Dear SaaStr: What Are The Top Red Flags for VCs When Deciding to Invest in a Startup?
Dear SaaStr: What Are The Top Red Flags for VCs When Deciding to Invest in a Startup? When VCs evaluate startups, there are definitely some red flags that can make them hesitate—or outright pass—on an investment. Here are the key factors that are often considered...
Dear SaaStr: How Do I Build a Great SDR Team?
Dear SaaStr: How Do I Build a Great SDR Team? Building a great SDR team is one of the most critical steps in scaling a SaaS company, especially when you’re selling to the C-suite or enterprise. SDRs are the engine of your pipeline, and if you get this right, it...
Dear SaaStr: How Should I Structure the Comp Plan for a VP of Customer Success?
Dear SaaStr: How Should I Structure the Comp Plan for a VP of Customer Success? For a VP of Customer Success, variable comp should be tied directly to measurable outcomes that align with your company’s growth goals. At $6M ARR, the key metrics to focus on are Net...
Dear SaaStr: What Are Some Red Flags in a Founder?
Dear SaaStr: What Are Some Red Flags in a Founder? A few: Doesn’t know the market cold. Always pass. The best founders know the market cold, even in the earliest days. Doesn’t understand or respect the competition. The best always do. Even if they are beating the...
Dear SaaStr: Should I Visit My Customers More?
Dear SaaStr: Should I Visit My Customers More? Yes. Absolutely. You should visit your customers more. I can’t stress this enough—getting in front of your customers is one of the most effective things you can do to drive growth, retention, and expansion. It’s not just...
Dear SaaStr: What’s the Best Way to Follow Up With a Prospect That Says “I’ll Get Back to You”
Dear SaaStr: What’s the Best Way to Follow Up With a Prospect That Says “I’ll Get Back to You” First, be honest. Those words probably mean either a No or Not Now. The best way to follow up with a prospect who says they’ll “get back to you” is...
Dear SaaStr: What Can We Do To Make Our Customers Truly Happier?
Dear SaaStr: What Can We Do To Make Our Customers Truly Happier? Keeping your clients happy boils down to one thing: delivering value consistently. For real. Let’s break it into actionable steps: 1. Define Success Together This is skipped or glossed over way, way too...
Dear SaaStr: Do I Have to Provide a Promotion Path from SDR to AE?
Dear SaaStr: Do I Have to Provide a Promotion Path from SDR to AE? Probably. In the end, about 70% of SDRs move into account executive roles. Usually, within a year. It’s very common for SDRs to move into sales roles, particularly Account Executive (AE)...
Dear SaaStr: How Common Is It For a Seed Investor To Have The Right to Block a Sale?
Dear SaaStr: How Common Is It For a Seed Investor To Have The Right to Block a Sale? It’s not super common to have an explicit “veto”, but it’s not unheard of either. Usually it’s phrased as a consent by the investors rather than a veto. And...
Dear SaaStr: What Should I Look For In My Very First Sales Rep?
Dear SaaStr: What Should I Look For In My Very First Sales Rep? The first thing to understand is that hiring your first sales rep is one of the most critical decisions you’ll make. It’s not just about finding someone who can sell—it’s about finding someone who can...
Dear SaaStr: I’m at $30m ARR Both as CEO and CRO. Which Should I Focus On?
Dear SaaStr: I run a 30M arr software company — operating as both CEO and CRO. I feel like I failing at both – what is a better option? At $40M ARR, you’re at a stage where the demands of both the CEO and CRO roles are too significant for one person to handle...
Dear SaaStr: What Should Quota Be for a Commercial Sales Rep?
Dear SaaStr: What Should Quota Be for a Commercial Sales Rep? Our Deal Size is $20k-$50k For commercial AEs, quotas typically range from $600K to $800K annually, depending on your ACV and sales cycle. At least, once you have a repeatable process. Before that, you...
Dear SaaStr: As a Founder, What Were the Sketchiest Things a VC Asked You To Do?
Dear SaaStr: As a startup founder, what’s the shadiest thing a VC asked you to do (to get their funding)? I don’t think anything is truly shady in venture. Deals are generally made at arm’s length, and founders don’t have to sell any shares if they don’t...
Dear SaaStr: We Can Sell to a New Vertical. Should We?
Dear SaaStr: We Can Sell to a New Vertical. Should We? Getting ahead of expanding into new verticals can be a huge win. You really want to get there, and to a second product, before you exhaust your TAM in your existing markets and product. But of course it’s not...
Founder SaaStr
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