Overselling vs Underselling

thoughts on a post from Tom Tunguz

From tweet:

"Deliberately Underselling as Sales Strategy" by Tom Tunguz:
https://tomtunguz.com/deliberately-underselling/

I have been guilty of knowingly overselling in my Sales career.

100% agree with the strategic approach outlined, though challenge is implementation, ie driving the right behaviour from sales reps.

Thoughts:

  • AE comp structure could be based on a fixed commission per new logo (the core of the strategy) + variable commission on lifetime of contract, with accelerator based on growth.
  • in SaaS, CSMs play a huge role in account growth (and churn) so comp logic should be aligned.
    And beyond comp, culture needs to be aligned: overly celebrating the huge deals closed with a new logo (when no usage/customer success yet) would be detrimental.

Valid counterpoint:

... so would leave some revenue on the table for some deals, in exchange for higher NPS / customer satisfaction across the board and more sustainable/natural growth.

links

social