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Selling in a Downturn:
Five Changes for 2023

Sahil Mansuri
Founder & CEO, Bravado
NOV 2022
The Reality

Quota Miss Acceleration

Q1Q2Q3Q4Oct
63%
reps missed Q3
↑ from 46% in Q1
76%
companies missed Q3
↑ from 51% in Q1
"You've got 30% more of the sales team missing quota today than six months ago."
Planning Under Uncertainty

The Conservative Forecast + Milestone Playbook

PLAN CONSERVATIVELYe.g., down 10% year-over-yearSET MILESTONES TO UNLOCK GROWTH
  • Plan for $9M if you did $10M last year
  • Set Q1 target of $2.25M
  • Hit $2.25M? Unlock budget & accelerate
  • Miss? Revise down for rest of year
  • Pre-agree on triggers with board & team
The founder bias trap
Founders are biased toward optimism. In downturns, that's a liability, not an asset. Pre-commit to predetermined decision rules so you don't rationalize away Q1 misses.
Sahil's core insight"Don't want to be floundering from 'we're screwed' to 'everything's better.' Set checkpoints that remove emotion from decisions."
New Comp Structure

Realign Incentives for Retention

  • Shift from purely top-line bookings: Most comp is still "new ACV closed"
  • Weight expansion & renewal: Upsell, cross-sell, and net retention get real comp points
  • Change the ratio: If you were 80/20 new-to-expansion, flip to 50/50 or 40/60
  • Non-linear commission: Hit 50% of quota on new business, 90% on expansion? You still make money
  • Define "a deal": Pilot contracts, multi-year deals, and small expansion all count differently
Why this works in downturns
Sales teams follow incentives. If you want them hunting expansion, pay them for it. Downturns are when existing customers are most defensible and valuable.
The data signal
Enterprise sales cycles are 115+ days (up from 62). Pilots are trending up. Multi-year deals are rare. Your comp must reflect reality.
Retention

Move Your Best Salespeople into CSM

Counterintuitive moveIn tough markets, defending your base is more valuable than chasing new logos. This shifts who your A-players should be.
Contrarian Sales Tactics

Five Downturn Myths Debunked

Hiring more SDRs will fix pipelineINSTEAD →Cold outreach is dead. Invest in warm intros, account-based selling, and existing customer leverage instead.
Compensation should stay all-commissionINSTEAD →Add base salary bump if you shift comp toward expansion. Make retention economically rational for reps.
Customers care only about priceINSTEAD →Customers care about getting value and visibility into how peers are navigating the downturn. Be an advisor, not a vendor.
Layoffs mean you're doing something wrongINSTEAD →The entire market is missing quota. Layoffs are a symptom, not a failure. Right-size fast and focus on retention.
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