How do you spot a shit show company before itโ€™s too late? ๐Ÿšฉ

Here are 4 red flags Iโ€™ve run into during interviews or at past jobs:


  • Unrealistic expectations: For an AI outbound role, they wanted to replace 3 BDRs, each with a 30-meetings-per-month goal, going after Fortune 500s. Soโ€ฆ 90 meetings a month? Seriously? At that rate, weโ€™d cover every Fortune 500 in under 6 months.
  • High turnover w/ no real plan: Worked at a place that overhired a sales team without building enough pipeline to support everyone. Not enough demos or booked meetings to go around, and instead of fixing the pipeline, they just kept firing people and calling it โ€œperformance issues.โ€ Pipelineโ€™s still a mess, and theyโ€™re still churning through reps.
  • Lies during the hiring process: The CEO told me SDRs had โ€œleft the company.โ€ Turns out, he fired them.
  • Cheap Commission on High ACV: SDRs paid $10 per meeting on a $39k ACV, with capped commissions.


What red flags do you look for to avoid getting stuck in a sinking ship?

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๐Ÿ‘ฅ Hiring
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22
jefe
Arsonist
4
๐Ÿ
These are good ones. I'd also add the following:

- Constantly moving goalposts
- Leaders actions and words are mismatched
TheSDR
Fire Starter
2
SDR Leader
One thing I canโ€™t stand: leaders saying โ€œwe parted waysโ€ when they actually fired someone. Saw it happen a few times at a past job.
jefe
Arsonist
3
๐Ÿ
I hear you. Just own it.
Revenue_Rambo
Politicker
3
Bad MFer
Sadly Iโ€™ve heard of companies showing all 4 of these flags
TheSDR
Fire Starter
2
SDR Leader
Yep, heard someone say they had all 4 of those at a fintech company.
CadenceCombat
Tycoon
3
Account Executive
If youโ€™re being made to feel like your lack of quota attainment is only attributable to your individual performance despite most reps not reaching quota, youโ€™re working in a toxic meat grinder.
Justatitle
Tycoon
2
Account Executive
Gut feeling, most often that is the most assured way
TheSDR
Fire Starter
2
SDR Leader
Totally agree. One time, I said no to a company just on this.
Gasty
Notable Contributor
2
War Room Community Manager
Gut feeling and tons of research!
Kosta_Konfucius
Politicker
2
ERP Sales
Back channel and meet with people who have left
TheSDR
Fire Starter
1
SDR Leader
Exactly. People who leave either found something better or got firedโ€”and theyโ€™re not just going to share the good stuff.
medhardwaredr
Politicker
2
Director of Sales NA
If your hiring manager is fidgety and canโ€™t sit still itโ€™s a sign of stress and hard times to come. Keep an eye on the body language, itโ€™s often over looked
MRK47
Tycoon
1
VP of International Sales
You've covered the main ones...and as others have said, gut feeling / intuition.

Would also look at :

# lack of internal promotion track / limited SDR>AE>Manager> progression # lack of engagement across socials and organic / paid search efforts - in your example, targeting Fortune500 so would expect there to be a pretty sophisticated marketing / brand awareness machine in place to support outbound motion. # Lack of owning mistakes - in your example, SDRs left or were fired...what have they learnt from that and how are they planning to improve retention etc. If limited awareness / introspection, red flag.

Some others I have faced recently.....confusion with lines of reporting (who the role will report into)....unrealistic expectations (looking for +30% growth but no meaningful plans to change resource allocation or headcount to support the scaling motion)....most recent one (founder led) stated he did not really believe in digital marketing and felt 40% growth was a conservative expectation without it.
CuriousFox
WR Officer
1
๐ŸฆŠ
Oof those are baaaaaaad
ThePiedPIPr
Executive
1
Enterprise Sales Executive
This is a great list. If you donโ€™t have a job and you get an offer from a company with these red flags, it is hard to pass on any opportunity, but if they have flags like this, it is worth it to avoid them.
SafetyKnight
Tycoon
1
Account Executive
Could always go to RepVue - salespeople can rate their companies on it.
F5onrepeat
Politicker
0
Sales minion
RepVue
FoodForSales
Politicker
0
AE
all are solid
LMachine
Tycoon
0
Sr. BDR
Old leads are given to you as "HOT, NEW LEADS," with the prospect telling you: "I told the last person from your company not to..."
pyouenou
0
CRO (Chief Revenue Officer)
The spread between commission and ACV is the clearest one IMO.
It either demonstrate that the commission structure is not set correctly or that there is terrible unit economics in the end for the company overall.
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