The Challenges of Scaling a Sales Team in the Bay Area

The Challenges of Scaling a Sales Team in the Bay Area

If you're starting or growing a Sales team in the Bay Area, you know it's hard and expensive. Here are 3 challenges:

  1. Entry level SDRs costs $100K+ per year if you account for taxes and benefits.
  2. Lowering salaries or not providing great perks will hinder your ability to attract the right people.
  3. Employees constantly get poached by competition if they get good.

It seems like we are trapped in this balancing act between talent and budget, but do we need to be?

A Crazy Idea

In 2011, Jes Lipson and Ed Cheely, the CEO and VP of Sales at ShareFile were planning to grow their sales team 10x over 3 years. It was all inside sales. While discussing the above challenges we had an 'Aha' moment!

"This job can be done from anywhere, we're hiring a lot of millennials, and the US dollar is so strong right now... what if instead of opening an office in Tucson or Denver, we set up an office in Costa Rica and offer our employees to work abroad for 6-12 months, make this like an SDR Recruitment Farm for HQ!"

Because of the difference in cost of living, we could save 76% on costs compared to the Bay Area or 61% compared to Denver, reducing their business CAC payback period by more than half, and attracting a lot of Millennials would be so easy!

It sounded like a great idea for both the employees and the business. We needed to build the most amazing experience for these employees, so we included perks such as:

  • Fun events for free every 3 weekends like whitewater rafting and bungee jumping trips.
  • Offer free fully furnished housing, and a maid to clean their apartment and do their laundry once a week
  • Replicate the HQ office, including free snacks, ping pong tables and all the other perks
  • Pay the employees plane tickets, visas, and other travel expenses, so they don't need to worry about anything
  • Recruit in the US, and sell our employees on the experience, and the possibility to come back to HQ with a promotion and a better salary when they get back.

We all looked at each other for a moment and reflected "This is going to be awesome! We will attract the best quality employees from all over the US and allow to run our business in a capital efficient way."

What Has Happened Since Then

A few months later, AltiSales was born, an amazing SDR Recruitment Farm full of fully operating reps. AltiSales was built for awesome companies and even more awesome employees. Over the past years we have hired and trained over 100 SDRs and made over 1,000,000 cold calls. We've had employees who had competing offers from Google and Morgan Stanley join us instead and we've learned a lot.

In the past years AltiSales has expanded its offering to consulting services, helping other companies build amazing teams in-house.

However, taking advantage of geo-arbitrage and having a program to attract the best talent, has created huge value for our clients, and it's the ultimate competitive advantage. If you'd like to get in touch, send me a message on linkedin.

This is part 1, of a 2 part series, on how AltiSales got started and evolved. Part 2, which gives a more detailed cost breakdown, is here.

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If you are a Sales Leader interested in starting an amazing team and use it as a Recruitment Farm, send me a Linkedin Message.

If you are an SDR, and would be up for traveling to Costa Rica, Peru, Bolivia, Mexico, or Colombia working remote for 6 - 12 months, and having the time of your life as you continue to build your career, drop me a note in the comments or send your resume to [email protected]. We are always hiring great people.

Morgan Legge

Coaching for Leadership & Self Management | Head of Organizational Change @ Convert.com

8 年

I can speak for the expats that worked for Tito Bohrt to make this model work. It's interesting work, a fun atmosphere and well managed process with clear goals for the people on the front lines... and the weather was great!

Tito Bohrt ???? - Sales Mad Scientist

Hiring 6 SDRs March 2025 | SDR/BDR Advocate | Data-Driven GTM

8 年

Talha Husayn, those are fantastic questions! I didn't want to add all the details to the post, because it would've made it boring but here are the answers. Mingling with the team: You are right, this is not the best solution for a 30 man company that has 4 SDRs. We are a fit for the 100+ person company with 15+ sales people. Once your training, processes and SDR knowledge requirements have been established, that is the right time to go abroad. They are also not going abroad forever, they will come back in 6 months and continue to train and get better. They will have the chance to join the meetups and do all those things. More importantly because of how much they have bonded with one another they will stick in the SDR role longer and give your company a better ROI. Consider that the average SDR churns after 10 months at startups. They either get forcefully promoted to AE or they quit... Company Culture: Before employees go down, they spend 2 weeks at HQ, in that way they see what is possible after their time abroad. Remember that these employees are just spending 6-12 months abroad, so they have high motivation for growth. We also send some current employees down for a week, so we get teams to work together. The office setup is the same as in the HQ.... so similar to having a NYC and a SFO office, the fact that you are going to Costa Rica, should not be any more difficult culture-wise. You are hiring US employees. Advancing their knowledge: For us, training these employees is most important, we still have them attend seminars via GoToMeeting and we have specific reading material. The managers and coaches we have in staff excel at what they do. That is the reason why AltiSales has trained the top 3 most successful sales reps in Citrix ShareFile history! More importantly, retention rates increase, meaning you get more productive months out of your employees and reduce recruitment costs. I hope you read my next post, I really appreciate your 2 cents =)

Talha Husayn ??

VP of Technical Engagement - Customer Success & Sales Development Fanatic

8 年

Very interesting. I have been outsourcing my SDR busy work (other than calls) via upwork and suggested that SDR managers allow their team to do the same once an SDR has reached mastery. However I see some drawbacks. How about company culture? After hours work? Advancing their knowledge? They can "technically" do their job in Costa Rica (or Iowa), correct. Yet there is a lot of power in training SDR's on premise, as a team. They get to interact with marketing, engineers, sit in different meetings, and compete under one roof. They might have an idea and want to hash it out over some beers with marketing after hours. When I was an SDR at RightScale, I would hop over and ask the engineers technical questions. Other times, I would connect with marketing on helping test out new strategies. Finally, there will always be nuances in communication lost over chat, email, and phone. In terms of advancing their knowledge. Having SDRs join reps at onsites, attend local meet-up groups, manage the booth at trade events, and network can speed up their mastery while removing the pain of the day-to-day monotonous grind. Flying the out everywhere would be costly and inefficient. Just my 2 cents.

David Dulany

Founder & CEO @ Tenbound ????

8 年

Sign me up!

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Tito Bohrt ???? - Sales Mad Scientist

Hiring 6 SDRs March 2025 | SDR/BDR Advocate | Data-Driven GTM

8 年

David Dulany, talking to you made me write this post.

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