Sam Blond: Why Startups are Doing Outbound Wrong and How to Fix It | E1139

Sam Blond: Why Startups are Doing Outbound Wrong and How to Fix It | E1139

The Twenty Minute VCApr 12, 20241h 15m

Sam Blond (guest), Harry Stebbings (host), Narrator, Narrator

Choosing and joining the right startup for a sales careerSequencing and profiling early sales hires (founder-led selling, first AEs, first sales leader, SDRs)How to compensate, onboard, and measure performance of early sales repsCorrectly diagnosing growth bottlenecks: demand generation vs. conversionDesigning effective outbound: concentric-circle targeting and contrarian campaignsStructuring SDR–AE responsibility for pipeline and revenueImpact of AI, remote work, and changing expectations on modern sales

In this episode of The Twenty Minute VC, featuring Sam Blond and Harry Stebbings, Sam Blond: Why Startups are Doing Outbound Wrong and How to Fix It | E1139 explores sam Blond Reveals Why Startup Outbound Fails—and How To Fix It Former Brex and Zenefits CRO Sam Blond explains why most startups misdiagnose their sales bottleneck and dramatically underinvest in demand generation, particularly smart outbound. He argues founders must sell first, then hire two proven early-stage AEs, and obsess over opportunity creation rather than blaming missed quarters on slipped deals.

Sam Blond Reveals Why Startup Outbound Fails—and How To Fix It

Former Brex and Zenefits CRO Sam Blond explains why most startups misdiagnose their sales bottleneck and dramatically underinvest in demand generation, particularly smart outbound. He argues founders must sell first, then hire two proven early-stage AEs, and obsess over opportunity creation rather than blaming missed quarters on slipped deals.

He details how to hire, compensate, and ramp early sales reps, what profiles to avoid, and how to use personal networks instead of recruiters to source top performers. Blond also shares frameworks for diagnosing growth constraints, designing contrarian outbound and marketing campaigns, and aligning SDR/AE models to revenue, not activity.

Throughout, he emphasizes work ethic, attitude, in‑person relationship-building, and creative, highly targeted demand-gen plays—from champagne and billboards to Rippling’s NPS-powered LinkedIn posts—over spray-and-pray sequences and overbuilt, uneconomic sales orgs.

Key Takeaways

Founders must close the first non–friends-and-family customers before hiring sales.

If a founder can’t sell the product and define a repeatable process to win a handful of real customers, no sales hire will magically fix that; salespeople amplify existing motion, they don’t create it from zero.

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Your first two AEs should be top performers from early-stage startups, not domain experts from big brands.

Prior success as one of the first ~10 reps at a startup, with similar deal sizes and buyer types, matters far more than industry familiarity; over-indexing on “domain experience” usually means trading away true selling talent.

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Source early sales hires through personal and investor networks, not recruiters.

The best AEs rarely go through third-party recruiters; systematically working founders’ past companies, current team networks, and investor referrals yields higher-performing, culturally aligned hires and creates a virtuous referral loop.

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Most startups’ real bottleneck is demand generation, not closing skills.

Founders tend to blame missed targets on a few slipped deals, but in reality calendars show AEs with only an hour a day of customer-facing time; doubling qualified opportunities is often far easier and more impactful than trying to 2x win rates.

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Make AEs responsible for sourcing their own pipeline and tie SDRs to revenue, not just meetings.

AEs understand what a high-quality opportunity looks like, so their outbound often outperforms SDRs; shifting SDR comp and targeting to revenue and proven high-converting personas fixes this while preserving AEs’ outbound muscle.

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Outbound is broken when it’s generic; start with concentric circles and contrarian tactics.

Rather than cold-blasting strangers, begin with founder/team/investor networks, happy customers, and tightly defined verticals, then use standout touches—physical mailers, gifts, events, or clever campaigns—so your outreach isn’t the 12th identical email that day.

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Creativity and effort beat tools and automation in sales differentiation.

AI and sequencing platforms make it easier to send more messages, but not to design truly original campaigns (e. ...

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Notable Quotes

For almost all startups, the bottleneck to growing faster is actually around demand gen—opportunity creation.

Sam Blond

If you, as the founder, cannot close customers and generate revenue, people that specialize in sales will definitely not be able to.

Sam Blond

Where people over-index is domain… it’s already so hard to find an exceptional early-stage, track-record-of-performance sales rep.

Sam Blond

Everybody is doing outbound wrong… they drop the universe into a seven-email sequence and it goes right into the trash.

Sam Blond

Today’s salespeople have gotten a little bit lazy… we’ve become overly dependent on marketing and SDRs to source our own leads.

Sam Blond

Questions Answered in This Episode

How can a founder with no sales background practically structure their first 60–90 days of founder-led selling to reach that initial ‘handful’ of non–friends-and-family customers?

Former Brex and Zenefits CRO Sam Blond explains why most startups misdiagnose their sales bottleneck and dramatically underinvest in demand generation, particularly smart outbound. ...

Get the full analysis with uListen AI

If you’re already a few hires in and realize you mis-sequenced your sales org (e.g., hired SDRs too early, wrong AE profiles), what is the cleanest way to reset without blowing up morale?

He details how to hire, compensate, and ramp early sales reps, what profiles to avoid, and how to use personal networks instead of recruiters to source top performers. ...

Get the full analysis with uListen AI

What specific metrics and dashboards should a founder use monthly to distinguish a true demand-gen bottleneck from a genuine conversion problem?

Throughout, he emphasizes work ethic, attitude, in‑person relationship-building, and creative, highly targeted demand-gen plays—from champagne and billboards to Rippling’s NPS-powered LinkedIn posts—over spray-and-pray sequences and overbuilt, uneconomic sales orgs.

Get the full analysis with uListen AI

How can early-stage teams systematically run the kind of late-night, contrarian whiteboard sessions Sam describes without it becoming unfocused brainstorming?

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In a world of AI-accelerated outreach and remote work, what concrete behaviors will distinguish the top 1% of salespeople over the next five years?

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Transcript Preview

Sam Blond

Where people over-index is domain. If you are hiring your first AE, first, like, AEs number one and two, they need to have seen an early stage startup environment. There are three things that I look for in terms of measuring the success of a sales hire. For almost all startups, the bottleneck to growing faster is actually around demand gen. Opportunity creation.

Harry Stebbings

Ready to go? Sam, listen, I am so excited to have you back on the show. Wher- it was a while ago since we last made this happen. Hopefully I've improved as an interviewer. So thank you so much for joining me again today.

Sam Blond

Arie, I'm pumped to be here. Thank you for having me. Last time we did this was, I think, a month or so after I joined Brex in 2018. The world is quite different six years, uh, later as we sit here.

Harry Stebbings

I mean, six years ago, fuck me I'm getting old. But, um, I- I do have to start (laughs) on-

Sam Blond

Yeah, but it's better than me.

Harry Stebbings

Uh, uh, dude, you're ancient. I mean, you- you are just- I try. ... I mean. (laughs) Uh, I wanna start with the entry into sales before we dig into specifics. What was the entry point for you, and when did you realize that you loved sales?

Sam Blond

I attribute a- a couple data points of luck to- it- to being in sales and in tech sales in the first place. So I graduated from University of Missouri in 2007, and, uh, wasn't considering, like, you- you know, but for my brother being in the Bay Area doing tech sales, as a graduate of the University of Missouri, that's not even on y- your radar. I got a job as an SDR at a company called EchoSign, so I sort of lucked into getting into tech sales in the first place because of my brother, and then I lucked into, um, joining a- a successful business like EchoSign that allowed me to progress my career. I didn't know what I was looking for at the time, and fortunately I found Jason Lemkin, who's a friend of both of ours that was leading this company, and joined as an SDR when it was effectively being run out of a- a garage, an actual garage in Palo Alto. The question around when did I sort of figure out that, uh, uh, you know, tech sales was for me, something like that, I was able to start differentiating myself from peers doing the same thing. The feeling of being successful was addictive, and so, uh, you know, it was- it was pretty evident to me early on that I had found something that aligned well with my skillset that- that, you know, eventually e- evolved into a tech sales career.

Harry Stebbings

Dude, I think momentum and confidence are two of the most important things to have in a team, because as you said there, success is so addictive. I always think, "How do I create that momentum in teams?" Uh, you've been in sales respectfully then for, Christ, 17 years without aging you. Um, so with that in mind, what do you know now that you wish you'd known when you started 17 years ago in that garage with EchoSign?

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