3 ms·

How true is the perception (from the buyer's side) that a self-funded SaaS company is not worth talking to?

by blizkreeg 9y ago

GordonS 9y ago
Is that really a thing? I would never think to check how a SaaS company was funded when looking at their products.
- copyhackers 9y ago
  I dunno, but when it happened to me, it totally derailed everything. It was one of those moments when you want to argue with the prospect - "As if funded companies don't go out of business?" - but that's probably not a good strategy. :) So I just sat awkwardly and tried to explain that we'd been approached by VCs but hadn't pursued anything. I hope it doesn't come up that often. I worry, though, that it's actually some sort of signal to the average prospect (who's not in the startup world).
  - x0x0 9y ago
    patio11 has talked about this One approach -- besides make sure you have an answer ready to go next time -- is to talk about two things (straight up stolen from patio11, but if there are mistakes in memory, they're mine): 1 - who do you think you matter more to, some company with thousands of customers or me? 2 - I don't give a shit what their SLA says, when you call late at night, you don't get eng. If you call my cell, you get the person who wrote it all. Who is going to get your problem fixed faster?
    - blizkreeg 9y ago
      This is a fantastic way to respond to it. But I do fear if it's a slightly emotional response and not a more assuring one. It's probably the best way to address the elephant in the room though, aside from having a kick-ass product that addresses their pain points.
      - x0x0 9y ago
        In my limited experience selling things, sales are all about emotion. Yes, there are a few actual deal-breakers, but things like a willingness to learn new things or adjust their workflow or deal with a mildly suboptimal workaround depend entirely on emotion. And the same suboptimality or problem in the hands of a person who wants a deal to work vs someone who doesn't swings in two different directions entirely based on the potential customer's emotions.
    - patio11 9y ago
      The real kicker to this line of argument is "When you call BigCo at 3 AM, you will get someone who listens attentively to your problem but cannot do anything to help you. When you call at 3 PM, you will get... an interchangeable replacement for that person. If you prioritize getting the problem fixed versus someone picking up the phone, pick us: we work defined hours but all of your requests will be handled by the person who build the system and can actually help you rather than just opening a ticket and sympathizing that nothing has been done about it." (Hat tip to Jason Cohen for this line of argument.)
- blizkreeg 9y ago
  I think perception matters, and if you give off the vibe that your company may not have the resources and wherewithal to support my business in the long run, I'm not going to go with your offering.
- snowwrestler 9y ago
  I always check, because it sucks to have a vendor go out of business unexpectedly. Good to know what the financial situation is. Bootstrapping is fine as long as they have been in business a while. It also gives a clue about their expectations for the relationship. Venture-backed companies are not necessarily more stable, because they are often under pressure to grow very fast.

How true is the perception (from the buyer's side) that a self-funded SaaS company is not worth talking to?

GordonS 9y ago

Is that really a thing? I would never think to check how a SaaS company was funded when looking at their products.

copyhackers 9y ago
I dunno, but when it happened to me, it totally derailed everything. It was one of those moments when you want to argue with the prospect - "As if funded companies don't go out of business?" - but that's probably not a good strategy. :) So I just sat awkwardly and tried to explain that we'd been approached by VCs but hadn't pursued anything. I hope it doesn't come up that often. I worry, though, that it's actually some sort of signal to the average prospect (who's not in the startup world).
- x0x0 9y ago
  patio11 has talked about this One approach -- besides make sure you have an answer ready to go next time -- is to talk about two things (straight up stolen from patio11, but if there are mistakes in memory, they're mine): 1 - who do you think you matter more to, some company with thousands of customers or me? 2 - I don't give a shit what their SLA says, when you call late at night, you don't get eng. If you call my cell, you get the person who wrote it all. Who is going to get your problem fixed faster?
  - blizkreeg 9y ago
    This is a fantastic way to respond to it. But I do fear if it's a slightly emotional response and not a more assuring one. It's probably the best way to address the elephant in the room though, aside from having a kick-ass product that addresses their pain points.
    - x0x0 9y ago
      In my limited experience selling things, sales are all about emotion. Yes, there are a few actual deal-breakers, but things like a willingness to learn new things or adjust their workflow or deal with a mildly suboptimal workaround depend entirely on emotion. And the same suboptimality or problem in the hands of a person who wants a deal to work vs someone who doesn't swings in two different directions entirely based on the potential customer's emotions.
  - patio11 9y ago
    The real kicker to this line of argument is "When you call BigCo at 3 AM, you will get someone who listens attentively to your problem but cannot do anything to help you. When you call at 3 PM, you will get... an interchangeable replacement for that person. If you prioritize getting the problem fixed versus someone picking up the phone, pick us: we work defined hours but all of your requests will be handled by the person who build the system and can actually help you rather than just opening a ticket and sympathizing that nothing has been done about it." (Hat tip to Jason Cohen for this line of argument.)
blizkreeg 9y ago
I think perception matters, and if you give off the vibe that your company may not have the resources and wherewithal to support my business in the long run, I'm not going to go with your offering.
snowwrestler 9y ago
I always check, because it sucks to have a vendor go out of business unexpectedly. Good to know what the financial situation is. Bootstrapping is fine as long as they have been in business a while. It also gives a clue about their expectations for the relationship. Venture-backed companies are not necessarily more stable, because they are often under pressure to grow very fast.