Insight
Degnan: Marketing teams should treat sales as their customer
“I think it's really important. To have this really close relationship between sales and marketing and for marketing to treat sales as their customer.”
Assertion Not checkable as stated
Snowflake CMO Denise Pearson eliminated MQLs to focus on qualified meetings
“Denise came in and she said, we're not going to talk about MQLs or SQLs or anything like that. We're just going to talk about qualified meetings.”
Insight
Degnan: Founders should lead early sales but transition to building moats
“Founder led sales is great. I think founder led sales should always happen, especially when you're innovating on your product and you're learning. So I'm a huge fan of the founders being a part of the sales process, but ultimately I want the founders building …”
Insight
Degnan: Founders without GTM experience should add sales leaders as advisors
“The advice I would give to these founders is go find a sales leader that you like and put them on your board, or at least have them as an advisor.”
Insight
Sales productivity means closing $250k quarterly ACV within six months
“The ultimate measuring stick for a head of sales is can you hire great people and make them productive? And to me, productive means within six months, can a sales rep get onboarded Understand how to sell the product, generate their own pipeline, and then close…”
Disclosure
Degnan: Target was eight face-to-face sales meetings weekly at Snowflake
“When I started at Snowflake, I went on eight face-to-face meetings a week, and there were weeks that I couldn't get eight face-to-face, and then the accountability was, I would send out emails to the entire company around my previous week's efforts, and someti…”
Insight
Founders should require heads of sales to send weekly activity emails
“Every week have your head of sales, send out an email of what they did. Now, if it, if you have too big of a company, then send it just to the leadership team, but let them know like, Hey, this is what I did this week, because then all of a sudden you can star…”
Insight
Degnan: Sharing customer friction with engineers drives better product features
“And that transparency that I had around what I was doing, and they, I developed credibility with them, even though sometimes what I said was not always right, because I'm not this database expert, it made, made this relationship with these engineers strong, an…”
Opinion
Degnan: Field marketing events are top lead generation tools
“To this day, I do think that the field marketing events are probably some of the best ways to meet people and some of the best lead generation tools out there.”
Opinion
Degnan: Outbound sales isn't dead and sales leaders must execute it
“But people who say outbound is dead, I, no, I don't want you as my sales leader.”
Insight
Startups under $50M ARR should not waste capital on brand marketing
“I'm like, that's the most idiotic thing I've ever heard in my entire life, because who gives a crap about your brand when you're fifty million dollars in revenue?”
What-if
Degnan: Skip-Level Frontline Meetings Prevent Bad Middle Management Behavior
“Now, in reality, what I should have done is I should have spent more energy going down to the front lines asking the hard questions on a regular basis. And if I had done that, I would have caught some of these bad behaviors.”
Opinion
Chris Degnan: Former Snowflake Employees Falsely Attribute Company Success to Themselves
“There are people that worked at Snowflake that on the inverse thought it was The company was successful because of them, which was not, never the case. Never.”
Opinion
Degnan: Unclear whether fast-scaling AI startups have sustainable revenue
“In these AI worlds, what I'm not clear on is if these AI companies, if they have sustainable revenue.”
Assertion Not checkable as stated
Degnan: Snowflake inside sales reps fully ramped in three months
“So, so for example, at snowflake, we could do that with our inside sales team. We could get them up and running and quota carrying and successful in three months because the sales cycles were three months”
Insight
Degnan: Sales rep productivity is determined by sales cycle length
“Just look at how long your sales cycle is. How long does it take you to close one deal? And that's what you look at is how long does it take to open up a new pipeline opportunity and then bring it to closure. That's really what productivity is.”
Prediction Not checkable as stated
Degnan: AI boom will cause giant failures and wasted capital
“There will be companies that are real that come out of this. There will be a lot of giant failures. There'll be money flushed down the toilet on stupid companies.”
Opinion
Former Snowflake CRO Chris Degnan calls Salesforce a terrible product
“Cause God, what a terrible product that is. It is awful.”
Disclosure
Snowflake CRO Chris Degnan generated zero revenue in his first two years
“The zero to three. Because for the first two years, I didn't get any revenue, and as a salesperson, who you are, is like, you're supposed to bring revenue to the company”
Assertion Supported
Snowflake paused sales hiring for six months to replace MySQL with FoundationDB
“And we had MySQL as the metadata store, and it was just puking on itself. And so they had to take that and bring in a new thing called FoundationDB to do that. And doing that was a six-month project.”
Insight
Founders should hire sales leaders who succeeded selling mediocre products
“When I'm talking to founders, like when they're looking for heads of sales, what I say is go find that someone, A, who's, who's been a second line manager or B, a head of sales at a crappy software company. And that's been successful. That's hit their numbers.…”
Opinion
Degnan: Salespeople at tailwind companies like Anthropic miss out on selling skills
“What happens when you're working at Anthropic, for example, my guess is you're not really learning how to competitively knife fight in a sale.”
Opinion
Degnan: Startups that reject traditional sales methods will get beaten by competitors
“There are companies that I've spoken to that I'm like blown away that they don't even believe in traditional sales and they're idiots. They're literally idiots. They drive me crazy because like, oh, we're different. And I'm like, no, you're not different. Some…”
Insight
Degnan: First-time sales hires learn nothing at early startups
“If you've never done sales and you come into a startup, you're not learning anything. There's no one teaching. The founder doesn't know how to do sales”
Assertion Not checkable as stated
Chris Degnan: Snowflake struggled with employee entitlement around office returns
“Coming back from COVID, it was hard to get people to back, back into the offices at Snowflake. And they're like entitled about it.”
Opinion
Chris Degnan: MongoDB and Wiz built world-class sales organizations
“Yeah, I look at companies like MongoDB, companies like Wiz, or, you know, Dolly Rogic, you know, or Cedric Pesh. Those guys built world-class sales organizations. They developed those people. There's grind in a lot of those young people that they've developed.…”
Assertion Contradicted
Snowflake achieved a 177% net revenue retention rate at IPO
“Snowflake had this ridiculous net retention rate of 177% when we were going public. Yeah, that was our net retention rate.”
Disclosure
Snowflake neglected new customer acquisition for two years while optimizing for IPO
“And so we took our eye off the ball for, I want to say, like two years on new logo acquisition, and that hurt us.”
Assertion Supported
Databricks has double Snowflake's headcount but generates less revenue
“Look at Databricks. Their sales team is, they're less revenue than Snowflake. Their sales team is twice the size of Snowflake. Their engineering team is twice the size of the engineering team.”
Disclosure
Databricks outbid Snowflake for startup acquisitions by two to three times
“They buy companies that Snowflake Has had term sheets on for three times or two times the amount of money that Snowflake is offering to buy the companies for, because there's no consequence.”
Assertion Supported
Degnan: Databricks grows faster than Snowflake despite lower total revenue
“They're, they are growing faster. They are behind Snowflake, but they are growing faster than Snowflake.”
Assertion Supported
Degnan: Snowflake grows 30% year-over-year at scale
“Snowflake's still growing at 30% year over year at billions of dollars in revenue.”
Opinion
Former Snowflake CRO calls Databricks CEO Ali Ghodsi a dick and liar
“I, you know, I strongly dislike the CEO of Databricks, but I think Mike, cause he's a dick and he's a liar, but you know, I look, I think at the end of the day, if I, if I'm honest about it, I think the two companies as a combined entity, that would be a amazi…”
Opinion
Degnan: Snowflake and Databricks are complementary, not direct competitors
“They're a pretty dominant, in terms of the data estate, Snowflake and Databricks own the data estate together. And they're complementary for the most part, not, not really competitive.”
What-if
Snowflake could have killed Databricks by building a notebook and Spark connector
“I would just would have hired more salespeople and focused on new logo acquisition and pounded on product to give me a notebook and a spark connector, and we would have kicked the shit out of Databricks and they would be dead.”
Disclosure
Snowflake Fired Second-Line Managers Who Couldn't Pitch the Product
“So we have fired managers last year. I went through a certification of second line managers and we fired people because they couldn't sell the product.”
Insight
Degnan: Enterprise sales reps need eight face-to-face meetings weekly to avoid failure
“If you don't generate your own pipeline, if you don't go on eight face-to-face meetings a week, You're probably gonna fail.”
Assertion Not checkable as stated
A single feature flip made Snowflake 10x cheaper than competitor Qubole
“We turn it on, and we went from being like, five X more expensive to 10 X less expensive by just flipping that switch.”
Insight
Degnan: Exclusive enterprise whale hunting creates revenue volatility that gets sales leaders fired
“I hate whale hunting only. And the reason I hate whale hunting only as a sales leader is it's too spiky. And spikes get you fired. Spikes on one end are great, but if you miss a quarter, guess what? The head of sales, you're fired.”
Insight
Degnan: Mid-market sales failures are inconsequential compared to burning Fortune 100 prospects
“You can fail, like, you can fail in the mid-market a bunch, and then not be super consequential. If you fail in the, you know, Fortune 100, Good luck getting another, another chance.”
Assertion Supported
Degnan: Snowflake initially sold exclusively to ad tech and gaming companies
“And that's what we did is we were only selling to ad tech companies and online gaming companies in the beginning. And that's where we failed and broke the product and learned a lot. And then we were ready for prime time.”
Assertion Not checkable as stated
Nike performed a blind reference check on Snowflake with Nielsen
“We won Nielsen Marketing Cloud and we were trying to sell it to Nike. And Nike was like, who the hell is this little company with a weird name called Snowflake? And what Nike's decision makers did is they cold called the Nielsen marketing team without our know…”
Disclosure
Snowflake eliminated its dedicated Customer Success department entirely
“And so I got rid of customer success. Now, customer success is a responsibility of the entire company.”
Insight
Degnan: Enterprise clients value paid services far more than free ones
“What I found was that people would actually, if they pay for something, even if you're splitting the cost of it with the customer, a lot of times when they pay for something versus get something for free, they value it more.”
Insight
Degnan: Post-sale services teams must operate at least breakeven
“And so, to me, whether you call it customer success or professional services, you have to show that they can at least be breakeven, those people. If they're a cost of sale, then I think they're, it's not worthwhile.”
Opinion
Technical Customer Success reps must be implementation engineers, not renewal takers
“And in a technical product, if they're customer success, they need to be implementation people. They should not be like these like crappy salespeople that don't know how to sell and do just do renewals. I hate that function.”
Insight
Degnan: Forward-deployed engineer models do not scale in mid-market software
“For the high end of the market, it works well. Palantir shows that. For the mid-market, it is not a scalable business.”
Prediction Not checkable as stated
Seat-based software pricing is dead and consumption is the future
“Yeah, I think that's dead. I think consumption is, is the future for sure.”
Assertion Supported
Chris Degnan: Snowflake operated with only one SKU, a credit
“Snowflake had one skew, a credit, and so we had to measure use cases, and use case wins that have no purchase order.”
Disclosure
Former Snowflake CRO admits making more money made him a worse leader
“Worse. Because I don't want to do the hard things. When I say the hard things for a CRO is when you're five hundred million dollars, billion dollars in revenue, getting on a plane and traveling around the world, going on two week trips away from your family.”
Insight
Degnan: Nothing replaces in-person field visits for managing regional sales
“Zoom does not tell you what's happening in an office. You don't know if you have a tyrant running a country for you unless you're there. And you're going and having coffee with someone, you're having breakfast with someone, you're having dinner with them, a be…”
Insight
Degnan: Product-led growth fails alone in enterprise sales
“So PLG is great, but if you want to sell to the enterprise is hyper-political, and you have to have a sales process to do that. And at some point, The PLG motion will fail you, or it won't get you to that, that large enterprise. And if you aspire to sell the l…”
Assertion Not checkable as stated
Degnan: OpenAI has undoubtedly won the consumer AI market
“Well, it certainly looks like open AI has won the consumer. And I think it's like, Not even debatable.”
Opinion
Degnan: Databricks CEO Ali Ghodsi's noisy strategy works
“Ali at Databricks, he shouts pretty loud and he's done a good job, and I don't necessarily agree about how he goes about doing things, but It's worked for Databricks.”
Prediction Not checkable as stated
Degnan: AI will replace telemarketers and call centers, but not field sales teams
“I think there will be like telemarketers, like that will get replaced, you know, for sure. You know, like when, if I'm getting a call from my cable provider on upselling me on a new, you know, wireless plan or something like that. I think that those types of t…”
Opinion
Salesforce salespeople are terrible hires because they are just order takers
“Salesforce. Terrible. Terrible. Because they have no idea how to sell. They, they're order takers. To your point earlier is they don't, if you go to a place that's just an order taker, they'd have no idea how to do it. They have no idea how to sell.”