20Sales: Inside Figma's $1BN ARR Revenue Machine | Why We Do...

Full Title

20Sales: Inside Figma's $1BN ARR Revenue Machine | Why We Do Not Have Customer Success or SDRs | Why I Do Not Believe in Sales Quotas with Shaunt Voskanian, CRO @ Figma

Summary

This episode features Shaunt Voskanian, CRO of Figma, who discusses how to build a robust sales machine on top of a product-led growth (PLG) motion.

Key takeaways include Figma's unconventional approach to sales structure, the importance of insights over basic product features in enterprise sales, and a contrarian view on sales quotas.

Key Points

• Figma has a unique sales structure, notably the absence of traditional Customer Success (CS) teams and Sales Development Representatives (SDRs), forcing a more proactive, "hunting" mindset for Account Executives (AEs) even within an existing customer base.
• The early success of Figma was driven by a strong self-service PLG motion, but as the company scaled, the sales team evolved to focus on outbound efforts that provide proactive insights to customers, aiming to expand product adoption and introduce new features or products.
• Voskanian argues that in enterprise tech sales, being prescriptive and offering valuable insights is more crucial than simply being curious, as busy customers want to learn what others are doing successfully.
• He challenges the traditional view of seat-based pricing, noting that Figma's net retention has remained strong, and introduces a new model for monetizing AI usage through credits.
• Voskanian believes AEs should be responsible for their own pipeline generation, and the role of SDRs is less critical at Figma due to their large existing customer base and focus on expansion rather than purely net-new acquisition.
• He questions the conventional wisdom around sales quotas, viewing them as "made up" and suggesting that performance should be evaluated more on behaviors and competencies (like collaboration, grit, and learning mindset) rather than solely on hitting a number, especially in complex strategic sales.
• Figma's hiring philosophy prioritizes candidates with deal experience over industry-specific knowledge, emphasizing grit, perseverance, and a growth mindset, with a strong preference for candidates who are "all in" on the opportunity.
• When hiring, Voskanian looks for a "missionary" mentality over a "mercenary" one, believing that passion for growth and learning will ultimately lead to greater financial success.
• Effective onboarding for enterprise reps involves immersing them in their accounts early on, followed by structured learning about the market, product, and sales process, emphasizing ongoing enablement.
• Voskanian advocates for specialization in sales teams as early as possible, though he notes that verticalization depends heavily on the product, and Figma has focused more on sales motions and personas rather than strict industry segmentation.
• His "hottest take" on sales performance is that he doesn't care if a rep hits their quota if they exhibit strong behaviors and competencies, believing that quota is a lagging indicator and that leadership should focus on underlying effort and skill development.
• He emphasizes that a "bad apple" who negatively impacts the team culture is a significant problem that requires swift action, regardless of their individual sales performance.
• For effective quota setting, Voskanian advises understanding the company's current position, market dynamics, and strategic goals to determine whether to incentivize growth with more favorable quotas or focus on efficiency.
• Regarding underperforming reps, he generally favors patience and coaching, especially if they exhibit hard work, a growth mindset, and improving skills, but acknowledges that a lack of effort or a toxic attitude warrants faster action.
• He believes sales teams will continue to grow and invest in headcount, focusing on strategic work with customers rather than just pure efficiency gains.

Conclusion

Sales leaders should focus on cultivating a proactive, insightful approach to customer engagement, even within a PLG framework.

Evaluating sales performance should prioritize behaviors, competencies, and a growth mindset over purely hitting quota numbers.

Building a successful sales team requires strategic hiring, effective onboarding, and a clear philosophy on compensation and performance management that aligns with the company's stage and goals.

Discussion Topics

• How can companies effectively balance the proactive "hunting" mindset of sales with a strong PLG foundation?
• What are the most critical behaviors and competencies to assess in sales candidates beyond traditional sales skills?
• In an increasingly complex sales landscape, how can leaders ensure their teams are not only efficient but also innovative and adaptable to future sales technologies?

Key Terms

PLG

Product-Led Growth - a business strategy where product usage drives customer acquisition, retention, and expansion.

CRO

Chief Revenue Officer - a senior executive responsible for all revenue generation activities within a company.

SDR

Sales Development Representative - a role focused on prospecting and qualifying leads for sales teams.

OTE

On-Target Earnings - the total compensation a sales representative is expected to earn if they meet 100% of their sales quota.

ARR

Annual Recurring Revenue - the predictable revenue a company expects to receive on an annual basis from its customer subscriptions.

TAM

Total Addressable Market - the total market demand for a product or service.

AE

Account Executive - a sales role responsible for closing deals and managing client relationships.

GTM

Go-To-Market - the strategy and plan a company uses to launch a new product or service and reach its target customers.

Timeline