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PK
Pete Koomen
12/09/22
@ Y Combinator
A major downside of Top Down selling is the risk of creating one-off features for large customers, which can lead to consulting relationships instead of scalable products.
Video
YC
Which Sales Strategy Is Best For Your Startup?
@ Y Combinator
12/09/22
Related Takeaways
PK
Pete Koomen
12/09/22
@ Y Combinator
The advantage of Top Down selling is that it follows a proven playbook, making it easier to find customers who will pay for solutions if you understand their problems.
PK
Pete Koomen
12/09/22
@ Y Combinator
Top Down sales work well for products that help executives achieve strategic goals, but they can be expensive to implement and require significant support.
PK
Pete Koomen
12/09/22
@ Y Combinator
Startups that sell using a Top Down approach often see better early retention metrics compared to those using Bottom Up sales.
PK
Pete Koomen
12/09/22
@ Y Combinator
Scaling a Top Down sales motion typically requires building an expensive Enterprise sales team, which sets a high floor price for your product, often around $10K for mid-market and $100K for Enterprise.
DT
Des Traynor
12/13/17
@ Y Combinator
It's important to avoid creating a product that requires excessive consulting time from the founder, as this indicates the product isn't truly scalable. If you're solving a small, rare problem, even a billion people in the addressable market may not be inclined to pay real money for it.
PK
Pete Koomen
12/09/22
@ Y Combinator
Bottom Up sales start with the user, focusing on building a self-serve product that can be adopted without direct interaction with the company. This approach works well for startups that solve pain points for individuals or small teams, as products need to be easy to adopt and can spread virally within an organization.
PK
Pete Koomen
12/09/22
@ Y Combinator
Top Down sales begin with a decision maker high in an organization, focusing on identifying leads and validating their problems before navigating bureaucratic processes to secure contracts.
PK
Pete Koomen
12/09/22
@ Y Combinator
Startups typically use a top-down sales motion to sell expensive products to executives at large companies and a Bottoms Up motion to acquire individual users, which can lead to sales to those executives.
PK
Pete Koomen
12/09/22
@ Y Combinator
To build a Top Down sales motion, define your target customer and identify the individuals within those companies who have the problems your product solves.