Force Multipliers Force Multipliers Force Multipliers Force Multipliers aanndd Man Manaanndd Man Manaaging ging aaging ging GGrorowwGGttrorohh wwtthh HiringHiring In ordIner or tod uernd toer usndtanerds thoanwd hiringhow hiring affec tsaffe potects npotetial reventialn reveue gronuew groth, wwe th, we first mfirusstt m uunstder usntderands ttheand influen the influence ancde iamnpda ictm pofa cttim ofin tigm winheg nw ithe conm it ecos mes to brito ngingbrin gingon yo onur first your first sales srepsales. reps. Let’s Lasetsu’sme ass uyomeu h yoaveu haa teveam a te ofam tw ofo s tawleos srepsales whoreps whosold asol codmb a coinembd ined $1 m$1illion m illionlast ye laastr. yeThiasr. yeThiasr, yeyoau’r,re yo tryingu’re trying to gro tow gro revew nreveue bynue 3 0by% . 3T0o %. To makem thoseake those numb nuermbs werorks w, youork’,ll you nee’lld n toee incred to increase yoasuer yosaleurs srepaless’ reppros’ pro- - ductivitductivity, hirey m, hireore s maore sles repaless, or repbs,oth or .b Sotho w. hich routeSo which route shou shold youuld t youake? take? First, Firdeterst, dmeterinem winhiec hw himconthh m onthyou’d yo nu’eedd n toeed hire to anhireother another sales srepales i n rep in orderor tod erhit to yo hitur yo30%ur 30%reve nreveue tnauerget ta. rgetBelo. wBelo is aw si ism aple sim tabplele t abyoule cayoun can createcre toa tesho tow sho projew projected cbteookid bnookigs-per-ngsm-per-onthm onthper s aperles srepale sth repat fthactorat fas ctors in a nein aw nesalew s resalep’ss re onpb’so onardbionagr dproingd uproctivitducy.tivity. Goal: Grow Goal: Grow Revenue 30%Revenue 30% Scenario Scenario You Hire a New Sales You Hire a New Sales Person Person You hire 1 AE in March & hits their ramp quota (0%, 33%, 66%)You hire 1 AE in March & hits their ramp quota (0%, 33%, 66%) AE Name AE NameQuota/ClosedQuota/Closed1/1/16 1/1/162/1/16 2/1/163/1/16 3/1/164/1/16–7/1/164/1/16–7/1/168/1/16 8/1/169/1/16 9/1/1610/1/16 10/1/1611/1/16 11/1/1612/1/16 12/1/16 James Doe James Doe500,000 500,000 41,667 41,66741,667 41,66741,667 41,66741,667 41,66741,667 41,66741,667 41,66741,667 41,667 41,667 41,667 41,667 41,667 Jane Doe Jane Doe500,000 500,000 41,667 41,66741,667 41,66741,667 41,66741,667 41,66741,667 41,66741,667 41,66741,667 41,667 41,667 41,667 41,667 41,667 TBH-1 TBH-1 332,917 332,917 0 0 13,750 13,75041,667 41,66741,667 41,66741,667 41,667 41,667 41,667 41,667 41,667 Total Total 1,332,917 1,332,917 YoY GrowthYoY Growth 33% 33% By stByarti sntga rtia nneg wa nesalesw srepales inrep your in yourthird thirmonthd m,onth you,’d you achieve’d achieve 33% 33% year-over-yeyear-over-year groawr groth. Bwutht w. Bhatut w ifhat you if hire you yo hireur yofirstur sa firstles sareples o repne mont one month h earlierearlier or on ore m onoen thm olanter?th la Wter?oul Wd oulthadt mthaakte m aa dkifferene a difference? Thece? a Thenswer an sis wer is yes, ayebss,olutel absolutely. Hiriyn. gHiri yourng yourfirst s firalests srepale so repne m ononthe m onthearlier ea wrlierould w omueldan m, ean, accoracdicorng dtoin thig tos chart this chart, that, the tha tn theew hirenew w hireould w oretireuld retire 28% of28% your of yourgrow groth wth quotaquota. If the. I fne thew hirenew st hirearte stda ortened m ononthe m onthlater, loantelyr, 22on%ly. 22Tim%i.n Tigm maingtter mas, tters, and thiands prove this proves it. s it. Next Nyouext’ll you nee’lld nee to ddevelop to develop a tim ea frtimame efr aamgaeinst ag awinsthic hw yohicuh hir yoeu. Tihirmein. Tig ming your yohireurs hirerights rightcould coul be dthe be d theifferenti differentiatinga ftiacntorg fac ontor w onhether whether or not or yo notu you hit yourhit youryearly ye groarlyw groth twargetsth targets. The .m Theore m hireores hireyous pl yoanu onplan ad ondin adg diton yog tour your teamte, the amm, the ore msigore nificsigannifict hiring ant hiring at the rightat the right time of tim thee of ye thear byeeacr obmeecso.mes. Now Nletow’s getlet’ sba getck bato ckw htoat w kheepat sk eepus usp us a tu npight at n —ight th —at thgooatd goo oldd ca oldsh cash burn.bu Thern . reTheality re isality, m ostis, m ofost us ofca uns’t cjuanst’t hire just ahire sales a sareples a rept the a tm theom menot ment we neewed nee to daccelerate to accelerate grow groth, wbectha, usebec ahiringuse hiring sales spoalessitio ponssitio inn Ssaa inS SaaS createscre aa tescas ha cfloaswh floguwlly .g Iuf llyoy.u If f yoactoru fa inctor cus into cmuserto acmquisitioner acquisition costs costs and and 4949 4949