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We've been focused from early on about figuring out a repeatable sales model and though it has been a grind, we are now at a point where we are closing sales co
by badclient 13y ago
We've been focused from early on about figuring out a repeatable sales model and though it has been a grind, we are now at a point where we are closing sales consistently week to week. We have 25 customers, all acquired via this repeatable sales model.
In our meetings with seed stage investors, we're repeatedly compared to PORTFOLIO_COMPANY_X that may have 3-4x free users, often acquired after the funding.
The other disappointing thing is that most blog coverage regarding traction is often very misleading. You get the real story when you actually talk to the founders. For example, one of the companies that we really revere apparently over $20,000 in sales before they built a product according to the blogs. Then we found out that all of that $20,000 was commitments from the founder's existing rolodex, not via a repeatable sales model. In our eyes, that is an important detail to know; but for the blogs and the mainstream, not so much.
I've made this point before on a Suster post and I will say it again: entrepreneurs for the most part look at the market and adjust. If the VCs keep preferring 4 free users to one paid even in enterprise, they'll keep getting more of that.
That said, I really really dig Mark's example conversations in this post where he clearly admits that the VC and the entrepreneur's interest may not always align on this topic.