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content/posts/190626-dev-led-sales-startups.markdown

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@@ -283,25 +283,52 @@ your own business model. The business model should include a working
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hypothesis for both the cost of customer acquisition (CAC) and lifetime
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value of a customer (LTV). Also, does the revenue derived from your
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customers match a standard distribution or a power law distribution?
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</p><p>
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What do CAC, LTV and standard vs. power law distribution have to do with
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a developer-led sales motion?
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</p><p>
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Ideally, your CAC will be significantly lower with a developer-led
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sales strategy versus a traditional sales motion. This is one reason
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established companies such as Okta
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<a href="https://www.okta.com/press-room/press-releases/okta-welcomes-stormpath-to-accelerate-identity-for-developers/">acquire smaller firms such as Stormpath</a>
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to create a different sales cycle based on usage from developers instead
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of trying to convince companies to sign large deals before the software
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has proven useful.
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</p>
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</div></div>
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<div class="row talk"><div class="c6">
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<img src="/img/190626-dev-led-sales/22-cloud-laws.jpg" width="100%" class="shot rnd outl" alt="Bessemer's 10 Laws of Cloud Computing and developer platform laws are fantastic foundational reading.">
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</div><div class="c6"><p>
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Bessemer's
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Note that I am making a lot of assumptions about your understanding of
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developer platforms. If what I am saying about CAC, LTV, usage-based
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models and related terms are unclear, you definitely need to read
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Bessemer's articles on
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<a href="https://www.bvp.com/atlas/10-laws-of-cloud">10 Laws of Cloud Computing</a>
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and
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<a href="https://www.bvp.com/atlas/eight-laws-for-developer-platforms">8 Laws for Developer Platforms</a>
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are helpful foundational resources for understanding how to build,
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market and sell software products for developers.
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<a href="https://www.bvp.com/atlas/eight-laws-for-developer-platforms">8 Laws for Developer Platforms</a>.
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</p><p>
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They are both incredibly helpful foundational resources for understanding
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how to build, market and sell software products for developers.
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</p>
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</div></div>
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<div class="row talk"><div class="c6">
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<img src="/img/190626-dev-led-sales/23-platform.jpg" width="100%" class="shot rnd outl" alt="Broad developer platform.">
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</div><div class="c6"><p>
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...
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Finally, if you have a product that solves a real problem for developers,
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can explain it to them and have a working model of your CAC and LTV,
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then a massive bonus comes into play when you have a broad platform
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useful across many industries. Broad platforms that developers can use
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in creative ways can potentially create new use cases for company to
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sell.
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</p><p>
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For example, when Twilio started the SMS API, 2-factor authentication was
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rare. The ease of integrating the API to send unique codes to pre-qualified
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phone numbers to enhance security beyond a password became a new use
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case for the company to sell to customers. It was developers who came up
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with the use case and deserve the credit for figuring out what was
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valuable about an SMS API.
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</p>
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</div></div>
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