🎙️ Pod Shots

Product and sales often have a health/unhealthy tension. In startups, it’s easy to get distracted building things to the demands of the sales team - which doesn’t always scale. BUT they’re also the window to your customers so it’s essential you understand how to work with sales. This episode is a great one filled with loads of actionable nuggets - and at least it’ll help product managers better understand the sales side of the business, so definitely recommend you check out the summary below.

🤖 Building a world-class sales org

Lenny’s Podcast

🎙️ Listen to the full episode here 

📆 Published: February 18th, 2024

🕒 Estimated Reading Time: 2 minutes. Time saved: 119 minutes🔥🔥🔥🔥🔥 

🎙️ Hiring Your First Salesperson

When considering hiring your first salesperson, it's crucial to have closed the initial 10 customers as founders. This hands-on experience provides valuable insights into the market and customer needs. Additionally, if more than 20% of your time is spent on sales, it's time to create leverage by bringing in sales reps. The goal is to find individuals who can effectively communicate the value of your product to potential customers.

🔍️ The Importance of Two Sales Reps

Lemkin emphasises the significance of hiring two sales reps initially. These reps should be individuals you would personally buy your product from. They need to understand the product inside out and be able to articulate its value proposition effectively. By conducting thorough interviews and observing how candidates present the product, you can identify those who possess the necessary skills and passion for sales.

⁉️ When to Hire a VP of Sales

Before hiring a VP of Sales, ensure that you have two successful sales reps hitting their quotas consistently. The VP of Sales should be someone who is willing to be hands-on and actively engage in customer interactions. Lemkin stresses the importance of finding a VP of Sales who is passionate about selling and not just focused on managing processes. This individual should be willing to lead by example and actively participate in sales activities.

🖊️ Setting Up the "Sell Me This Pen" Exercise

During the interview process, candidates should be given the task of selling the product, similar to the "Sell Me This Pen" exercise. This exercise helps assess the candidate's ability to understand the product and effectively communicate its value. Candidates should be encouraged to watch explainer videos or webinars about the product to gain a deeper understanding. By observing how candidates approach this task, you can gauge their sales skills and product knowledge. Lemkin also stresses the importance of this not being set up to trick or catch-out candidates - something equally as relevant in product case study interviews.

🙃 The Role of Honesty and Problem-Solving in Sales

In the B2B sales world, honesty and problem-solving are key components of successful sales strategies. Sales reps should focus on understanding the customer's needs and offering solutions that address those needs effectively. Lemkin highlights the importance of being transparent with customers and guiding them towards the best solution, even if it means recommending a competitor's product. By prioritizing problem-solving and customer-centricity, sales reps can build trust and credibility with potential clients.

🧠 What can I do with this as a founder or PM?

OK so this is a great 1010 on B2B sales in startups. How is the relevant to you as a founder or PM?

Customer-Centric Product Development

  • Solving Customer Problems: Emphasise developing solutions that address specific customer needs and pain points, leading to products that resonate well with the target audience.

  • Customer Engagement: Build strong relationships with customers by understanding their challenges, being transparent, and genuinely offering solutions to their problems, which can increase customer satisfaction and loyalty.

Theme 2: Strategic Team Building and Management

  • Hiring Passionate Team Members: When building a sales or product management team, prioritise candidates who are not only knowledgeable but also genuinely interested in solving customer problems. This leads to a more customer-centric development process.

  • Transitioning to Leadership Roles: Wait until a solid sales foundation is established before hiring higher-level positions like a VP of Sales. Ensure they remain actively involved in customer interactions to align sales strategies with product development efforts.

Theme 3: Aligning Sales and Product Strategies

  • Cohesive Strategy Development: A hands-on approach by sales leadership in customer-facing activities ensures that sales strategies are in tune with product development, driving a unified approach to business growth.

  • Problem-Solving Mindset: Adopting a problem-solving approach in both sales and product development can enhance the effectiveness of the product, meet customer needs more accurately, and contribute to the overall success of the business.

Conclusion

Building a successful sales team in the B2B SaaS industry requires a combination of strategic hiring, hands-on leadership, and a customer-centric approach. By focusing on problem-solving, honesty, and effective communication, sales teams can drive success and build lasting relationships with clients. Lemkin's practical advice and insights serve as a valuable guide for founders and sales professionals looking to elevate their sales strategies in the competitive SaaS market.

If these sound like they resonate dig in more below.

Want to quickly know more? Just ask the episode below👇️ 🤯 
or if you prefer, 🎙️ Listen to the full episode here 

📅 Timestamps:

  • [00:01:29] Building a sales team.

  • [00:17:12] Hiring the right sales rep.

  • [00:21:30] Early sales team importance.

  • [00:26:43] Hiring a VP of Sales.

  • [00:37:35] Selling solutions, not products.

  • [00:44:32] Hiring Sales Reps Successfully.

  • [00:51:35] Sales team scaling strategies.

  • [00:59:31] B2B to B2D transition.

  • [01:02:27] Hiring a stretch VP of sales.

  • [01:10:02] Product involvement in sales.

  • [01:19:41] Balancing Product and Sales Priorities.

  • [01:21:52] Customer success challenges.

  • [01:24:55] Dark side of upselling.

  • [01:29:22] Sales strategies and resources.

  • [01:32:35] The importance of free trials.

  • [01:36:29] Product-led growth and freemium.