I gave a talk there recently for the earliest stage companies. This was specific to phone sales, known as "inside sales". My talk was on: - Is a) phone sales or b) eCommerce the best sales strategy for your specific company - How to build out phone sales in a newly founded company - How to manage long-term growth in an inside sales company

1. by Bryan Starbuck CEO of TalentSpring 1 Company Confidential, 2009 Strategy for Phone Sales for Early Stage Start-ups Bryan@TalentSpring.com Blog: blog.BryanStarbuck.com Blog: blog.TalentSpring.com Twitter: @BryanStarbuck Employers find the best résumés using Matching Technology. Staffing Departments can access over 110 million résumés

2. Company Confidential, 2009 2 High Growth from Phone Sales 2008 Revenues from Phone Sales Strategy companies… $168 million $215 million $163 million $295 million $152 million $87 million $178 million $1 billion

4. Lower Risk Marketing

5. Higher Prices

6. Faster to scale Sales

7. Able to Create Demand

8. No Sales People (no capital)

9. Sales is Outsourced

11. Lower Prices

12. Can’t Scale as Easily

13. Capital needed for Sales Team

14. Time needed for Sales Efficiency

15. Often not an option

16. Risk that Channel won’t performCons

17. Company Confidential, 2009 4 B2C vsSmall vs Mid-Market vs Enterprise B2B Small Companies Consumers B2C B2B Mid-Market B2B Enterprise 1,000 to 20,000 Employees 0 to 1,000 Employees 20,000+ Employees eCommerce Phone Sales

18. Company Confidential, 2009 5 Sales Pipeline Qualified Demos Trial 78,000 Employee Company 18,000 Employee Company 31,000 Employee Company 56,000 Employee Company 45,000 Employee Company 12,000 Employee Company 29,000 Employee Company 95,000 Employee Company 63,000 Employee Company Close WIN 42,000 Employee Company 84,000 Employee Company 39,000 Employee Company Close Lost 25 Companies 31 Companies 71 Companies Demo-to-Sale 3 : 1 Lead-to-Demo 4 : 1 $20 per Lead

20. Blogging

21. Widgets

22. SEO

23. Content

24. Contests

27. Time in CRM Software

29. 10 Demos-per-REP-per-Week

33. Manage GrowthStage #4: GOAL:

34. Company Confidential, 2009 10 Must Read Books The Perfect SalesForce by Derek Gatehouse Spin Selling by Neil Rackham

36. Tactics to unblock each

37. Showing ROI often required

38. Don’t interview “friends” to find blocking issuesTechnical Buyer Final Decision Maker

40. Know when progress isn’t happening

42. Example with Mega-Corp:

43. 90,000 employees

45. Large Enterprises

46. Mid Market

48. Company Confidential, 2009 15 Is Per-Seat Pricing for You? Do you have Per-Seat Licensing? Why Not? In pricing strategy, per-seat is powerful and very often used for a good reason. Triple-check if you forgo per-seat pricing. What SaaS companies are over $50m in sales without per-seat licensing?

49. Strategic Sales Growth Company Confidential, 2009 16

50. Company Confidential, 2009 17 MRR or CMRR Definition Source: Bessemer Ventures (bvp.com)

52. In 12-months, $10m in capital returned

54. Company Confidential, 2009 20 Calculating CAC Ratio Source: Bessemer Ventures (bvp.com)

58. 10% commissions

60. Company Confidential, 2009 25 Capital to Grow to Top Category Leader Source: Bessemer Ventures (bvp.com)

61. Company Confidential, 2009 26 Key Metrics Source: Bessemer Ventures (bvp.com)

62. Company Confidential, 2009 27 Key Metrics Source: Bessemer Ventures (bvp.com)

63. Company Confidential, 2009 28 SaaS better than Enterprise Software Source: Bessemer Ventures (bvp.com)

64. Company Confidential, 2009 29 High Growth from Phone Sales 2008 Revenues from Phone Sales Strategy companies… $168 million $215 million $163 million $295 million $152 million $87 million $178 million $1 billion

66. Demos-to-Close Ratio

67. Sales-per-REP-per-Month

68. Churn

69. CAC: Customer Acquisition Cost

70. CAC Ratio

71. CLTV: Customer Lifetime Value

73. Company Confidential, 2009 32 Bessemer SaaS Law #3

74. Company Confidential, 2009 33 Bessemer SaaS Law #4

75. Company Confidential, 2009 34 Bessemer SaaS Law #5

76. Company Confidential, 2009 35 Bessemer SaaS Law #6

77. Company Confidential, 2009 36 Bessemer SaaS Law #7

78. Company Confidential, 2009 37 Bessemer SaaS Law #8

79. Company Confidential, 2009 38 Bessemer SaaS Law #9

80. Company Confidential, 2009 39 CAC Comparables EV/TTM = Enterprise Value divided by Trailing Twelve Month revenues Enterprise Value = Market Cap plus debt, less cash and marketable securities CAC

81. Company Confidential, 2009 40 SalesForce CAC Ratio over time CAC Ratio

82. Company Confidential, 2009 41 SaaS’s Industry Growth Rates

83. Company Confidential, 2009 42 SaaS vs Enterprise Software Growth FCF = Free Cash Flow

84. Company Confidential, 2009 43 Public Markets Decline

85. Company Confidential, 2009 44 SaaS Trading Multiple

86. Company Confidential, 2009 45 Ratios of Payment Periods

87. Company Confidential, 2009 46 CAC Ratios < 1.0 don’t Scale

88. Company Confidential, 2009 47 SaaS Companies