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Chad Peets

๐Ÿ‘ค Speaker
588 total appearances

Appearances Over Time

Podcast Appearances

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20Sales: How Snowflake Built a Sales Machine | Why You Have to Hire a CRO Pre-Product | Why Most Sales Reps Do Not Perform | Why Hiring Panels are BS in Interviews | Why Remote Sales Reps Do Not Care About Their Development with Chad Peets

Yeah, that's a problem. So first of all, you have to decide, am I an inside sales organization or an outside sales organization or both? Hopefully both, right? You really want to get both because if you have both, then you can get the velocity business and you can get the enterprise business and you want both. So if you look at a 10K ACV, well, that's definitely not a field sales rep.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20Sales: How Snowflake Built a Sales Machine | Why You Have to Hire a CRO Pre-Product | Why Most Sales Reps Do Not Perform | Why Hiring Panels are BS in Interviews | Why Remote Sales Reps Do Not Care About Their Development with Chad Peets

If I'm a 10K ACV, then I'm exclusively inside sales and I better be able to keep the cost of sale low. Otherwise, to your point, I can't justify it. The unit economics don't work. And then you have to decide, where do I draw the line between inside sales and outside sales, right? So let's just say you're happy with a 20K deal in the inside sales.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20Sales: How Snowflake Built a Sales Machine | Why You Have to Hire a CRO Pre-Product | Why Most Sales Reps Do Not Perform | Why Hiring Panels are BS in Interviews | Why Remote Sales Reps Do Not Care About Their Development with Chad Peets

If I'm a 10K ACV, then I'm exclusively inside sales and I better be able to keep the cost of sale low. Otherwise, to your point, I can't justify it. The unit economics don't work. And then you have to decide, where do I draw the line between inside sales and outside sales, right? So let's just say you're happy with a 20K deal in the inside sales.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20Sales: How Snowflake Built a Sales Machine | Why You Have to Hire a CRO Pre-Product | Why Most Sales Reps Do Not Perform | Why Hiring Panels are BS in Interviews | Why Remote Sales Reps Do Not Care About Their Development with Chad Peets

If I'm a 10K ACV, then I'm exclusively inside sales and I better be able to keep the cost of sale low. Otherwise, to your point, I can't justify it. The unit economics don't work. And then you have to decide, where do I draw the line between inside sales and outside sales, right? So let's just say you're happy with a 20K deal in the inside sales.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20Sales: How Snowflake Built a Sales Machine | Why You Have to Hire a CRO Pre-Product | Why Most Sales Reps Do Not Perform | Why Hiring Panels are BS in Interviews | Why Remote Sales Reps Do Not Care About Their Development with Chad Peets

What number are you happy with in the outside sales? And it's sort of a rough benchmark. You want to be able to get 3X. So there's productivity numbers, right? Like productivity is how we measure everything. As sort of a rule of thumb, my reps should be able to generate three times their OTE. So if your OTE is 300, rough numbers, you should be able to get 900K in productivity.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20Sales: How Snowflake Built a Sales Machine | Why You Have to Hire a CRO Pre-Product | Why Most Sales Reps Do Not Perform | Why Hiring Panels are BS in Interviews | Why Remote Sales Reps Do Not Care About Their Development with Chad Peets

What number are you happy with in the outside sales? And it's sort of a rough benchmark. You want to be able to get 3X. So there's productivity numbers, right? Like productivity is how we measure everything. As sort of a rule of thumb, my reps should be able to generate three times their OTE. So if your OTE is 300, rough numbers, you should be able to get 900K in productivity.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20Sales: How Snowflake Built a Sales Machine | Why You Have to Hire a CRO Pre-Product | Why Most Sales Reps Do Not Perform | Why Hiring Panels are BS in Interviews | Why Remote Sales Reps Do Not Care About Their Development with Chad Peets

What number are you happy with in the outside sales? And it's sort of a rough benchmark. You want to be able to get 3X. So there's productivity numbers, right? Like productivity is how we measure everything. As sort of a rule of thumb, my reps should be able to generate three times their OTE. So if your OTE is 300, rough numbers, you should be able to get 900K in productivity.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20Sales: How Snowflake Built a Sales Machine | Why You Have to Hire a CRO Pre-Product | Why Most Sales Reps Do Not Perform | Why Hiring Panels are BS in Interviews | Why Remote Sales Reps Do Not Care About Their Development with Chad Peets

How often do you get that? Well, you better get it or you're not scaling. If you have a field sales organization... and you have 10 reps and the productivity is 600 grand, you better not be hiring. You need to get that productivity.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20Sales: How Snowflake Built a Sales Machine | Why You Have to Hire a CRO Pre-Product | Why Most Sales Reps Do Not Perform | Why Hiring Panels are BS in Interviews | Why Remote Sales Reps Do Not Care About Their Development with Chad Peets

How often do you get that? Well, you better get it or you're not scaling. If you have a field sales organization... and you have 10 reps and the productivity is 600 grand, you better not be hiring. You need to get that productivity.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20Sales: How Snowflake Built a Sales Machine | Why You Have to Hire a CRO Pre-Product | Why Most Sales Reps Do Not Perform | Why Hiring Panels are BS in Interviews | Why Remote Sales Reps Do Not Care About Their Development with Chad Peets

How often do you get that? Well, you better get it or you're not scaling. If you have a field sales organization... and you have 10 reps and the productivity is 600 grand, you better not be hiring. You need to get that productivity.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20Sales: How Snowflake Built a Sales Machine | Why You Have to Hire a CRO Pre-Product | Why Most Sales Reps Do Not Perform | Why Hiring Panels are BS in Interviews | Why Remote Sales Reps Do Not Care About Their Development with Chad Peets

And until such time as either you get that productivity up or at least can look at the data and see that it's trending in that direction and you trust that data, you can hire ahead of getting the productivity number, but you better trust the data.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20Sales: How Snowflake Built a Sales Machine | Why You Have to Hire a CRO Pre-Product | Why Most Sales Reps Do Not Perform | Why Hiring Panels are BS in Interviews | Why Remote Sales Reps Do Not Care About Their Development with Chad Peets

And until such time as either you get that productivity up or at least can look at the data and see that it's trending in that direction and you trust that data, you can hire ahead of getting the productivity number, but you better trust the data.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20Sales: How Snowflake Built a Sales Machine | Why You Have to Hire a CRO Pre-Product | Why Most Sales Reps Do Not Perform | Why Hiring Panels are BS in Interviews | Why Remote Sales Reps Do Not Care About Their Development with Chad Peets

And until such time as either you get that productivity up or at least can look at the data and see that it's trending in that direction and you trust that data, you can hire ahead of getting the productivity number, but you better trust the data.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20Sales: How Snowflake Built a Sales Machine | Why You Have to Hire a CRO Pre-Product | Why Most Sales Reps Do Not Perform | Why Hiring Panels are BS in Interviews | Why Remote Sales Reps Do Not Care About Their Development with Chad Peets

I mean, look, where I want to see it is six months for an enterprise seller. So there's ramp times for inside, ramp time for outside. Inside, I'd like to see 90 days. Outside, six months. Reality is it probably trends more towards nine months in enterprise. Then you have to start peeling back the layers of the onion. Are the sales cycles that long? Maybe the sales cycle is only four months.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20Sales: How Snowflake Built a Sales Machine | Why You Have to Hire a CRO Pre-Product | Why Most Sales Reps Do Not Perform | Why Hiring Panels are BS in Interviews | Why Remote Sales Reps Do Not Care About Their Development with Chad Peets

I mean, look, where I want to see it is six months for an enterprise seller. So there's ramp times for inside, ramp time for outside. Inside, I'd like to see 90 days. Outside, six months. Reality is it probably trends more towards nine months in enterprise. Then you have to start peeling back the layers of the onion. Are the sales cycles that long? Maybe the sales cycle is only four months.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20Sales: How Snowflake Built a Sales Machine | Why You Have to Hire a CRO Pre-Product | Why Most Sales Reps Do Not Perform | Why Hiring Panels are BS in Interviews | Why Remote Sales Reps Do Not Care About Their Development with Chad Peets

I mean, look, where I want to see it is six months for an enterprise seller. So there's ramp times for inside, ramp time for outside. Inside, I'd like to see 90 days. Outside, six months. Reality is it probably trends more towards nine months in enterprise. Then you have to start peeling back the layers of the onion. Are the sales cycles that long? Maybe the sales cycle is only four months.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20Sales: How Snowflake Built a Sales Machine | Why You Have to Hire a CRO Pre-Product | Why Most Sales Reps Do Not Perform | Why Hiring Panels are BS in Interviews | Why Remote Sales Reps Do Not Care About Their Development with Chad Peets

Okay, then why is the ramp time nine months? Is it an enablement problem? Is it a product problem? Or is it just the nature of the business and there's nothing we can do about it? But ideally, you want it to be at six months.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20Sales: How Snowflake Built a Sales Machine | Why You Have to Hire a CRO Pre-Product | Why Most Sales Reps Do Not Perform | Why Hiring Panels are BS in Interviews | Why Remote Sales Reps Do Not Care About Their Development with Chad Peets

Okay, then why is the ramp time nine months? Is it an enablement problem? Is it a product problem? Or is it just the nature of the business and there's nothing we can do about it? But ideally, you want it to be at six months.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20Sales: How Snowflake Built a Sales Machine | Why You Have to Hire a CRO Pre-Product | Why Most Sales Reps Do Not Perform | Why Hiring Panels are BS in Interviews | Why Remote Sales Reps Do Not Care About Their Development with Chad Peets

Okay, then why is the ramp time nine months? Is it an enablement problem? Is it a product problem? Or is it just the nature of the business and there's nothing we can do about it? But ideally, you want it to be at six months.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20Sales: How Snowflake Built a Sales Machine | Why You Have to Hire a CRO Pre-Product | Why Most Sales Reps Do Not Perform | Why Hiring Panels are BS in Interviews | Why Remote Sales Reps Do Not Care About Their Development with Chad Peets

So first of all, it should be the CRO's decision, not the founder's. The CRO, if it's 10 reps, you can handle it. Like the CRO can be doing it. The problem is, as you start to scale, it needs to become programmatic. And when it becomes programmatic, your CRO can't do it. He's got other things he needs to be doing. So at 10 reps, do you need an enablement person? Probably not.