This morning I met with a startup in town that recently closed their Series A round and was getting ready to ramp up their sales and marketing. We talked about a number of different aspects of building a SaaS company focused on the small-to-medium sized business market.
Here are few takeaways from the conversation:
- Once you charge more than $100/month an inside sales team becomes necessary as people are much less likely to do a self-service credit card checkout process.
- Pricing a product between $100/month and $500/month is usually no-mans land unless you have a really short sales cycle because prospects will require the same amount of sales engagement whether they are spending $200/month or $500/month.
- Pricing should follow Occam’s Razor where the all things being equal, the simplest solution is best.
- A two-tiered sales process with sales development reps and junior/senior inside sales reps works well to develop a farm system of sales reps and specialties.
- Having more $30k base/$80k on target earning sales reps than the comparable expense with $75k base/$150k on target earning reps is better due to sheer number of activities involved to close a deal over the phone.
- Writing skills are critical for today’s email-heavy selling environment and a written essay as part of the hiring process goes a long ways.
The inside sales process requires a completely different approach when compared to the traditional enterprise software sales model. My recommendation is to follow these best practices as part of the sales strategy for SMB SaaS startups.
What else? What are some other components of the sales strategy for SMB SaaS startups?