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AJ Tennant: How to Build a Sales Machine and Where Most Go Wrong | E2118

AJ Tennant is the Vice President of Sales & Success at Glean, Glean has more than 20x'd its revenue and 100x'd its user base in the just two and a half years he's been there. Before Glean, AJ had incredible runs at Slack and Facebook. At Slack, AJ helped grow revenue from $6 million to more than $1 billion. ----------------------------------------------- Timestamps: (00:00) Intro (01:45) The Hardest Sales Skill To Learn (02:48) What Do Young Reps Struggle to Learn Today? (04:51) The Sales Playbook (07:22) Sales Team Structure (09:22) Takeaways From Working at Slack (12:08) Moving Upmarket (17:50) Small Contracts for Big Customers (22:01) Buzzwords (23:19) How to Sell AI Tools in 2024 (30:14) When Does It Make Sense to Scale Up CS? (34:02) Should CSMs Be Compensated for Upsells? (35:24) What Would You Change About Glean’s Sales Comp Plan? (36:01) Hiring Sales Team (40:05) Are Sales Reps Truly "Coin Operated"? (50:18) How To Improve Glean’s Interview Process (54:32) Hiring Mistakes (57:52) Quick-Fire Round ----------------------------------------------- In Today’s Episode with AJ Tennant We Discuss: 1. How to Sell AI Tools in 2024: Are we still in the experimental budget phase for AI? How does selling AI tools differ to selling traditional SaaS? What are enterprises biggest concerns when it comes to adopting AI tools? What buzzwords get enterprises most excited in the sales process? Will we see a massive churn problem when the first renewal cycle for many of these AI products comes? 2. Outbound, Discounting, Closing: Is outbound dead in 2024? What does no one do that everyone should do? How does AJ approach discounting? Biggest lessons and advice? What can sales teams do to create a sense of urgency in a sales cycle? How does AJ do deal reviews and post-mortems? What is the difference between good and bad post-mortems? 3. How to Master Customer Success: What are the biggest mistakes founders make today in managing their CS teams? Should CS be compensated for upsell? How should the comp structure of CS teams change? What can be done to create a good handoff experience for the customer when handing from AE to CS? What are the most common ways CS teams break over time? 4. Hiring the Best Sales Teams: How does AJ structure the hiring process for all new sales hires? What questions does AJ always need to ask when hiring sales reps? What are clear signs of outperformers when hiring new reps? Does AJ give candidates a take-home assignment? What does he want to see from them? How quickly do you know when you have made a bad sales hire? What are the signs of a bad sales hire? What goes wrong first? ----------------------------------------------- Subscribe on Spotify: https://open.spotify.com/show/3j2KMcZTtgTNBKwtZBMHvl?si=85bc9196860e4466 Subscribe on Apple Podcasts: https://podcasts.apple.com/us/podcast/the-twenty-minute-vc-20vc-venture-capital-startup/id958230465 Follow Harry Stebbings on Twitter: https://twitter.com/HarryStebbings Follow AJ Tennant on Twitter: https://twitter.com/ajtennant Follow 20VC on Instagram: https://www.instagram.com/20vchq Follow 20VC on TikTok: https://www.tiktok.com/@20vc_tok Visit our Website: https://www.20vc.com Subscribe to our Newsletter: https://www.thetwentyminutevc.com/contact ----------------------------------------------- #20vc #harrystebbings #ajtennant #glean #sales #hiring #customersuccess #slack #tmobile

AJ TennantguestHarry Stebbingshost
Oct 23, 20241h 8mWatch on YouTube ↗

CHAPTERS

  1. 0:21 – 1:45

    Sales can be learned: what matters more than personality

    AJ challenges the idea that great sellers are “born,” arguing sales is a learnable skill driven by motivation and inputs. He shares examples of quieter, less gregarious people succeeding by focusing on craft and work ethic.

    • Sales skills are teachable with the right coaching and motivation
    • Being outgoing isn’t the core predictor of success
    • Top performance is driven by controllable inputs and learning velocity
    • Examples from Facebook and Slack of non-obvious profiles succeeding
  2. 1:45 – 2:53

    The hardest skill: handling rejection (and the shame of interrupting)

    AJ describes rejection tolerance as the toughest sales skill to build, especially when selling outbound in-person. He explains how repeated failure and the emotional weight of interrupting prospects is a core early-career challenge.

    • Rejection feels personal early on and takes time to metabolize
    • Outbound is repeated failure—resilience becomes the differentiator
    • Early sales experiences shape long-term selling confidence
    • Learning to reframe rejection is foundational to growth
  3. 2:53 – 3:46

    Why young AEs struggle: creativity, nuance, and active listening

    AJ observes that many junior reps default to rigid scripts once a prospect engages. The best sellers stay flexible, actively listen, and adapt their approach in real time rather than forcing a prescriptive flow.

    • Over-structured talk tracks block real discovery
    • Great reps morph to the prospect and context live
    • Active listening is the key missing capability
    • Volume outreach is often replacing thoughtful engagement
  4. 3:46 – 4:51

    Outbound today: fewer messages, stronger POV—and AEs must do it

    They discuss modern outbound dynamics, including “spam” behavior and the need for tailored, research-driven outreach. AJ argues AEs should own outbound activity, even if marketing functions provide support.

    • High-quality, specific outreach beats mass volume
    • Come with a clear point of view, then adapt based on responses
    • AEs should expect to do outbound (not rely entirely on BDRs)
    • Marketing support helps, but doesn’t replace AE ownership
  5. 4:51 – 7:26

    De-mystifying the “sales playbook” and the founder’s role (0–$10M)

    AJ pushes back on playbooks as overcomplicated jargon, reframing them as simple strategy and funnel mechanics. He emphasizes founders/CEOs must be deeply involved early, then gradually shift from dictating messaging to enabling scale.

    • A playbook is essentially strategy + messaging + funnel conversion
    • Sales fundamentals: meetings → opportunities → funnel progression
    • CEO/founder involvement is crucial from zero to ~$10M
    • Later, founders should support and leverage—not micromanage—GTM strategy
  6. 7:26 – 9:27

    Team structure & segmentation: focus on mid-market first, avoid overreach

    AJ explains why trying to sell simultaneously to SMB and Fortune 100 is a recipe for failure. He defines mid-market in employee counts/ACV terms, highlighting why it offers more cycles (“at-bats”) to build repeatability.

    • Don’t attempt to sell to everyone at once—choose a focused segment
    • Mid-market defined (example): ~500–4,000 employees, ~$100K+ ACV early
    • Mid-market provides faster learning loops and repeatability
    • Typical sales cycles cited: ~4.5–5 months (faster in smaller sub-segments)
  7. 9:27 – 12:08

    Slack lessons: GTM–R&D collaboration and product empathy

    AJ’s biggest takeaway from Slack is the need for “collaborative tension” between GTM and product/engineering. He describes how bringing R&D onto customer calls created empathy and helped resolve enterprise readiness debates.

    • Healthy tension between GTM and R&D accelerates enterprise readiness
    • Company strategy questions (e.g., ‘do we go enterprise?’) create friction
    • Engineers hearing customer pain directly changes prioritization
    • Enterprise support requires intentional cross-functional alignment
  8. 12:08 – 15:26

    Moving upmarket: timing signals, segmentation changes, and “prove it” bets

    AJ outlines when to move upmarket: after repeatable success and multiple proofs of value in larger accounts. He explains how segmentation must change, and how Glean used a flagship bet (e.g., T‑Mobile) to validate the motion before scaling further.

    • Move upmarket when value delivery becomes repeatable (multiple proofs)
    • Sales segmentation should shift as deal size/complexity rises
    • At Slack: split SMB vs enterprise around ~$10M revenue (1,000+ employees)
    • At Glean: cut at ~2,000+ employees and pick a small number of strategic big bets
  9. 15:26 – 17:51

    Enterprise reality check: security, legal molasses, and phased upmarket motion

    They dig into what truly slows enterprise deals—security reviews, deployments, pilots, and contracting. AJ argues you can still go upmarket “fast” by phasing the approach so reps keep closing PMF deals while pushing a few large accounts forward.

    • Biggest upmarket blocker: security + deployment + POCs + legal/contracting
    • Enterprise selling requires deep time investment to learn the pattern once
    • Don’t move the whole team to Fortune 100 too early—revenue stalls for months
    • Use phased resourcing: keep core PMF pipeline while incubating a few whales
  10. 17:51 – 22:02

    Small land deals with mega customers: success criteria or bust

    AJ advocates being willing to start small with large enterprises—if you define explicit success criteria tied to a larger expansion path. He gives examples of time-bound, ROI-linked pilots that reliably convert into seven-figure contracts.

    • Small initial contracts are fine with clear expansion intent
    • Define success criteria with executive and commercial alignment
    • Tie pilots to measurable ROI (e.g., call resolution time improvements)
    • Paid POCs can be structured as stepping stones to seven-figure expansions
  11. 22:02 – 28:21

    Selling AI in 2024: buzzwords, experimental budgets, and adoption gaps

    AJ explains why genAI language lights up boardrooms, while many budgets remain ‘experimental’ due to weak ROI definitions. They discuss urgency driven by herd mentality and public-company narratives, plus the implementation/adoption shortfall across the market.

    • Buzzwords that work: ‘generative AI,’ ‘AI transformation,’ ‘AI-enabled workforce’
    • Budgets are ‘experimental’ when not tied to defensible business outcomes
    • Enterprises may spend $5–10M/year, but adoption often lags expectations
    • Implementation can take 6–12 months and may require major services spend
  12. 28:21 – 35:24

    Deployment-first GTM: AE/CS partnership, CS metrics, and comp incentives

    AJ argues post-sales shouldn’t be a clean handoff—AEs must stay involved in deployment because expansion depends on adoption. He describes how Glean measures CS on retention and leading indicators (time-to-launch, active usage), and debates how to incent upsells.

    • In enterprise, AEs stay involved post-close to ensure deployment success
    • CS is measured on GRR/NRR plus leading indicators like time-to-launch and active users
    • GRR is prioritized due to the reputational/network impact of enterprise churn
    • CSMs may get kickers/spot bonuses for expansions, but upsell shouldn’t be the primary metric
  13. 35:24 – 36:09

    Comp plan tweak: why aggressive accelerators reward the right behavior

    Asked what he’d change with a ‘magic wand,’ AJ chooses more aggressive accelerators past 100% quota. He frames accelerators as a deliberate way to over-reward exceptional performance across AEs/BDRs/CS roles.

    • Accelerators increase payout rates above 100% quota attainment
    • They disproportionately reward top performers and drive upside motivation
    • Applies beyond AEs—can be used thoughtfully across GTM roles
    • Reinforces a performance culture without changing core quota design
  14. 36:09 – 50:18

    Hiring elite sellers: chronological interviews, panels, and artifact-based proof

    AJ details a hiring methodology learned at Slack: chronological interviews to uncover true motivation and patterns, plus pressure-testing for authenticity. He also defends panel presentations as a simulation of real customer rooms and values real artifacts (decks, emails, workflows).

    • Chronological interviews reveal deep motivation and decision patterns
    • Pressure-test polish with reference prompts and constructive-feedback questions
    • Panels simulate multi-stakeholder customer meetings and test room-reading (IQ/EQ)
    • Request artifacts (decks, emails, methodologies) to validate real work quality
  15. 50:18 – 55:45

    Improving interviews, spotting bad hires fast, and common failure modes

    AJ reflects on how Glean could have improved his own senior interview loop by requiring a POV on key company problems. He explains how quickly poor fits show up, why AEs fail (lack of creative problem-solving and ‘collaborative tension’), and the risk of hiring too fast.

    • Senior interviews should include problem-solving deliverables that create value even if the hire doesn’t happen
    • You often know within ~90 days in enterprise (and ~30–45 days in SMB) if someone isn’t working
    • Common AE failure modes: problem-only escalation and poor collaborative tension
    • Biggest hiring mistake: moving too fast and skipping diligence/backchanneling
  16. 55:45 – 1:01:09

    Enablement, quick-fire GTM takes, and a creative T‑Mobile deal win

    AJ admits earlier skepticism toward enablement and explains why investing in onboarding/enablement becomes a force multiplier. In quick-fire, he covers discounting discipline, why successful logos matter more than logos alone, and shares an unusually creative sequence that helped win T‑Mobile at Slack.

    • Founders/sales leaders often underinvest in onboarding and enablement
    • Discount early to learn; later enforce tight discount matrices to protect pricing integrity
    • Successful customers drive references and intros—more valuable than brand name alone
    • Creative deal craft: ‘day in the life’ field research and strategic relationship moments (T‑Mobile story)
  17. 1:01:09 – 1:08:51

    Closing reflections: sales as a path to CEO and Harry’s “grind” philosophy

    They discuss morale, goal-setting, and AJ’s desire to elevate sales as a CEO-track career. AJ then turns the tables and interviews Harry about dealing with doubt and hate, and Harry explains why endurance and consistent output win over time.

    • AJ wants sales recognized as a high-impact leadership path (including CEO potential)
    • Morale is rebuilt by returning to vision and stacking small wins
    • Harry describes repeated skepticism at each career step and how it fuels persistence
    • Long-term success is framed as outlasting others through sustained grind and iteration

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