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Building Your Startup’s Go-to-Market Strategy

Tim Daniels, Head of Finance, Opsgenie at Atlassian speaking at ScaleX Founders Summit 2019
Different GTM strategies, visualized.

“Free trial looks great but you need to be sure about your product/market fit. Because in the free trial, you are at the mercy of the market demand,” warns Tim.

“Our product was great and customers were able to see the value and wanted to continue getting alerts and suggestions just like Spotify, so they became paying customers.”

Zoom’s user growth over the years

“ In our case, we really want to get the customers to test our product. This market is extremely crowded. It’s really hard to tell customers, ‘You have got to try Zoom.’ Without a freemium product, I think you’re going to lose the opportunity to let many users test your products.

We make our freemium product work so well. We give most of our features for free and one to one is no limitation. That’s why almost every day there are so many users coming to our website, free users. If they like our product, very soon, they are going to pay for the subscription.”

“We had over two years to slowly work our way up to the amount of data we were processing before the free plan. We then found ourselves needing to double the processable load in a matter of days. Needless to say, it didn’t work out in our favor.

We were dealing with day-after-day and week-after-week of progressively more complex server and performance issues as we just kept piling on the new free accounts.”

“The reseller model works best when you go all-in on it. Resellers have lots of products to sell, so you need to capture their mindshare and give them an incentive to lean into working with you.”

“Unfortunately, many partnerships don’t achieve the intended level of impact. Even when they do work, splitting up the economics can be tricky.”

“If you want to launch an inside sales team and your average deal size is low, you have two choices: raise the deal size, or figure out how to cycle through deals very quickly. The latter is often very difficult.”

— Tim Daniels

What is the average deal size?

Do you sell to individuals, teams, or entire organizations?

Who, and how senior, is your buyer?

How does your buyer typically buy?

How complicated are the sale and implementation?

How many targets are in your target market?

Is this a winner-take-all market?

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