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20Sales: Outbound Sales is Dead Today, Why Demand Generation Will Move Back Under Marketing, "Wisdom" that Everyone Needs to Unlearn About Sales & Why You Should Never Hire Someone You Do Not Know in Your First Five Hires with Brendon Cassidy

20Sales · Harry Stebbings — Brendon Cassidy · March 8, 2024 · Original

Most important take away

The traditional outbound SDR model is dead — the “$10 to make $1” go-to-market playbook no longer works in a saturated SaaS market, and AI will likely push demand generation back under marketing where it belongs. For your first five sales hires, never hire someone outside your network; foundational sales hires must come from people you’ve worked with or trust, because cold sales hires fail at a rate near 95%.

Summary

Actionable insights and career/tech patterns from the conversation:

Go-to-market strategy

  • Treat anything older than 24 months in sales playbooks as obsolete. Unlearn the “spend $10 to make $1” CAC mindset; profitability and efficient growth are now the bar.
  • Outbound SDR motion is broken because thousands of vendors are mass-personalizing into the same buyers. No top VP of Sales will join a company whose growth depends on outbound — that’s a red flag for failure.
  • Expect AI to absorb the SDR function back under marketing. Demand generation belongs with marketing; the 10-year shift of demand into sales is reversing.
  • The future is relationship-, referral-, and influence-led GTM — engage people close to your customer (advisors, influencers) to accelerate trust.

Founder/hiring advice

  • Don’t hire a VP of Sales as your first sales hire — founders should be deeply involved in early sales. Founders who can’t articulate the problem they’re solving or who they’re solving it for shouldn’t be hiring sales yet.
  • For your first five sales hires: only hire from your network — people who have worked for you or are vouched for by someone you trust. Sales resumes are notoriously dishonest; cold sales hires have a ~95% failure rate.
  • If you don’t have a network, build a paid/equity-compensated 5-person advisory team of influencers in your space; their credibility outpaces yours.
  • Beware “resume hires” — checked boxes (Salesforce, DocuSign, WebEx) often mean right-place-right-time luck, not transferable skill. The 10-year enterprise rep almost never works in a startup with no category and no budget acknowledgment.
  • Hire two reps at a time when possible — gives you variance in profile.
  • Hiring litmus test: have candidates pitch what they currently sell in a mock call. If they can’t make their existing product compelling, they won’t make yours compelling. Require unanimous panel sign-off.
  • For SDRs, hire for characteristics (coachability, ambition, work ethic) since most are early-career.

Compensation

  • Use the EchoSign model in capital-constrained times: every rep has a fully loaded cost; commission kicks in (e.g., ~15%) only after they’ve paid for their own cost. No rep is a cost center.

Sales playbook & process

  • A playbook is rooted in customer psychology — not company personas. Sell to a person, not a company.
  • Discovery should be ~5 minutes, not hours. If you need long discovery calls, your team doesn’t actually understand its buyer. There are usually only 3–4 paths a customer’s pain can take — know them cold before the call.
  • Run a monthly sales process (regardless of ASP). Keep stages tight so deals can’t hide. Distinguish “commit” from “best case.” Three-day communication gaps on a committed deal mean the deal is dead — pull it from commit.
  • Onboarding: founder-led sales means shadowing every call for weeks plus listening to Gong recordings (osmosis-based learning).
  • Fire-fast culture suggests something is wrong with hiring. Give a quarter plus change; if a rep can’t run a call without you taking over by then, it’s not working.
  • Lost committed deals demand a one-on-one post-mortem — reps must feel the weight, even if they aren’t fired.

Winning deals (the Standard & Poor’s playbook)

  • Be present at every layer of the deal — C-suite, evaluators, and users — not just the top. DocuSign lost to EchoSign because they relied on Salesforce’s endorsement and the C-suite only.
  • When a partner pushes a vendor, that’s a signal due diligence wasn’t done — leverage that.
  • “Rehearse the witness” — coach evaluators and users daily on the feedback they’ll give back to decision-makers.

Career patterns

  • Surviving the 2000 dot-com bust as a young recruiter forced adaptability and the skill of “reinventing yourself” — a foundational sales muscle.
  • The best sales talent comes from internal promotion. People who’ve proven themselves in your system with your customers almost always outperform any off-the-street hire.
  • In down markets, talent flows to early-stage startups because the risk gap between big-co and startup narrows — opportunity for founders to build “super teams.”

Tech/AI pattern

  • AI’s most disruptive sales impact: collapsing SDR teams and moving outbound back to marketing automation. Build for that future.

Chapter Summaries

  1. Intro & Brendon’s origin story — Brendon Cassidy (first head of sales at LinkedIn, ex-VP Sales at Talkdesk, EchoSign) recounts starting in tech recruiting in 1999 and surviving the dot-com bust by learning to reinvent himself — a foundational sales skill.

  2. State of sales today — Anything older than 24 months in the sales playbook is obsolete. The $10-for-$1 CAC era is over; outbound SDR motion has collapsed under SaaS saturation.

  3. AI and the future of demand gen — AI will likely push the SDR function back under marketing, reversing a 10-year shift. No great VP of Sales will join an outbound-dependent company.

  4. The sales playbook — Built on customer psychology, not generic personas. Discovery should be 5 minutes; you should know your buyer’s 3–4 pain paths cold before any call.

  5. First sales hires — Never hire a VP of Sales first; founders must own early sales. First five sales hires must come from your network. If no network, build a paid advisory board.

  6. The hiring process — Run a mock pitch of the candidate’s current product as the deciding interview. Unanimous panel sign-off required. Hire SDRs for characteristics, not experience.

  7. Compensation — Use the EchoSign “pay-for-yourself” model: reps cover their fully loaded cost first, then earn ~15% on the upside.

  8. Mistakes founders make hiring reps — Being seduced by resume checkboxes. The “been there done that” hire often isn’t that person anymore. Promote from within — proven internal talent beats external hires.

  9. Onboarding and firing — Onboard by osmosis (shadowing, Gong recordings). Give a rep a quarter plus change. If you must “fire fast” repeatedly, the problem is your hiring, not them.

  10. Running deal reviews — Monthly cadence. Track customer communication tightly — three-day gaps kill committed deals. Lost committed deals require post-mortems.

  11. The Standard & Poor’s deal — How EchoSign beat DocuSign and Salesforce’s endorsement by being present at every layer of the deal (C-suite, evaluators, users) and coaching evaluators daily.

  12. Quickfire round — Timeless: reps independent of SDR-driven flow. Dead: outbound SDR model. Most impressive recent sales orgs: Rippling, Talkdesk’s turnaround, and pre-seed/seed founders thriving in the down market.