CROs Lost Budget Because They Lost P&L Credibility
In recent years, many CROs have lost the power and freedom that they once had. But it’s not just a coincidence. There’s a very specific reason behind this shift in power dynamics.
Here is what we’ll cover this week:
- CROs Lost Budget Because They Lost P&L Credibility
- SDRs Are Drinking Birds
- Agencies: We’ve Got Your Back in Delivery Fulfillment
CROs Lost Budget Because They Lost P&L Credibility
In the early 2010s, the role of the Chief Revenue Officer (CRO) was powerful. They had the freedom to allocate budgets, invest in new tools, hire headcount, and experiment with markets.
But fast forward to today, and the landscape has shifted dramatically. Many CROs have seen their autonomy stripped away, and reduced to little more than sales managers without the ability to make independent financial decisions.
What went wrong? ⛔
During the boom times, CROs were tasked with one goal: growth at all costs. To achieve this, they doubled down on headcount, tools, and training programs, often sacrificing profitability for revenue.
This strategy worked when the market was thriving, but as economic conditions tightened post-COVID, the cracks began to show.
CFOs and CEOs started scrutinizing these growth strategies, realizing that many CROs lacked the financial acumen to manage profit and loss effectively.
The problem? CROs were great at spending money but not at understanding the long-term financial implications of their decisions. They focused on top-line growth without considering the operational costs—the denominator—that drive profitability.
To regain their credibility and autonomy, CROs need to develop a deeper understanding of unit economics. 💡
They must learn to optimize the cost of customer acquisition (CAC) against lifetime value (LTV) and operational expenses. By shifting tasks like CRM management, social media, and prospecting to more cost-effective solutions, CROs can free up significant resources. ✅
This strategic approach will not only restore their P&L credibility but also enable them to make more impactful, autonomous decisions in the future.
Start Delegating $5/hr tasks at getlevrg.com
SDRs Are Drinking Birds
Rethinking the role of SDRs is long overdue. Too often, their tasks—especially digital ones like prospecting via email or LinkedIn—are overvalued and overpaid.
I recently came across a LinkedIn post by Noam Nisand that highlights a crucial point: many of the tasks that SDRs perform, especially digital tasks like prospecting via email or LinkedIn are repetitive tasks that can be done from anywhere in the world at a fraction of the cost.
Yet, companies are paying $70,000 a year per SDR to do this work, which frankly, makes no sense. ❌
The real value of an SDR isn’t in hitting “send” on a bunch of emails or LinkedIn messages. Instead, it’s in the deeper, more complex parts of the sales process—things like making calls, running demos and discoveries, and contextualizing market and competitive data. 💯
Imagine if an offshore resource could gather all the necessary research—job changes, market signals, competitive insights—while the SDR focuses on turning that data into a compelling, personalized message.
If your SDRs are spending their days clicking send on automated tools, you’re wasting both time and money. The true value of an SDR lies in their ability to synthesize data and craft stories that resonate with potential customers. ✅
It’s time to rethink how we utilize and value our SDRs, ensuring they focus on what truly matters in driving sales.
Agencies: We’ve Got Your Back in Delivery Fulfillment
Running an agency these days isn’t a walk in the park. Whether you’re in advertising, sales training, consulting, or even in law or accounting firms, you’ve probably noticed that your biggest expense is talent.
The problem? Talent in North America has become ridiculously expensive, and finding the right people is harder than ever.
The new generation entering the workforce, while full of potential, often struggles with performance, leaving many agencies strapped for both money and talent.
Now, you might be considering offshoring as a way out, but the idea of diving into financial analysis, setting up the right infrastructure, and onboarding talent in another country seems like a massive headache.
It’s tough enough to manage your agency here—expanding overseas feels like an even bigger challenge.
This is where we step in. At Get Levrg, we’ve created a white-label service called Agency Fulfillment.
Whether you’ve got overflow work that your team just can’t keep up with, or you’re looking for a long-term strategy to completely revamp your cost structure, we’ve got you covered. 🎯
Partner with us, and you can flip a switch to have all those sales and marketing tasks handled, freeing up your team and boosting your profitability. 🤝
It’s a solid way to scale your agency without the usual headaches. Understand The Levrg Loop.
Download the Free Resource Now
