Building a Sales Process: $0 to $1M ARR Playbook

Your startup just crossed $100K ARR. You've been founder-selling, closing deals through hustle and relationships. Now you face the real test: building a repeatable sales process that scales without you in every deal.

Most founders crash here. They hire a sales rep, hand them a laptop, and wonder why deals stall. The truth? You need infrastructure before you need people.

This playbook gives you the exact framework we used to build sales processes for 47 SaaS companies. Follow it, and you'll have a predictable revenue engine—not a dependency on your charm.

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The 6-Stage Sales Process Framework

Every repeatable sales process breaks into six stages. Skip one, and you create bottlenecks. Master them, and you build predictability.

Stage 1: Prospecting

Prospecting fills your pipeline. Without consistent outbound, you react to inbound instead of controlling growth.

Key Activities:

• Define your ideal customer profile (ICP) with 5+ firmographic criteria
• Build targeted account lists using LinkedIn Sales Navigator and ZoomInfo
• Execute multi-channel outreach (email, LinkedIn, cold call)
• Set daily prospecting quotas (50 touches minimum for SDRs)

Real Example: Datadog's sales team prospected 200 accounts per rep weekly in their early days. They focused exclusively on DevOps teams at companies with 500+ employees using monitoring tools. This precision let them achieve 15% meeting booking rates when industry average sat at 3%.

Metrics to Track:

| Metric | Target | Industry Average | |--------|--------|-----------------| | Touch-to-Response Rate | 8-12% | 3-5% | | Response-to-Meeting Rate | 25-35% | 15-20% | | Daily Touches per Rep | 50-75 | 30-50 | | Cost per Lead | $50-150 | $200-400 |

Stage 2: Qualification

Qualification separates real opportunities from time-wasters. Use structured frameworks instead of gut feelings.

Three Proven Qualification Frameworks:

BANT (IBM, 1960s—Still Relevant)

BANT evaluates four criteria:

• Budget: Does the prospect have allocated funds?
• Authority: Are you talking to the decision-maker?
• Need: Is there a clear pain point your solution addresses?
• Timeline: When do they need to solve this?

BANT Scorecard:

| Criteria | 0 Points | 2 Points | 5 Points | |----------|----------|----------|----------| | Budget | No budget identified | Budget exists, unallocated | Budget allocated, approved | | Authority | Influencer only | Multiple stakeholders | Economic buyer engaged | | Need | Nice-to-have | Important priority | Critical, urgent | | Timeline | No timeline | 6-12 months | 0-3 months |

Scoring: 0-8 = Disqualify, 9-14 = Nurture, 15-20 = Qualified Opportunity

Real Example: Salesforce's early sales team used BANT religiously. They required 15+ points before moving deals to opportunity stage. This discipline kept their pipeline accuracy above 80% while competitors struggled with 40-50% accuracy.

MEDDIC (Enterprise Sales Gold Standard)

MEDDIC excels for complex B2B sales with multiple stakeholders:

• Metrics: Quantifiable business impact your solution delivers
• Economic Buyer: Person with budget authority who can say yes
• Decision Criteria: Formal requirements the prospect uses to evaluate
• Decision Process: Steps, approvals, and timeline to purchase
• Identify Pain: Compelling event driving the need to change
• Champion: Internal advocate who sells for you when you're absent

MEDDIC Checklist for Each Opportunity:

| Element | Evidence Required | Status | |---------|------------------|--------| | Metrics | Documented ROI calculation with prospect's numbers | ☐ | | Economic Buyer | Meeting completed, relationship established | ☐ | | Decision Criteria | Written requirements or RFP received | ☐ | | Decision Process | Stakeholder map and approval workflow confirmed | ☐ | | Identify Pain | Root cause analysis, quantified impact | ☐ | | Champion | Named internal sponsor with political capital | ☐ |

Real Example: Gong.io's sales team implemented MEDDIC at $5M ARR. Within two quarters, average deal size increased 40% and sales cycle length decreased 25%. Why? Reps stopped chasing unqualified deals and focused on opportunities with clear metrics and champions.

SPIN Selling (Question-Based Discovery)

SPIN structures discovery conversations through four question types:

• Situation Questions: Understand current state (use sparingly—5 max)
• Problem Questions: Identify difficulties and dissatisfactions
• Implication Questions: Explore consequences of problems (build urgency)
• Need-Payoff Questions: Get prospect to articulate value of solving

SPIN Conversation Flow:

Situation (20%) → Problem (30%) → Implication (35%) → Need-Payoff (15%)

Example SPIN Sequence:

| Question Type | Example | Purpose | |--------------|---------|---------| | Situation | "How does your team currently handle customer onboarding?" | Baseline understanding | | Problem | "What challenges do you face with your current process?" | Identify pain points | | Implication | "How does slow onboarding impact your churn rate and expansion revenue?" | Create urgency | | Need-Payoff | "If you could cut onboarding time by 50%, what would that mean for your growth targets?" | Prospect states value |

Real Example: HubSpot's sales training program requires reps to complete 40+ hours of SPIN methodology training. Their data shows reps using structured SPIN questions achieve 23% higher close rates than those using ad-hoc discovery.

Qualification Metrics:

| Metric | Target | Warning Sign | |--------|--------|--------------| | Qualification Rate | 40-60% of leads | Below 30% | | SQL-to-Opportunity Rate | 50-70% | Below 40% | | Time to Qualification | 3-7 days | Over 14 days | | Discovery Meeting Duration | 45-60 minutes | Under 30 minutes |

Stage 3: Discovery

Discovery builds the case for your solution. Go deep on business problems, not feature requirements.

The 4-Layer Discovery Model:

Layer 1: Technical Context

• Current tools and workflows
• Integration requirements
• Technical constraints

Layer 2: Business Impact

• Revenue impact of the problem
• Cost of current inefficiencies
• Opportunity cost of inaction

Layer 3: Political Landscape

• Decision-making committee
• Internal politics and blockers
• Previous vendor relationships

Layer 4: Personal Motivations

• Individual KPIs and goals
• Career implications
• Risk tolerance

Discovery Metrics:

| Metric | Strong Signal | Weak Signal | |--------|--------------|-------------| | Discovery Meetings | 2-3+ before proposal | 0-1, rushing to demo | | Stakeholders Met | 3+ different roles | Single point of contact | | Business Case Quantified | Yes, with prospect's data | Vague estimates only | | Timeline Established | Specific go-live date | "ASAP" or undefined |

Stage 4: Demonstration/Presentation

Demos connect your solution to their problems. Never demo features—demo outcomes.

The "Problem-Solution-Outcome" Demo Structure:

1. Confirm the Problem (5 min): Restate discovery findings, get agreement
2. Show the Solution (15 min): Demo only features solving their specific pains
3. **Prove the Outcome (10 min):" Use data, case studies, ROI calculations

Demo Best Practices:

• Customize 80% of the demo to their use case
• Use the prospect's actual data when possible
• Get the prospect clicking, not just watching
• Pause for questions and confirmation every 5 minutes

Demo Metrics:

| Metric | Top Performers | Average | |--------|---------------|---------| | Demo-to-Proposal Rate | 75-85% | 45-60% | | Prospect Engagement Score | 8+/10 | 5-6/10 | | Demo Duration | 25-35 minutes | 45-60 minutes | | Technical Win Rate | 90%+ | 60-70% |

Stage 5: Proposal

Proposals document the business case. Structure them as investment summaries, not product descriptions.

Winning Proposal Structure:

1. Executive Summary: 1-page business case
2. Current State Analysis: Their problem, quantified
3. Proposed Solution: How you solve it (brief)
4. Implementation Plan: Timeline and milestones
5. Investment and ROI: Pricing with clear value calculation
6. Next Steps: Specific actions to close

Proposal Metrics:

| Metric | Healthy | At Risk | |--------|---------|---------| | Proposal-to-Close Rate | 40-60% | Below 30% | | Time in Proposal Stage | 7-14 days | Over 30 days | | Contract Redlines | 0-2 rounds | 3+ rounds | | Legal Review Duration | 1-2 weeks | 4+ weeks |

Stage 6: Closing and Negotiation

Closing requires momentum management and objection handling.

Closing Techniques That Work:

• Assumptive Close: "What date works for implementation kickoff?"
• Alternative Close: "Would you prefer the annual or quarterly payment schedule?"
• Urgency Close: "To hit your Q2 target, we need to start by [date]"
• Trial Close: Throughout the process, asking for micro-commitments

Common Objections and Responses:

| Objection | Response Framework | |-----------|-------------------| | "Too expensive" | ROI refocus: "Let's look at your break-even timeline..." | | "Need to think about it" | Timeline clarification: "What specifically needs evaluation?" | | "Not a priority now" | Pain amplification: "What changes between now and Q3?" | | "Want to check competitors" | Differentiation: "What criteria matter most in that comparison?" | | "Need budget approval" | Multi-threading: "Let's meet the budget holder together..." |

Closing Metrics:

| Metric | Target | World-Class | |--------|--------|-------------| | Win Rate | 20-30% | 35-50% | | Sales Cycle Length | 30-60 days (SMB), 90-180 days (Enterprise) | 20% faster | | Average Contract Value | Benchmark +10% YoY | Benchmark +25% YoY | | Discount Rate | 0-10% | 0-5% |

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CRM Setup and Pipeline Management

Your CRM isn't a data repository. It's your revenue operating system. Set it up wrong, and you fly blind. Set it up right, and you gain superpowers.

CRM Selection by Stage

| Company Stage | Recommended CRM | Monthly Cost | Setup Time | |--------------|----------------|--------------|------------| | $0-500K ARR | HubSpot Free/Sales Starter | $0-45/seat | 1-2 days | | $500K-2M ARR | HubSpot Professional, Pipedrive | $90-150/seat | 1 week | | $2M-10M ARR | Salesforce Professional, HubSpot Enterprise | $150-300/seat | 2-4 weeks | | $10M+ ARR | Salesforce Enterprise, custom | $300+/seat | 1-2 months |

Real Example: Notion ran on Airtable until $3M ARR. At that point, they migrated to Salesforce and saw 35% improvement in forecast accuracy within two quarters. The key wasn't the tool—it was defining stages, exit criteria, and mandatory fields during migration.

Pipeline Stage Configuration

Define 6-8 pipeline stages maximum. More stages create complexity without clarity.

Standard Pipeline Stages:

| Stage | Exit Criteria | Probability | |-------|--------------|-------------| | Prospecting | Contact made, need identified | 10% | | Qualification | BANT/MEDDIC complete, stakeholder map confirmed | 25% | | Discovery | Business case quantified, technical requirements documented | 40% | | Demo/Evaluation | Technical win achieved, champion confirmed | 60% | | Proposal | Pricing and terms delivered, verbal agreement received | 75% | | Negotiation | Redlines complete, legal approved | 90% | | Closed Won | Contract signed, payment received | 100% | | Closed Lost | Disqualified or lost to competitor/no decision | 0% |

Critical CRM Fields

Require these fields before stage advancement:

| Field | Purpose | Stage Required | |-------|---------|----------------| | Lead Source | Attribution and CAC calculation | Prospecting | | ICP Score | Fit quality (1-10) | Qualification | | Decision Criteria | How they evaluate vendors | Discovery | | Champion Name | Internal advocate | Discovery | | Economic Buyer | Budget authority | Qualification | | Compelling Event | Why buy now | Qualification | | Competitors | Competitive landscape | Proposal | | Expected Close Date | Forecast accuracy | Proposal | | Next Step Date | Activity tracking | All stages |

Pipeline Hygiene Rules

Enforce these rules weekly:

1. Aging Limits: Auto-close opportunities over 180 days without activity
2. Stage Duration Caps: Flag deals in any stage over 30 days
3. Required Fields: Prevent stage advancement without completion
4. Weekly Pipeline Reviews: Manager and rep scrub every deal

Real Example: Atlassian implemented automated pipeline hygiene in Salesforce. Deals auto-close after 90 days of inactivity. This painful but accurate practice improved forecast accuracy from 60% to 85% and forced reps to focus on real opportunities.

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Sales Metrics That Matter

Track these metrics weekly. Ignore vanity metrics like "calls made" that don't correlate with revenue.

The Revenue Formula

ARR = (Opportunities × ASP × Win Rate) / Sales Cycle Length

Example Calculation:

| Metric | Q1 2025 | Q1 2026 | Change | |--------|---------|---------|--------| | Opportunities Created | 50 | 75 | +50% | | Average Selling Price | $15,000 | $18,000 | +20% | | Win Rate | 25% | 30% | +5pp | | Sales Cycle (months) | 3.0 | 2.5 | -17% | | ARR Generated | $62,500 | $135,000 | +116% |

Conversion Rates by Stage

Benchmark your funnel against industry standards:

B2B SaaS Conversion Benchmarks (Annual Contracts $10K-$50K):

| Stage Transition | Top Quartile | Median | Bottom Quartile | |-----------------|--------------|--------|-----------------| | Lead → MQL | 15-25% | 8-12% | 3-5% | | MQL → SQL | 30-50% | 15-25% | 5-10% | | SQL → Opportunity | 50-70% | 30-45% | 15-25% | | Opportunity → Proposal | 60-80% | 40-55% | 20-35% | | Proposal → Closed Won | 50-70% | 30-45% | 15-25% | | Overall Lead → Customer | 2-5% | 0.5-1.5% | 0.1-0.3% |

Real Example: ZoomInfo's sales team achieved 4.2% lead-to-customer conversion by optimizing each stage. Their secret? Detailed exit criteria at each stage and weekly funnel reviews. When MQL-to-SQL dropped from 35% to 28%, they immediately audited lead scoring and fixed the criteria within 48 hours.

Leading Indicators (Predict Future Revenue)

Track these to predict performance 30-90 days out:

| Leading Indicator | Target | Predicts | |------------------|--------|----------| | Pipeline Created (Month) | 3× Quota | 90-day bookings | | Discovery Meetings Completed | 5 per week | 30-day opps created | | Demos Delivered | 3 per week | 45-day proposals | | Proposals Sent | 4 per month | 30-day closes | | Prospect Engagement Score | 7+/10 | Win probability |

Lagging Indicators (Measure Past Performance)

Use these to evaluate completed periods:

| Lagging Indicator | Calculation | Benchmark | |------------------|-------------|-----------| | Quota Attainment | Closed Won / Quota | 70-80% of reps at 100%+ | | Average Selling Price | Total Revenue / Deals | +10% YoY growth | | Sales Cycle Length | First Contact to Close | -10% YoY reduction | | Win Rate | Closed Won / (Won + Lost) | 25-35% | | CAC Payback Period | Sales + Marketing Cost / Monthly Gross Margin | 12-18 months |

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Creating Your Sales Playbook

A sales playbook documents your process so new hires ramp fast and veterans stay consistent.

Playbook Sections

1. Company Overview (5 pages)

• Mission and values
• Ideal customer profile
• Competitive positioning
• Key differentiators

2. Product Knowledge (20 pages)

• Feature overview by use case
• Technical specifications
• Integration capabilities
• Security and compliance

3. Sales Process (30 pages)

• Stage definitions and exit criteria
• Methodology frameworks (BANT, MEDDIC)
• Call scripts and email templates
• Objection handling library

4. Competitive Intelligence (15 pages)

• Competitor feature comparisons
• Battle cards for top 5 competitors
• Win/loss analysis summaries
• Competitive positioning statements

5. Tools and Resources (10 pages)

• CRM usage guide
• Sales enablement tools
• Pricing and discounting authority
• Legal and procurement processes

Playbook Creation Timeline

| Week | Activities | Deliverables | |------|-----------|--------------| | 1 | Interview top performers, document current process | Process outline, interview notes | | 2 | Write methodology and stage definitions | Stage playbook draft | | 3 | Create templates and scripts | Email library, call scripts | | 4 | Build competitive section | Battle cards, comparison matrix | | 5 | Review, test, and refine | V1 playbook complete | | 6 | Train team and collect feedback | Training sessions, feedback log | | 7-8 | Iterate based on feedback | V2 playbook released |

Playbook Maintenance

Update your playbook quarterly. Assign owners to each section:

| Section | Owner | Review Frequency | |---------|-------|-----------------| | Product Knowledge | Product Marketing | Monthly | | Competitive Intel | Competitive Analyst | Quarterly | | Sales Process | VP Sales | Quarterly | | Templates | Sales Enablement | Monthly | | Pricing | Finance + Sales | Quarterly |

Real Example: Stripe's sales playbook spans 200+ pages but reps complete certification within 30 days. Their secret? Modular design—reps study sections as they need them, not all at once. New hires focus on ICP and product knowledge in week 1, move to methodology in week 2, and competitive positioning in week 3.

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Implementation Roadmap: Your First 90 Days

Days 1-30: Foundation

Week 1: Define Your ICP

• Interview 10 best customers
• Document firmographic and psychographic criteria
• Create ICP scoring rubric

Week 2: Map Your Process

• Document current sales activities
• Define 6-8 pipeline stages
• Set exit criteria for each stage

Week 3: Select and Configure CRM

• Choose CRM based on current stage
• Configure pipeline stages
• Set up required fields

Week 4: Create Initial Templates

• Write 5 cold email templates
• Build discovery call script
• Create demo outline

Days 31-60: Build

Week 5: Qualification Framework

• Choose BANT, MEDDIC, or SPIN
• Create qualification scorecard
• Train team on methodology

Week 6: Pipeline Management

• Implement pipeline hygiene rules
• Set up automated workflows
• Configure forecasting reports

Week 7: Metrics and Dashboards

• Build conversion tracking
• Create leading indicator dashboard
• Set up weekly pipeline review cadence

Week 8: Sales Playbook V1

• Write core sections
• Document top 10 objections
• Create competitive battle cards

Days 61-90: Optimize

Week 9: First Optimization Cycle

• Analyze conversion rates by stage
• Identify biggest bottleneck
• Implement one improvement

Week 10: Team Training

• Conduct playbook certification
• Role-play qualification calls
• Demo practice sessions

Week 11: Process Refinement

• Gather team feedback
• Update templates based on performance
• Refine exit criteria

Week 12: Scale Preparation

• Document hiring profile
• Create onboarding checklist
• Plan first sales hire

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Common Mistakes to Avoid

Mistake 1: Over-Engineering Early

Don't build Salesforce Enterprise when you're at $200K ARR. Start simple and upgrade as you grow.

The Rule: Your CRM complexity should match your deal complexity, not your ambition.

Mistake 2: Skipping Qualification

Founders often rush to demo. This wastes time on bad-fit prospects.

Fix: Require 15+ BANT points or 4+ MEDDIC elements before scheduling demos.

Mistake 3: No Exit Criteria

Without stage exit criteria, reps advance deals based on hope, not evidence.

Fix: Define specific, verifiable criteria for each stage advancement.

Mistake 4: Activity Over Outcome Metrics

Tracking "calls made" incentivizes busy work, not revenue.

Fix: Focus on pipeline created, discovery meetings completed, and proposals sent.

Mistake 5: Set-and-Forget Playbooks

Playbooks decay without maintenance. Competitors change, products evolve.

Fix: Schedule quarterly playbook reviews with sales, marketing, and product.

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Real-World Examples: Companies That Nailed It

Example 1: Salesforce ($0 to $100M ARR)

Salesforce invented modern SaaS sales process. In 1999, they faced a market that didn't understand cloud software.

What They Did:

• Created "No Software" positioning that eliminated technical objections
• Built BANT qualification into every stage
• Required 5+ stakeholders met before proposal
• Set 90-day sales cycle target (aggressive for enterprise)

Result: $100M ARR in 5 years, fastest-growing enterprise software company at the time.

Example 2: HubSpot ($0 to $100M ARR)

HubSpot pioneered inbound sales methodology, aligning sales with their content marketing engine.

What They Did:

• Matched sales process to buyer's journey (awareness → consideration → decision)
• Created SPIN-based qualification specifically for inbound leads
• Built playbook around "Challenger Sale" methodology
• Invested 40+ hours in sales training per rep

Result: $100M ARR in 6 years with 60%+ organic lead flow.

Example 3: Datadog ($0 to IPO)

Datadog built sales process around product-led growth, adding sales to accelerate expansion.

What They Did:

• Used free tier to identify engaged accounts
• Sales team focused exclusively on accounts with 10+ active users
• Built technical-first sales process (demo within 24 hours of signup)
• MEDDIC qualification for enterprise deals over $50K

Result: IPO at $8B valuation, 80%+ revenue from existing customer expansion.

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Tools and Resources

CRM Platforms

| Tool | Best For | Price | Setup Time | |------|----------|-------|------------| | HubSpot | Startups, ease of use | Free-$120/seat | 1-7 days | | Salesforce | Scale, customization | $75-$300/seat | 2-8 weeks | | Pipedrive | Visual pipeline, SMB | $15-$100/seat | 1-3 days | | Copper | Google Workspace users | $25-$129/seat | 1-2 days |

Sales Enablement

| Tool | Purpose | Price | |------|---------|-------| | Gong | Call recording and analysis | $1,200-$1,600/rep/year | | Chorus | Conversation intelligence | $1,000-$1,400/rep/year | | Seismic | Content management | Custom pricing | | Highspot | Sales enablement platform | Custom pricing |

Prospecting Tools

| Tool | Purpose | Price | |------|---------|-------| | LinkedIn Sales Navigator | Account research | $80-$135/month | | ZoomInfo | Contact data | Custom pricing | | Apollo.io | Email finding and sequencing | $50-$100/month | | Lusha | Contact enrichment | $75-$150/month |

Recommended Reading

• "SPIN Selling" by Neil Rackham
• "The Challenger Sale" by Matthew Dixon
• "Gap Selling" by Keenan
• "Predictable Revenue" by Aaron Ross

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Conclusion

Building a sales process isn't about creating rigid rules. It's about building predictable revenue.

Start with the 6-stage framework. Choose one qualification methodology—BANT for simple sales, MEDDIC for complex enterprise, SPIN for consultative selling. Configure your CRM as a revenue operating system, not a data dump. Track conversion rates and leading indicators relentlessly. Build a playbook that captures your best practices.

Most importantly, remember that process serves people, not the other way around. The best sales process in the world fails without skilled reps executing it with judgment and empathy.

Your $0 to $1M journey starts with the first qualified opportunity. Build the machine. Then scale it.

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Related Guides

• Sales Team Building: First Rep to 10-Person Team
• Sales Funnel Optimization: Converting More at Each Stage
• Cold Email That Works: 35%+ Open Rate Strategies
• Pricing Strategy: Models That Maximize Revenue

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Questions about building your sales process? Contact our team for a free consultation.