Moving from SMB to enterprise with Sharon Magen
March 5, 2019
Even as a small company (of about 10) they have weekly meetings with everyone to discuss what the prospects are saying so that they can all learn, provide feedback to each other and improve.
Had a monthly churn of around 12% and MRR around $30k when they decided to hire their first sales person. That person needed to effectively pay for herself so after running the numbers they saw that a salesperson would cost between 8-12% of what they should bring in and they hired someone.
When looking to hire his first sales manager, he looked for a great salesperson that showed interest in management or had a little experience before. He did not want someone who has been in management a long time as they needed to sell at the beginning as well and needed to be able to train the team on sales.
He has about a 50% success rate with hiring. This means that he has to fire (or they leave) 50% of the people he hires. This can be because of work ethics, skills, getting along with the others, etc.
They moved more towards selling to enterprise after meeting a consultant that was selling what they sold for 10’s of thousands a year vs. their thousands of dollars a year.
For their first enterprise sales person, they were looking for someone with experience in closing 100k USD deals and up.
To create the comp plan, they looked at two factors; 1) How much they wanted to pay the sales person competitively and 2) How much revenue could the person potentially bring. They then looked to see if the margins are there (typically employee cost should be around 10% of what they can bring).
What is your favorite sales or leadership book? Spin Selling
Do you have someone that you follow/read for sales/leadership ideas? People locally.
Are you available 24/7? Do you have strict personal time boundaries? 24/7 if its an emergency
What is your favorite tool used for sales? Monday.com - not really for sales but enjoys working with it. Used to be Salesforce
What one piece of advice do you have for all the founders/CEOs/VP Sales out there? Put in place hiring processes to bring in great employees.
Sharon's LinkedIn: https://www.linkedin.com/in/sharonmagen/
Adam’s LinkedIn: https://www.linkedin.com/in/springeradam/