Hi Blair Reeves
Thanks for your thoughtful response. A couple of thoughts back.
- I’d argue that HubSpot is far more an “M” company than an “S” company. We don’t typically sell to companies with one person, for example, the way Intuit might do. I don’t have the data on Intuit, but if I had to guess, I’d say our average size customer is close to order of magnitude larger than the average Intuit customer. You’ve probably noticed that I’ve written a series of articles on ScaleUps. The thing I’ve noticed we are really good at doing is helping companies move from StartUp mode into ScaleUp mode.
- There are a couple reasons we are not in a big rush to sell into the Fortune 500. First, there is a lot more competition up there from clueful vendors like Salesforce.com, SAP, IBM, Adobe, Marketo, and Oracle. Second, we feel like we have an unfair advantage in the SMB space that wouldn’t be as obvious in the Fortune 500— see the comments in my article about matching your go to market with your target market. Third, we are mission driven. We fundamentally believe that the internet and inbound disproportionately benefits the SMB growth company more than it benefits the Fortune 500 company. With Inbound, your success is much more about the width of your brain than the width of your wallet.
- I personally don’t think a properly done online ad is a bad thing or is even that outboundy. At HubSpot, we do some online ads — no pop-ups, highly targeted, etc. The issue I think companies have in SMB is that those online ads don’t scale that well for them. For example, lets say you are just starting out and you have a budget of $1k/month for Google Adwords and that you are acquiring good quality leads for $20 each. A couple of years later as you get bigger and your Google Adwords budget grows to $1million/month, you are no longer getting good quality leads for $20 each. You run out of the low hanging fruit inventory and your cost per high quality lead blows up.