The Wisdom Wall

“So if you had to choose between having an A plus AI tech talent team with millions of records of data, and you were going against a mediocre AI tech talent team with trillions of data, of data that the startup wins. And that starts to make sense with the diminishing returns of that data.”

“if I'm gonna build my MVP, I'm gonna build it with the startup tech community. That's, like, scary for me to say, because the startup tech by itself, as an, that, that has a high failure rate, so you're gonna have a lot of churn, but it's just where you're gonna have the quickest bang for your buck to build the models,…”

“I personally believe the number one failure reason for startups is they, they choose the wrong time to scale and they choose to scale at the wrong pace.”

“a lot of research has shown That the success of a customer in retaining and expanding has a lot more to do with the sales process than the onboarding process.”

“The minute you start designing your PLG funnel with cannibalization in mind, you're cooked. Cause someone else is gonna cannibalize you.”

“We're using a sales comp plan that was invented in the 19 eighties, and it's causing our customers to utilize their licenses at a lower rate, and it's causing revenue contraction.”

“don't work on sustainable moat, in my opinion, at Series A, but around Series B and Series C, build the moat. Know what it is. Build the moat, and sometimes it comes at the expense of growth, and that's ok.”

“I have product market fit when I have a million in revenue. I could not disagree more. That's market message fit. Congratulations. You know how to sell. Doesn't mean your product works.”

“I like 10 to 20 I feel good about. Um, 10%, lower than 10% I'm probably being too soft. I'm just not that good at hiring. Just not that good at hiring. And I can push my folks more. Um, 20 to 25, I'm like, my business still works. North of 25, I'm like, my culture's gonna suck, and my spreadsheets start gonna look…”

“when you're two engineering-based founders bringing in that first salesperson, geez, that guy showed up at Oracle or Salesforce or wherever it was. He went through a month of training how to handle the top 20 objections. That process is not built. And if you don't have the background in sales, he's gonna do 50 calls…”

“certainly iterative technologies, just embedding an AI in the workflows we do today. That's not the answer. That's not the disruption.”

“if you want to stack the deck in your favor, choose use cases as an entrepreneur where the big company incumbents don't have the data. That'll stack the deck in your favor.”

“I might argue that if you can get people to stick and continue to use your product, you will figure out the scalable user acquisition model, and you will figure out the monetization model.”

“And what happens if you put your growth team in marketing is you won't have any engineers. I've never had met an engineer whose career goal was to work in marketing. Like, no offense, right? It's just, like, not what they want to do. And so, if you have your growth team, which a lot of these PLG companies put them in…”

“The growth rate of your growth funnel, whether you measure that as users or M or MAUs or PQLs, product qualified leads, that has to grow faster than your sales headcount.”

“We are still paying our salespeople more for the first revenue from a company and less or nothing at all for expansion revenue. Beautiful comp plan design for the 19 seventies. Terrible comp plan design for PLG.”

“I personally like putting it here if we can. Because the end user is not going to care if the executives have to pay to make this secure, or to get the dashboard that they, so they can know more about their business, or to integrate it with their tech stack. It doesn't stand in the way of the power user.”

“the better they are on the team, the higher rank they are as a sales rep, the worse manager they are. We've known this forever. Your top rep does not make your top manager. It does not always make a good manager. In fact, the stats show it mostly fails.”

“Because most companies out there deciding if we're scaling too fast or too slow are looking at the quarterly P&L at the board meeting, and the quarterly P&L is what happened nine months ago.”

“Can we have them still carry a quota and coach the people? Disaster, right? Because then they're constantly torn between developing the people or hitting their number, and they can't do it, and one of them suffers, and guess what it is? It's developing the people.”

“salespeople will, um, always find the, the path of least resistance to get to their number, and when you give someone a taste of inbound leads, and then you force them to cold call too, they're, it's, they're really gonna struggle to pick up the phone.”

“what I've seen companies experimenting with that I like is to almost redefine the sales manager role where a traditional inside sales manager might have like eight or 10 reps under them and instead have a sales manager that has six reps under them Plus four BDRs, plus one or two customer success people that reports to…”

“the reason it probably didn't work is there needs to be a low time and effort to value use case, and Lattice is like an operating system. It's not something like a single person is going to download and start using it, like a Dropbox or a Calendly”

“when we walk into organizations, and you have five salespeople, and all those salespeople are selling 3000 dollar ACV deals, and a 100,000 dollar ACV deals, that's not gonna work. Like, usually sellers are tuned for one way or the other”

“When you're like a director of sales, and you're in the sales org, you're living sales all day, you're with the sales team, you're just thinking about sales, but once you become CRO, You're going to get into trouble if you see your role on the senior leadership team to represent the needs of your people. You're going…”

“Don't wait till January to build your bottoms up plan. Cause you'll realize that you should have hired four reps in Q four to hit your 20, 24 plan. Please start your annual planning process on October first so you can hit your 20, 24 number.”

“And we see a pretty big gap between the average median B to B PLG growth team, and what these teams are doing.”

“That's what I actually see, is I see a lot of B to B growth teams and PLG companies focus on the monetization, but these folks that we studied focused on the free user retention.”

“They don't put, like, marketing in charge of free user acquisition and product in charge of monetization and retention. They put them all working on the North Star metric today because if you don't, you're gonna end up with local maximums.”

“Because it's really hard, just like it was hard to be an on-premise software company and move to SaaS, it's really hard to be a non-PLG sales led growth, growth company, and move to PLG.”

“The sales cycles go up, the close rates go down, and the one that we don't pick up on is our disruption risk goes way up.”

“It works for a couple quarters because you're the only player in the, in the, in the category, but you are a ripe target for a bunch of hotshot engineers here in Silicon Valley to rebuild your product and charge half the price. So be careful about raising your prices unless you have a sustainable moat.”

“And I'll tell you, it's not because of product features. It's not because of your support hotline. It's not because of how much you raised twenty million bucks. It's not because of the integrations you built.”

“I believe that we have to tackle our customer retention and success first, then focus on unit economics, not do them at the same time.”

“Because if they continued to perform, but the business was falling apart, that's gonna rule out, um, you know, uh, mark shifts in the market, probably shifts in the product, shifts in the competitive landscape, and it's gonna tell me, and probably even lead quality, and it probably is more of an issue with my hiring…”

“the great coaches and sales managers can see the 20 things, but isolate it down to the one or two that will make the biggest difference in that sales person's development and, and actually start to make some traction, right?”

“So, I really challenge folks, and I wish we thought about this at HubSpot in the early days, to think about customer success, then unit economics, and then growth.”

“And as we grew to this stage, I found that the definition of an ideal customer was changing Depending on the group that you are in. Like the marketing team, like, oh yeah, the people we love to sell to, they're the people that are easy to get to fill out a landing page. Right? The sales people are like, oh yeah, the…”