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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.
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
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
Choosing between top-down and Bottoms Up sales strategies depends on whose problem the startup is solving; if the pitch resonates with individual contributors, Bottoms Up is preferable, while top-down is better for executive-focused pitches.
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
To build a successful Bottoms Up sales motion, startups must engage with customers early, eliminate friction in the product experience, and continuously test and refine their offerings.
PK
Pete Koomen
12/09/22
@ Y Combinator
The advantages of the Bottoms Up model include efficiency, as it allows startups to generate leads without extensive sales efforts, but achieving viral product growth is challenging.
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
A perfect example of Bottoms Up sales is Slack, which small teams could adopt independently, allowing it to spread virally within organizations before the sales team reached out.
PK
Pete Koomen
12/09/22
@ Y Combinator
The dirty secret about Bottoms Up sales is that they still require salespeople, as seen with Slack, which employs many to build an efficient sales cycle once prospects are already using the product.
YC
Y Combinator Cast
08/27/22
@ Y Combinator
AWS initially targeted startups to build relationships and gain traction, which later helped them penetrate the enterprise market, showcasing the effectiveness of a bottoms-up sales strategy.