Remove logo-based-quotas
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What was Nike like as a startup?

Unvalidated Learnings

Meanwhile, henceforth, he’d be imposing strict sales quotas for me to meet. Miss one quota, he said, by even one day, and, well . . . He randomly bumped into the graphic design student who later came up with the swoosh logo. Officially, irrevocably, immediately. He didn’t finish the sentence.

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Cash Flow Shockwaves

Tomasz Tunguz

Rather than reading these reports, startups ought to perk up their ears to the echoes of budget contraction within their customer bases. more account executives missing quota. increased logo and dollar churn. Account executives accustomed to closing their quota miss the figure. slowing sales cycles.

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The Four Stages of Sales Compensation Structures in Early Stage Startups

Tomasz Tunguz

The sales team costs real money, and the question before the company is: how do you know what quota plan to assign to the account executives? Stage 2: Logo Based Quota. Quotas weren’t denominated in dollars; they were just a number. ” That’s a logo based quota.

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How to Structure a Startup Sales Team for Optimal Land & Expand

Tomasz Tunguz

I asked him to share his views on land & expand team structure & quotas. Logo-based quotas focus the team on speed to close. The company’s leadership should calculate sales efficiency on the combined OTE (on-target earnings) to quota ratio of these teams. But we covered much more.

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Designing a Sales Quota Structure at the Earliest Stages of a SaaS Startup

Tomasz Tunguz

Quota is a function of number of deals closed, sales cycle, price point and conversion rate. Instead of placing the first few account executives in a SaaS company on a dollar-based quota, use a logo-based quota. Three deals per month or four logos per month for example. They sell in the mid-market.

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One of the Hardest Things to Do in Sales

Tomasz Tunguz

More business means better quota attainment, higher compensation, and not having to defend the question, “why did we turn away that Fortune 500?” ” Inbound demand from a Fortune 500 precipitates excitement about winning an exceptional logo. Will that logo lead to inbound interest from others?

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