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The Death of the SDR (Book Summary)

October 9, 2021 Jeremey Donovan

The Death of the SDR: And the Birth of Buyer Centric Revenue by Nelson Gilliat

Introduction

  • The Buyer Centric Revenue model jettisons prospecting and SDRs in favor of proper marketing (inbound and outbound), and abandons seller specialization in favor of a 1:1 relationship between a buyer and seller in which a single seller is responsible for conversion, growth, and retention (AE and CSM combined

Part 1: The Problem

Chapter 1: The Buyer’s Shoes Have Holes

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Chapter 2: Where Did The Holes Come From?

  • The Predictable Revenue model was created as a bandage during the old days when B2B marketers lacked the ability to properly engage buyers.

Chapter 3: The Buyer Deserves New Shoes

  • Who and what attracts and engages buyers until they are ready to speak to Sales? Marketing. For example, through educational and entertaining content, online advertising, an informative website, a freemium option, and providing an easy way to connect with sellers.
  • Handoffs are more damaging to buyers than you might think. Machines are created and built on an assembly line, human relationships are not.
  • For the same reason that your Product team focuses on a great user experience, you should provide buyers with a great Marketing and Sales experience.

Chapter 4: What Should We Reconsider?

  • You’d [typically] need to make 3,000 calls to get one customer at $20,000. Even in the unlikely scenario that the return on investment is positive, is it worth the negative impact to buyers, to talent (which should not be underestimated), and to your brand? Is it worth the opportunity cost of pursuing more profitable marketing methods? Just because you can do something and others are doing it, does not mean that you should.
  • SDRs do not set out to be SDRs. Many, like myself, fall into it as an entry-level job with little barriers to entry.
  • The problem with horse and buggy drivers was not that they needed better coaching, faster horses, or more money. It was that the car replaced them. Similarly, modern marketing and buyer preferences have replaced the SDR.
  • Individual quota attainment should be a private matter between the seller and manager. What should be publicized and receive greater emphasis to foster teamwork, is a Sales’ team collective quota.
  • Companies that switched to no-commission models:
    • Backblaze
    • Culture Amp
    • Legion Logistics
    • Microchip Technology
    • Monday.com
    • Pluralsight
  • Companies promise unrealistic OTE’s knowing many will fall short.
  • A no-commission model also helps motivate sellers to sell new and unproved products.
  • You can mitigate the risk of unproductive employees by hiring the right people, for the right roles, to do the right things, in the right ways, with the right technologies, with the right training, with the right coaching, with the right metrics, with the right compensation etc.

Chapter 5: Is It Worth It?

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Part 2: The Solution

Chapter 6: The Buyer Gets New Shoes

  • Jettison prospecting and SDRs in favor of proper marketing (both inbound and outbound), and abandon seller specialization in favor of a 1:1 relationship between a buyer and seller in which a single seller is the point of contact throughout the relationship — responsible for conversion, growth, and retention (AE and CSM combined).

Chapter 7: Marketing Delivers The Shoe

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Chapter 8: Sales Ties The Laces

  • Once a seller amasses enough customers, then they naturally transition to ensuring the success, growth, and retention of their portfolio.

Chapter 9: Run!

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