I've built a few sales team for early stage startups, and invariably the question comes up: "Inbound sales is working. Will outbound sales work?"
The successful experiments I've seen look like this: hire 2 SDRs at the time, focus them exclusively on outbound, then measure their results to identify the CAC. Then, you can make a call if that CAC is something you want to scale.
The failed experiments look like this: the founder doesn't want to invest too heavily in something that might not pay off, so we hire 1 SDR and they have to commit 50% of their time to following up on low quality Marketing leads.
It's not so much about the number itself, but more about the experiment design that will give you clear results
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I've built a few sales team for early stage startups, and invariably the question comes up: "Inbound sales is working. Will outbound sales work?"
The successful experiments I've seen look like this: hire 2 SDRs at the time, focus them exclusively on outbound, then measure their results to identify the CAC. Then, you can make a call if that CAC is something you want to scale.
The failed experiments look like this: the founder doesn't want to invest too heavily in something that might not pay off, so we hire 1 SDR and they have to commit 50% of their time to following up on low quality Marketing leads.
It's not so much about the number itself, but more about the experiment design that will give you clear results
CAC as in Customer Acquisition Cost if anyone else was wondering