Across 30+ SaaS investments, I can say the answer is Always, as least in SaaS.
But how much, and when to phase it in, varies.
Prospecting and outbound is an art. What is hard is it to get outbound and prospecting going with (x) a founder with no passion for it, and/or (y) with sales reps that have only done inbound.
If you have only done in-bound, then prospecting and outbound will seem incredibly tedious, very slow, and frustrating. You’ll likely never close anything.
But I’ve yet to find a category, from contact centers to search to voice to software testing to fleet management to recruiting to training and more, where outbound didn’t work — at least once you had someone doing it with some experience and passion around it.
The next question then is, if it works, will it work enough?
Certainly, the lower your price point, the harder it is to make traditional prospecting work. With bigger deals, it’s easier to target named accounts, take the time you need to personalize the outreach, and invest what it takes to get there.
Second, the % of revenue from outbound can vary widely. In some start-ups, it’s an “extra layer”, another 10%-20% growth. In others, it’s the primary acquisition channel, at least until the brand really takes off. There’s always more revenue to be had through outbound.
But in the early days, you do need to stick to what you are good at, or at least, the least bad at. If you are scared to do prospecting and/or can’t bring yourself to it, find a way to otherwise generate demand. Then hire someone later to own it. – Read More