Dave Gerhardt was VP Marketing at Drift, acquired for $1B, and then Privy, acquired for $100m, and now runs a nice CMO/VPM group referred to as Exit Five.
Dave is OG SaaStr from the start, so we had been in a position to have a fairly epic deep dive on advertising right this moment, each at a senior stage and a deep dive on content material advertising as nicely:
Why advertising ought to virtually by no means report back to gross sales
The important dimension of advertising groups right this moment
How to do content material advertising nicely, and see actual ROI from it
How to ensure you are hiring the correct VP of Marketing
Intro
Jason Lemkin emphasizes the necessity for devoted and accountable people in advertising groups, highlighting the significance of group constructing and model growth.
Lemkin expresses concern in regards to the altering work ethic and loyalty of gross sales and advertising professionals, observing a development of a number of job-holding and lack of dedication.
The present financial local weather calls for recalibrated expectations from leaders, as many workers face job loss and difficulties in discovering new employment.
Revenue per worker has doubled since 2021, resulting in price range cuts and the need for leaders to realize extra with fewer sources.
Understanding the Importance of Revenue Goals
Jason expresses considerations in regards to the excessive prices related with producing a podcast and questions the return on funding if not achieved thoughtfully.
Jason highlights the issue in discovering certified candidates for important roles, reminiscent of an e-mail marketer, regardless of providing a excessive wage.
Lemkin emphasizes the necessity to rent “Pirates and Romantics,” passionate and quirky people who’re devoted to the corporate’s mission, in distinction to the bulk of job employees in the tech business.
Lemkin acknowledges the problem of assembly individuals’s excessive expectations and the existential nature of discovering options to those hiring and motivation points.
The speaker reveals that he not too long ago found the reply to what motivates him after a dialogue with Aaron Levie, CEO of Box.
The speaker’s motivations have developed over time, however initially, he was pushed by a want for which means and a sense of guilt about promoting his earlier startup too early.
The speaker felt a private duty to contribute to the world and tackle the shortcomings he perceived in the tech business, resulting in the creation of SaaStr.
Evolving Motivations and Changing Perspectives in Your Career
Lemkin discusses conversations with profitable CEOs like Aaron Levie of Box and Scott Farquar, of Atlassian, about their motivations for persevering with their work regardless of attaining vital milestones.
After attaining monetary safety via profitable exits as CMO at Privy and VP of Marketing at Drift, Gerhardt skilled an existential disaster throughout the pandemic, questioning the significance of his work in the tech business.
Dave determined to pivot his enterprise mannequin from solopreneurship to constructing a sellable asset, resulting in the creation of Exit 5.
Jason Lemkin shares his expertise of hiring and investing in his enterprise, which has revitalized his ardour for work and introduced him renewed function and pleasure.
Lemkin emphasizes the satisfaction and enjoyment derived from the method of constructing one thing, even when it’s not world-changing.
From Solopreneur to Founder
Builders have to construct, and with out constructing, they will expertise melancholy.
Solopreneurship could be alluring however has a poisonous aspect, so it’s necessary to seek out pleasure in one’s present job earlier than turning into a solopreneur.
Tech employees typically don’t perceive that companies have to generate income, and the typical price of a tech worker per day is $250,000.
It’s necessary to take a trip and attempt to discover pleasure in one’s job earlier than transferring on.
Sometimes, it’s obligatory to maneuver on from a unfavourable job or scenario and give attention to what you like.
The Challenge of Transitioning from Solopreneurship
Solopreneurs could discover it tough to transition to working in a bigger firm.
It’s necessary to seek out a firm the place you get pleasure from working with your colleagues.
If you hate everybody you’re employed with, it could be time to seek out a new firm.
In the early days of SaaS, running a blog was a well-liked kind of content material creation.
Today, individuals are much less more likely to sort in a firm’s web site tackle straight.
However, some of Jason Lemkin’s previous weblog posts from 7-8 years in the past nonetheless obtain visitors.
Insights into Jason’s Content Creation Process
Jason updates his previous weblog posts by refreshing the content material and typically reposting them.
He believes that one of his superpowers is with the ability to write shortly and effectively, as he can write in 5 minutes what would take others weeks.
Jason additionally believes that his skill to distill advanced data and make it actionable is one other superpower that units him aside.
Jason’s Superpowers
Jason identifies two of his superpowers in content material creation:
The skill to put in writing shortly and effectively.
The skill to distill advanced data and make it actionable.
Efficiency in writing: a five-minute rule
Effective content material advertising ought to be based mostly on real insights and learnings, not solely on polished writing.
Select a content material advertising format that aligns with your pursuits and strengths, reminiscent of podcasting, writing, or LinkedIn posts, and keep away from forcing your self to create content material that doesn’t resonate with you.
Plan and schedule your content material in advance to take care of consistency and save time.
Tailor your content material format to the particular platform you’re utilizing to cater to completely different audiences.
Jason Lemkin prefers sharing his ideas via LinkedIn posts relatively than participating in conversations, discovering it extra environment friendly for his communication model.
Lemkin obtained recommendation from a podcast chief to enhance the SaaStr podcast, however he opted in opposition to implementing the instructed modifications as they felt unnatural and required substantial effort.
Lemkin advises in opposition to spending extreme time on LinkedIn, as it will possibly doubtlessly ship a unfavourable sign to potential employers.
LinkedIn: A Haven for Text-Based Writers
LinkedIn is a highly effective platform for gross sales and advertising professionals.
The algorithm surfaces connections and reconnects individuals who won’t in any other case join.
Many individuals in advertising and gross sales cross the road on LinkedIn, which could be detrimental to their private model.
Jason Lemkin has interviewed some of the perfect founders on his podcast, SaaStr Annual.
He approaches interviews with profound respect for the founders he interviews.
He believes that he’s good at interviewing founders as a result of he’s higher at interviewing than they’re.
He compares his interviewing model to that of Mark Maron, who’s a comic and podcaster.
He respects the founders he interviews greater than he respects himself.
LinkedIn’s Good Community and Marketing Potential
Jason Lemkin prefers to interview founders he is aware of personally for his podcast because of the challenges of discovering visitors.
The function of a nice VP of Marketing stays constant: producing and nurturing leads via varied advertising channels.
Despite the rise of self-service in B2B, the advertising toolkit (focused outbound, drip advertising, content material advertising, webinars, occasions) stays efficient.
Events supply precious alternatives for entrepreneurs to attach with prospects, particularly throughout the lockdown.
Even small startups ought to construct a advertising crew as everybody wants help to realize their targets.
Early-stage startups typically lack the price range for a massive advertising crew, and entrepreneurs unwilling to do hands-on work might not be appropriate for these roles.
Marketers ought to be self-aware and sensible about their willingness to do the mandatory work in a startup atmosphere.
Hiring skilled entrepreneurs who’re unwilling to do the work could be problematic for each the corporate and the person.
A advertising price range of $10 million or extra is usually thought of the purpose at which a firm can afford to rent a CMO and construct a bigger advertising crew.
Importance of Building Relationships in Business
The function of a VP of Marketing in SaaS can fluctuate relying on the corporate’s stage and price range, however they need to have a price range of at the least $10 million to generate as a lot pipeline as attainable.
When interviewing for a VP of Marketing place, it’s necessary to ask the correct questions to make sure that the candidate’s expertise and pursuits align with the corporate’s wants.
A VP of Marketing ought to give attention to two or three key areas the place they will take advantage of affect, reminiscent of web site, messaging, and branding.
Hiring a VP of Marketing who’s passionate in regards to the firm’s model and artistic methods is essential for long-term success.
The CEO is at all times the Chief Marketing Officer (CMO), even when they don’t have the title.
Marketing Essentials: Brand, Field, Demand, Growth
The most necessary factor for a VP of Marketing in SaaS is to be the CEO’s right-hand particular person and execute their imaginative and prescient.
If the CEO is just not the CMO, it’s unlikely to be the correct firm for a VP of Marketing.
Ask the CEO in an interview what their high three priorities are for advertising.
If the CEO’s priorities don’t align with the VP of Marketing’s expertise and pursuits, it’s best to maneuver on.
It is necessary to be assured sufficient to confess the issues you aren’t good at.
Finding the Right Fit: Aligning Marketing Roles with Company Vision
Aligning advertising roles with the corporate’s imaginative and prescient is essential.
Marketers don’t wish to work underneath a Chief Revenue Officer (CRO).
Misalignment between gross sales and advertising can result in conflicts over metrics and credit score.
Having advertising report back to the CRO can result in short-term focus, lack of management, and absence of yin and yang stability.
When CS is a component of gross sales, there’s a lack of give attention to buyer care.
CEOs who are usually not in income and prioritize product growth have a tendency to rent CROs over CMOs.
As a outcome, advertising, CS, onboarding, and different capabilities find yourself reporting to the CRO.
This construction was widespread amongst unicorns in 2021, however capital masked the underlying points.
Controls and checks are obligatory to make sure stability and stop extreme give attention to short-term income targets.
Finding Alignment: The Role of Marketing in Company Leadership
The greatest VPs of Marketing in SaaS ought to personal a supply to gross sales metric and guarantee somebody cares in regards to the prospects, not simply upselling.
The CRO function has expanded and develop into disorganized, with the perfect sellers solely wanting to shut offers and not contribute in different areas.
Marketing’s main perform is to generate and qualify leads, however they typically resist this duty.
Many corporations are outsourcing extra of their advertising capabilities as a result of they discover it difficult to handle successfully.
In profitable SaaS organizations, the gross sales, advertising, and post-sales heads all report on to the CEO.
CMOs shouldn’t report back to the CEO in SaaS corporations.
Some CMOs or entrepreneurs mistakenly consider that gross sales is extra glamorous and try and transition to the gross sales facet, which isn’t advisable.
AEs desire to work for CROs relatively than CMOs.
A nice VP of Marketing in SaaS ought to possess a deep understanding of each advertising and product.
Avoid organizing occasions of any dimension when beginning a SaaS firm.
CROs and Marketing
SaaStr Meetup in 2012 or 2013 had 800 attendees with out an e-mail checklist or content material, displaying product-market match.
Starting media corporations or occasions requires a deep understanding of the challenges and complexities concerned.
Events could be worthwhile however require vital effort and sources, with many challenges and distractions.
SaaStr’s success in occasions is because of its skill to prepare high-quality occasions at scale, however it was not deliberately deliberate and may have been extra strategic.
Events ought to be saved small, targeted, and not considered primarily as a income stream because of the challenges concerned.
SaaStr now has 3,500 paying group members and media properties, producing over a million {dollars} in sponsorship income.
Balancing Heads: Sales, Marketing, and Post-Sales in SaaS Leadership
Jason Lemkin discusses the significance of balancing gross sales, advertising, and post-sales in SaaS management.
He emphasizes the necessity for Revenue leaders to community with Founders and attend occasions like SaaStr to fulfill potential prospects and companions.
SaaStr Europa can be held in London on June 4th to fifth, with an anticipated attendance of 3,500 individuals.
SaaStr Annual can be held in the Bay Area from September tenth to twelfth, with an anticipated attendance of 12,000 to 13,000 individuals.
Jason Lemkin recommends that founders and income professionals attend SaaStr occasions to community with different business professionals and study from business consultants.
https://www.saastr.com/what-makes-a-great-vp-of-marketing-in-saas-a-deep-dive-with-jason-and-dave-gerhardt-ex-vpm-of-drift/
