How to pick the right GTM motion to reach $100M ARR

Measuring the Success of GTM Motions

To determine the effectiveness of various GTM motions, businesses must establish clear metrics and KPIs. These measurements can include conversion rates, customer acquisition costs, and overall market penetration. By systematically analyzing these data points, organizations can gain valuable insights into which GTM motions are delivering results and which may need refinement. Continuous measurement and iteration are vital for optimizing GTM motions and driving sustainable growth in a competitive marketplace.

Achieving $100 million in Annual Recurring Revenue (ARR) is a coveted milestone for any SaaS (Software as a Service) business. It signals maturity, scale, and a high level of market penetration. However, getting there requires not only a stellar product but also a carefully thought-out Go-to-Market (GTM) strategy. The choice of the right GTM provider  can make the difference between a business that scales smoothly and one that stagnates.

In this article, we’ll explore how to select the right GTM motion to reach $100M ARR, focusing on key factors like target market, product complexity, customer journey, sales motion, and more.

Understanding GTM Motions

A GTM motion is essentially the strategy a company uses to deliver its product to the market. It’s the engine that drives revenue generation and growth. The most common GTM motions for SaaS businesses include:

1. Product-Led Growth (PLG): The product is at the forefront of the sales process, allowing users to experience the product through free trials or freemium models before deciding to buy.
2. Sales-Led Growth (SLG): Traditional sales teams engage in outreach, demos, and relationship-building to drive conversion, typically for high-value or enterprise-level clients.
3. Channel-Led Growth (CLG): Companies rely on external partners, resellers, or third-party marketplaces to distribute their product.
4. Marketing-Led Growth (MLG): Growth is primarily driven through top-of-the-funnel marketing efforts such as inbound content marketing, paid ads, and SEO, nurturing leads until they are sales-ready.
5. Community-Led Growth: A relatively new model where businesses grow through organic brand advocacy and an engaged community of users who promote and evangelize the product.

Each of these motions has its strengths, and the right choice depends on your company’s specific circumstances. Let’s walk through how to choose the best GTM motion as you aim for $100M ARR.

1. Evaluate Your Target Market and Segmentation

The foundation of any successful GTM motion is a deep understanding of your target market. Depending on the market segment you’re serving (SMBs, mid-market, or enterprise), the appropriate motion will vary:

• SMB (Small to Medium Businesses): If you’re targeting SMBs, you may find that a Product-Led Growth motion works best. SMBs often prefer self-service models, and decision cycles tend to be short. The ease of onboarding and ability to try before committing is highly appealing to this market.
• Mid-market: The mid-market segment may require a hybrid approach. A combination of Product-Led and Sales-Led Growth motions often works well here. Mid-market customers may require sales assistance for customization or complex questions but still want to experience the product firsthand before engaging in serious discussions.
• Enterprise: Enterprise customers have long sales cycles and complex needs, making a Sales-Led Growth motion more appropriate. Large enterprises usually expect a dedicated sales team, tailored demos, and extensive negotiations, which means you need a strong sales force to close deals.

2. Consider Product Complexity and Time to Value

Your product’s complexity and the time it takes for users to realize its value also influence which GTM motion is right for you:

• Simple Products with Immediate Value: Products that are easy to understand and provide immediate value, such as collaboration tools or project management software, are prime candidates for Product-Led Growth. Users can quickly grasp the benefits and are more likely to convert without the need for heavy sales involvement.
• Complex Products with Long Time to Value: If your product is highly complex, such as a data analytics platform or enterprise resource planning (ERP) system, a Sales-Led Growth motion is usually required. These products typically involve long onboarding processes and require customer education, which is best achieved through a hands-on sales team.

A hybrid approach is also possible if the product complexity varies across features or user personas. For example, you might allow smaller teams within large organizations to use a free version, then later sell enterprise-level features through your sales team.

3. Map the Customer Journey and Sales Cycle

The length and complexity of your sales cycle is another critical factor. You need to match your GTM motion to your customer’s buying process:

• Short Sales Cycles: Products with short sales cycles, where decisions are made quickly and impulsively, often succeed with a Marketing-Led or Product-Led Growth motion. The idea is to generate a high volume of leads through inbound marketing or free trials, nurturing these leads through the funnel until they convert.
• Long Sales Cycles: In contrast, if your sales cycles are long (e.g., 6-12 months), as is often the case with enterprise software, you’ll need a Sales-Led Growth motion. Building relationships, navigating procurement processes, and offering tailored solutions are essential in such environments.

By mapping your customer journey and understanding the critical touchpoints, you can decide whether you need a high-touch sales team, automated product experiences, or a blend of both.

4. Analyze Your Pricing Model

Pricing plays a major role in determining your GTM motion. The average contract value (ACV) and pricing model can heavily influence how you approach the market:

• Low ACV Products: Products with lower price points (e.g., $10 to $100 per month per user) are typically suited for a Product-Led or Marketing-Led Growth motion. Lower pricing doesn’t justify the high costs associated with a dedicated sales team. Instead, focus on scaling customer acquisition through product virality, word of mouth, and efficient marketing channels.
• High ACV Products: If your product commands a high price point (e.g., $10,000+ per year), a Sales-Led Growth strategy is almost always required. High-value customers expect a white-glove sales experience, and the revenue per deal justifies the higher cost of customer acquisition.

5. Assess the Strength of Your Brand and Community

Companies with strong brand recognition or active user communities can leverage these assets in their GTM strategy:

• Established Brands: If you’ve built strong brand equity and customers trust your name, a Marketing-Led motion can drive significant demand. Your marketing efforts, combined with a recognizable brand, can bring leads directly to your sales pipeline.
• Community-Driven Growth: If your product has fostered an engaged user community, you might consider a Community-Led Growth strategy. Communities can act as powerful referral engines, driving both awareness and credibility. By supporting and enabling your user base to become brand advocates, you can achieve significant organic growth.

6. Factor in Market Trends and Competitor Analysis

Understanding broader market trends and analyzing your competition is key to choosing the right GTM motion. Ask yourself the following questions:

• What GTM motions are competitors using successfully?
• Are there emerging trends in how customers prefer to buy?
• Is the market leaning more toward self-service (favoring PLG), or do customers demand a personal touch (favoring SLG)?

Competitive analysis and market research can reveal gaps that you can exploit or emerging shifts that could dictate a different approach.

7. Align with Company Culture and Resources

Finally, your company’s culture and available resources should influence your choice. If your team is highly technical and product-focused, you may excel at Product-Led Growth. However, if your leadership and team members come from a traditional sales background, a Sales-Led Growth motion may be a more natural fit.

Additionally, consider your resources. If you lack the capital to build a large sales team, a Product-Led or Marketing-Led motion can allow for more cost-efficient scaling.

Conclusion

Reaching $100M ARR is a formidable challenge, but choosing the right GTM motion can put you on the path to success. By carefully evaluating your target market, product complexity, sales cycle, pricing model, brand strength, and internal resources, you can build a GTM strategy that aligns with your goals.

Remember, your GTM motion is not set in stone. Many successful SaaS companies adopt a hybrid approach or evolve their strategy as they grow. Start by selecting the motion that best suits your current stage and adjust as necessary to reach new milestones, including that coveted $100M ARR.