predictable-revenue

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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. Score a sales process 0-10 by awarding 2 points for each of the five Quick Diagnostic rows it satisfies (prospecting/closing separated, defined outbound process, 3-month pipeline predictability, known lead-type mix, standardized SDR→AE handoff). Bands: 9-10 = role separation plus a repeatable process that predicts pipeline; 5-6 = some specialization but ad-hoc prospecting or unpredictable pipeline; ≤3 = one person prospects and closes, revenue depends on heroics. Always give the current score and the specific diagnostic rows blocking 10/10.

The Three Types of Leads

Not all leads are equal — treat them differently.

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 when deciding where to invest — it sizes the seeds/nets/spears budget split by company stage.

Sales Role Specialization

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

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 when defining a new role or org chart — it has full charters, career paths, and hiring profiles for each role.

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. The email asks one thing — "who is the right person?" — under 100 words, no pitch, no attachments, no links, easy to forward. Response rate: 9-15% vs. 1-3% for traditional cold emails. For the verbatim template, subject-line open-rate table, and the full Day 1/3/7/14/30 sequence bodies, open references/cold-calling-2.md.

Step 3: Follow Up

The break-up email on Day 14 often draws the highest response in the sequence — people respond to losing the opportunity (scarcity).

Step 4: Qualify with ANUM

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) → next steps (if qualified, schedule AE demo).

Step 5: Hand Off to AE

Include account background and ICP match, contact details and role, pain points, ANUM notes, agreed next steps, and competitive intel. SDR introduces AE on a brief 3-way call or email, then drops off.

Ethical boundary: Comply with spam laws (CAN-SPAM, GDPR) and honor opt-outs immediately — including removing a hostile "stop emailing me" from the sequence on the spot, not at the next scheduled touch.

See references/qualification.md when running the ANUM discovery call — it has the full discovery question bank per criterion.

Pipeline Math

Work backward from the revenue goal:

Revenue Goal ÷ Average Deal Size = Deals Needed
Deals Needed ÷ Win Rate = Opportunities Needed
Opportunities Needed ÷ SDR Conversion = Prospects Needed
Prospects Needed ÷ Response Rate = Emails Needed

Example: $1M ARR ÷ $20K deals = 50 deals; ÷ 25% win rate = 200 opportunities; at 10% response rate and 10% response-to-qualified conversion = 20,000 emails ≈ 2-3 SDRs (each sends 300-500/month).

See references/pipeline-math.md when sizing the SDR team to a revenue target — it has the full capacity-planning and revenue-modeling templates.

Building the Sales Development Team

See references/case-studies.md when you want a worked precedent for standing up or scaling the machine — it walks through Salesforce, HubSpot, and other implementations with starting state, results, and failure modes.

Hiring SDRs

Hire for coachability (the most important trait), curiosity, strong writing, resilience, and organization — experience is optional. Source recent graduates, career changers, and internal transfers. Career path: SDR (6-18 months) → Senior SDR → AE or SDR Manager.

SDR Ramp Time

Expect 3-4 months to full productivity.

SDR Compensation

Base + variable, typically 60/40 or 70/30. Pay variable per qualified opportunity generated, with bonuses for opportunities that close and for exceeding quota.

See references/team-building.md when hiring or building the comp plan — it has interview scorecards, the onboarding curriculum, and detailed compensation structures.

Metrics and Dashboards

Leading Indicators (Predictive)

Emails sent per SDR per day, response rate, meetings booked per week, qualified opportunities per month, pipeline value generated.

Lagging Indicators (Results)

Revenue closed, win rate, average deal size, sales cycle length, customer acquisition cost (CAC).

Efficiency Metrics

Cost per qualified opportunity, SDR:AE ratio (typically 2-3 SDRs per AE), LTV:CAC (target >3:1), payback period.

Cadence: daily activity metrics → weekly pipeline → monthly revenue → quarterly efficiency.

See references/metrics.md when building the sales dashboard — it has KPI definitions, formulas, and dashboard layouts by cadence.

Common Mistakes

Quick Diagnostic

Audit any B2B sales process:

Further Reading

For the complete system:

• "Predictable Revenue" by Aaron Ross & Marylou Tyler
• "From Impossible to Inevitable" by Aaron Ross & Jason Lemkin (scaling to $100M+ ARR)

About the Author

Aaron Ross built the outbound sales process at Salesforce.com that added $100M+ in recurring revenue, and co-founded Predictable Revenue Inc. His book Predictable Revenue — known as "The Bible of Outbound Sales" — made Cold Calling 2.0 the standard for B2B outbound prospecting.