TL;DR

We’ve decided to hard pivot and move on from adminAI (and Sales-tech in general).

AdminAI was a sales productivity application, aimed are reducing time and effort spent on post-call workflows, which consume 25-40% of an Account Execs week. (example: follow up emails, meeting notes, updating Opportunities in SFDC and more).

We pivoted b/c timing was bad, Enterprise buyers are willing to wait for incumbent to catch-up, there is no real moat, and unit-economics for a bottom’s up GTM does not work.

For more about what worked:

1 - Unit Economics & Business model don’t match

We are trying to selling low ticket item to a whole company, not a person or a team.

Price	$600	/user/year
to get $100m	166,667	users (1)
lead conversion rate	5%	because of high competition
leads required	3,333,333	this means we need virality (2)

life time value	$1,800	3 years, assuming reps use use for 3 years before they churn. no growth included
gross margin	70%	red flag zone, being conservative
Gross margin	$1,260
LTV/CAC	3	red flag zone, being conservative
CAC per customer	$420
CAC per sign up	$21	5% conversion. Becomes lower if we change 70% and 3x, making it even harder to achieve (3)

(1) 166k users - too many users for enterprise GTM. We sell to the company, not individual users. We will need marketing at scale to go bottom’s up (PLG)

(2) We need 3m B2B leads - Only way to get 3m leads is vitality & marketing.

(3) Using 5% conversion, $21 CAC per sign up is very very low CAC. LinkedIn average CAC is $50, and it’s rising. We're hunting rabbits…we should be hunting whales.

Companies are known for 1 or 2 things which they start building, and it's hard to change that perception. So even if we started with admin AI and moved onto the bigger goals we have, I believe perception is hard to change. Changing price from $600 to $6000 down the line, would also not make sense

2 - Customer feel like they are paying for marginal improvement of LLM accuracy

A VP who is using a Conversational Intelligence tool (Chorus, Gong, Zoom) is asking

My CI tool has these features, and is 50% good. Is the additional monthly cost + implementation cost + tool management worth 20% gain in notes/email accuracy? Will my existing tool get there soon?
- We loose
- Users are using us because “Gong is not there … yet”

A VP who is not using a call recorder will say:

I need a full CI solution where I can record, make playlists, share etc.
- That’s not our roadmap.
- So enter full call recording and compete against Avoma, Firefly, Fathom, Chorus, Gong, Zoom, otter, etc. This is a price battle.