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a16z Podcast | Embracing Sales
15 segments available
Companies founded by a group of engineers often have a deep-seated mistrust of sales -- or more precisely, salespeople. That was the case at GitHub, says CEO and co-founder Chris Wanstrath: It wasn't until their customers started asking for a sales organization to help guide them that Wanstrath and the GitHub team realized sales wasn't necessarily filled with the fast-talking stereotypes they were used to seeing on TV. Wanstrath joins a16z General Partner Peter Levine to discuss how GitHub finally embraced sales, why good salespeople are like good teachers, and what it takes to sell to developers.
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Introduction to Sales at GitHub
In this segment, Michael Copeland introduces Chris Wanstrath, CEO of GitHub, and Peter Levine from Andreessen Horowitz. They set the stage for a discussion about GitHub's sales organization, highlighting the initial reluctance to build a sales team and the surprising customer demand that changed their perspective.
"welcome to the a 16z podcast I'm Michael Copeland and I'm here in the Situation Room at github here in San Francisco with co-founder and CEO of github chris wanstrath and Peter Levine from andreessen ..."
Customer Demand Drives Sales Team Formation
Chris Wanstrath explains how GitHub's customers played a crucial role in the decision to establish a sales team. Initially resistant to the idea, GitHub's leadership realized that a sales organization could enhance customer relationships and provide valuable feedback, ultimately leading to a better understanding of their product's market fit.
"it may have come come as some surprise actually has a sales organization so Chris I want to sort of back up and get into why you guys built a sales team because at the beginning is my understanding th..."
The Misconception of Sales Culture
Chris discusses the common misconceptions about salespeople, shaped by media portrayals. He reflects on the reluctance of engineering-led companies to embrace sales, fearing it would compromise their product integrity. This segment emphasizes the need to redefine sales as a relationship-building process rather than a transactional one.
"let me back up then why do you think you were resistant at the beginning and because I think it's probably something that a lot of engineering lead companies face because I watch a lot of movies growi..."
Peter Levine's Journey from Engineering to Sales
Peter Levine shares his background as an engineer and how he transitioned into sales. He highlights the importance of educating customers about products and fostering relationships, which helped him rationalize his move into sales. This segment underscores the value of viewing sales as a teaching role rather than a purely profit-driven function.
"that's not really the reality right well and Peter is your back running and give us a little bit of your background because you started your career as an engineer and you know went on to become a CEO ..."
Building a Sales Organization at GitHub
Peter discusses the challenges faced by engineering-led companies in building sales organizations. He notes that successful products often lead to reluctance in establishing sales teams, as companies may feel their product is selling itself. This segment explores GitHub's journey in recognizing the need for a sales team to support its growing customer base.
"had the opportunity as an engineer to actually go out and meet some customers and it became really interesting to me to see that you know when I was at customers they had a lot of questions about our ..."
Customer Feedback and Internal Sales Advocacy
Chris explains how GitHub's customers expressed a desire for assistance in promoting GitHub internally within their organizations. This segment highlights the gap between developers wanting to use GitHub and the decision-makers who needed convincing, emphasizing the role of sales in bridging that gap.
"and that became part of how I always thought about sales and as I went on to build sales organization and run companies that's always how I thought about kind of the sales organization so fast forward..."
The Role of Sales in Developer Advocacy
Chris elaborates on how GitHub's sales organization empowers developers to advocate for the product within their companies. This segment discusses the importance of understanding the needs of both developers and decision-makers, and how sales can facilitate internal discussions about adopting GitHub.
"natural tendency is to just say well like the thing is selling is is flying off the the shelves people are using it we don't have a sales organization why would we ruin any or anything by bringing on ..."
Changing Perceptions of Sales
Peter addresses the common misunderstandings about sales organizations, emphasizing that sales can take many forms beyond traditional models. He advocates for a nuanced understanding of sales roles and their potential to add value to tech companies, particularly in fostering customer relationships.
"want to do and so there was a gap between that desire and kind of what was available to them just going online sure cuz github is marketed entirely to developers it was the hole in any sense of market..."
Integrating Sales and Engineering Cultures
Chris and Peter discuss the importance of integrating sales and engineering teams to foster collaboration and a unified company culture. They emphasize the need for open communication and shared objectives to prevent an 'us-versus-them' mentality, which can hinder organizational growth.
"you had just described about I'm a teacher I'm not extracting the last dollar you know first of all I think there's a I think there's a misunderstanding generally and Kris pointed out on what a sales ..."
Hiring for Cultural Fit in Sales
Chris shares insights into GitHub's hiring and onboarding processes for the sales team, focusing on cultural fit and shared values. This segment highlights the importance of ensuring that new sales hires align with GitHub's mission and community-oriented approach.
"let's talk about that Chris when you guys started to build out you know this gang here started to build out the sales organization what were you very sort of cognizant of or sensitive to and and how d..."
Maintaining GitHub's Culture Amid Growth
Chris discusses the ongoing efforts to maintain GitHub's culture as the sales team expands. He emphasizes the significance of onboarding practices that instill the company's values and the importance of hiring individuals who resonate with GitHub's community-driven ethos.
"showing them like we think this is really great some of your developers think it's really great here's how we can work together so for us it was a lot of like let's interview a bunch of people and let..."
Fostering Collaboration Between Sales and Engineering
Peter highlights the need for collaboration between sales and engineering teams to ensure a cohesive approach to customer engagement. This segment discusses the importance of integrating feedback from both sides to enhance product development and customer satisfaction.
"from all over the company they do short talks they do QA they do all sorts of things in the first couple weeks to share with the new people like what it is about github that we think is special or we ..."
Feedback Mechanisms in a Growing Organization
Chris explains the challenges of managing customer feedback as GitHub grows. He discusses the importance of establishing effective communication channels between sales and product teams to ensure that customer insights are utilized in product development.
"but also your engineering experience how have you found that those two cultures sort of best get along or what are the sort of friction points to look out for the place where I find most of the fricti..."
The Necessity of Sales Organizations
Chris and Peter discuss whether companies can succeed without sales organizations. They reflect on GitHub's evolution and the changing market dynamics that necessitate a sales presence, particularly for enterprise-focused products.
"right and so I think that things will change as the company grows but it's not such a bad thing as long as it's one objective and everyone coming together and I think it goes off the rails when leader..."
Conclusion and Future Outlook
In the closing segment, Chris and Peter summarize the key takeaways from their discussion on sales at GitHub. They emphasize the importance of balancing product development with sales efforts to achieve long-term success and customer satisfaction.
"coming in there's way more customers we have support there's Twitter there's sales so what actually today there's a thread where the products group some people in the product group some of the designe..."