The case for thinking differently about sales roles and comp models
Remember listening to Mark Roberge from Hubspot talking about a pretty unique sales comp plan. I believe it was specifically for their CRM Sales team, a product that was self-serve.
I think at the same time they were really trying to turn around/improve their NRR.
They actually paid sales reps more for expansion than they did for the initial deal. It helped promote revenue growth and expansion rather than revenue contraction. (aka sales reps selling larger land deals that perhaps weren't right-sized for the customer.
Are you seeing that at all Kyle in the PLG world? Thanks and great article!
Thank you Kyle for your insightful article.
I agree that as PLG companies mature, they may introduce more complex sales structures, such as hiring account managers, SDRs, BDRs, and Account Executives. While this can lead to improved customer success and revenue growth, it's essential to consider the potential impact on operating costs.
As PLG companies invest in R&D, marketing, and sales, the operating costs may indeed increase compared to sales-led companies that focus primarily on sales efforts. The challenge lies in finding the right balance between investments and returns.
I'm curious about how PLG companies can maintain profitability in the long run, given the higher operating costs associated with their growth strategies. What measures or strategies do you believe can help PLG companies optimize their operations and achieve sustainable profitability? Can you share examples of successful PLG companies that have navigated this challenge effectively?
Looking forward to your insights and further discussions.
Thank you for this great content! One thing that is not clear to me: relationship between SDR and Product Specialist. Should a new qualified user by SDR go to the Product Specialist for better onboarding before going to the AE? Or should it go straight to the AE?