WEBVTT

NOTE
This file was generated by Descript <www.descript.com>

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Hey folks, Mark Roberge here.

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Welcome to the science of scaling podcast.

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On this podcast, we talk to the
top sales leaders in tech to learn

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the science behind how they're
scaling their revenue and sales.

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I'm so excited today to have
Jay LeBeouf as our guest.

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Jay founded Descript sales team.

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Descript is at the
forefront of AI technology.

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He's got a pretty eclectic background for
ending up in the seat he's in right now.

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Electrical engineer student at Cornell,
uh, worked in some of the media tech

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companies back in the day, like Avid.

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He's been lecturing over at Stanford
university in an engineering

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department for over a decade.

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And here he is carrying his first quota,
leading his first go to market team.

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So he's been at the forefront of
thinking differently about using AI and

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go to market of cultivating champions.

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of developing a community
led growth strategy.

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These are the new techniques
we're going to dig into with Jay.

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Let's do it.

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So Descript is an app that
allows you to edit audio and

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video as easily as editing text.

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And as collaboratively as
we would use a Google doc.

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And one of the things we've
pioneered is this text based editing.

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So you should be able to just
select a word, a phrase, a paragraph

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you don't want, hit delete, and
it edits the underlying audio.

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And video.

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And that's one of like many auto
magical AI things that we do.

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So we've raised a hundred
million dollars so far.

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We're a series C company funded by
Andreessen Horowitz, Redpoint, Spark,

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and our series C was led by OpenAI.

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It's very cool.

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Let's get into your journey here.

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I don't believe you carried a
sales quota before, you know, as

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I look at your background, you're
electrical engineering at Cornell.

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You studied at Stanford.

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You've taught at Stanford for over
a decade on more of the tech side.

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A lot of your roles have been
on the R& D side of the fence.

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Tell us about how you ended up here.

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I was a very unhappy electrical
engineer, but I was doing a lot of

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music on the side, playing in a band
and in a lot of recording studios.

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And For me, the aha moment was
discovering that you could actually

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blend music and technology.

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And so my, my initial goal was
I'm going to go to Stanford.

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I'm going to go to grad school.

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I'm going to become more solid in
my technical chops, but with my

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creative and musical background,
I'll get out of company.

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I'll go in, make a huge
impact, develop technology that

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supports creative professionals.

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And that was basically the first
decade of my career was doing

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that on a more technical sense.

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And then the Kind of pivot towards
becoming more of a business

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professional was leaving avid.

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So avid is a company that does product
called pro tools and avid media composer,

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and a lot of stuff that's used by the
biggest recording and film studios.

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I left that company because I
wanted to do my own startup.

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It was 2008, very early time to do
an AI startup, but I did one also

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in the media and technology space.

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And it was in the process of that
startup that I realized I There are

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far better people technically than
I am and that the best thing I could

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do to serve the vision of the company
is to act as a business leader.

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And that's also how I began my, my quest
into sales because we were doing something

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that the world didn't know it needed.

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And I had to convince a
lot of people otherwise.

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That's really cool.

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If I were to try to paint my
perspective of the last 25 years

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of like sales evolution, maybe
even longer in software, let's say,

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you know, prior to the internet.

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There's a lot of anecdotal narrative
that the best sales team won.

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And then the internet and cloud
gave way to what we refer to

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today as like product led growth.

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Maybe it was called self serve.

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It was called like even application
service provider way back in the day.

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But at the bottom line is like, you could
literally just start using the product.

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And the narrative and Silicon Valley
was like, Hey, best product wins.

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Now, And for a while there was
like almost an allergy effect.

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And then I think sometime in like 2010
or something, someone like stuck in

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SDR against their PLG funnel and like
things accelerated and we got into this

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little bit of a hybrid now it's like,
how do you integrate these things?

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More of the traditional sales
stuff of like discovery and

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personalization of the message.

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Do you think that stuff
is not applicable here?

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Because something changed.

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Well, the keyword you did mention
there, Mark, was discovery.

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And that's something that I
think we can't ever get lazy at.

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I learn so much.

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My team learns so much every day.

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If we're willing to ask the questions,
if we're willing to be constantly

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curious, if we're willing to ask somebody
why, even though we think we know the

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answer, what's the harm in asking it?

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And We learned so much about how
to describe the product, what

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new competitors are, what other
solutions they're looking at.

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And then importantly, what's the friction?

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Like what's kept them
from paying up until now?

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Why are they even talking to a human?

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You know, ideally our product is set
up that you can do everything you

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need to do without talking to a human.

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If you're talking to
us, we're almost a bug.

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So what's the bug?

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Why, why, why?

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We love you.

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Thanks for reaching out to us.

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We're gonna, we're gonna care for you.

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Give you everything you
need, but why are you here?

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And then we can, oftentimes we can use
that to make the help documentation

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better, make our pricing better.

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Um, it make our follow up emails,
like have a few additional things

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because we actually do want to get
you to like, get you to value, get

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you to the sale a little bit faster.

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And if we can do that without
either of us having to spend

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a half hour on zoom together.

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I mean, why not?

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That stuck out to me.

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In our chat of like how quickly you went
from, okay, we need to help the product

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engineering folks figure out our product
market fit, like debug this thing,

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be the human loop, remove ourselves.

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And suddenly it seemed like your
North star core revenue acceleration

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was the development of champions.

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Can you talk about that?

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Like, how did you pick that?

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What does that mean?

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How do you.

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How do you codify that?

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One of the things that we realized was
working really well is one, we have

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a product that in about one minute, I
can demo it to you and no matter what

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your role at the company, you will.

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Consider that what I just showed
you is complete and total magic.

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So we could have a procurement
person and I can show them how I can

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upload an audio file with all these
background sounds and people talking

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and dishes clanking in the background.

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With one button, it all disappears
and you sound like you're on a

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broadcast quality microphone.

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I can show that to procurement person
and they're like, wow, I'm just here

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to buy this thing, but that's cool.

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So with things like that, you
realize that People would end

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the call and they're like, Jay,
thank you so much for your time.

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Whoever they're talking to a descript.

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Thank you so much for your time.

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Let me know how else I can help.

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And what I always encourage, uh,
especially when I'm, when I'm working

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with the university students, people
will often tell them like, you know,

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let me know what else I can do to help.

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And I'm like, take them up on it.

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Every single time.

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This is really interesting.

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This is an opportunity everywhere
in the go to market ecosystem.

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Jay is leaning into referrals.

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He's, he's talking about
building champions.

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He's talking about like when someone
says, Hey, that was, this was awesome.

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Let me know if I could ever help you.

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And he says, take advantage of that.

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I don't understand why we don't codify
that into our sales methodology as much.

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I don't think I've ever come across a
relatively mature sales organization that

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doesn't have a cold calling script, but
it's really hard for me to think about.

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A mature sales organization that
has a generate referral script.

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That's an opportunity and
Jay's bringing that to life.

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Let's get back to him.

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If you think there's some logical way
that they can provide value and it's,

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and it's a pretty authentic ask that
that customer or person could deliver.

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So now imagine that.

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The person comes in the door, we give
them a great demo, they purchase the

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product, we continue to support them,
check in on them every now and then,

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provide them new training materials.

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The day comes, their account is now
like 5, 10, 15 people at their company.

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Now, they still reach out to me, even
though, you know, we've got a team

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in place that'll handle it, they'll
still reach out to me, I want to

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maintain a relationship with them,
but I realized they're so passionate.

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They always will still ask,
what else can I do for you?

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We wanted to tap into this.

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So we call those people
champions internally.

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Often they're the first person from an
organization that comes into the door.

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They feel like they're the ones in their
company that have discovered Descript.

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They're the ones that have evangelized for
us to, you know, get the, get the, get the

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PO through, uh, set up the initial team.

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But then they also start acting
as a, like a custodian for us

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in their, in their company.

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They handle the first
wave of support requests.

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They introduce us to new teams.

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Are the people that I can reach out to
when I'm going to a conference and I

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need to stack it with people on a panel
or our PR team wants to talk to people

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in the learning and development space
I reach out to those people and it's

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this wonderful relationship because.

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Now I'm elevating them because
I'm bringing them onto a panel.

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I'm showing them as a thought leader for
the risk that they took to use Descript.

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I'm struggling with this a little bit.

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Like Jay's using the word champion,
obviously a word that has been

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used in sales for a long time.

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And it's usually in like enterprise
selling where you want to have a very

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strong champion that can get a deal done.

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And there's a lot of practices out
there, best practices out there

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on how to develop a champion and
know if you have a strong champion.

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I don't know, he's talking
about something different here

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and I'm trying to get at it.

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I just want to point that out and let
you reflect on it a little bit too.

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Cause it might be a piece to
how sales is changing and how

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our perception is changing.

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With our buyers and our power users
and our champions is changing.

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So I think this is a really
important comment by Jay.

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I just want to point that out.

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And then the more we teach them about
Descript and all the ways that we can

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make their audio and video more impactful,
they're able to teach those skills to

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other people in their company, which makes
them a more valuable employee, a better

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thought leader, a better communicator.

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So it's, it's this wonderful
flywheel we're super early days.

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Like my community manager is listening
to this right now being like,

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we're really just getting started.

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Don't overpromise, but we believe in
it and we're going to invest in it.

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Can anyone be a champion at a company
or do you have to teach your team like

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who would be a good champion versus not?

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Well, one of the, one of the key
criteria in this, this could be

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obvious, but you want to make
sure that they're happy first.

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That they have absolutely no
equivocations with the product.

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Even if they have feedback or feature
requests or bugs that they feel are

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longstanding, they feel genuinely heard.

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They know when we're going to
get to those, or if we're never

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going to accommodate their feature
requests, they know exactly why.

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So if they are happy.

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If they know that Descript listens
to them, trust them, and you know,

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we value their feedback, I think it
flows both ways because they feel that

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and there's almost a sense of like,
well, what can I do for Descript?

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You guys have been so good to me.

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And at no part in this, Mark, or is
anybody talking about like, Hey, you

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know, I, I give you guys 10, 000 a year.

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That's what I do for you.

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Like we, we just kind of go past that
and we go back to the relationship piece,

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which is that like human to human thing
that maybe sometimes we forget You know,

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Dscripts doesn't have an enterprise
relationship with HubSpot, for example.

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Dscripts enterprise relationship
is with Drew, the head of

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user research at HubSpot.

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If Drew gets hit by a bus, we need to
rebuild up new champions at the company

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because come contract renewal time, if
the new person put in, put in charge,

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doesn't know about us or isn't happy with
us, we're going to have a heck of a time.

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So

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it's make them happy.

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I'm kind of putting words in your
mouth, but it's like, listen to

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them, listen to what they care about.

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And even if we don't have
it, Make them feel heard.

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How do you check that they're happy?

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Are you just like send an MPS out?

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Or like, how do you know they're happy?

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We've got qualitative, we've got
quantitative on the quantitative side.

00:13:09.035 --> 00:13:12.855
We use amplitude internally, so
we actually can look at their team

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account, look at their product usage.

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That's a great indicator of, you know,
Descripts and audio and video editing app.

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So.

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How frequently is this team actually
publishing audio, publishing

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video, making edits last logged in?

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Uh, those are, those are ways
that they're using the product.

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So things are, things are
good and trending and they're

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getting good value from it.

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Uh, the other piece then is
what we can determine from.

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Uh, our success calls.

00:13:40.680 --> 00:13:46.709
So one of the first pieces of wisdom
given to me, uh, this was by, uh, Travis

00:13:46.709 --> 00:13:48.630
Bryant, who was at red point for a while.

00:13:48.630 --> 00:13:50.890
He was at optimizely
before that at Salesforce.

00:13:50.930 --> 00:13:55.859
Before that Travis was like, dude,
you gotta start recording your calls.

00:13:56.010 --> 00:13:57.279
I'm like, ah, it's kind of creepy.

00:13:57.409 --> 00:13:58.019
He's like, no, no, no.

00:13:58.569 --> 00:14:03.470
Get in the habit as soon as you can,
because you have an opportunity to

00:14:03.470 --> 00:14:07.690
share your learnings in the voice of
the customer at every opportunity.

00:14:08.829 --> 00:14:10.000
That's interesting.

00:14:10.539 --> 00:14:12.529
How do you know if your customer is happy?

00:14:13.280 --> 00:14:18.959
And I suggested MPS and he was
like, okay, we use a quant approach,

00:14:20.199 --> 00:14:21.310
but then he didn't go to MPS.

00:14:21.319 --> 00:14:22.280
He went to amplitude.

00:14:23.410 --> 00:14:24.589
He went to usage data.

00:14:25.870 --> 00:14:26.949
I think that's very powerful.

00:14:28.130 --> 00:14:29.060
Like MPS is cool.

00:14:29.099 --> 00:14:31.280
MPS is an amazing, uh, innovation.

00:14:31.810 --> 00:14:32.270
And the last.

00:14:33.810 --> 00:14:36.260
And helps us see whether they're happy.

00:14:37.060 --> 00:14:42.040
And I've seen companies have great
success using MPS to drive this, but

00:14:42.090 --> 00:14:46.419
MPS is a survey and there's reams of
research that shows that surveys can

00:14:46.419 --> 00:14:50.440
be mislead that people sometimes may
be hesitant to share honest feedback

00:14:50.580 --> 00:14:54.760
in a survey, but when you're speaking
with your clicks and your mouse and

00:14:54.760 --> 00:14:57.560
your usage, that's more powerful.

00:14:57.850 --> 00:14:58.250
I think.

00:14:59.010 --> 00:15:03.444
And it's, I just find it really
interesting that Jay is, Trying to

00:15:03.444 --> 00:15:07.735
evaluate customer happiness first
with the usage and identifying

00:15:07.735 --> 00:15:11.205
those champions and those Those
power users, let's get back to Jake.

00:15:12.225 --> 00:15:16.655
And so we adopted grain, I think at
the end of 2020, we've recorded every

00:15:16.655 --> 00:15:20.175
call since we now use that insight.

00:15:20.565 --> 00:15:24.985
We share on Slack every day when
we hear something new, when we hear

00:15:24.985 --> 00:15:27.864
someone who's really unhappy, we
share it in their own words to the

00:15:27.864 --> 00:15:29.675
product team or to the support team.

00:15:29.925 --> 00:15:32.845
And when we hear people that are
really, really happy, we share it to

00:15:32.845 --> 00:15:34.775
our community team to say, this person.

00:15:35.205 --> 00:15:36.485
It's a candidate for champion.

00:15:36.595 --> 00:15:38.635
That call recording is so important.

00:15:38.725 --> 00:15:42.855
I need to ask you, okay, like 10
years from now is the sales team.

00:15:43.095 --> 00:15:47.904
Today's sales team is like the CRO
who oversees four directors who each

00:15:47.904 --> 00:15:53.925
has five managers and each of them
have, you know, eight reps each year.

00:15:54.035 --> 00:15:54.464
There's a bunch of SDRs.

00:15:55.185 --> 00:15:56.395
There's a sales ops team.

00:15:56.405 --> 00:15:57.205
There's whatever.

00:15:57.719 --> 00:16:03.639
Is that all replaced by, uh,
a go to market data scientist

00:16:03.689 --> 00:16:05.489
that's just running the AI?

00:16:08.020 --> 00:16:10.250
Well, I, I don't know the answer to that.

00:16:10.960 --> 00:16:14.529
Mark, I'm going to analogize it
to something that I heard you say.

00:16:14.540 --> 00:16:17.389
I think it was on the, on the grit podcast
of you're, you're telling the story of

00:16:18.260 --> 00:16:23.180
you got, you got job recs for 20 more,
20 more heads, and you approached your

00:16:23.180 --> 00:16:27.770
original sales team and basically said,
I'm going to give the money to you guys.

00:16:28.120 --> 00:16:29.140
I think you can do it.

00:16:29.329 --> 00:16:31.180
I think you can do more
with what you have.

00:16:31.780 --> 00:16:32.250
So.

00:16:33.155 --> 00:16:38.755
Where I think we're at right
now is we have a small team.

00:16:38.765 --> 00:16:40.515
There's three people.

00:16:41.320 --> 00:16:42.510
On our sales and success team.

00:16:42.510 --> 00:16:45.970
I know it sounds extraordinary
to everybody here.

00:16:45.970 --> 00:16:47.510
Like, well, that's so lavish.

00:16:47.710 --> 00:16:49.170
How do you spend that a
hundred million dollars?

00:16:49.430 --> 00:16:51.410
I can assure you it's
not on sales and success.

00:16:51.830 --> 00:16:56.520
We are trying to give the entrepreneur
generalist sales and success team.

00:16:56.520 --> 00:16:59.099
We have access to whatever.

00:16:59.440 --> 00:17:03.750
Tools and technology they need to be as
empowered about what the customer needs

00:17:03.790 --> 00:17:07.590
to share insights and basically to act
as a force multiplier for their skills.

00:17:08.890 --> 00:17:10.270
I didn't even remember that.

00:17:11.219 --> 00:17:16.409
That's actually a perfect place to bring
in my commentary on the grip podcast.

00:17:16.450 --> 00:17:18.780
And now Jay's making me
connect some dots here.

00:17:19.239 --> 00:17:22.640
He's helped me connect some dots
and what he's referring to is this.

00:17:24.395 --> 00:17:28.645
How do you know what the quota
of your salespeople should be?

00:17:30.155 --> 00:17:31.535
You're about to build a sales team.

00:17:32.975 --> 00:17:34.375
How do you come up with that?

00:17:35.865 --> 00:17:37.754
And I don't think the industry does that.

00:17:37.765 --> 00:17:44.335
Well, I think most people say, well, we're
running an inside sales led growth motion.

00:17:44.345 --> 00:17:48.235
So of course we're going to pay
our salespeople 140, 000 a year.

00:17:48.235 --> 00:17:51.504
And of course their quote is
going to be 600, 000 a year.

00:17:51.524 --> 00:17:56.115
Cause that's what everyone else does, or
we're running an enterprise sales motion.

00:17:56.115 --> 00:17:57.605
And of course we're
going to pay our people.

00:17:57.945 --> 00:17:59.025
300, 000 a year.

00:17:59.025 --> 00:18:01.975
And of course their quarter is going
to be a million dollars a year.

00:18:02.495 --> 00:18:04.915
But I think that's super suboptimal.

00:18:05.385 --> 00:18:09.615
And I think it's hard because like at
the end of the day, your constraint

00:18:09.635 --> 00:18:14.045
is a 40 hour work week or whatever
you want your reps to work and how

00:18:14.045 --> 00:18:16.424
they can make that most productive.

00:18:17.415 --> 00:18:20.105
But when you start out just like, yeah,
we're running sales like growth, you

00:18:20.105 --> 00:18:23.015
know, 140, 000 a year, 600, 000 a quarter.

00:18:23.185 --> 00:18:25.665
You sort of like pinpoint yourself.

00:18:25.665 --> 00:18:27.725
You peg yourself to that expectation.

00:18:29.135 --> 00:18:30.665
But especially today.

00:18:31.030 --> 00:18:38.000
With AI and you're scaling up a team, you
have an opportunity to say, I don't know,

00:18:38.340 --> 00:18:40.480
all I know is I have two reps, right?

00:18:40.480 --> 00:18:41.650
I have three reps today.

00:18:42.129 --> 00:18:45.729
And over the last couple of months,
they have averaged what's going

00:18:45.729 --> 00:18:48.050
to end up being 700, 000 of ARR.

00:18:49.089 --> 00:18:51.120
And I want to see how
high they can get this.

00:18:51.179 --> 00:18:55.909
I want to challenge them to do more
and I'm not going to raise their quota.

00:18:55.909 --> 00:18:58.500
I'm just going to put that money
in their pocket when they do.

00:18:59.500 --> 00:19:01.389
So that's going to be a
big opportunity for us.

00:19:01.389 --> 00:19:02.330
If we're starting out.

00:19:02.670 --> 00:19:08.629
With AI technology to rewrite that
formula that we lean into prematurely.

00:19:09.249 --> 00:19:10.219
All right, let's get back to Jed.

00:19:10.830 --> 00:19:16.554
So That's, you know, really where we
want to invest right now is helping

00:19:16.624 --> 00:19:18.614
our team do as much as possible.

00:19:18.735 --> 00:19:23.835
And then honestly, before adding more
people, I think we really want to figure

00:19:23.835 --> 00:19:27.605
out, do we need to because our, our
desired motion, and then this, this

00:19:27.605 --> 00:19:31.635
applies just to us, I'd say, you know,
or companies that feel like they are

00:19:31.675 --> 00:19:34.874
us a bottoms up product led growth.

00:19:35.685 --> 00:19:37.815
No self service company at its core.

00:19:38.145 --> 00:19:41.665
We do have enterprise, but it's
enterprise with a little e.

00:19:41.985 --> 00:19:47.605
These aren't gigantic contracts that
we're going out trying to hunt for.

00:19:47.845 --> 00:19:50.665
These are companies coming
in that are pre qualified.

00:19:50.665 --> 00:19:52.315
They're telling us we need Descript.

00:19:52.805 --> 00:19:56.889
And so I want to arm my team with as much
You know, knowledge and AI is possible.

00:19:57.179 --> 00:20:01.169
And, you know, it started with,
Hey, everybody, we get Clearbit.

00:20:01.199 --> 00:20:03.969
We actually can learn who
everybody is as they're coming in.

00:20:04.219 --> 00:20:05.939
And now, I mean, the sky's the limit.

00:20:05.949 --> 00:20:08.629
We can have it as our
deal making assistant.

00:20:08.970 --> 00:20:15.069
Um, on my, on my list to experiment
with, there's several companies and tools

00:20:15.069 --> 00:20:17.410
for helping you with security reviews.

00:20:17.750 --> 00:20:21.270
There are several tools that help
you with, uh, legal contract review.

00:20:21.270 --> 00:20:23.420
So I don't have to always go to
the lawyers every single time.

00:20:23.680 --> 00:20:26.720
They can help me more intelligently
decide what's a risk and what's not.

00:20:27.350 --> 00:20:28.930
That's something I think
will really help us.

00:20:33.260 --> 00:20:37.149
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00:21:16.009 --> 00:21:20.090
You've mentioned the word, like, in a
way we're a bug, you know, if I could

00:21:20.090 --> 00:21:25.059
quote you in the process, if we have to
get involved, you're talking about, you

00:21:25.059 --> 00:21:29.449
know, try to just drive productivity
and streamline and use technology.

00:21:29.969 --> 00:21:32.669
Do you think like, you're going to
see this at your company or we're

00:21:32.669 --> 00:21:37.030
going to see this at companies where
like culturally, maybe some of your

00:21:37.040 --> 00:21:41.564
frontline people are like concerned,
You know, like I don't want to feel

00:21:41.564 --> 00:21:43.465
like a bug and I'm doing all this work.

00:21:43.465 --> 00:21:45.915
Am I actually just putting
myself out of a job?

00:21:45.935 --> 00:21:49.804
I think sometimes in ITech we felt
that, but like, it's very real with AI.

00:21:51.595 --> 00:21:52.165
Yeah.

00:21:53.154 --> 00:21:57.965
So if we, if we look at ourselves as
first of all, we all work for Descript.

00:21:59.024 --> 00:22:02.305
Another thing that you should know
about my team and how I'm trying

00:22:02.305 --> 00:22:06.255
to do things here is we are a non
commissioned sales environment.

00:22:06.565 --> 00:22:10.975
So I want everybody doing what's in the
best interest for Descript, similar to

00:22:11.015 --> 00:22:15.574
a software engineer and our teams can
best allocate their time to which bugs

00:22:15.575 --> 00:22:18.545
they work on and roughly what order
and how much time they invest on them.

00:22:18.995 --> 00:22:25.130
I think Our sales and success team,
we're pretty rigorous about how we

00:22:25.130 --> 00:22:30.640
prioritize our time, but really our
job is to help with the go to market

00:22:31.040 --> 00:22:37.100
function of getting into more businesses,
more creative agencies, more studios,

00:22:37.600 --> 00:22:43.359
and then also like create a repeatable
framework and maybe it relies on humans.

00:22:43.399 --> 00:22:48.900
Maybe we discover one of the secret
sauces is Descript demo as done by a

00:22:48.900 --> 00:22:51.380
human with our passion and our energy.

00:22:51.710 --> 00:22:56.940
And our ability to remove any obstacle
in the path that leads to 10 X bigger

00:22:56.950 --> 00:23:00.360
ACVs than if we're not involved, at
which point then that's a scalable,

00:23:00.360 --> 00:23:03.350
repeatable process that we discovered.

00:23:03.590 --> 00:23:05.169
And then we can see how
efficient we make that.

00:23:05.169 --> 00:23:07.470
I don't see ourselves putting
ourselves totally out of business.

00:23:07.840 --> 00:23:09.159
Why'd you go in non commission?

00:23:12.089 --> 00:23:13.850
The short answer is.

00:23:14.230 --> 00:23:17.570
I have absolutely no experience as
an enterprise sales professional.

00:23:18.870 --> 00:23:21.000
I have always wondered why it was a thing.

00:23:21.310 --> 00:23:25.109
I always felt extraordinarily
driven and hardworking, and I didn't

00:23:25.109 --> 00:23:31.760
feel like I would ever do anything
different if I had a commission.

00:23:31.969 --> 00:23:34.779
But there's also a lot of examples that
I've come across, Mark, and especially

00:23:34.780 --> 00:23:38.959
since we're, we're very, we're still very
early days of what we're doing, that we

00:23:39.070 --> 00:23:43.195
would have made some decisions that Run
at odds with what the product team needs.

00:23:43.364 --> 00:23:46.375
We would have sold into org
organizations that might not have

00:23:46.375 --> 00:23:47.745
been good long term customers.

00:23:48.125 --> 00:23:52.815
We would have made some deals that
could have churned within 12 months, 18

00:23:52.815 --> 00:23:54.125
months and reflected very poorly on us.

00:23:54.864 --> 00:24:00.444
And, um, you know, right now I
put a premium on us landing a

00:24:00.445 --> 00:24:04.574
deal with a well known customer
that has high growth potential.

00:24:05.535 --> 00:24:05.915
Okay.

00:24:05.915 --> 00:24:08.825
Let's unpack this commission
discussion for a second.

00:24:09.840 --> 00:24:14.720
Well, first off his last comment
here of like a commission plan would

00:24:14.720 --> 00:24:19.259
have ruined the first phases when
they're trying to iterate product

00:24:19.259 --> 00:24:21.280
and voice of customer and debugging.

00:24:21.290 --> 00:24:21.510
It's like.

00:24:21.935 --> 00:24:24.945
Yeah, we don't need a commission
plan designed in there.

00:24:25.725 --> 00:24:27.495
I've used it completely agree.

00:24:28.044 --> 00:24:30.754
Don't use a comp plan until we
have like product market fit

00:24:30.784 --> 00:24:32.054
during the product iteration.

00:24:32.334 --> 00:24:33.404
It's just not right.

00:24:33.455 --> 00:24:35.574
And the people that you attract
to the job are not right either.

00:24:35.834 --> 00:24:37.915
They should be at equity,
kind of a base salary.

00:24:38.064 --> 00:24:39.574
They're part of the team finding fit.

00:24:40.764 --> 00:24:45.365
What I find to be intriguing is he's
scaling a lot of commission plan too.

00:24:45.735 --> 00:24:46.985
Seen it here and there.

00:24:47.845 --> 00:24:50.095
Daniel Pink talked about
and to sell as human.

00:24:51.085 --> 00:24:53.995
Every time I've seen it,
someone runs a test next to it.

00:24:54.440 --> 00:24:58.190
And the traditional comp
driven variable compensation

00:24:58.199 --> 00:25:00.210
driven salesperson outperforms.

00:25:00.420 --> 00:25:04.520
I don't know why I agree
with Jay's sentiment.

00:25:05.210 --> 00:25:08.129
It's like the engineers aren't a variable
comp plan, but they're really productive.

00:25:08.130 --> 00:25:11.410
I mean, the skin in the game is they
keep their job and they have equity.

00:25:11.899 --> 00:25:13.979
Why can't that be the case for sales too?

00:25:14.960 --> 00:25:18.460
And if it's so unique with commission,
why don't we put engineers on

00:25:18.460 --> 00:25:19.730
commission plans too as well?

00:25:20.590 --> 00:25:21.800
That's a complicated one.

00:25:23.200 --> 00:25:24.790
We'll see how it plays out for Descript.

00:25:25.395 --> 00:25:25.615
Okay.

00:25:25.615 --> 00:25:26.385
Let's get back to Jay.

00:25:27.595 --> 00:25:31.225
And it doesn't matter if it's 12
months, 18 months, we're, we're at

00:25:31.225 --> 00:25:32.625
a stage that we can make these bets.

00:25:32.945 --> 00:25:35.225
We can learn from these customers,
bring them into the fold.

00:25:35.455 --> 00:25:40.095
If they're only two, three, four,
five users, it's really not a

00:25:40.095 --> 00:25:42.415
good use of people's time to be
closing a lot of those deals.

00:25:42.949 --> 00:25:46.260
So if they were commissioned, I can
see they, they, they might want no

00:25:46.260 --> 00:25:49.879
part of that and they feel like I'm
disincentivizing them to do those.

00:25:50.169 --> 00:25:52.980
So I actually want to do what's best
for Descript right now, which is to

00:25:53.340 --> 00:25:56.049
basically focus on learning, not selling.

00:25:56.800 --> 00:25:58.020
I love that innovation.

00:25:58.489 --> 00:26:03.679
The last piece that we have to unpack that
I also think is important for your vision

00:26:03.840 --> 00:26:06.709
in your role is community led growth.

00:26:07.380 --> 00:26:08.830
You mentioned it a little bit earlier.

00:26:08.830 --> 00:26:09.449
You mentioned.

00:26:10.040 --> 00:26:14.370
Uh, notion being a company that a
lot of people look up to on that,

00:26:14.720 --> 00:26:17.680
you know, personally, I feel like
I'm very bullish on community growth.

00:26:18.129 --> 00:26:20.250
I was very bullish over the
years on product led growth.

00:26:20.270 --> 00:26:24.550
I think they have similar parallels
and we're probably like community

00:26:24.550 --> 00:26:26.960
led growth might be lagging by,
you know, four or five years.

00:26:27.170 --> 00:26:27.990
We're in the infancy.

00:26:28.500 --> 00:26:30.140
Can you tell us what it is?

00:26:30.555 --> 00:26:34.935
From your perspective and why you are
leaning into it so much, a descript.

00:26:35.355 --> 00:26:36.045
Absolutely.

00:26:36.045 --> 00:26:39.805
So let me, let me first go by defining it.

00:26:39.815 --> 00:26:44.865
So I look at community, community led
growth is ways that we can set up.

00:26:46.080 --> 00:26:53.360
Events, activations, ways for our
community, our users, and prospective

00:26:53.360 --> 00:26:57.790
users can interact with each other,
can find value in interacting with each

00:26:57.790 --> 00:27:03.710
other, and can help each other obtain
better usage of the Descript product.

00:27:04.280 --> 00:27:07.680
And through that better usage of the
product, through product education,

00:27:07.690 --> 00:27:11.690
through sharing inspiring stories
of how they use Descript to create

00:27:11.690 --> 00:27:15.040
a popular YouTube video, and then
breaking down how the video is made,

00:27:15.780 --> 00:27:21.860
that is then Educate and empower future
users way better than if I created

00:27:21.860 --> 00:27:23.429
the videos with our marketing team.

00:27:25.610 --> 00:27:26.850
Where did this come from?

00:27:27.639 --> 00:27:31.479
Um, in my career, before way
before you would consider

00:27:31.479 --> 00:27:33.590
community community led growth.

00:27:34.409 --> 00:27:36.429
I first would see it at Avid.

00:27:36.750 --> 00:27:40.339
So again, Avid technology makes all
these tools for audio recording,

00:27:40.340 --> 00:27:42.249
video recording, film, TV.

00:27:42.739 --> 00:27:46.169
They would put on these dinners and
they would invite the biggest music

00:27:46.169 --> 00:27:48.189
producers, the biggest Hollywood
producers, the biggest movie makers.

00:27:48.530 --> 00:27:50.320
That are the power users of the tool.

00:27:50.570 --> 00:27:53.500
And we would do a dinner for them
at conferences and trade shows.

00:27:54.080 --> 00:27:59.989
And from, from that experience, you'd
have like the inner inner circle and those

00:27:59.989 --> 00:28:01.860
people would give you invaluable feedback.

00:28:01.869 --> 00:28:03.490
They'd introduce you to new studios.

00:28:03.710 --> 00:28:05.919
You'd make deals out
of a dinner like that.

00:28:05.919 --> 00:28:07.840
And you weren't even
anticipating it happening.

00:28:08.529 --> 00:28:12.330
I'm having another light bulb moment now.

00:28:12.330 --> 00:28:17.420
It's like, I knew he was a big
proponent of community led growth

00:28:18.100 --> 00:28:19.410
and I love community led growth.

00:28:19.850 --> 00:28:22.899
I love methodologies that put
the customer at the center of it.

00:28:23.990 --> 00:28:29.230
At the same time, he is calling this
thing champions, but I really think

00:28:29.240 --> 00:28:33.540
in our more normal nomenclature today,
he's all about jetting referrals.

00:28:34.560 --> 00:28:39.340
And I'm really starting this to see
this like culture coming together,

00:28:40.159 --> 00:28:44.639
this go to market culture that's built
on top of this community led growth

00:28:44.670 --> 00:28:47.880
approach that I hadn't seen before.

00:28:48.260 --> 00:28:51.730
And I, I think Jay is doing some really
special stuff with his commentary on

00:28:52.830 --> 00:28:56.130
And his commentary on cumulative growth,
which I hadn't seen connected, but

00:28:56.150 --> 00:28:58.260
they're very much in the same bucket.

00:28:58.980 --> 00:29:00.620
I think we're onto
something exciting here.

00:29:01.199 --> 00:29:02.239
All right, let's get back to Jay.

00:29:03.840 --> 00:29:06.280
But towards the outer rings,
you'd have these forums.

00:29:06.320 --> 00:29:11.200
One of them was the DigiDesign user group
or DigiDesign user conference, where users

00:29:11.200 --> 00:29:15.629
were basically not only sharing tips on
like how to fix bugs with each other, but

00:29:16.310 --> 00:29:20.240
You know, here's how I recorded the snare
drum on this classic track, or here's how

00:29:20.240 --> 00:29:21.950
I get the best tone out of my guitar amp.

00:29:23.169 --> 00:29:27.220
These were just inspiring places that
the more people who were in those

00:29:27.220 --> 00:29:32.399
forums, bigger the user base got and the
more informed and educated it became.

00:29:32.709 --> 00:29:37.134
And I started seeing this, like every
great company, every great tool provider.

00:29:37.395 --> 00:29:40.465
Has their version of this and
sometimes it's on discord.

00:29:40.835 --> 00:29:42.165
Sometimes it's a private slack.

00:29:42.165 --> 00:29:43.395
Sometimes it's live events.

00:29:44.285 --> 00:29:48.315
Um, when we wanted to crystallize
around a model that we're going to

00:29:48.315 --> 00:29:50.884
shamelessly copy, we looked at Notion.

00:29:51.595 --> 00:29:55.044
So credit to Ben Lang
and the team at Notion.

00:29:55.434 --> 00:29:57.645
Also for all the insight
and wisdom they've given me.

00:29:58.420 --> 00:30:03.280
They have this insane community where
they have users who will not only share

00:30:03.280 --> 00:30:06.590
their templates with others, they'll
teach you how to build templates.

00:30:06.639 --> 00:30:07.960
They'll teach you how
to use the templates.

00:30:08.429 --> 00:30:14.630
They will host pop up events entirely
owned, planned, and operated all around

00:30:14.630 --> 00:30:17.120
the world by these passionate users.

00:30:17.329 --> 00:30:21.045
And these users Maybe they're
on like a 30 a month plan.

00:30:21.155 --> 00:30:25.885
It's not that they're the highest
ACV users or like champions with a

00:30:25.885 --> 00:30:29.475
capital C, but they're people that
are kind of more powerful than that.

00:30:29.495 --> 00:30:32.974
They're people that are going
to invest their time, their

00:30:32.974 --> 00:30:34.924
credibility, their energy.

00:30:35.320 --> 00:30:37.880
Towards educating and
empowering other users.

00:30:38.370 --> 00:30:44.430
If you have a product that just has
this wow factor, I, I made that up.

00:30:44.430 --> 00:30:46.749
It's a horrible term, but just
something where you're looking at it

00:30:46.749 --> 00:30:48.030
and you're like, this, this is magical.

00:30:48.030 --> 00:30:49.519
I would do anything about this.

00:30:49.940 --> 00:30:52.220
And there's only like
a few tools in my life.

00:30:52.249 --> 00:30:55.549
I feel that way about if any other
company asked me to be a champion,

00:30:55.570 --> 00:30:58.860
I'd say no, except for these like,
you know, top two or three tools.

00:31:00.155 --> 00:31:04.425
So if someone's out there listening,
a founder or an early sales leader,

00:31:04.425 --> 00:31:05.605
they're like, well, we got to do that.

00:31:05.705 --> 00:31:07.315
How do you get started with community?

00:31:08.945 --> 00:31:14.185
Talk to your community, find the people
that you feel like are your biggest fans.

00:31:14.750 --> 00:31:18.780
Even if there's only, if your company has
10 customers, find the ones that like,

00:31:19.280 --> 00:31:22.760
you'd be most likely to want to go out
to dinner with or have a cocktail with.

00:31:23.030 --> 00:31:28.320
That'll just tell you straight up
what's going on and what they need

00:31:28.660 --> 00:31:30.560
and treat it as customer discovery.

00:31:30.759 --> 00:31:34.450
Just as you would go to those customers
to figure out what to build next or where

00:31:34.450 --> 00:31:38.810
the market's going, figure out where
they're hanging out, figuring out what

00:31:38.810 --> 00:31:44.580
else they need to accomplish their job
or to solve the problems they have or to.

00:31:45.240 --> 00:31:48.590
You know, make them better creatively.

00:31:49.270 --> 00:31:53.860
And so by bringing in those
early pioneers, you're going

00:31:53.860 --> 00:31:54.590
to hear a lot of things.

00:31:54.590 --> 00:31:55.480
Like where do they hang out?

00:31:55.489 --> 00:31:56.460
Do they want to discord?

00:31:56.580 --> 00:31:57.550
Are they better on Slack?

00:31:58.020 --> 00:32:01.480
Do they like to go to live events or
do they like to do virtual events?

00:32:01.770 --> 00:32:06.030
You know, you're going to learn a lot
very early on after 10, 20 conversations.

00:32:06.380 --> 00:32:07.440
You probably have a good idea.

00:32:07.660 --> 00:32:09.670
And then just, again,
keep up that curiosity.

00:32:09.700 --> 00:32:11.490
Keep asking why as you go along.

00:32:13.740 --> 00:32:15.829
Jay, we've explored so much ground.

00:32:16.210 --> 00:32:19.010
On sort of the forefront of go to market.

00:32:19.100 --> 00:32:24.100
I'm so excited that someone like
yourself found yourself in this

00:32:24.100 --> 00:32:26.830
role in a company like Descript.

00:32:26.840 --> 00:32:30.020
So I really appreciate you dropping
this knowledge with us today.

00:32:30.310 --> 00:32:30.790
Thank you, Mark.

00:32:30.790 --> 00:32:31.399
Thanks for having me.

00:32:39.739 --> 00:32:42.580
Today's episode is written
and produced by Matthew Brown.

00:32:42.950 --> 00:32:44.180
Our show is edited by.

00:32:46.030 --> 00:32:49.390
Big thanks to HubSpot for Startups
and to the HubSpot Podcast

00:32:49.430 --> 00:32:51.130
Network for keeping the audio on.

00:32:51.360 --> 00:32:55.209
Hey, also we're a new show, so if you
like what you hear, or if you hate what

00:32:55.209 --> 00:32:58.869
you hear, leave us a rating and review
over on your favorite podcast player.

00:32:58.879 --> 00:32:59.790
I love the feedback.

00:33:00.200 --> 00:33:01.840
Also, check out Stage 2 Capital.

00:33:02.020 --> 00:33:07.790
We're the first VC firm
running back by over CCOs.

00:33:08.280 --> 00:33:11.540
So if you're an entrepreneur looking to
scale your business, check out stage2.

00:33:11.580 --> 00:33:11.960
capital.

00:33:12.349 --> 00:33:13.610
All right, that's it for today.

00:33:13.830 --> 00:33:14.600
I'm Mark Roberge.

00:33:14.610 --> 00:33:15.220
See you next week.

