predictable-revenue

What this skill does

# Predictable Revenue Framework

A systematic approach to building a scalable, predictable B2B sales machine. Pioneered the outbound prospecting system that helped Salesforce add $100M in recurring revenue.

## Core Principle

**Predictable lead generation drives predictable revenue.** The biggest mistake in sales is having the same people prospect AND close. Specialization creates a repeatable, scalable machine.

**The foundation:** Cold calling is dead. Cold Calling 2.0 — mass, personalized cold emails that generate referrals to the right person — is the new outbound. Combined with sales role specialization, this creates predictable, scalable revenue.

## Scoring

**Goal: 10/10.** When evaluating or building a sales process, rate 0-10 based on predictability, specialization, and process maturity. A 10/10 means clear role separation, repeatable prospecting process, and predictable pipeline generation; lower scores indicate ad-hoc sales or reliance on heroics. Always provide current score and improvements to reach 10/10.

## The Three Types of Leads

**Not all leads are created equal. Treat them differently.**

| Type | Source | Conversion | Cost | Example |
|------|--------|------------|------|---------|
| **Seeds** | Word of mouth, referrals, organic | Highest (best quality) | Lowest (takes time) | Customer referral, NPS-driven |
| **Nets** | Marketing campaigns, inbound | Medium | Medium | Content marketing, SEO, webinars |
| **Spears** | Outbound prospecting | Lower (but predictable) | Higher (people-intensive) | Cold Calling 2.0, targeted outreach |

**Key insight:** Most companies over-invest in nets (marketing) and under-invest in spears (outbound). Seeds are the best but can't be manufactured quickly. A balanced mix of all three creates predictable revenue.

**Revenue mix:**

- **Seeds:** Invest in customer success, NPS, referral programs
- **Nets:** Invest in content, SEO, paid acquisition
- **Spears:** Invest in SDR team, Cold Calling 2.0

See: [references/lead-types.md](references/lead-types.md) for lead source strategy and investment allocation.

## Sales Role Specialization

**The #1 principle: Separate prospecting from closing.**

**Traditional (broken) model:**

- AEs prospect AND close
- Result: AEs hate prospecting, pipeline is feast-or-famine

**Predictable Revenue model:**

| Role | Focus | Metrics |
|------|-------|---------|
| **SDR (Sales Development Rep)** | Outbound prospecting → qualified opportunities | Qualified meetings/month |
| **MDR (Market Development Rep)** | Inbound lead qualification | Qualified leads/month |
| **AE (Account Executive)** | Close deals | Revenue closed, win rate |
| **CSM (Customer Success Manager)** | Retain and grow accounts | Retention rate, expansion revenue |

### SDR (Sales Development Rep)

**Mission:** Generate qualified pipeline through outbound prospecting.

**Focus:**

- Research target accounts
- Write personalized Cold Calling 2.0 emails
- Get referred to the right person
- Qualify opportunities (ANUM)
- Pass qualified opportunities to AEs

**Not their job:**

- Close deals
- Handle inbound leads
- Manage existing customers

**Metrics:**

- Qualified opportunities generated per month
- Response rate to outbound emails
- Meetings booked per week
- Pipeline value generated

**SDR capacity:** One SDR typically generates 10-20 qualified opportunities per month.

### AE (Account Executive)

**Mission:** Close deals from qualified pipeline.

**Focus:**

- Run discovery calls
- Demo and present solutions
- Negotiate and close
- Hand off to CSM

**Not their job:**

- Prospect for new leads (this is SDR's job)
- Qualify inbound leads (this is MDR's job)
- Manage post-sale relationships (CSM's job)

**Metrics:**

- Revenue closed
- Win rate
- Average deal size
- Sales cycle length

### CSM (Customer Success Manager)

**Mission:** Retain customers and grow accounts.

**Focus:**

- Onboard new customers
- Drive adoption and engagement
- Identify expansion opportunities
- Prevent churn

**Metrics:**

- Net revenue retention
- Churn rate
- Expansion revenue
- NPS / CSAT

**The virtuous cycle:**

```
SDR generates pipeline → AE closes → CSM retains/grows → Happy customer refers (Seeds)
```

See: [references/roles.md](references/roles.md) for role definitions, career paths, and hiring profiles.

## Cold Calling 2.0

**The outbound prospecting methodology that replaces traditional cold calling.**

**Why traditional cold calling fails:**

- Gatekeepers block calls
- Decision makers don't answer phones
- 1-3% connection rate
- Damages brand
- Not scalable

**Cold Calling 2.0 process:**

```
1. Build list → 2. Send mass email → 3. Get referral → 4. Call the referral → 5. Qualify
```

### Step 1: Build Target Account List

**Ideal Customer Profile (ICP):**

- Company size (employees, revenue)
- Industry
- Technology stack
- Geography
- Pain points

**Build list using:**

- LinkedIn Sales Navigator
- ZoomInfo / Apollo / Clearbit
- Company websites
- Industry directories

**Target:** 200-500 accounts per SDR per quarter

### Step 2: The Referral Email

**The core innovation:** Don't email the decision maker directly. Email above them and ask for a referral down.

**Why it works:**

- Senior people are helpful (they forward emails)
- Referrals have 3-5x higher response rate
- Creates warm introduction from within the company

**The email template:**

**Subject:** Quick question

**Body:**
> Hi [Name],
>
> I'm not sure if you're the right person to speak to about [specific topic] at [Company], but I was hoping you could point me to the right person.
>
> We help [companies like theirs] with [specific value prop].
>
> Would you mind pointing me to the right person to talk to?
>
> Thanks,
> [Your name]

**Key elements:**

- Short (< 100 words)
- No pitch, no attachments, no links
- Asks for referral, not a meeting
- Specific about what you do
- Easy to forward

**Response rate:** 9-15% (vs. 1-3% for traditional cold emails)

### Step 3: Follow Up

**Follow-up sequence:**

| Day | Action |
|-----|--------|
| Day 1 | Send referral email |
| Day 3 | Follow up if no response |
| Day 7 | Second follow up (different angle) |
| Day 14 | Break-up email ("Should I close your file?") |
| Day 30 | Re-engage (new trigger event or content) |

**Break-up email example:**
> Hi [Name],
>
> I haven't heard back from you. I don't want to be a pest.
>
> Should I close your file, or would it make sense to chat?
>
> [Your name]

**Why break-up emails work:** People respond to the threat of losing access/opportunity (scarcity principle).

### Step 4: Qualify with ANUM

**ANUM qualification framework:**

| Criteria | Question | Strong Signal | Weak Signal |
|----------|----------|---------------|-------------|
| **A**uthority | Can this person decide? | Decision maker or strong influencer | No buying power |
| **N**eed | Do they have the problem you solve? | Active pain, looking for solutions | "Nice to have" |
| **U**rgency | When do they need to solve it? | This quarter, budget allocated | "Someday" |
| **M**oney | Can they afford it? | Budget exists, within range | No budget, too expensive |

**Qualification call structure:**

1. Build rapport (2 min)
2. Set agenda ("I want to understand your situation and see if there's a fit")
3. Discovery questions (10-15 min)
4. ANUM qualification (built into discovery)
5. Next steps (if qualified → schedule AE demo)

### Step 5: Hand Off to AE

**The handoff must include:**

- Account background and ICP match
- Contact details and role
- Pain points discovered
- ANUM qualification notes
- Agreed next steps
- Any competitive intel

**Handoff meeting:** SDR introduces AE on a brief 3-way call or email, then drops off.

See: [references/cold-calling-2.md](references/cold-calling-2.md) for email templates, sequences, and scripts.

## Pipeline Math

**The math of predictable revenue:**

```
Revenue Goal ÷ Average Deal Size = Deals Needed
Deals Needed ÷ Win Rate = Opportunities Needed
Opportunities