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Marketing Before Sales Today
- Demand generation has evolved from sales-led to marketing-led over the past decade.
- Justin Welsh would start with marketing to build demand before hiring sales reps today.
SDRs Suitability Depends on ACV
- Outbound SDR teams are viable when the average contract value (ACV) is about $10K or higher.
- At lower ACVs, outbound can be unprofitable due to the cost of SDR and AE compensation.
Align Sales Compensation with ACV
- Set sales compensation plans to consistently equal a fixed percentage of first-year ACV.
- Allocate about 20% of ACV to sales costs and the rest to marketing for optimal budget balance.