YC
How to Sell by Tyler Bosmeny
@ Y Combinator
09/26/18
Takeaways
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Tyler Bosmeny
09/26/18
@ Y Combinator
Sales is one of the most fundamental skills any founder needs to master.
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Tyler Bosmeny
09/26/18
@ Y Combinator
I started my journey in sales while working on my college newspaper, where I learned to sell ads to local businesses.
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Tyler Bosmeny
09/26/18
@ Y Combinator
During my time at the college newspaper, we set records for ad sales, which sparked my interest in sales as a craft.
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Tyler Bosmeny
09/26/18
@ Y Combinator
As a founder, you should be spending every moment either building your product or talking to users, which includes selling.
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Tyler Bosmeny
09/26/18
@ Y Combinator
Founders have unique advantages in sales: passion for their product and deep industry expertise.
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Tyler Bosmeny
09/26/18
@ Y Combinator
In the early days of Clever, we decided that one co-founder needed to own sales, which became my responsibility.
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Tyler Bosmeny
09/26/18
@ Y Combinator
Sales is a numbers game; you may need to reach out to hundreds of companies to find a few interested buyers.
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Tyler Bosmeny
09/26/18
@ Y Combinator
Using your network is crucial for finding prospects; many of my earliest deals came from connections.
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Tyler Bosmeny
09/26/18
@ Y Combinator
Conferences are an underrated aspect of sales; they provide opportunities to meet potential users and buyers.
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Tyler Bosmeny
09/26/18
@ Y Combinator
To maximize the value of conferences, identify key industry events, attend them, and know who will be there in advance. When attending a conference, I aim to have my entire day booked in 30-minute increments by reaching out to potential buyers in advance, making it the most productive day of the year.
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Tyler Bosmeny
09/26/18
@ Y Combinator
In the early days of Clever, we would send out 10 to 50 cold emails to prospects, ensuring they were short, personalized, and actionable to increase the chances of getting a response.
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Tyler Bosmeny
09/26/18
@ Y Combinator
Sales is fundamentally about listening. The best salespeople listen 70% of the time and ask questions to understand the customer's problems and needs.
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Tyler Bosmeny
09/26/18
@ Y Combinator
Follow-up is crucial in sales. If you don't hear back after a meeting, don't disqualify yourself; persistence can lead to success, as it's not over until the customer says no.
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Tyler Bosmeny
09/26/18
@ Y Combinator
For closing deals, ensure you have a draft agreement ready to propose when a customer shows interest, as they will expect it and it helps expedite the process.
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Tyler Bosmeny
09/26/18
@ Y Combinator
Avoid getting bogged down in lengthy negotiations over minor contract details with early customers; prioritize closing the deal to secure your first customers.
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Tyler Bosmeny
09/26/18
@ Y Combinator
When a customer expresses interest but requests additional features before buying, it's often a sign they may not commit. Instead, focus on building what multiple customers need rather than one-off requests.
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Tyler Bosmeny
09/26/18
@ Y Combinator
Free trials may seem appealing, but they don't provide the commitment, validation, or revenue that startups need. It's better to seek a commitment from customers instead. We only do annual agreements, but if you're not satisfied in the first 30 days, you can opt out without penalty. This approach protects the customer while also showing our commitment to them.
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Tyler Bosmeny
09/26/18
@ Y Combinator
It's better to have the default be that customers are signed up rather than needing to renegotiate after a short period. This way, you avoid the free trial trap and create a more stable relationship with customers.
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Tyler Bosmeny
09/26/18
@ Y Combinator
The enterprise sales process I've used to reach the first million in revenue is effective, but every company is different. Founders should consider what kind of sales motion will be sustainable for their business in the long term.
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Tyler Bosmeny
09/26/18
@ Y Combinator
There are five ways to build a hundred million dollar business from a sales perspective, depending on how much your average customer pays. For example, if they pay $100,000, you need to find a thousand customers; if they pay $10,000, you need ten thousand customers.
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Tyler Bosmeny
09/26/18
@ Y Combinator
If you're selling a low-cost product, you need to consider a low-touch sales model, as high-touch methods become impractical when you have to reach millions of customers.
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Tyler Bosmeny
09/26/18
@ Y Combinator
When setting pricing, it's important to guess a number that seems reasonable, and if you can close that sale, try doubling it the next time. Iterating based on feedback is key to finding the right price.
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Tyler Bosmeny
09/26/18
@ Y Combinator
You shouldn't hire salespeople until you've done a lot of sales yourself. This experience helps you understand what kind of skills to look for in potential hires.
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Tyler Bosmeny
09/26/18
@ Y Combinator
Look for Renaissance sales reps who are self-starters and don't need a lot of direction. They should have energy and passion, which are more important than extensive experience at this stage.