Nairobi

Is this normal for a startup or am I on a stalled ship?

I've been working at a startup for 2 months, and I'm realizing this is not the rocket ship I was told about during my interviews.

Prospects are curious about our product, but nobody buys. In the 20 demos I've set since I got there, no customers said that they were interested in buying. All they say is that the product is cool & unique and that it could be in their tools for 2022.

I looked at the company's history, and they have met 177 companies and got 3 customers. Is this normal for Enterprise SaaS sales or something is wrong? They've been in business for 3 years now.

☁️ Software Tech

🧠 Advice

64 comments

Sort by:

braintank

Politicker

Enterprise Account Executive

Every failed startup I sold for had a "cool" product. Cool doesn't pay the bills.

Sgt_Trollingham

Valued Contributor

Business Development Director

Sounds like this company is in dire need of a CRO or other senior sales leader. The process should be structured, measured, and adaptable. Every quarter the data should be looked at and conversions optimized.

Can I ask what happens to leads when they say they are not interested? The need to drive urgency is one part, but the other will be to keep leads interested and work them through a slower sales cycle.

Lastly, the data set of 177 meetings/leads is still tiny. Looks like you need some marketing and demand gen to get a better picture. The ride is never smooth at a start-up, so don't give up just yet. Provide some feedback, make a presentation on how to improve the process etc.

Nairobi

Politicker

They are put into our stalled deals and there is a task to follow up with them in 4-5 months.

I've suggested some recommendations but they have been ignored. @CharmingSalesGal gave me a good trick to present my suggestions from now on, so I will give it a try.

RedLightning

Politicker

Mid-Market AE

@Nairobi Good luck! I'd be really interested to see how this plays out for you. Mind following up with a post in a month or so?

It really sounds like an experienced AE would be a good solution to this companies problems. You seem to be an exceptionally good BDR. 20 enterprise demo's in 2 months is honestly unreal.

Nairobi

Politicker

Thanks, will do! I think so too. Thanks but to be fair it has been 2 months and a half. I was told that their old BDR used to get 4 meetings/week which I find hard to believe but wtv.

posercloser

Valued Contributor

VP Sales

I've worked for several startups, all different flavors. The big questions I'd be asking myself are who is the incumbent, how big of a pain in the ass is it to remove them, and how fast is the time to value for my product? An example; I worked for an APM company that focused on microservices, the incumbents were big, slow, and expensive, and ultimately too damn hard to remove. It didn't help that we took months to deploy so the TTV was really slow. I worked at another startup that did MFA, was inexpensive, and could deploy on a demo call. TTV was huge, and everyone hated the incumbents so it was an easy sell. Reading through the comments here I completely agree there needs to be a more structured approach, and when they say no - ask why. Enterprise sales is a marathon, there's a reason the AE's get 6-9 month ramps for complex products. It takes a long time to build some trust, get some market recognition, and get your product to a place where more people want it.

All that to say, I wouldn't throw in the towel yet. Give yourself 6-12 months and see if deals start coming in. In 6 months if the company hasn't made any significant progress than I'd start questioning, but after 2 it seems a little early to give up.

Nairobi

Politicker

Thanks for the advice! No worries, I'm not giving up just yet. I was just curious to get other savages' opinions on this.

posercloser

Valued Contributor

VP Sales

Totally get it. Startups are a complete gamble, always nice to know well before this ship goes down if you can!

Nairobi

Politicker

Right, exactly!

MrMotivation

Politicker

Sales

So reading through all the rest of the comments to get a better picture, it seems like the company needs an actual salesperson. If every call ends in "follow up with me in a few weeks" then the CEO doesn't have a sales background.

I wouldn't get concerned that the product is a "nice to have". Most products are nice to haves. Look at Clari. Clari isn't necessary for any business. CRM's have forecasting tools built into them. Do they suck? Yeah, but they are also included. Clari is exploding right now all because they have pitched to companies that they are missing out on pipeline visibility. A CRO (as people have mentioned) would solve this issue and create a real sales pitch that makes the product seem necessary.

Nairobi

Politicker

I will ask them if they thought of hiring a CRO. We had a VP of Sales but he left after a few months; he recruited me, and then left 2 days before I started...

RedLightning

Politicker

Mid-Market AE

You should ask him why he left

MrMotivation

Politicker

Sales

Echo what @RedLightning said below. If you respect that person's opinion of course.

Nairobi

Politicker

I’ve always wanted to ask him since I got in that startup because of him. But I think he got fired since it doesn’t make sense that he would have left a few days after getting me on-board. I don’t know how to go back to him without being it awkward.

StraightCashHomie

Strategic Account Executive

20 Enterprise demos in 2 months is pretty incredible - at least be proud of that.

It sounds like your product is new/novel and your enterprise prospects aren't going to have budget readily available to cut a PO after one demo. The planning and budgeting processes involved in any tool purchase are long and complex at the enterprise level. If you're bringing something to the table they don't already have, you're also going to have to fight to get a line item on next year's budget and/or replace another tool that they're not getting value from or that your solution can replace in some way. Not an impossible hill to climb, but it takes time. Hang in there!

CharmingSalesGal

Politicker

Account Executive

I would venture to ask about the sales training and process here. Sounds like there's no NEED to have value drivers... Is it the product? Is it the sales people? Is it the company?

What makes your product a NEED to have vs a NICE to have?

Nairobi

Politicker

So from what I'm getting, a lot of our prospects see it as a NICE to have even though our product should be a NEED to have. Our sales team is very small it's me, BDR, and the CEO + COO, I book the meetings for them & I'm just the note-taker during those calls.

CharmingSalesGal

Politicker

Account Executive

Hmmm... I would focus on the why it's a need to have for the prospects then. How many demos do you typically do with a company before they tell you no?

RedLightning

Politicker

Mid-Market AE

Do they have sales backgrounds? If that many people are going to demo's there is interest, but it sounds like you should have some more wins.

Nairobi

Politicker

1. They either tell us to follow back in a few weeks and once we do, they say they are not interested or they say to follow up later this year so that they can consider us for 2022.

CharmingSalesGal

Politicker

Account Executive

Do you ask why they aren't interested now? Honestly, sorry to be blunt, but it sounds like the sales process for your company needs some looking into.

Nairobi

Politicker

The COO does, he used to do sales a while ago and now is back to give it another shot.

RedLightning

Politicker

Mid-Market AE

@Nairobi have you worked at another sales org before?

All of those things you're mentioning scream "the AE is not asking the right questions on demo's"

If they don't have sales exp, then it could be on the CEO and COO.

Nairobi

Politicker

Not really, we just say "Thank you for letting us know, if your needs change, let us know."

Oh no worries, keep it real! I do think so as well but Idk how to bring it up since every time I suggest something I get shut down.

CharmingSalesGal

Politicker

Account Executive

Ok ok ok got you! A great way to bring it up would be to get some out sourced education- thankfully, there's a lot of this on LI for free!!

I have personally done this and it's done wonders. Start watching webinars that relate to things that you think the company struggles with and then use what you learn to present that to the CEO & COO. Example: "I watched X webinar and learned Y. I think if we implement Y, then we'll be able to Z."

Nairobi

Politicker

I have and how we conduct demos compared to my previous job is totally different. I agree with you and I've told them that we are not digging for their pain, etc, but my suggestions are just ignored tbh.

RedLightning

Politicker

Mid-Market AE

Considering you're pretty new there still, be tactful with it. But, you're presumably the first BDR hire. You've set, in 2 months, 11% of their all time demos.

Enterprise sales will take a while to convert, but it sounds like the person who is acting as AE is not taking control and setting next steps.

As for the feedback from customers, be honest about it and ask for help. Something like "I understand the timing is right. We're a relatively young company, so I'd really appreciate any insight you can give us. What did you think was interesting and what separates it from being a nice to have vs. a need to have.

In the future what would need to change, specifically on your end for this to become a need to have.

During the demo's, what questions is the AE asking. Is the conversation centered more on the software or on the prospect's business?

Nairobi

Politicker

Didn't think about that, thanks! @CharmingSalesGal

Nairobi

Politicker

@RedLightningI'm actually the 3rd BDR. There was a BDR before me that stayed for a year but left a few months ago.

I'll suggest that to my AE (COO), thanks for the tip!

It's centered around the software. We ask a few questions at the beginning and then relate some of the stuff they mentioned during the demo.

poweredbycaffeine

WR Lieutenant

☕️

I'd delve deeper into the metrics, but that's because that's my job. However, if you were to do it, here's what I'd suggest you look at:

1) Meeting delivery rate.
2) Meeting to Op conversion rate.
3) Op win rate (you already have...it's 1.6%)
4) Loss velocity (how many days from op creation to closed-lost)
5) Loss reasons (qualitative)

Number 2 and number 4 would tell me where my bucket is leaking. Number 5 would tell me why. However, as a BDR, all you can do is put up good booking numbers and the AEs have to close. All that said, the AEs might suck and it's nothing to do with you or your product.

Nairobi

Politicker

Thanks, I'll dive deeper into the metrics even though it's not my job. I don't want to be in a sinking ship, so I need to help out.

aiko

Politicker

Sr. Account Executive

Since its a new and small startup, traction will take some time and your exec team probably knows this already. They want to spread the word but also find a few people to be their early adopters. You're already helping them a ton by booking meetings. Its now up to them to follow up and close.

EQSales

Opinionated

VP of Sales

3 customers in 3 years?? could be product/market fit or could be selling/discovery/alignment ability

Nairobi

Politicker

I'm thinking it's the sale part.

Upper_Class_SaaS

Politicker

Account Executive

I have worked at a good start up that had steady growth, a terrible startup, a public company and now at a company destined to IPO within the next 2 years.

The thing I see in my current company that sticks out in my mind why we are in a great position is... the LEADERSHIP. The whole leadership team has basically been here since Series A!

Nairobi

Politicker

I'm realizing how important it is to have a good leadership team.

Feds_Watchin

Politicker

What are the qualification metrics for those 177? How many can you legitimately “convert”? Seems like you need to figure out your ICP and go back the drawing board.

Nairobi

Politicker

Most of them seemed good opportunities. And I mean you are not wrong.

RedLightning

Politicker

Mid-Market AE

20 demos in 2 months is incredible! Enterprise is generally longer for sales cycles though. Not enough info to give you an answer. It could be an AE execution thing.

Nairobi

Politicker

Yes, people seem to be interested in learning more about our new tech but once they see it, they seem disappointed tbh. What other info should I provide?

RedLightning

Politicker

Mid-Market AE

I've never done enterprise sales, but have sold something where educating prospects is important. You may be in a similar area considering it's a relatively new company.

A great really blunt question at the disco or demo level could be "why did you take this call" then dig a bit further regardless of the answer with a "why is that important"

Regardless of the level you're selling to, people will buy something that helps them get from A to B. Figure out where B is and how they get there currently

Nairobi

Politicker

We do ask that question but then we don't really dig deep because my COO doesn't want us to bore the prospect.

RedLightning

Politicker

Mid-Market AE

Your COO sucks at sales. Prospects want to talk about themselves. Your situation is a good example of prospects rightfully being self centered. Your company is not the hero of their story. Prospects don't necessarily care about you, but how their situation can improve. That's what the conversation needs to be about.

From the other comments, it sounds like you do a great job getting them to the meeting then the AE just talks about your company for an hour and doesn't ask the right questions.

GDO

Politicker

BDM

When I comes to start ups al lot of them are either too early or to late. Seems like you guys a re a bit too early. Or there is no good product fit.

CaneWolf

Politicker

Call me what you want, just sign the damn contract

Yeah, I worked at a place like this. It's time to bounce.

Nairobi

Politicker

I’ve been thinking about it but then I’m like "I should give it more time" Idk it’s a daily debate with myself. After how long and what made you do the jump?

CaneWolf

Politicker

Call me what you want, just sign the damn contract

I started looking around 3 months the first time and a year the second time. I was an AE on both occasions so my priorities were different. But think about it this way- if you get promoted and then can't sell anything because nobody can sell anything, you're not going to be in good shape looking elsewhere.

Nairobi

Politicker

That’s true. Honestly, the only reason why I’m reluctant of leaving is because I left a previous startup after 2 months (toxic culture) so it might be a bad look for me to leave again after a few months. But at the same time I’ve been mislead into this role so 🤷🏻‍♀️

TechItEasy

Contributor

Account Executive

I agreed with some of the comments that early stage sales can be tough. For your first few clients you're really looking for early adopters who will also evangelise and work with you on product development.

That being said, 3 customers in 3 years seems a bit light but I'd say it relies on a few bits of context which are missing:

1. The weighting of the 177 demos over time - 100 coming in the last quarter is very different to equally distributed across the 3 years.

2. Price point/breadth of product - if the software is an add-on to existing pieces of tech that's a very different considerations to trying to replace a companies entire cloud storage architecture for example.

Nairobi

Politicker

So for your first point, seems like it was 177 through the entire year last year and a bit before that.

For the second point, the price point is very low, we are actually thinking of raising it since it is very low compared to our competitors. It's an add-on, it takes like 1 day to fully onboard, it's not a complex software at all.

TechItEasy

Contributor

Account Executive

In that case I would worry a bit from a business perspective - but that’s not really your worry. However, as a BDR, 20 meetings in 2 months is good going so I wouldn’t personally get too worried (as long as your comp doesn’t count on deals closing) Just keep on crushing the meetings and even if sales don’t pick up, you resume will look good enough to jump ship when the time is right

Arsenic

Opinionated

National Account Executive

Have to be selling something that actually has active market demand and need...if not..constant uphill battle.

SignThis_SalesGirl

Good Citizen

Director of Business Development

Those are some pitiful conversion numbers. Curious about their overall sales and marketing strategy.

Nairobi

Politicker

Pretty much nonexistent. There's no marketing team, I'm supposed to start doing some marketing stuff.

SignThis_SalesGirl

Good Citizen

Director of Business Development

Well if you need some tips, ask the community. They definitely need something to help ramp that up. Do you believe in the product yourself?

Nairobi

Politicker

Somewhat. I was a strong believer at first because of what I was told during interviews but now that I'm in the field, it's not as great as I thought but still a good product!

Kinonez

Celebrated Contributor

War Room Enthusiast

A cool product will never sell, you need a product that solves a problem a company has. it could very well be that same "cool" product just make sure you are addressing the issue you solve.

AnchorPoint

Politicker

Business Coach

Way too generic to answer. How much is one customer worth and what is the life cycle? If you are selling space ships, you are probably ok. If you are selling paper airplanes, I would start looking...

Nairobi

Politicker

A customer is worth 65k/year. This might be dumb, but what do you mean by life cycle? If you are talking about the sales cycle then it’s about 3-4 months.

AnchorPoint

Politicker

Business Coach

Life cycle of a client... they buy once and not again for 5 years? or do they purchase consistently over a period of time? Is it a specified contract length... they sign for a 5 year term...

So at 65K a year, you probably get about 6K compensation... given the close rate, that is concerning. How are they surviving on 65K a year in sales???

Nairobi

Politicker

Aah gotcha, so they pay the 65k once, and they have access to the software for a year. Then, the client can renew their contract for another year. The customers could choose multi-year contract, but that has not happen yet.

I ask myself this question everyday tbh. VC money? They’re also super cheap. Most of their employees are interns, I think we are only 5 full time employees. So they’re saving a lot of money on that side.

Blackwargreymon

Politicker

MDR

So reading through all the rest of the comments to get a better picture, it seems like the company needs an actual salesperson.

Clashingsoulsspell

Politicker

ISR

Lastly, the data set of 177 meetings/leads is still tiny.

MR.StretchISR

Politicker

ISR

Bravado is a community of trusted sales professionals endorsed by their customers.

Products

The War Room Jobs Salary Guide Tech Sales U

Company

About Us How It Works Blog Bug Bounty

Contact

Press Careers

If you are hired as a contract sales rep by a Bravado customer, we may ask you to prove access to the employee email account provided to you by that customer. This data will be shared with customers to track your sales productivity; customers can use this data to confirm you meet the minimum activity requirements to pay out your ramp stipend and commission.

Nairobi

Is this normal for a startup or am I on a stalled ship?

64 comments

Related posts

Need advice : Go to a Big Company (Google/SFDC) or early stage startup [8+ years of Experience]

Is my startup a sinking ship in disguise?

Company was sold now everyone jumping ship