One of the Biggest Mistakes Enterprise Startups Make
techcrunch.com
techcrunch.com
Startuplandia has a sales playbook that works well for selling to early adopters and the SMB market. That playbook does not work well selling into the F500. In particular, BigCo's don't respond productively to passive sales processes. A lot of the things you do to optimize passive sales, like free trials or tiered account models, don't really help F500 procurers. It is sometimes just as hard for those people to spend $5000 on something as it is to spend $100,000. Sometimes, it's actually better for those people to spend $100,000 on something even if $5000 would buy them a reliable call option on the value of the product.
There's a reason the enterprise sales playbook leans so heavily on inside dial-for-dollars sales and direct account managers: that process works.
If your software is something that a Fortune 5000 needs only once, though, you shouldn't be selling it to them for $1000.
Like Joel Spolsky said: free, cheap, or dear. There's little room for stuff in the middle. I've watched companies thrash themselves to death in that middle zone right up close.
Enterprise software lives and dies by the quality of the professional services teams working on it. They will typically custom implement v1 and v2 of any new features that should go into the product, as there will usually be customer willing to pay for those features ahead of the product road map. This is where you can get solid gold. Product managers/owners who ignore this will end up writing useless features that don't work the way the customers need them to.
The article in question is talking about enterprise software. And even if your software is clean and beautiful, if it is actually doing something important, it probably must accomplish that task in a complex environment, e.g. does it have to play nice with legacy systems?
For software companies who have a merely great idea, 98% of your potential customers are going to ignore you if they lack confidence that the implementation will succeed. Self-serve is a useful idea, but you may be setting a very high bar for yourself. Maybe that is the right move; maybe that is setting yourself up for failure.