Mid-Market Sales Cycles Are Often Not Faster Than Enterprise
'We're seeking to target the mid-market because sales cycles are faster'
- startup founder
It's a common startup myth that selling to the mid-market is easier and faster than selling to enterprises. However, this is often not the case. Here are some key points to consider:
Mid-market companies (i.e., non-tech companies) have fewer technical & support resources than enterprises, which can delay purchasing until those resources become available, whether in-house or through outsourced partners. This often surprises founders.
The mid-market is divided into two segments: high-end SMB and low-end enterprise, with no true middle-middle ground.
Selling to low-end enterprises is often 80-90% similar to selling to true enterprises but with smaller deal values as a veil to expedite. Be careful not to negotiate against yourself in these situations.
The potential for expansion should justify the effort required to land a deal. Carefully evaluate a 5-7 month sales cycle with a slow-growing price point.
This doesn't mean you should avoid targeting the mid-market. The key is to understand the implications of each market early on rather than learning them too late.
Every market has its challenges and is equally as hard, so choose the one that aligns with your product, how your market wants to buy, and, thus, your preferred go-to-market motion, whether it's marketing/PLG (high-velocity, high-volume) or sales (high-value, high-touch).
And, for more on this topic:
https://www.jjellyfish.com/articles/debunking-the-myth-smbmid-market-is-not-easier-than-enterprise
