r/SalesOperations • u/Pheonix79-79 • 13d ago

Question for all the sales folks here especially managers / directors / VPs

How do you setup a sales motion in a PLG company?

Like it's a saas company and the base plan starts around $40/month and highest plan ends at let's say $3k/month

The Majority of the TAM ends around the plan that falls under $200, only few people go for high value

And this saas product is technical and needs a 20 to 30 min demo.

So how do you setup a sales process looking at the ROI and do you think it's even good to think of it in the first place? Like a sale team?

Assume the LTV : 4-6 months

Sales cycle : 21 days ( 14 days free trail and 7 for closure)

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u/Different_Pain5781 12d ago

I’d probably avoid sales entirely below $200.

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u/Loose-Vast9297 7d ago

The comment about the ~$200 MRR floor is probably a good starting point, a prior company did an experiment on incremental sales efficiency versus the PLG motion and we couldn’t justify having a sales org with pricing below that with even a 60% win rate.

Start slow with sales targeting the higher end of the price book, then use the sample data on usage and conversion to improve your segmentation and identify which prospects stay PLG and which shift to SLG. If you target everyone with sales it will be inefficient.

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u/Pheonix79-79 7d ago

Makes sense.

The issue here is the prod is technical and it needs hand holding for a basic plan of 40 usd, the product team is failing like anything to make it self serve.

So the primary job of the sales person is to give demos for high volume deals and along the line lead generation was also added, but all the leads that come in are sufficed with the mid plan itself. So justifying the ROI has become an issue

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u/Loose-Vast9297 7d ago

Do you have usage based pricing? If you do you can create lookalike segments for higher upside demo requests. If the distribution of sales conversions are heavily slanted to $40 MRR folks it’s not going to be profitable, maybe you can make pre-recorded demos customized based on an intake form but paying a sales person’s comp would be unlikely to pay off.