Manage CEO Expectations

Aite folks - Interesting scenario. A bit of backdrop:


  • Seed funded company
  • Commercially launched: Nov 2020 (7 mo)
  • Revenue to date: $275k
  • EXTREMELY competitive market in HR
  • One sales rep on my team, they don't want to scale until their V2 hits the market in December
  • ACV: $1,500 (for now, they aren't mid-market ready with integrations)


Would love some feedback on how to manage some expectations. CEO and CTO say "Hey bud, we can do $50k a month, let's set that as a goal until our V2 product is ready".


I'm confident that my seller can do $35k or so a month because she's a beast, but that's also making the assumption she's bagging 23 deals a month with the ACV that we have. That's a lot IMO given that it's a highly competitive space. Our win rate is also above 50%, so that would mean that she has to manage 40+ opps / month -- also a bit much?


I'm not sure they will be upset / pissed if we don't hit $50k / mo, but they need to really understand that their goals are unattainable with just 1 seller.


Would love some CEO coaching tips here :P

👑 Sales Strategy
☁️ Software Tech
🧢 Sales Management
7
LordBusiness
Politicker
5
Chief Revenue Officer
I think you may be looking at the problem the wrong way.  Instead of thinking how can you scale by volume, think --- How can you increase your ACV from $1500 to $2000?  When push comes to shove I think you could bump your pricing up $500 annually, and still drive the same results.  If your seller is as beastly as you say, driving $60/month more in monthly cost is going to be way easier than scaling her opps and deals. 
SahaFresh
0
VP of Sales
Great point. Appreciate the insight
GDO
Politicker
0
BDM
Yeah, volume is only one part. But he also mentioned that they are in a very competitive market. 
InQ5WeTrust
Arsonist
3
No marketing, mayo isn't an MQL
SahaFresh
2
VP of Sales
Why thank you. I pillage and take over empires a few nights a week. AoE 4 coming in hot too. The DE versions are quite beautiful. 🤩
InQ5WeTrust
Arsonist
1
No marketing, mayo isn't an MQL
Holding out hope for AoE4, but if it's sus the we do have those absolute beauties that are the DE's
SahaFresh
0
VP of Sales
We’ll have to start a whole thread. WR Tourney……….
CaneWolf
Politicker
1
Call me what you want, just sign the damn contract
Exactly, I'd have your explanation with math and figures vs the CEO's explanation, which seems to be based on nothing.

The CEO is asking your rep to close more than 1 deal PER WORKING DAY.
CuriousFox
WR Officer
0
🦊
Exactly what you just told us? Have this meeting with them. Show the facts and pretty charts to them to help them understand. Good luck. 
Justatitle
Big Shot
0
Account Executive
Super challenging situation. Have you laid out the numbers for your CEO as you have here? Because if the ACV is 1500 and the win rate is at 50% that means that your lone salesperson has to manage a pipeline of 80 opportunities give or take a few. Those 80 opportunities could have multiple points of contact and depending on the sales cycle it is not something 1 person can handle in a 40 hour work week. If your ceo is human he’ll get it. 
GDO
Politicker
0
BDM
23deals a month is more than 1 per workday. Seems though in a competitive market. 
7

AEs and RVPs this one is for you .... how could an SDR exceed your expectations or impress you ?

Question
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21
Members only

Managing Customers Expectations

Advice
23
Managing expectations, do you:
86% Say, it is what it is. Take it or leave it.
14% Agree to something that nigh on impossible and hope for the best
122 people voted
6

SDR manager - how do you manage your team?

Discussion
9