20Sales: The Biggest Sales Lessons Scaling Brex to $400M ARR, Why Startups are Doing Outbound Wrong and How to Fix It & Why Demand Gen is the Bottleneck for all Startups and How to Solve it with Sam Blond, Former CRO @ Brex
Apr 12, 2024
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Sam Blond, former CRO at Brex, shares lessons on scaling to $400M ARR, hiring sales reps, and measuring team success. Tips on picking the right rocketship, founder's role in sales playbook creation, and criteria for hiring top sales talent. Emphasis on creating opportunities for sales growth, AI in outbound sales, and innovative marketing strategies. Strategic mistakes in business decisions and importance of hard work ethic in sales.
Startups should prioritize hiring sales reps with experience in early stage environments for success.
Building effective sales teams involves hiring individual contributors first, setting clear success metrics, and hiring experienced sales leaders.
Identifying the bottleneck to growth in startups lies in opportunity creation, focusing on generating quality leads for scalable growth.
Deep dives
The Importance of Early Sales Stage Experience
Hiring sales representatives with prior experience in early stage startups is crucial for success. Building a team with a track record in such environments ensures they can adapt to the unique challenges and demands of a startup setting. Candidates who have excelled in startup sales roles demonstrate a natural fit and aptitude for sales in this dynamic environment.
Strategic Sales Team Build-Out
Building an effective sales team involves a methodical approach, starting with hiring individual contributor account executives before expanding the team. Setting clear success metrics for sales hires, such as revenue generation and team performance, alongside hiring experienced sales leaders help in creating a cohesive and productive sales environment. Specializing roles, like hiring Sales Development Representatives (SDRs), occurs after establishing a strong foundation with successful sales leaders.
Prioritizing Opportunity Creation Over Conversion Rates
Identifying the bottleneck to growth in startups often lies in opportunity creation rather than conversion rates. Focusing on generating a higher volume of quality leads enables scalable sales growth. Aligning resources towards demand generation and creating new opportunities allows for quicker scaling and revenue generation compared to solely improving conversion rates. Addressing this fundamental bottleneck early on optimizes sales effectiveness and accelerates growth trajectories for startups.
Importance of Targeting Specific Customer Segments
Focusing on concentric circles in targeting customers, starting with personal networks, investor networks, employee networks, and expanding to customer referrals. By narrowing down the target audience based on proximity to the business and leveraging existing networks, companies like Brex have successfully gained brand recognition and customer loyalty, gradually expanding their outreach to larger companies.
Innovative and Contrarian Sales Tactics
Emphasizing the need for creative and unconventional sales strategies, such as sending personalized gifts like champagne bottles or leveraging unique offline initiatives like billboards and onboarding incentives. Highlighting the importance of standing out in a crowded market through inventive campaigns to capture attention and drive engagement, ensuring a competitive edge and brand differentiation in sales efforts.
Sam Blond is the former CRO at Brex, where he led the company from near $0-$400M in ARR and a $12.5B valuation. Before Brex, Sam was VP of Sales at Zenefits, where he led the company from $0-$70M ARR in 2 years and a $4.5B valuation. Sam joined Founders Fund as a Partner in 2022 and recently left to focus more on operating.
In Today's Episode with Sam Blond We Discuss:
1. Lessons From Scaling Brex to $400M ARR & Zenefits to $70M ARR:
What are the secrets that very few people know, that led to the success of Brex and Zenefits?
What was the single worst sales investment Brex made? What was the best?
What are Sam's biggest tips to people picking the rocketship they will join?
2. Who, What and When to Hire:
When is the right time to hire your first sales rep?
Should the founder be the one to create the sales playbook?
What is the right profile for the first sales hire?
Does it matter if the new hire has domain experience?
Why does Sam always advocate to hire through network and not recruiters?
3. How to Hire the Best Sales Reps:
What are the questions Sam always asks in interviews with sales hires?
Does Sam do case studies with candidates? What is he looking for?
What are the biggest green and red flags a candidate can show in an interview process?
What are the biggest mistakes founders make when hiring sales teams?
4. How to Have the Best Performing Sales Team:
What are the three ways to measure the success of a rep in the first 30-60 days?
Why does Sam believe most startups are doing outbound wrong? What should they change?
Why does Sam believe demand gen is the bottleneck for all companies?
What can be done to solve the demand gen challenge?
How does outbound change in a world of AI?
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