November 24, 2024 • 1hr 16min
The ultimate guide to founder-led sales | Jen Abel (co-founder of JJELLYFISH)
Lenny's Podcast: Product | Growth | Career
Key Takeaways
- Founder-led sales is crucial in the early stages (0-1M ARR) because:
- The founder is the product/vision when there's no brand equity yet
- Founders have unique subject matter expertise and novel insights
- Only founders can spot key "budding moments" that refine the vision
- Three main outreach channels for early sales:
- Cold calling (surprisingly effective)
- Cold email
- LinkedIn DMs
- Effective cold outreach messages should:
- Establish relevancy upfront
- Share something counterintuitive/surprising
- Focus on the problem, not the solution
- Be concise (3-4 sentences, visible on mobile without scrolling)
- The typical enterprise sales cycle includes:
- Intro call
- Demo call
- Proposal/scope review
- Co-authoring and feedback
- Procurement process
- Final signature
Introduction
Jen Abel is the co-founder of JJELLYFISH, where she and her team help early-stage founders learn how to sell, do early customer discovery, and set up repeatable sales motions. With experience as an Enterprise Sales Director at The Muse and General Assembly, Jen is focused on helping founders in the crucial 0-1 stage of their journey.
This episode provides an extremely tactical and detailed breakdown of the sales process for early-stage founders, covering everything from finding leads to closing deals.
Topics Discussed
The Importance of Founder-Led Sales (02:20)
Founder-led sales is critical in the early stages when there's no brand equity or established marketing engine. The founder serves as the product because they have unique subject matter expertise and novel insights that the market hasn't seen yet.
- Key advantages of founder-led sales:
- Founders can speak to the vision better than anyone else
- Markets are excited to talk directly to founders
- Only founders can spot crucial "budding moments" that refine the vision
- "The founder is the product because the product still could be abstract, could be an MVP or really really early in its formation" - Jen Abel
The Sales Process Steps (08:24)
The traditional sales stages that most CRMs are set up with include:
- Key stages:
- Intro call
- Demo call
- Proposal/scope review
- Co-authoring and feedback
- Procurement process
- Final signature
- Timeline considerations:
- Enterprise deals typically take 6-12 months
- Some can close in 90 days (rare)
- Highly regulated industries add 20-30% more time
Effective Cold Outreach (12:01)
Cold outreach is most effective when coming from founders and focusing on novel insights rather than just features.
- Key elements of effective outreach:
- Establish relevancy upfront
- Share something counterintuitive or surprising
- Keep it concise (3-4 sentences)
- Focus on the problem, not the solution
- "If you can focus the messaging in a way that speaks to something that has a bit of shock value or is counterintuitive, you'll get them to continue reading" - Jen Abel
Understanding Conversion Metrics (16:47)
Rather than focusing solely on conversion rates, it's important to consider win rates in context.
- Key metrics to track:
- Win rate (% of qualified prospects that close)
- Conversion rate (% of outreach that leads to calls)
- Healthy conversion rates range from 2-15%
- Win rates of 15-30% can support lower conversion rates
Finding and Qualifying Leads (23:06)
Before investing in tools, start with manual prospecting to understand your ideal customer profile.
- Initial prospecting process:
- Manually identify 30 ideal prospects
- Spend 15-20 minutes crafting personalized outreach
- Look for patterns and commonalities
- Test different messaging and roles
- Tools and automation should only come after manual validation
The First Sales Call (30:58)
The initial sales conversation should focus on learning and vulnerability rather than pushing for a sale.
- Key approaches:
- Be honest about being an early-stage startup
- Focus on understanding their perception of the problem
- Avoid demos on the first call
- Book the next meeting while still on the call
- "You need to be vulnerable. I would be very open and honest with where you are" - Jen Abel
The Role of Services (43:08)
Many early-stage companies need to offer services before they can sell pure technology solutions.
- Key insights about services:
- 40-50% of B2B SaaS companies start with services
- Time-box services to 90-day increments
- Services help educate the market and set strategy
- Shows intent and provides logos/references
Navigating Procurement (51:05)
The procurement process requires careful navigation and preparation.
- Key strategies:
- Identify the final signer early
- Make procurement's job as easy as possible
- Clearly define what you do and don't do
- Consider splitting into service and technology contracts
- "Do the work for them. Literally say, I want to make this as easy as possible for you" - Jen Abel
Market Focus and Deal Sizes (1:00:15)
Different market segments require different approaches and have different implications.
- Market considerations:
- Enterprise (500+ employees): Complex sales, longer cycles, but sticky
- SMB: Faster sales but higher churn
- Mid-market: Challenging to serve effectively
- Initial enterprise deals: typically $50-200k ACV
Conclusion
Successful founder-led sales requires a systematic approach focused on learning and relationship building rather than just closing deals. Key elements include:
- Starting with manual prospecting to understand your market
- Being vulnerable and honest about your stage
- Following a structured sales process
- Making procurement's job easier
- Focusing on the right market segment for your product
The most common pitfall is poor qualification - talking to the wrong people or using the wrong message. Success comes from making sales fun and engaging for buyers while maintaining trust and authenticity throughout the process.
