# Sales Playbook Frameworks for building, running, and scaling a B2B SaaS sales organization. --- ## Sales Process Design A sales process is a repeatable series of steps that takes a prospect from first contact to closed revenue. Without it, you have individual heroics, not a scalable machine. ### The Core Funnel ``` Lead Generation → Qualification → Discovery → Demo → Trial / POC → Proposal → Negotiation → Close → Handoff ``` Each stage has a clear entry criterion, exit criterion, and owner. ### Stage Definitions #### Stage 0: Lead / Suspect - **Entry:** Contact exists in CRM with basic firmographic data - **Owner:** Marketing or SDR - **Exit criterion:** Meets ICP criteria (company size, industry, tech stack) - **Action:** Research, prioritize, add to outbound sequence #### Stage 1: Prospecting / Outreach - **Entry:** ICP-qualified account, no contact yet - **Owner:** SDR or AE (depending on model) - **Exit criterion:** Meeting booked with a qualified contact - **Action:** Multi-channel outreach (email + call + LinkedIn), 8-12 touch sequence - **Key metric:** Meeting booked rate (benchmark: 2-5% of outbound contacts) #### Stage 2: Discovery - **Entry:** First meeting confirmed - **Owner:** AE (SDR hands off or joins) - **Exit criterion:** Confirmed: pain, budget range, decision process, timeline - **Action:** Ask questions. Listen. Map the org. Don't pitch yet. - **Key metric:** Discovery-to-demo rate (benchmark: 60-80% proceed) **Discovery question framework:** ``` Situation: "How do you currently handle [problem area]?" Problem: "What's the impact when [pain point] happens?" Implication: "If this continues, what does that mean for [business goal]?" Need-payoff: "If we solved this, what would that be worth to you?" ``` #### Stage 3: Demo / Solution Presentation - **Entry:** Confirmed pain and fit from discovery - **Owner:** AE (+ SE for complex products) - **Exit criterion:** Prospect agrees to evaluate / trial; next step defined - **Action:** Show the workflow that solves their specific pain (not a feature tour) - **Key metric:** Demo-to-trial/proposal rate (benchmark: 40-60%) **Demo structure:** 1. Recap their pain (show you listened) — 5 min 2. Show the "aha moment" (fastest path to value) — 10 min 3. Walk the specific workflow they described — 15 min 4. Handle objections, confirm fit — 5 min 5. Define clear next step (date, owners, criteria) — 5 min Never show features they didn't ask for. Every additional feature is noise until they have a reason to care. #### Stage 4: Trial / POC - **Entry:** Prospect commits to evaluate with real data/use case - **Owner:** AE + CSM or SE - **Exit criterion:** Success criteria met, POC success confirmed - **Action:** Define success criteria upfront (in writing). Set a tight timeframe (2-4 weeks max). - **Key metric:** POC-to-proposal rate (benchmark: 50-70%) **POC setup requirements:** ``` Before any POC: □ Signed NDA □ Written success criteria ("We'll move forward if X happens") □ Named champion who owns the evaluation □ Executive sponsor identified □ Defined timeline with end date □ Agreed next step if criteria are met ``` If you can't get written success criteria, you don't have a real opportunity. You have a "we'll see." #### Stage 5: Proposal / Pricing - **Entry:** POC success OR strong discovery fit for simple products - **Owner:** AE - **Exit criterion:** Proposal received, timeline to decision confirmed - **Action:** Present in a live call, never email a proposal cold - **Key metric:** Proposal-to-negotiation rate (benchmark: 50-75%) **Proposal structure:** 1. Problem statement (their words, not yours) 2. Proposed solution (mapped to their workflow) 3. ROI summary (value delivered vs. investment) 4. Pricing options (give 2-3 options; anchors the decision) 5. Next steps with dates #### Stage 6: Negotiation - **Entry:** Verbal intent to proceed, price/terms discussion begins - **Owner:** AE (+ VP Sales for large deals) - **Exit criterion:** Mutual agreement on terms; contract sent - **Action:** Never discount before they ask. Discount on scope, not on margin. - **Key metric:** Negotiation win rate (benchmark: 70-85%) **Negotiation principles:** - Get something for everything you give. Discount → multi-year. Fast close → early pay discount. - Don't negotiate against yourself. Silence after an offer is not rejection. - Know your walk-away before you enter. If you don't have a BATNA, you have no leverage. - Legal/procurement delay ≠ deal death. Keep the champion engaged. #### Stage 7: Close - **Entry:** Signed contract or PO received - **Owner:** AE - **Exit criterion:** Contract countersigned, kickoff date set - **Action:** Celebrate with the customer. Immediately introduce CSM. - **Key metric:** Average close rate (closed won ÷ all closed = won + lost) #### Stage 8: Handoff to Customer Success - **Entry:** Deal closed - **Owner:** AE + CSM - **Exit criterion:** Customer has met their assigned CSM, kickoff scheduled - **Action:** Internal handoff call with AE + CSM. AE shares: deal context, key stakeholders, use case, success criteria, any promises made during the sale. **Handoff document (AE fills before first CS meeting):** ``` Account: [name] ACV: $X Close date: [date] Primary contact: [name, title, email] Economic buyer: [name, title] Use case: [specific workflow] Success criteria: [what they said good looks like in 90 days] Promises made: [anything specific committed during sale] Risk flags: [competitive, budget, champion strength] ``` --- ## MEDDPICC Qualification Framework MEDDPICC is the enterprise qualification standard. If you can't answer every letter, you don't have a qualified opportunity — you have a conversation. ### M — Metrics What is the quantified business impact? What does winning look like in numbers? - "What's the current cost of [the problem]?" - "How do you measure success in this area today?" - "If we achieve X outcome, what does that save or earn you?" **Red flag:** No metrics = no business case = hard to get budget. ### E — Economic Buyer Who has final authority to approve the budget? - "Who else will be involved in the final decision?" - "Have you purchased solutions in this range before? Who approved that?" - "When we get to final terms, who needs to sign?" **Red flag:** You only know the user buyer. Economic buyer hasn't engaged. ### D — Decision Criteria What factors will they use to evaluate and select a solution? - "What's most important in your evaluation?" - "How will you compare options?" - "What does the ideal solution look like to you?" **Why it matters:** If you don't know their criteria, you're guessing what to prove. Define the criteria before you compete on them. ### D — Decision Process What are the steps from evaluation to signed contract? - "Walk me through your process from here to signed agreement." - "Does procurement get involved? Legal? InfoSec?" - "Have you purchased software at this price before? How long did that take?" **Red flag:** No defined process = unlimited sales cycle. ### P — Paper Process What's the contract and legal process? - "Who manages vendor contracts on your side?" - "What's your standard MSA, or do you use ours?" - "How long does legal review typically take?" **Why it matters:** Legal and procurement have killed many "done" deals. Start early. Route to your legal team simultaneously. ### I — Identify Pain What is the specific, felt pain driving this evaluation? - "What triggered this initiative now vs. six months ago?" - "What happens if you don't solve this in Q3?" - "On a scale of 1-10, how urgent is this for your team?" **Red flag:** Pain isn't felt by the economic buyer. User pain ≠ budget authority. ### C — Champion Who will actively sell your solution internally when you're not in the room? - "Who else have you brought into this evaluation?" - "Can you help us get access to [economic buyer / IT / security]?" - "If the decision went the wrong way, who would be disappointed?" **Red flag:** Your champion is enthusiastic but has no internal influence. ### C — Competition Who else are they evaluating? What's your position? - "Are you looking at alternatives?" - "What made you start with us?" - "Have you used [Competitor X] before?" **Why it matters:** Knowing the competitive field tells you what you need to prove and what to neutralize. ### MEDDPICC Scorecard | Letter | Score 1 | Score 2 | Score 3 | |--------|---------|---------|---------| | Metrics | No numbers | Approximate value | Specific ROI model | | Economic Buyer | Unknown | Named, not engaged | Engaged directly | | Decision Criteria | Vague | Partially defined | Written, weighted | | Decision Process | Unknown | Verbal description | Steps confirmed, timeline known | | Paper Process | Unknown | Basic awareness | Legal contacts, standard process known | | Identify Pain | No urgency | User-level pain | Executive-level pain with consequences | | Champion | No advocate | Friendly contact | Actively selling internally | | Competition | Unknown | Identified | Position mapped, differentiation clear | **Score each 1-3. Total 16+/24 = qualified opportunity. Under 12 = unqualified, do not forecast.** --- ## Sales Compensation Plans Comp drives behavior. Design it precisely. ### Base / Variable Split | Role | Base % | Variable % | Rationale | |------|--------|-----------|-----------| | SDR | 60-70% | 30-40% | Activity-based, not purely revenue | | AE (Inside Sales) | 50% | 50% | Balanced risk/reward | | AE (Enterprise) | 55-60% | 40-45% | Longer cycle, higher base for stability | | VP Sales | 50% | 50% | Accountable for team results | | CSM (retention focus) | 70% | 30% | Less variable, stable relationship role | | CSM (expansion focus) | 60% | 40% | Expansion quota adds variable | ### Commission Structure **Standard AE plan:** ``` Base: $80K Variable: $80K (at 100% quota attainment) OTE: $160K Commission rate: OTE variable ÷ Quota If quota = $800K ARR: commission = $80K ÷ $800K = 10% of ARR closed Accelerators (performance above quota): 101-125% quota: 1.25x commission rate (12.5% of ARR) 126-150% quota: 1.5x commission rate (15% of ARR) > 150% quota: 2.0x commission rate (20% of ARR) ``` **Why accelerators matter:** - They keep top performers motivated past quota - They make it possible for top reps to earn $200K+ (attracting talent) - They create the "make it rain" culture ### SDR Compensation SDRs are measured on output (meetings booked, pipeline created), not closed revenue. ``` Quota: 20 qualified meetings booked per month (or $X pipeline created) Commission: $150-300 per qualified meeting held Accelerators: If a meeting converts to closed won: Bonus $250-500 If monthly meetings > 125% of quota: 1.5x rate on upside meetings ``` ### Clawbacks A clawback recovers commission paid on deals that churn or are fraudulently closed. **Common clawback rules:** - Full clawback if customer cancels within 90 days of close - 50% clawback if customer cancels within 91-180 days - No clawback after 180 days (AE shouldn't be penalized for future CS failures) - Clawbacks vest: pay commission immediately but apply against next quarter's payout if triggered **Why clawbacks matter:** - Without them, reps are incentivized to close any deal, regardless of fit - With them, reps self-qualify more carefully ### SPIFFs (Sales Performance Incentive Funds) Short-term tactical incentives for specific behaviors: - $5K bonus for closing a new vertical deal this quarter - 1.5x commission on annual prepay deals in Q4 - $1K for closing a deal in a new geographic territory Use SPIFFs sparingly. Overuse trains reps to wait for the SPIFF before engaging. ### Multi-Year and Prepay Incentives Align rep behavior with company cash flow: - Multi-year deals: Credit full TCV against quota, pay commission upfront on TCV - Annual prepay: 10-20% uplift on commission rate - Monthly billing: Standard commission rate --- ## Enterprise vs. SMB vs. Self-Serve Models ### Self-Serve / PLG **Characteristics:** - Product is the primary acquisition channel - Credit card required (no invoicing) - No human touch in the initial purchase - Sales engages only at enterprise signals (high usage, team expansion, compliance needs) **Funnel:** ``` Website → Free trial / Freemium → Activation → PQL → Expansion → Enterprise ``` **Key metrics:** - Free-to-paid conversion rate (benchmark: 2-5% of signups) - Time to activation (first core action) - PQL → expansion conversion rate - NRR from self-serve base **Sales involvement triggers (PQL signals):** - Team size > 10 seats - Usage spikes (power user patterns) - Feature limit hits on core features - Job title change (new economic buyer appears in account) ### SMB Inside Sales **Characteristics:** - ACV $5K-25K - 30-60 day sales cycle - Inbound-heavy or light outbound - SDR → AE → CS model - Phone + email + video; no in-person **Funnel:** ``` Inbound/MQL → SDR qualifies → AE discovery → Demo → Proposal → Close ``` **Key metrics:** - MQL-to-SQL rate (benchmark: 15-25%) - SQL-to-close rate (benchmark: 20-30%) - Average sales cycle (30-60 days) - AE productivity: $600K-$1M quota per rep **Team ratios:** - 1 SDR supports 3-4 AEs - 1 CSM manages $1M-2M ARR ### Enterprise Sales **Characteristics:** - ACV $50K+ - 90-365 day sales cycle - Outbound prospecting + inbound from brand - AE + SE + executive sponsor model - Multi-stakeholder: champion, economic buyer, IT, legal, procurement **Funnel:** ``` Account targeting → Executive outreach → Discovery → POC → Security review → Legal → Procurement → Close ``` **Key metrics:** - Deals in pipeline (volume matters less, quality more) - POC win rate (benchmark: 60-75%) - Average sales cycle (3-12 months) - AE productivity: $1.5M-$3M quota per rep **Team ratios:** - 1 SE supports 3-4 AEs - 1 CSM manages $2M-5M ARR (named accounts, high-touch) --- ## Sales Hiring and Ramp ### What "Good" Looks Like by Role **SDR (entry level):** - 1-2 years of outbound experience OR strong track record in customer-facing role - Resilient: rejection is the job - Coachable: SDR is a proving ground, not a final destination - Can write clear, concise prospecting emails without templates **AE (inside sales):** - 2-4 years sales experience, preferably SaaS - Can articulate their process for a discovery call - Knows their numbers: quota, attainment, average deal size, sales cycle - Shows how they build pipeline (AEs who only work inbound are a risk) **AE (enterprise):** - 4-8 years B2B sales, at least 2 in enterprise - Has closed deals > $100K ACV - Can name the stakeholders in a complex deal they navigated - Understands procurement, security review, multi-year contracts **VP Sales:** - Has scaled a team from where you are to 2x your size - Can build a comp plan from scratch - Has hiring and firing experience - Revenue from a repeatable process, not personal relationships ### Interview Process **3-stage process:** 1. **Recruiter screen** (30 min): Motivation, experience, logistics 2. **Manager interview** (60 min): Structured questions on process, examples, numbers 3. **Panel / role play** (90 min): Mock discovery call + debrief; team fit **Role play rubric:** - Did they prepare (knew your product, your ICP)? - Did they ask before pitching? - Did they handle pushback without capitulating immediately? - Did they confirm a next step with a date? ### Onboarding Structure (6-Week Ramp) | Week | Focus | Activities | |------|-------|-----------| | 1 | Company, product, ICP | Onboarding sessions, product sandbox, shadow AE calls | | 2 | Sales process, tools, messaging | CRM training, call review, write first prospecting emails | | 3 | First outreach | Send first sequences, book first meetings, shadow closes | | 4 | Independent discovery | Lead own discovery calls with manager reviewing | | 5 | Full cycle | Handle pipeline independently, weekly coaching | | 6 | Quota-bearing | 25% of quota expectation; full accountability begins | ### Performance Management **Clear standards, no surprises:** ``` Month 3: 25% of quota expected. Miss by > 50% → performance conversation. Month 4: 50% of quota expected. Miss by > 40% → PIP warning. Month 5: 75% of quota. Miss by > 30% → formal PIP. Month 6+: 100% of quota. Consistent miss → exit. ``` **PIP (Performance Improvement Plan) — not for show:** - Should include specific, measurable targets (not "improve attitude") - 30-60 day timeline - Weekly check-ins with manager - If targets aren't met: exit, no extensions - A PIP that doesn't lead to improvement or exit is a management failure **Rule:** Low performers who stay cost you your top performers. They watch what you tolerate.