Seth DeHart

Venture Partner Sales @pointninecap

[Seth DeHart @SethDeHart]

This is high praise coming from someone who's writing I've learned so much from 🙏

[Christoph Janz 🕊 @chrija]

GREAT post by @SethDeHart about how he's been helping several #p9family companies build a scalable sales engine and get ready for a big Series A:

https://t.co/fgjHfS0stO

[Martin Roth @martinroth]

I have an axe to grind. It’s about compensation for SaaS sales positions.

Too many salespeople have unrealistic comp expectations.

If you are a a SaaS Account Executive and you are trying to increase your OTE, here's my #1 piece of advice:

If you want to make more money, carry a bigger quota.

Your total comp is relative to how much revenue you bring in.

Forget what your friends are telling you about how much you "should" be making.

Here's the deal:

The golden ratio for quota to OTE is 5x.

Said differently, the fully loaded cost of sales should be around 20-25% of each new dollar in ARR.

That means you need to close $500k in ARR to earn $100k in TOTAL compensation.

The standard OTE breakdown is 50% base salary / 50% variable compensation.

So a $500k annual quota should offer a $50k base salary and $50k variable compensation.

Beware of companies that are paying more than this.

These companies do not last long.

Go do the math for your own compensation.

If your annual quota is 3x your OTE, be careful.

Your company is trying to buy revenue growth.

This kind of comp plan is temporary.

Either the company will change the comp plan or they will go out of business.

I have seen dozens of salespeople jump from job to job every 9-12 months because they are chasing a higher base salary.

Your base salary is not where you get ahead in SaaS sales.

Instead, focus on these 2 things:

1. A good variable comp plan with quotas that are attainable. Make your money by hitting accelerators.

2. A good sales leader who will build your sales skills.

Find a role where you can learn and you can crush your number. The money will follow.

[Chris Orlob @Chris_Orlob]

I've ran 3,000 discovery calls in my career.

I've watched another 3,000 call recordings.

My 12 best tips for discovery calls that sell:

1. Set expectations.

Start the call framing:
- the objective
- the agenda
- the next step (assuming the call goes well)

Then pass the torch:

"Anything you'd like to add or change?"

Fail to do this?

Lose control.

2. Earn the right.

Don't start with an overbearing question.

Unless you already have rapport.

Do something to 'warm up' your buyer first.

Especially if it's an outbound opp.

3. Align your questions to the buyer's journey.

Example:

If your buyer is ACTIVELY evaluating products, don’t start with this:

"What’s your biggest strategic priority for this year?"

That’s a diagnostic question. Its purpose is to uncover pain.

But your buyer is beyond that stage.

Start with questions that respect the buyer’s journey.

'What do you hope to achieve by implementing a solution?'

4. Phrase your questions to get long answers.

Use these phrases
- Help me understand...
- Talk to me about...
- Walk me through...

Those are better than your basic
- who
- what
- when
- where
- how

They get longer answers.

5. Uncover the 'need behind the need'

This separates great sellers from good ones.

When a buyer shares a problem, follow up:

"What's going on in your business that's making this a priority?"

More often than not:

You'll hit pay dirt.

6. Find the root cause.

The cause dictates the solution.

You can build pain until your buyer is gasping for air.

But if your product doesn’t address the cause, no deal.

Ask:

“What’s your take on what’s causing these issues?”

7. Summarize often.

“Let me see if I’ve understood you so far…”

Summarize what you’ve heard.

End with: “Did I get that right?”

Do that a few times.

8. Ask about “ripple effects.”

Most sellers:
- How is this problem impacting you?

Great sellers:
- What are the ripple effects of this challenge on the business?

Language matters.

Don't be cheesy.

9. Ask WHO else is impacted.

“Who else in the business is impacted by this challenge, and how?”

They’ll mention a few people.

Then ask:

“Since they’re impacted, does it feel fair to include them in the demo next week?”

10. Ask your next question based on what they just said.

Don’t start a new thread with each question.

Base your next question on what your buyer just said.

Questions should feel spontaneous.

Don't stick to a rigid checklist.

11. Sell the hell out of next steps.

If you run a PURE discovery call…

Many buyers won't show up to the next call.

Give them a reason to.

12. Realize discovery is a process, not an event.

Your buyer’s situation changes.

Don't "set it and forget it."

Continue to discover during the sales process.

"What's changed since last we spoke?"

Open all follow up calls with that.

[Seth DeHart @SethDeHart]

@FlorinTatulea 💯

[Seth DeHart @SethDeHart]

@techsalesguy @Kazanjy I’ve seen many SDR managers struggle to make the transition back to AE. Maybe the majority are underachievers but seems like it either attracts AEs who don’t want to sell or once in the roll it’s tough to go back…

[Seth DeHart @SethDeHart]

@FlorinTatulea Makes a strong case for over investing on nurture campaigns for closed lost deals. Wonder who’s doing this really really well?

[Seth DeHart @SethDeHart]

@FlorinTatulea Truer words could not be spoken

[Seth DeHart @SethDeHart]

@mistamor I’ve found that the best discovery turns into real time advising and if the prospect likes the advice and wants more it’s usually an obvious fit.

[Seth DeHart @SethDeHart]

@gaetano_nyc Also I found that a lot of time is spent on trying to agree on a “fair” amount of equity.

[Seth DeHart @SethDeHart]

@gaetano_nyc It’s a tough one. My one cash out on advising equity ended up being the same as if I’d just charged my usual cash rate 🤷

[Seth DeHart @SethDeHart]

@mistamor Most underrated data point in all of sales

[Christoph Janz 🕊 @chrija]

Working on the agenda for our 13th annual P9 Founder Summit, and as @HarryStebbings likes to say, "Twitter, do your magic".🪄

Once a year, we spend three days (and nights) with ~ 150 founders to compare notes, learn from each other, and exchange war stories. Some impressions from a few years ago: https://t.co/045wuZODvS.

It's a 90% P9 Family event, but we always invite a handful of guest speakers. For this year's summit we're looking for a few AAA B2B sales, marketing, customer success, and product leaders who are willing to spend a few hours coaching founders.

Looking for people with extremely deep expertise who are willing to go super deep into topics like:

- Scaling enterprise sales teams
- Indirect sales / channel partners
- ABM
- Going upmarket
- First product hire
- First marketing hire
- Scaling content & inbound
- ...

The event is going to take place in early June at a lakeside hotel close to Berlin.

Thank you! 🙏🏼

[Seth DeHart @SethDeHart]

@stoolpresidente HAHhaha I just used this line and credited you.

[ChartMogul @ChartMogul]

Are you transitioning into a product-led sales motion?

@esbenfj of @getuserflow, Nicholas Mills of @Pitch, @SethDeHart of @PointNineCap , @SaraMcArcher of @ChartMogul discussed #productledsales in our latest live panel.

Check out the key insights🔎
https://t.co/OHXWKnsQH9

[Point Nine @PointNineCap]

Looking to make your first Sales hire, but not sure when to hire, who to hire or what they should be doing?

Join @SethDeHart alongside those who have done it & are doing it in this hands on session to ensure your first hires a success.

Register here: https://t.co/vBpRjlIdsQ

[Seth DeHart @SethDeHart]

@AndrewAllsop How many sales reps and SDRs are managing this? What do you pay them? Measure each funnel metric for each of them… then figure out why those numbers are different for each rep?

[Seth DeHart @SethDeHart]

@davegerhardt The list goes on and on, but having a mentor to share some parts of the process was extremely reassuring.

[Seth DeHart @SethDeHart]

@davegerhardt Sending reminders to get paid on those invoices… didn’t realize that was a standard and necessary practice.

[Seth DeHart @SethDeHart]

@rolliegold1 @sammarelich No product market fit. probably raised a lot of VC and need to hit goals so hired sales, but can’t do it economically so they keep dropping quotas to try and make it work… or inexperienced leaders who can’t do math

[Seth DeHart @SethDeHart]

@britton We struggle with this as well. Lived in Amsterdam for 6 yrs and just moved back to the US. Food is twice as expensive and half the quality. Time to start a farming commune just to control what we eat 🤷

[ChartMogul @ChartMogul]

How does product-led sales look in practice across growth and scale stage B2B SaaS companies?

Join the webinar tomorrow to hear from @esbenfj of @getuserflow, Nicholas Mills of @Pitch, @SethDeHart of @PointNineCap. Moderated by @SaraMcArcher.

https://t.co/B4BxOQOxKI