Executive Leadership
Jul 24, 2024
In the high-stakes world of startups, choosing the right person for your first go-to-market (GTM) hire can set the tone for your company's trajectory. With the rise of product-led growth (PLG) and changes in the fundraising landscape, this decision has become more complex.
Instinct might push PLG founders toward a head of growth, but this role often requires a level of traction and data that early-stage startups simply don't have. Instead, the first GTM hire should be a versatile professional, either a GTM lead with a sales background or a growth marketer focused on driving user acquisition.
This piece will delve into the merits of each role and provide actionable insights to help you make a data-driven decision tailored to your startup's unique needs.
First GTM Hire: The Dilemma
PLG vs. Traditional Models
When deciding on your first GTM hire, understanding the nuances between Product-Led Growth (PLG) and traditional sales models is crucial. According to OpenView's Product-Led Growth (PLG) Benchmarks report, companies with a strong PLG motion grow 2.2x faster than those without. This approach often requires a growth marketer skilled in creating scalable user acquisition strategies, such as referral programs and organic discovery mechanisms.
Traditional models rely heavily on direct sales efforts, making a GTM lead with a sales background more suitable. Salesforce reports that 79% of business buyers expect the companies they buy from to understand their needs and expectations. These professionals can engage directly with customers, gather valuable feedback, and develop strong customer relationships.
In essence, while PLG strategies emphasize cost-effective, scalable growth, traditional models focus on personalized customer interactions and sales-driven growth. Your choice should align with your startup's current stage, product maturity, and overall growth strategy to ensure a seamless fit.
The Role of Product-Led Sales
Product-Led Sales (PLS) blends elements from both PLG and traditional sales models. The product drives initial user engagement and adoption, but sales teams step in to convert high-potential users into paying customers. This approach requires a GTM hire who can navigate both marketing and sales landscapes, creating a seamless transition from product usage to revenue generation.
A versatile GTM lead or growth marketer can excel in this role by leveraging user data to identify conversion opportunities and tailor sales pitches accordingly. They must possess a deep understanding of the product and user behavior to bridge the gap between marketing and sales effectively.
In summary, PLS offers a balanced approach, utilizing the strengths of both PLG and traditional sales. For early-stage startups, this can be a potent strategy for driving sustainable growth while maintaining a strong customer focus.
Common Mistakes to Avoid
Hiring for the Wrong Stage: A head of growth might seem appealing for their data-driven focus, but without sufficient traction and data, their effectiveness is limited. Opt for a versatile GTM lead or growth marketer who can adapt to evolving needs. According to CB Insights, one of the top reasons startups fail (23%) is not having the right team.
Overlooking Hands-On Experience: Early-stage startups require a hire who can wear multiple hats and isn't afraid to dive into the nitty-gritty details. Avoid candidates who are too specialized or focus solely on strategy without execution capabilities.
Misalignment with Growth Strategy: Ensure alignment between your hire’s skills and your company’s specific growth strategy. Misalignment can lead to wasted resources and missed opportunities.
GTM Lead with Sales Background
Versatility in Early Stages
In the early stages of a startup, versatility is a key asset for your first GTM hire. A GTM lead with a sales background brings a multifaceted skill set that can adapt to various roles, from direct customer engagement to creating support resources. This versatility allows them to pivot between different functions, such as sales, customer success, and product advocacy, depending on immediate needs.
Startups that prioritize customer feedback and engagement through their GTM strategy are 1.6 times more likely to retain customers, as per Salesforce. With 4-10 years of experience, ideally beginning as an individual contributor, a versatile GTM lead can handle the broad spectrum of tasks required in a startup environment. They can gather customer feedback, create educational content like FAQs and video guides, and act as the voice of the customer within the product team.
This adaptability is crucial for early-stage startups that may not have the resources to hire specialists for each function. A versatile GTM lead ensures that all customer-facing aspects are covered, driving both user acquisition and retention.
Engaging with Customers
A crucial aspect of a GTM lead is their ability to engage effectively with customers. This role involves direct communication with customers through calls, meetings, and support interactions. Engaging with customers isn't just about selling; it's also about listening. A good GTM lead gathers valuable feedback that can inform product development and marketing strategies.
Creating Advocacy Resources
One of the key responsibilities here creating advocacy resources that empower customers and drive product adoption. This includes developing comprehensive FAQs, instructional videos, and detailed guides that help users get the most out of your product. These resources serve as valuable tools for onboarding new customers and providing ongoing support.
Growth Marketer with Marketing Focus
Building User Acquisition Methods
According to HubSpot, companies that hired a versatile GTM lead saw a 30% higher growth rate in their first year compared to those that hired specialized roles too early.
A growth marketer is indispensable for building scalable user acquisition methods crucial for early-stage startups. Their role involves creating strategies that attract and convert users efficiently, leveraging techniques like viral loops, referral programs, and organic discovery. They focus on the entire user journey, from awareness to conversion, developing comprehensive acquisition funnels.
Understanding Product and Target Users
They must have deep understanding of both the product and its target users. This knowledge enables them to craft compelling messages that highlight the product’s unique value propositions and resonate with the intended audience. Understanding target users involves extensive research into customer personas, behaviors, and preferences.
Running Meaningful Experiments
Running meaningful experiments is a crucial part of the role. These experiments involve testing different marketing tactics, messaging, and channels to determine what resonates best with the target audience. Through continuous experimentation, growth marketers can optimize acquisition funnels, improve conversion rates, and enhance user retention.
Freemium vs. Free Trial Models
Understanding the differences between freemium and free trial models is essential for making an informed decision about your first GTM hire. In freemium models, users can access a basic version of the product for free, with the option to upgrade to a paid version for additional features. This approach necessitates a growth marketer who can drive large-scale user acquisition through cost-effective methods. On the other hand, free trial models offer users full access to the product for a limited time, after which they must decide whether to purchase. This model requires a balanced approach, involving both marketing and sales efforts.
Sales-Led Companies
Sales-led companies prioritize direct sales efforts to drive revenue and growth. In these organizations, the first GTM hire is typically a sales professional, as their expertise is crucial for building and managing customer relationships. A dedicated sales lead can implement effective sales processes, develop customized pitches, and provide personalized service that enhances the customer experience.
Key Takeaways for Startups
Traits of First GTM Hire
The ideal candidate should be a Jack or Jill of all trades, exhibiting versatility and adaptability in a fast-paced startup environment. They must be intrinsically motivated and naturally curious, always seeking to understand and solve problems creatively. Avoid focusing solely on traditional sales-oriented interview questions. Instead, explore their adaptability and creative problem-solving skills. Assess their ability to wear multiple hats and pivot between tasks, from engaging with customers to creating advocacy resources.
Support and Goal Setting
Providing robust support and clear goal setting is crucial for the success of your first GTM hire. Set clear, achievable goals for the first six to eight months to provide direction and measure performance. Ensure that the new hire has a committed manager to guide their growth. Create an environment that promotes open communication and collaboration.
Structured Onboarding and Mentorship
A structured onboarding process and strong mentorship are vital for setting up your first GTM hire for success. Start with a comprehensive onboarding program that covers all aspects of your product, target market, and internal processes. Pair your new hire with an experienced mentor who can guide them through the nuances of the role and the company culture. Regular check-ins and feedback sessions will help them navigate challenges, learn from mistakes, and continuously improve.
Making the Decision
When it comes to making your first GTM hire, the decision should be driven by a clear understanding of your startup’s stage, growth strategy, and market dynamics.
Avoid common pitfalls such as hiring for the wrong stage or overlooking hands-on experience. Instead, focus on finding a candidate who can wear multiple hats and drive both strategic and tactical initiatives. Remember, the right GTM hire can significantly impact your startup’s trajectory, setting the foundation for sustainable growth and success.
Choosing your first GTM hire can be a challenging task, but with a well-defined strategy and the right approach, you can lay a strong foundation for your startup's growth and success
And with Exordiom Talent by your side, it doesn't have to be so hard..
Are you ready to make your first GTM hire and drive your startup forward? Schedule a free 15 min consultation
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Table of Contents
The Paradox of Choice in SaaS: Strategies to Beat Analysis Paralysis
Building a Remote GTM Team: Strategies and Best Practices
Strategic GTM Planning: Balancing Impact and Budget
Mastering the Rule of 40: Balancing Growth and Profitability for Startup CEOs
Making the Right Choice for Your Startup's First GTM Hire
Transform Your Sales Team with Exordiom's GTM Talent-as-a-Service: Efficient Hiring, Superior Talent, and Rapid Results
From Vision to Victory: Strategies for Consistently Hitting Sales Targets
Launching for Success: Escape Common Pitfalls for Market Domination
The Critical Conversations Every Sales Leader Must Have: Holding Your Team Accountable
Mastering Outbound Sales: A Guide for Sales Managers to Lead by Example