predictable-revenue

# Predictable Revenue Framework

A systematic approach to building a scalable, predictable B2B sales machine — the outbound prospecting system that helped Salesforce add $100M in recurring revenue.

## Core Principle

**Predictable lead generation drives predictable revenue.** The biggest mistake in sales is having the same people prospect AND close — specialization creates a repeatable, scalable machine. Traditional cold calling is dead; Cold Calling 2.0 (mass, personalized cold emails that generate referrals to the right person) is the new outbound.

## Scoring

**Goal: 10/10.** Rate any sales process 0-10 on predictability, specialization, and process maturity: 10/10 means clear role separation, repeatable prospecting, and predictable pipeline generation; lower scores mean ad-hoc sales or reliance on heroics. Always give the current score and the specific improvements needed to reach 10/10.

## The Three Types of Leads

**Not all leads are equal — treat them differently.**

| Type | Source | Conversion | Cost | Example |
|------|--------|------------|------|---------|
| **Seeds** | Word of mouth, referrals, organic | Highest | Lowest (takes time) | Customer referral, NPS-driven |
| **Nets** | Marketing campaigns, inbound | Medium | Medium | Content, SEO, webinars |
| **Spears** | Outbound prospecting | Lower but predictable | Higher (people-intensive) | Cold Calling 2.0 |

**Key insight:** Most companies over-invest in nets and under-invest in spears; seeds are the best but can't be manufactured quickly. Invest accordingly — customer success and referral programs (seeds), content and paid acquisition (nets), SDR team (spears).

See: [references/lead-types.md](references/lead-types.md) for lead source strategy and investment allocation.

## Sales Role Specialization

**The #1 principle: separate prospecting from closing.** When AEs prospect and close, they hate prospecting and pipeline becomes feast-or-famine.

| Role | Focus | Metrics |
|------|-------|---------|
| **SDR (Sales Development Rep)** | Outbound prospecting → qualified opportunities | Qualified meetings/month |
| **MDR (Market Development Rep)** | Inbound lead qualification | Qualified leads/month |
| **AE (Account Executive)** | Close deals | Revenue closed, win rate |
| **CSM (Customer Success Manager)** | Retain and grow accounts | Retention, expansion revenue |

### SDR (Sales Development Rep)

Generate qualified pipeline: research target accounts, send Cold Calling 2.0 emails, get referred to the right person, qualify with ANUM, pass to AEs. Not their job: closing, inbound leads, or existing customers. One SDR typically generates 10-20 qualified opportunities per month — measure opportunities, response rate, meetings booked, and pipeline value.

### AE (Account Executive)

Close deals from qualified pipeline: run discovery, demo, negotiate, close, hand off to CSM. Not their job: prospecting (SDR), inbound qualification (MDR), or post-sale management (CSM). Measure revenue closed, win rate, average deal size, and sales cycle length.

### CSM (Customer Success Manager)

Retain and grow accounts: onboard, drive adoption, surface expansion opportunities, prevent churn. Measure net revenue retention, churn rate, expansion revenue, and NPS/CSAT.

**The virtuous cycle:** SDR generates pipeline → AE closes → CSM retains/grows → happy customer refers (Seeds).

See: [references/roles.md](references/roles.md) for role definitions, career paths, and hiring profiles.

## Cold Calling 2.0

**Outbound prospecting that replaces traditional cold calling**, which fails on every front: 1-3% connection rate, gatekeepers, brand damage, no scalability.

```
1. Build list → 2. Send mass email → 3. Get referral → 4. Call the referral → 5. Qualify
```

### Step 1: Build Target Account List

Define your Ideal Customer Profile (company size, industry, tech stack, geography, pain points), then build the list via LinkedIn Sales Navigator, ZoomInfo/Apollo/Clearbit, or industry directories. Target 200-500 accounts per SDR per quarter.

### Step 2: The Referral Email

**The core innovation: don't email the decision maker — email above them and ask for a referral down.** Senior people forward emails, and referrals get 3-5x higher response because the introduction comes from inside the company.

**Subject:** Quick question

> Hi [Name],
>
> I'm not sure if you're the right person to speak to about [specific topic] at [Company], but I was hoping you could point me to the right person.
>
> We help [companies like theirs] with [specific value prop].
>
> Would you mind pointing me to the right person to talk to?
>
> Thanks,
> [Your name]

Keep it short (<100 words), no pitch, no attachments or links; ask for a referral, not a meeting; make it easy to forward. Response rate: 9-15% vs. 1-3% for traditional cold emails.

### Step 3: Follow Up

| Day | Action |
|-----|--------|
| 1 | Send referral email |
| 3 | Follow up if no response |
| 7 | Second follow-up (different angle) |
| 14 | Break-up email ("Should I close your file?") |
| 30 | Re-engage (new trigger event or content) |

Break-up emails work because people respond to losing the opportunity (scarcity):

> Hi [Name],
>
> I haven't heard back from you. I don't want to be a pest.
>
> Should I close your file, or would it make sense to chat?

### Step 4: Qualify with ANUM

| Criteria | Question | Strong Signal | Weak Signal |
|----------|----------|---------------|-------------|
| **A**uthority | Can this person decide? | Decision maker or strong influencer | No buying power |
| **N**eed | Do they have the problem you solve? | Active pain, seeking solutions | "Nice to have" |
| **U**rgency | When must they solve it? | This quarter, budget allocated | "Someday" |
| **M**oney | Can they afford it? | Budget exists, within range | No budget, too expensive |

Call structure: rapport (2 min) → set agenda ("understand your situation, see if there's a fit") → discovery questions with ANUM built in (10-15 min)