are constantly
         | chasing new tools and processes as fixes to their broken
         | organizations.
         | 
         | The data suggests otherwise. Historically the industries which
         | have the most broken and convoluted processes also have the
         | lowest investment in technology.
        
           | mikst wrote:
           | Could you share what kind of data points you use to describe
           | "broken and convoluted processes"?
        
       | ricardobeat wrote:
       | As someone who has been on the other side of the table as a
       | buyer, I'm not particularly fond of this advice. Especially when
       | the customer is the one who reached out. Time is valuable and
       | it's not feasible to have a close relationship with every vendor;
       | I'm buying a product because a need has been identified, your
       | product fits that need. Most likely I am _not_ looking for:
       | 
       | - consulting
       | 
       | - running a brainstorming session with a third-party
       | 
       | - learning something I don't already know about x/y/z
       | 
       | - sharing sensitive info such as success metrics
       | 
       | Sometimes you really want a hands-off, transactional
       | relationship, where the partner simply delivers what you paid
       | for, no more, no less. I understand this approach might be very
       | valuable for a certain kind, or stage, of company, but it won't
       | be ideal for every enterprise.
        
       | troquerre wrote:
       | Great post from Calvin. Every founder, even if they're the CTO,
       | should learn at least the basics of selling. Having the whole
       | team aligned on what moves the needle makes a huge difference.
       | It's not enough to offload thinking about selling to the CEO just
       | because it's not the CTO's primary responsibility.
        
         | ryanSrich wrote:
         | And if possible this is a great lesson for early employees, up
         | to maybe 50.
         | 
         | Having an engineer or PdM take 1 hour per week to jump on sales
         | calls and just listen is one of the best things they could be
         | doing early on.
        
       | golemiprague wrote:
       | This is basic stuff that everybody are doing, the most important
       | thing is to have people who are connected in the industry and are
       | likeable. People that your clients will want to go to a strip
       | club with, play golf or share a booth in a sporting event,
       | depends on their preferences.
       | 
       | In the B2B world, if you are doing anything valuable, there is
       | always some competition so you need to build good connection with
       | people so they pick you out of the many other options or give you
       | a chance if you are the first to do something, which is rare.
       | 
       | This is true also for software development, at the end of the day
       | it is not the methodology, if you have a good team of people they
       | will find the way.
        
       | brenden2 wrote:
       | Step 1: Get tons of VC money.
       | 
       | Step 2: Hire a big sales team.
       | 
       | Step 3: Be really good at marketing.
        
         | danieltillett wrote:
         | The process really goes 3, 1, 2.
        
       | dhruvsodumb wrote:
       | Calvin is a monkey man
        
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