Lenny’s Podcast · Podcast episode · Pricing & monetization · Go-to-market & sales

How to hit revenue targets in a recession

Lenny Rachitskywith Sahil MansuriDec 4, 2022110 min♥ 54
SourceLenny’s Podcast
KindPodcast episode
PublishedDec 4, 2022
Readers♥ 54
Originallennysnewsletter.com ↗
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Sahil Mansuri is CEO and founder of Bravado, a community and tooling network of about 300,000 B2B tech salespeople, and a longtime sales leader who closed deals through the 2008 downturn. The conversation covers how founders should change forecasting, quotas, comp plans, customer retention, deal-closing tactics, and business model innovation during a tough market.

01Key learnings

  • Plan next year conservatively, but set short-term checkpoints (e.g., Q1 revenue targets) that unlock extra spend or trigger downward reforecasts, and agree on those decisions with the board in advance.
  • Avoid founder optimism bias in forecasts; predetermine what decisions will follow from hitting or missing each milestone.
  • Rethink sales comp so reps are rewarded for renewals, retention and customer quality, not just new bookings, since current plans ignore churn.
  • Reconsider the typical 50-50 base-to-commission split and 5x quota ratio; align incentives across the customer, business, and rep.
  • Shift your best salespeople toward customer success and retention, since losing existing customers is harder to recover from than slowing new business.
  • Help existing customers survive by sharing proprietary benchmarks and insights from your data, turning your product into a trusted advisor rather than just a tool.
  • Use warm introductions and in-person customer events to generate referrals; move intros to text and keep the introducer on the thread to keep momentum.
  • Change the rules of the game when old models fail: Sahil's team launched a commission-only/fractional offering and experimented with pricing models like monthly or daily billing.
“So the way I think about setting up a plan when you have limited visibility and some major headwinds is setting up a really conservative…”Sahil Mansuri · Lenny’s Podcast · 00:00:29
“Email is where deals go to die. Text message is where deals get done.”Sahil Mansuri · Lenny’s Podcast · 00:55:56

02Frameworks mentioned

Summary and takeaways written by PM Atlas; quotes are short excerpts. © the original author.