Contrary to the PLG trend, Canary focused on building a scalable outbound sales engine first. Their rationale: if you can make cold outreach profitable, you have a more controllable growth lever. Inbound can then be layered on top as a bonus, rather than being the sole, less predictable driver of growth.
Founders struggling with pipeline often try to sell their product in cold outreach, which fails. The initial goal is not conversion, but learning. Instead, sell the conversation itself by positioning yourself as an interesting person to talk to. This dramatically increases meeting rates.
Even successful PLG companies like Figma eventually burn through their early adopter market. To avoid hitting an asymptotic growth curve, they must proactively build a traditional outbound sales team to tackle the enterprise market before the PLG engine stalls. Don't wait until you need it.
If your sales efforts feel volatile or based on luck, it's likely because you aren't doing enough outreach. What seems like random success at low volume becomes a predictable process at high volume. A 1% cold call conversion rate isn't luck; it's a metric you can scale.
Even after scaling past $10M ARR, Canary's founder gets back on the phone to cold call customers for every new product launch. This ensures the leadership team directly tests messaging, understands customer objections, and validates the new offering's value proposition before scaling the sales motion.
When planning growth, leaders often model sales capacity (hiring reps) but forget to model demand generation capacity. A plan to add eight reps is useless if the pipeline comes from non-scalable sources like VC intros, which can only support the first two reps. You must scale both simultaneously.
Instead of pitching features, Katera builds AI agents that find sales opportunities for their prospects (e.g., relevant Reddit threads) and sends those leads directly. This "show, don't tell" approach provides immediate value and dramatically increases response rates.
True cold calling is ineffective because the prospect has no context. Outbound works when it's integrated with marketing's brand-building efforts. By focusing on "mindshare" first, marketing "warms" the audience, making them more receptive when a BDR eventually reaches out.
Never give expensive, company-generated inbound leads to the same team doing cold outbound. Outbound should be the training ground. Only the top outbound performers graduate to the inbound team, ensuring your best closers are on your most valuable leads.
While many product-led growth companies delay building a sales team, this is often a mistake. Waiting until bottoms-up growth stalls forces a painful "whiplash moment" as the company scrambles to adopt a new GTM motion. Building both motions in parallel creates a more resilient business.
AI outbound tools pull from the same databases, hitting the same people with similar messages. To stand out, go fully manual. Research individuals, send unique, short messages, and target people not in common databases. This "back door" approach is more effective for high-value deals.