Why Selling to Everyone is Slowing You Down (And What to Do Instead)
You’ve heard the terms before: SMB, MM, ENT. Small & Medium Business, Mid-Market, and Enterprise.
These aren’t just fancy labels. They define how businesses operate, buy, and grow.
Yet, most early-stage startups ignore them. Instead, they try to sell to everyone.
At first, that makes sense. You’re hungry for customers; anyone willing to pay seems like a win.
But long term? That approach can seriously slow you down.
Why Tiering Down Matters
Imagine you’re selling to a 50-person company.
Now, compare that to selling to a 500-person one.
Different budgets, decision-making processes, and expectations. It’s night and day, or apples and bananas (or if you prefer controversy, Trump and Biden 😆).
Tiering your market does two things:
1️⃣ It helps you define your Ideal Customer Profile (ICP) so you can focus on where you win the most.
2️⃣ It makes your sales process smoother by allowing you to tailor your messaging, strategy, and team structure accordingly.
But There’s a Catch
If you niche down too soon, you risk shutting out potential opportunities. Let’s say you decide from day one: We only sell to Enterprises.
What if your product resonates with SMBs?
What if Mid-Market is your sweet spot?
The truth is, your product will tell you where you belong. If Enterprises love it, you’ll know.
If it’s better suited for SMBs, that will become clear, too. The key is to watch where the demand comes from and let that guide your strategy.
A Breakdown of the Market Tiers
So, what’s the difference between these segments? Here’s a quick guide:
✅ SMB (Small & Medium Business) – Quick deals, small ACV.
ACV (Annual Contract Value): <€5K/year
Sales cycle: <30 days (ideally <20)
Sales motion: Mostly inbound
AE (Account Executive) pay: €40K+€30K OTE (on-target earnings)
Sales target: <€250K per AE
The SMB game: Close deals daily or die trying. The volume is high, margins are tight, and speed is everything.
✅ Mid-Market – The middle ground but the most crowded.
Company size: Up to 500 employees
ACV: €5K–€25K (higher in the US)
Sales cycle: 30–90 days
Sales motion: A mix of inbound and outbound
AE pay: Up to €60K+€60K OTE
Sales target: €300K–€500K per AE
The Mid-Market reality: This is where most companies land. It’s competitive, fast-moving, and requires a solid mix of outbound and inbound.
✅ Enterprise – The “promised land” (or so they say).
ACV: €25K up to millions
Sales cycle: 90 days to 2+ years
Sales motion: Highly strategic, multi-stakeholder
AE pay: €70K–€100K base, OTEs reaching €300K–€500K
The Enterprise truth: It’s slow and complex, and very few companies truly succeed here. Everyone wants to sell Enterprise, but most aren’t ready for the long game it requires.
The Takeaway?
Tiering down isn’t just for big companies. It’s something early-stage startups should consider sooner rather than later.
Waiting too long can hurt your growth.
Specializing speeds up success and execution by ensuring your sales team, pricing, and motion align with the customers you serve best.
So, next time you’re juggling deals of different sizes, ask yourself: Is it time to tier down?
Thanks for reading this far. I will see you all next week.
