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Which Sales Strategy Is Best For Your Startup?

From Y Combinator · Published Jul 21, 2023 · Watch on YouTube

TL;DR

The video compares top-down sales (starting with a high-level decision maker) and bottoms-up sales (starting with individual users). Top-down is best for expensive, executive-oriented products and has a proven playbook but high scaling costs; bottoms-up is efficient for self-serve, viral products but requires salespeople and frictionless onboarding.

Key insights

  • Top-down sales often produce better early retention metrics than bottoms-up for startups.
  • Top-down selling creates a floor price (~$10k mid-market, ~$100k enterprise) because scaling an enterprise sales team is expensive.
  • The “dirty secret” of bottoms-up is that it does require salespeople (e.g., Slack employs many), but the sales cycle is more efficient because prospects already use the product.

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