The Official SaaStr Podcast: SaaS | Founders | Investors

SaaStr 119: The Sales Mistakes That Can Kill Your Startup & How To Avoid Them with Mark Roberge, Former CRO @ Hubspot & Michele Law, Former COO @ OpenDNS

May 5, 2017
Mark Roberge, former CRO of Hubspot, and Michele Law, former COO of OpenDNS, discuss the dangers of premature growth for startups. They share insights on the right time to focus on growth, assessing core components, and the profile of the first sales hire. The podcast also explores topics such as scaling sales teams, sales compensation plans, and aligning marketing, sales, and customer success.
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ANECDOTE

Premature Growth Pitfall Example

  • Michelle Law shared a story of a startup that jumped into revenue growth prematurely and failed to grow despite hiring a sales team and executive VP of sales.
  • The product wasn't ready, sales blamed the product, and product blamed sales; it was a classic mistake of not understanding the company's current phase.
ADVICE

Know Your Growth Phase

  • Founders must clearly identify their company's growth phase: product market fit, preparing to scale, and growth.
  • Focus on finding a repeatable, predictable sales model before hiring a sales team or scaling aggressively.
ADVICE

Prioritize Customer Success First

  • Focus first on customer success, then unit economics, and only then growth when scaling a startup.
  • Ensure your customers love and rely on your product before hiring aggressively and optimizing sales economics.
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