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Why do tech startups hire recent college grads with no business skills to do outbound prospecting to C-suite from F100/500?

I find it interesting that B2B tech startups assign/expect them to personalise emails, have quality conversations over the phone and handle objections when they don't have any experience working with C-suite from F100/500 companies. And expect them to crush it....



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๐Ÿงข Sales Management
3
SalesPharaoh
Politicker
+8
AM BDR
Let's not forget that a lot of those same startups may have solid new products and a target list on their ideal customers. While the new grads maybe new the product can be good or in need to fill in the gap of their skill. And again they don't cost the company much and if they don't achieve reasonable targets theg will fire and rehire.
Trinity
WR Officer
+7
BusDev
True
businessdevelopment
Opinionated
+1
Business Development
Cheap labor. They are trying to save money by paying less for new grads vs. having to pay for experienced, proven talent.ย 

Younger/greener talent is also more likely to put up with chaos, lack of process and structure and crazy work hours compared to more mature, seasoned talent that are trying to balance family life, and don't want to work long hours for minimal return.ย 
Trinity
WR Officer
+7
BusDev
I get if the startup is early stage and may not have the runway to pay more but once they get funding I think the company should adjust the comp.ย 
businessdevelopment
Opinionated
+1
Business Development
Oh I agree with you. They should, but... a lot of them don't. They install a beer tap, provide catered lunches, add ping pong tables, etc. etc. and say "hey, we don't pay well, but we are cool!" LOL!
MSPSales
Notorious Answer
+5
Account Executive
This ^^ new grads donโ€™t know any better and just want to get their feet wet in whatever industryย 
Jackywaky
Arsonist
+9
Sales Manager
i.e if you start paying a young worker a low rate under the statement: "we are giving you the opportunity" - you are betting on that rep to ramp up, charing the company less, and squeezing every ounce of energy this person has. Recent college grads are eager to test their new skills and will accept low unfair rates.ย 
Trinity
WR Officer
+7
BusDev
It's fascinating to me because a BDR/SDR is supposed to be an entry-level role which, for me, it's not.
I'm all for testing new skills, but it takes time to learn the skills to have a real convo with a C-suite about their business priorities/problems. Expecting a BDR/SDR to ramp up after a month or 3 months (hell, even up to 12 months) sets them up to fail. It's fascinating that the majority has not even seen or understand financial statements/earnings reports.
closedwon
Politicker
+7
Senior Director of Sales
Cheap labor, hard working people who just want a chance to prove themselves, can mold into how you want them to work.ย 

Fortunately, Iโ€™ve had a lot of success with college hires that are now Dir/VP sales of their own teams. ย 


I can tell within a week or two if someone is worth investing my time or they need to go. ย Plenty of people want a chance at a startup and willing to do it for next to nothing.ย 

I recently was the first VP sales for a 5 person company and founders wanted me to bring in zero experience, zero benefits for $30-35k, of course you can find bodies but most people who take that wage are doing it for the opportunity to work with successful people not a large corporation. ย 

My current company pays new hires $55-65k Full great benefits, however, the chance to grow and get promoted will take years, whereas a startup you can have a huge impact, make enough money to change your trajectory and earn higher titles faster. ย 
Trinity
WR Officer
+7
BusDev
I think 55-65K with great benefits is good comp for entry-level. I just think 30-35K is more for summer interns.ย 
I wonder if a lot of startups take the time to assess someone's strengths and build from that rather than focusing on their weakness.
Would you let someone stay with the company for a specific period even if it's taking them longer to ramp up but they may be good at other things?
UltimateMango
Praised Answer
+1
Chief of Nothing
Pay them? Heck the new hotness is to use free interns on a rotating three month basis.ย 
Derpfrickinvalu
Arsonist
+7
Account Executive
Startups tend to spend all the money on product development and then think they've built something that sells itself. That makes it easy to justify hiring less experienced reps at lower salaries.ย 

It ends up hurting your credibility as a company because reps lack the experience/perspective needed for intelligent conversations with enterprise prospects.ย Good product is obviously critical, but it's no good to anyone if you can't sell it.ย 

Trinity
WR Officer
+7
BusDev
Thanks for sharing your perspective. Yeah large enterprise sales is such a different ball game. Iโ€™m also finding that those that have business experience are ramping up faster and connecting with C-suite bec they understand the bus dynamics.
Derpfrickinvalu
Arsonist
+7
Account Executive
Right?! It seems so intuitive, yet some people just don't get it.ย 
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