If you asked us to tell you the single most common question we get asked by founders, it would have to be the Go-To-Market (GTM) model dilemma.

We get why this is such a hot topic for founders when they talk to us. VCs should have something valuable to say when building a plan of attack for conquering new markets, right? Even so, if you are asking this question as a founder, then you most likely need to get to know your business a little better. Because that’s where the best answer lies – in your customers, and in your product. 

There is a semantic trap hidden inside the word “model,” as it implies a cookie-cutter, off the shelf blueprint that’ll solve all your problems. In reality, your business exists at the fluid intersection of market pressures, the demands of your customers, and economic, technological, and social trends. Yes, the high-level broad strokes (PLG, outbound, partnership, etc.) still apply, but we hope this article will guide you through the process of acquiring the individual details you need to define a robust, fit for purpose Go-To-Market model for your business.

THE 4 MOST COMMON GO-TO-MARKET MODELS

Even SaaS businesses that operate in the most extreme of niches likely employ a proprietary blend of GTM models. 100% of your revenue may be generated through partnerships, yet a B2B business with no website and no online presence is unlikely to exist, let alone succeed. Your is to identify the components of these models that help you acquire the right kinds of customers in each market.

PARTNERSHIPS

Partnerships work better as an additional revenue channel rather than your primary source of ARR. Your product may be one of dozens being sold by your partners, which makes you a lower priority than you may wish. You are also giving over your sales process to someone else, along with all the relationship building and insights you would have gathered. In SaaS, partnerships rarely work well for early stage businesses, but may be good options when your brand awareness and market presence grows.

PRODUCT-LED-GROWTH

By far the most scalable GTM model, but it’s worth noting you’re committing to a long, labour-intensive game when following a PLG strategy. PLG works best when paired with a SaaS product that makes it easy for people to self-onboard – not so much for high ticket, complex products. If your customer acquisition costs are low, your product is low value, and it is easy to buy, then PLG is worth testing.

REMOTE SALES

Remote sales can be leveraged to assist customers as they move through more complex sales and product onboarding funnels. Saas products like CRMs and ERPs can be introduced through demos, and dedicated assistance can be provided for high value clients. This also means less product onboarding when sales are made. However, while your remote sales team may know the product inside-out, their understanding of customers in new markets may be lacking.

FIELD SALES

While field sales represent significant investments in personnel and market research, locally-based sales operatives solely dedicated to pulling the strings on highly complex, multi-stakeholder sales transactions may be the most effective way to secure those mid level and enterprise customers, especially when trying to break markets like Germany and France with new SaaS products.

ABOVE ALL, REMEMBER THESE 3 KEY THINGS:

1. Maintain a strong, open, continuous relationship with your customers. You are trying to sell to them, so the quicker you learn how to give them what they value most, the better your GTM model will be. Without this relationship, you will fail.
2. GTM is not a one-and-done project. Aim to constantly learn and improve. Remember to introduce new ways to sell to customers by testing segments, new ways of selling, and different pricing.
3. Build a playbook. Write down everything you learn from every market you enter. This tool will make your GTM strategy replicable, as new team members will be able to see what’s worked before and what they can start iterating today. VCs in particular value working with founders that work from solid GTM playbooks, as learnings can be passed through departments, and customers can validate these findings if questioned.

KEEP IN MIND…

If you are starting local in the Nordics and Baltics, you have several possible GTM routes to follow. Estonia is literally and figuratively a short hop away from Finland, and Finland shares much in common business-wise with Sweden. While Norway, Denmark, and the rest of the Baltics are slightly more distant cousins, the prevalence of English as a business language means common ground can be found in most cases.

Also, your product will evolve to fit the GTM model you choose, which takes time and money. It’s really hard to execute 3-4 models at the same time, so prioritise the one with the best fit, then execute.

Who answered the question?

Timo Felin

Investment Director