The LeanScale Podcast · Episode 145

No SDRs, Still Growing: How a CRO Builds Pipeline in 2026

Xander Kotsatos on running sales, CS and solutions under one leader for the first time, why being right about the number matters almost as much as hitting it, narrowing sales focus while widening CS, growing new business with no SDRs and no marketing team, why slop raises the value of curation, and why his sales reps don't use AI to write proposals

Xander Kotsatos · Chief Revenue Officer · Aqfer Hosted by Anthony Enrico
Published Updated 00:50:14 43 min read 8518 words
Executive Summary

The one-paragraph brief, extended

Why this conversation matters — and who should spend the hour.

Xander Kotsatos is Chief Revenue Officer at Aqfer, a Series A marketing data platform that helps enterprises unify, process and activate customer and marketing data inside their existing cloud. For the first time in his career he runs sales, customer success and technical solutions at once. Per the show notes, he graduated into the 2009 recession, became the first East Coast trader at what became one of the largest demand-side platforms, helped lead sales at Beeswax through its 2021 acquisition by Comcast's FreeWheel, and held sales leadership roles at Comcast. His career started when he and a friend put on blazers and worked an alumni reception they weren't invited to, which led to an internship at a PR agency within the Omnicom group.

His headline rule for sales is that hitting the number comes first and being right about whether you will comes second. A quarter you blow out without seeing it coming is almost as bad as a miss, he says, because without an accurate feedback loop the company can't plan hiring, product, strategy or market spend. The unexpected part of the CRO job has been making the functions work together and selling things the company can deliver and repeat. He pushes his departments in opposite directions: sales narrows, with distractions removed so reps can close, while CS and solutions widen, synthesizing across clients, products and the data, cloud and ad tech worlds. With about 60 percent growth on the team this year, he says informal coverage has to give way to defined roles and a repeatable process.

The episode's title comes from how Aqfer builds pipeline. The SDR team was gone before Xander arrived. He tells reps he wants to be their best SDR, and that ideally his leads get them to half their number. Most leads come from conferences and from consulting and channel partners. Because Aqfer has a specialized sell and a clearly defined ICP of ad tech and data companies, agencies and publishers, he says SDRs would require vastly expanding the addressable market into brands. The company has also had nobody in marketing all year and still grew new business year over year, which let it invest more in solutions and sales resourcing. He is candid about the limits: a growing Series A company will need sales operations and marketing departments, and the jury is still out on SDRs.

Xander and host Anthony Enrico spend a stretch on noise. Anthony's assistant filters his inbox, and Xander tunes out email, LinkedIn messages and calls. Xander argues the prevalence of slop is highlighting good content and the people who curate it: he no longer starts the day on AdExchanger's homepage as he did in 2018, and instead trusts newsletters and feeds from industry veterans. His line on AI is consistent. It can do research and help edit, but the story and the decision belong to a person. His sales reps don't write proposals with it, because connecting the solution to the client's business is a creative exercise, while solutions staff can use it on prepackaged functionality. Anthony adds that AI can't be accountable, and Xander contrasts how tightly self-driving is regulated with how little responsibility attaches to LLMs.

The episode suits first-time leaders of combined go-to-market organizations, founders deciding whether to hire SDRs or marketing, and revenue leaders in specialized markets where relationships and domain expertise decide deals.

Key Takeaways

15 things worth stealing

The load-bearing ideas, each with the business implication and who should care.

01

Hit the number, then be right about whether you will

Xander tells his team the most important thing in sales is hitting numbers and the second most important is being right about whether you will. He says it is almost as bad to obliterate a quarter to the upside without seeing it coming as it is to miss, because without an accurate feedback loop the company can't make good calls on hiring, product, strategy or market spend.

Why it matters: Forecast accuracy in both directions is a leadership output, not a reporting chore. Anthony adds the board angle: a leader who shows up to every call saying stay tuned gives the board no reason to trust them.

Revenue ExecutivesSales LeadersRevOps Leaders
02

The surprise in the CRO job is making the functions work together

Xander says the highest-pressure part of the role is still sales, where you are fundamentally tasked with controlling the uncontrollable. What he didn't expect was the work of making the functions fit, getting the team structure right and giving each role enough of his time. His team also delivers and stays with clients, so the question becomes how to sell things that are good, that the company can deliver and repeat, and that leave runway for upsell and the margin it needs.

Why it matters: A CRO who owns delivery and retention can't treat a closed deal as the finish line. What sales sells has to be something the rest of the organization can keep delivering.

Revenue ExecutivesFounders
03

Every seat looks easier from below

Six months into a company, Xander says, he would look at the executives and think he could fix everything. As he became more senior he was humbled, because advancing means losing domain expertise and owning functions you didn't grow up doing. A friend who became a startup CEO from a finance and product consulting background was surprised by how much of sales is operations. Xander agrees the operations of the role are really important and surprisingly difficult and tedious.

Why it matters: Anthony reached the same place after starting LeanScale in 2021: the fix you think is obvious may be sitting behind a priority ten times its size. New leaders should expect to be imperfect across functions and should not assume charisma carries sales.

Revenue ExecutivesFoundersSales Leaders
04

Narrow focus for sales, widen it for CS and solutions

Across his three departments, Xander says sales is about narrowing focus: removing distractions and putting blinders on so reps can close. CS and solutions are about expanding focus, because the more they can synthesize across clients and products, the more valuable they are on calls. Solutions sits in the middle. Technical expertise is expensive, so he wants it used at full capacity, but he also wants those people to grow on the client side and across data, cloud and ad tech.

Why it matters: One leader owning all three functions can set a different mandate for each rather than running one operating rule across the organization.

Revenue ExecutivesCustomer SuccessSales Leaders
05

Record customer calls, not just sales calls

Xander says Aqfer has started focusing on recording existing customer calls. With Grain as the recording tool and a Claude plug-in to it, he can synthesize the last few meetings rather than asking people where an account stands before each call. He also uses it for professional development, pinpointing areas where individual team members can expand.

Why it matters: It gives a leader account context without interrupting the team and a way to develop a CS group that runs from brand new to very senior. Xander sees three paths for CS people: management and internal operations, sales, or technical roles such as sales engineering.

Customer SuccessRevenue ExecutivesRevOps Leaders
06

Growth forces defined roles and a repeatable process

Aqfer's team has been small enough that solutions, CS and to a degree sales simply knew who the players were and adjusted. With about 60 percent growth on the team this year, Xander says it needs much more defined roles and process, with everyone covering at least the expected things. On the old pod versus fungible, layered structure question, his answer is probably both yes and no, and he expects to try different things.

Why it matters: Anthony says he has seen every structure and all carry trade-offs. He also sees some trend toward full-cycle AEs pairing with CSMs, perhaps more in enterprise, as teams try to be more efficient with fewer resources, which asks people to cover more of the cycle.

Customer SuccessRevOps LeadersRevenue Executives
07

Treat senior reps as the CEO of their own business

As digital advertising grew from display to video, mobile, connected television and streaming, Xander says salespeople went from building agency relationships to needing both industry relationships and enough technical depth and domain expertise to bridge the product to the client's need. He tells his senior sales team they are the CEO of their own business, with the most financial upside and downside, and that his job is to get them the resources they need.

Why it matters: In a complex category the rep is an account owner and strategist, not just a seller, and the leader's job shifts toward resourcing them.

Sales LeadersRevenue Executives
08

"I want to be your best SDR"

The SDR team was gone before Xander arrived at Aqfer. He tells reps he wants to be their best SDR by going to every conference and using his network, and that ideally his leads get them to half their number while they own the other half. He says he wants to be accountable to that. Most Aqfer leads come from conferences and from consulting and channel partners.

Why it matters: Where domain expertise and relationships open doors, the senior leader can act as the top-of-funnel engine, with a stated split of who owes what.

Revenue ExecutivesSales LeadersFounders
09

Whether you need SDRs depends on your addressable market

Aqfer has a specialized sell and a clearly defined ICP: mostly ad tech companies, data companies, agencies and publishers. Xander says that to justify SDRs it would have to vastly expand its total addressable market, moving into brands and a much larger B2B sales motion. He says SDRs were really effective during COVID as people moved digital, but that he now gets hammered all day and tries to tune out email, LinkedIn messages and phone calls.

Why it matters: Treat SDR headcount as a consequence of market size and motion rather than a default. Xander does not claim the question is settled: his previous company went back and forth on SDRs, and he says the jury is still out.

FoundersRevenue ExecutivesSales Leaders
10

A year with no marketing team funded solutions and sales

Aqfer has had nobody in marketing all year. Its CEO and head of solutions did most of the heavy lifting on a website rebuild, with consultants coming through. Xander says demand generation didn't suffer, new business grew year over year, and the choice let the company invest more heavily in solutions and sales resourcing.

Why it matters: Xander frames this as a short-term trade. He isn't sure it is the best plan long term, and says that if Aqfer continues to grow as a Series A company it will need a sales operations department and a marketing department.

FoundersMarketing LeadersRevenue Executives
11

Slop makes trusted curators more valuable

Xander says the prevalence of slop is further highlighting good content and curation of that content. In 2018 the first thing he did at the office was check AdExchanger's homepage. Now he pays attention to newsletters and feeds curated by groups of mostly industry veterans, which land in his inbox already filtered. An article has to jump beyond its publication, through someone sending it or an aggregation layer, to reach him.

Why it matters: Anthony's read is that people have stopped searching the sea of content and gone back to trusted sources. He sees the old school becoming the new school: events, relationships and content that actually resonates, all of which take real effort.

Marketing LeadersFoundersRevenue Executives
12

Let AI research and edit, and keep the decision

Xander says he is a data-driven person who usually ends up going with his gut. He uses AI with his sales tools to gather background, but says the decisioning engine is him. His overall approach is that AI can do research and help you edit, while the story and the decision-making should be human. AGI is supposed to be as smart as a human, he says, but which human?

Why it matters: The practical line sits between assembling inputs and owning the call. On market and people decisions he says you should be informed by what else is out there, then do what is right for your organization: you have to know the rules to break the rules.

Revenue ExecutivesSales LeadersFounders
13

Sales reps don't use AI to write proposals

Xander doesn't let sales use AI to write proposals but is much more open to it on the solutions side, where the role is more data-driven: the company has a fixed amount of functionality and prepackaged products, so prepackaged, Claude-trained tools for various inputs are fine. The bridge from the solution to the client's business is fundamentally a creative exercise. AI could do a job of it, he says, but a rep who knows the company and has spoken to it can probably write a much more compelling argument.

Why it matters: Draw the AI line by the nature of the work: use it where the inputs are bounded and keep people where the work is persuasion and consulting for a specific buyer.

Sales LeadersRevenue ExecutivesRevOps Leaders
14

AI can't be accountable, and regulation treats its uses very differently

Anthony says the only answer he can find to what humans are left for is that AI can't be accountable: if something goes wrong, who is there to fix it, and what justice can be had? Xander responds with a contrast. Self-driving, which he says the data shows is way better than humans though not perfect, is tightly regulated and barely allowed one mistake, while on the LLM side he sees models obscuring responsibility with no regulation around it.

Why it matters: Whoever puts their name on a proposal, forecast or decision owns it however it was produced. Anthony's point is that you can't blame the AI afterward.

Revenue ExecutivesFounders
15

Play a character, and bring three messages

Xander tells junior team members who are exhausted after day one of a conference to think of a character for day two, the character being themselves, and play it. It paces them and removes them a little from the scenario. From a PR internship where interns helped media-train small nonprofits, he took a second rule: before any interview, pick three things you want to get across and bridge each question back to one of them.

Why it matters: Both travel to any difficult conversation, including sales meetings, negotiations and client success meetings. Xander says you need a process to follow, preparation and a story.

Sales LeadersCustomer Success
Frameworks Discussed

7 named models

Every framework Jimmy names, defined and time-stamped.

Hit the Number, Then Be Right About It

13:29

The most important thing in sales is hitting numbers. The second most important is being right about whether you will or won't.

Xander says obliterating a quarter without seeing it coming is almost as bad as missing, because every downstream plan, from hiring and product to strategy and market spend, depends on an accurate feedback loop. He ties it to his view that sales is fundamentally tasked with controlling the uncontrollable.

Narrow Sales, Widen CS and Solutions

16:16

Give each go-to-market function a different focus mandate: sales narrows on closing, CS expands across clients and products, and solutions sits in the middle.

Sales benefits from removing distractions and putting blinders on. CS gains value by synthesizing information across clients and products, which matters more where CS skews junior. Solutions has expensive expertise that should be used at full capacity, but those people also need to grow on the client side and across data, cloud and ad tech.

Play the Character

04:21

When a high-energy setting wears you down, decide on a character, which is yourself, and play that character rather than asking what you would do.

Xander gives this advice to junior team members who are exhausted after day one of a conference. It works as a way to pace yourself and remove yourself a little from the scenario, so networking and meetings feel almost like an academic exercise. Anthony connects it to separating ego from rejection in sales and marketing.

Three Messages and a Bridge

06:59

Before any interview or important conversation, decide on three things you want to get across, and for every question find a way to bridge back to one of them.

Xander took this from media training that interns and junior account staff delivered pro bono to small nonprofits during his PR internship. He says it applies to any conversation where you are trying to land a specific point, including an interview, a sale or a client success meeting.

The Leader as Best SDR

24:00

With no SDR team, the revenue leader commits to being the team's best SDR, with leader-generated leads ideally covering half of each rep's number and the rep responsible for the rest.

Xander uses conferences and his network across accounts to generate leads and says he wants to be accountable to that half. It fits a business where domain expertise and relationships are key and most leads come from conferences and consulting and channel partners.

AI Researches and Edits, Humans Decide

37:51

AI can do research and help edit, but the story and the ultimate decision should be made by a person.

Xander uses AI with his sales tools to assemble background and says the decisioning engine is him. He allows that this could change with true AGI, while asking which human AGI is supposed to match.

The Bridge Is Creative

46:01

Use AI where the work is bounded by fixed functionality and packaged products, and keep the link between the solution and the client's business with the person who knows the client.

Xander's solutions team can use prepackaged, Claude-trained tools because the company only has so much functionality and so many packaged products. Sales reps don't use AI to write proposals, because a rep who has contact at the company and has spoken to it can write a more compelling argument and do what is essentially consulting.

Best Quotes

20 lines worth clipping

Pulled verbatim. Copy or share any of them.

“In sales, the most important thing is to hit numbers. But the second most important thing is to be right about whether you will or won't hit numbers.”
Xander Kotsatos 13:29
“It's almost as bad to absolutely obliterate a quarter to the upside, but be really wrong about it and didn't see it coming as it is to miss numbers.”
Xander Kotsatos 13:40
“You are fundamentally tasked with controlling the uncontrollable.”
Xander Kotsatos 14:47
“For day two, think of a character. The character is yourself, and then play that character.”
Xander Kotsatos 04:21
“The actual operations of the role are not only really important, but surprisingly difficult and tedious.”
Xander Kotsatos 12:30
“CS and solutions, interestingly, to me, is much more about expanding focus because the more that they can synthesize information between their different clients, between the different products, the more valuable they'll be on calls and the more breadth that they can cover.”
Xander Kotsatos 16:42
“You are the CEO of your own business.”
Xander Kotsatos 23:02
“One thing I tell my team is I want to be your best SDR.”
Xander Kotsatos 24:00
“I tell my team, ideally, my leads get you to half your number, you are responsible for the other half.”
Xander Kotsatos 24:15
“We grew new business year over year without a marketing department.”
Xander Kotsatos 25:38
“I think the jury's still out on SDRs in total, but it's tough. They were really effective during COVID when people were moving digitally, but I just get hammered all day long, personally.”
Xander Kotsatos 26:11
“Partially the prevalence of slop is further highlighting good content and curation of that content.”
Xander Kotsatos 27:33
“The article has to jump beyond the publication in order for it to get to me at this point.”
Xander Kotsatos 29:41
“I both say I'm a data driven person and usually end up going with my gut. So two things can be true at once.”
Xander Kotsatos 36:57
“AGI is supposed to be as smart as a human, but it's like, which human?”
Xander Kotsatos 38:12
“The only thing I can really think of is AI can't be accountable. And if something goes wrong, who's going to be there to fix it?”
Anthony Enrico 39:11
“With my team, I don't let sales use AI to write proposals.”
Xander Kotsatos 46:01
“The bridge from our solution to the client's business is fundamentally a creative exercise.”
Xander Kotsatos 47:01
“Even if you have maybe a B, I'll call it a C+ strategy, but if you execute A+, you're going to win.”
Anthony Enrico 48:42
“Do the easy things right. And that will give you a lot of grace on everything else.”
Xander Kotsatos 49:09
Practical Advice

What should you actually do?

The playbook, split by the seat you sit in.

Revenue Executives

  • Hold yourself to calling the number as well as hitting it, and treat an unforeseen upside quarter as a forecasting failure.
  • Set a different mandate for each function: narrow focus for sales, broader exposure across clients and products for CS and solutions.
  • Give every function enough of your time rather than defaulting to the one you grew up in.
  • Sell what the company can deliver, repeat and expand at the margin it needs.
  • State who owes what in pipeline, for example leader-generated leads covering half of each rep's number.

Sales Leaders

  • Remove distractions so reps can focus on closing.
  • Treat senior reps as the CEO of their own business and make your job getting them the resources they need.
  • Before funding SDRs, ask whether your addressable market and motion justify them.
  • Keep the link between the solution and the client's business with the rep who knows the client.
  • Prepare for hard conversations with a process and a story: pick three messages and bridge each question back to one of them.

Founders

  • If you skip SDRs or marketing, treat it as a short-term trade and decide what would trigger hiring them.
  • Reinvest what you save in the resources that win new business now. Aqfer put it into solutions and sales.
  • Replace informal coverage with defined roles and process before team growth outruns it.

Customer Success

  • Record existing customer calls as well as sales calls, and use them for account context and development.
  • Broaden CS people's exposure across clients and products so they are more valuable on calls.
  • Lay out the paths from CS into management and internal operations, sales, or technical roles such as sales engineering.
  • Define the minimum each person covers as the team grows, whether you run pods or a layered structure.

RevOps Leaders

  • Report forecast accuracy in both directions, because a surprise beat breaks the feedback loop as well as a miss.
  • Connect call recordings to an AI assistant so leaders can get account context without interrupting the team.
  • Plan for the point at which a growing team needs a sales operations function.

Marketing Leaders

  • Favor content that resonates over volume, since slop is making good content stand out.
  • Find the newsletters, feeds and veteran curators your buyers already trust and earn a place there.
  • Treat events and relationships as primary channels in markets where inboxes have become noise.
AI Takeaways

How AI actually changes GTM

LeanScale's signature read on the AI-in-GTM question this episode wrestles with.

The thesis

Xander uses AI to gather and synthesize inputs and keeps the story and the decision with people. Sales reps don't write proposals with it, solutions staff can use it on bounded product knowledge, and Anthony adds that AI can't be held accountable.

Agent & automation ideas

  • A pre-call briefing agent that synthesizes a client's last few recorded meetings so a leader can join without asking the team where things stand.
  • A CS development agent that reviews recorded customer calls and highlights where each team member could expand.
  • A solution-assembly assistant trained on fixed functionality and prepackaged products that drafts the technical solution and leaves the client-specific argument to the rep.
  • A forecast-accuracy monitor that flags misses in both directions, including quarters that beat plan without anyone calling it.
Operations Takeaways

By function

The same conversation, filtered for RevOps, pipeline/marketing ops, and customer ops.

Revenue Operations

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Pipeline & Marketing Ops

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Customer Operations

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Metrics Mentioned

The numbers, with context

0
SDRs on the Aqfer team

The SDR team was gone before Xander arrived. Most leads come from conferences and consulting and channel partners.

0, all year
People in marketing at Aqfer

Xander says new business still grew year over year, and that the choice funded solutions and sales resourcing.

Half
Target share of each rep's number from Xander's leads

His stated ideal. The rep is responsible for the other half.

About 60%
Team growth this year

Xander's figure for growth on the team, which he says is why roles and process need to be more defined.

Series A
Aqfer's funding stage

Xander's description of the company, and why he expects to need sales operations and marketing departments as it grows.

3
Departments Xander runs

Sales, customer success and technical solutions, the first time he has run all of them at once.

5 years
Time selling the same product at Comcast

Xander's account of why he wanted a more dynamic environment.

3
Messages to prepare for any interview

From the media training Xander helped deliver in his PR internship.

About 50%
Xander's graduating class without a next step

Xander's recollection of a stat from his 2009 graduation about students with no postgraduate activity.

About $130B
Annual broadcast media spend

A figure Xander says he saw the week before at Adweek.

About $35B–$40B
Annual streaming media spend

A figure Xander says he saw the week before at Adweek.

About 50 cents on the dollar
Broadcast dollars that reappear on streaming

Xander's reading of the same figures. The rest is either not spent or goes to emerging channels such as AI, podcasting and social.

C+ strategy with A+ execution wins
Strategy versus execution

Anthony's rule of thumb: results usually come through execution more than through the best-considered strategy.

Entities

Companies, people & tools mentioned

Auto-extracted and linked into the knowledge graph.

Companies

AqferMarketing Data Infrastructure

Xander's employer, where he is CRO over sales, customer success and technical solutions. A Series A marketing data platform with a clearly defined ICP of ad tech companies, data companies, agencies and publishers. It has no SDRs, had nobody in marketing all year, and says it still grew new business year over year.

00:11 · 09:03 · 20:17 · 24:40 · 25:22 · 26:00Company →
ComcastMedia / Telecommunications

Xander's previous employer, where he had a fairly decent-sized team focused on the sales motion. He describes it as slower and more political, with bigger numbers and more stakeholders, and says he got bored of selling the same product for five years.

09:03 · 09:21 · 09:33Company →
BeeswaxAdTech / Programmatic Advertising

Per the show notes, Xander helped lead sales at Beeswax through its 2021 acquisition by Comcast's FreeWheel. It is not discussed in the conversation.

Company →
FreeWheelAd Tech

Per the show notes, the Comcast business that acquired Beeswax in 2021. It is not discussed in the conversation.

Company →
OmnicomAdvertising / Communications

Xander's first job was an internship at a PR agency within the Omnicom group in DC, offered to him at an alumni reception. He learned he didn't like PR but took media training lessons from it.

02:49Company →
AdExchangerMedia / Publisher

Named by Xander as a main independent journalism brand in programmatic advertising. In 2018 its homepage was the first thing he checked at the office, which he no longer does.

27:43 · 28:11Company →
DigidayMedia / Publisher

Named by Xander as one of the main independent journalism brands focused on programmatic advertising, which he says remain important.

27:43Company →
AdweekMedia / Publisher

Named by Xander as one of the main independent journalism brands focused on programmatic advertising, which he says remain important.

27:43Company →
WaymoAutonomous Vehicles

Xander's example of self-driving technology that he says the data shows is way better than people, yet is held to a near-zero tolerance for mistakes. Anthony rides Waymo in Phoenix and says he feels safer in it than with a human driver.

39:52 · 41:40Company →
GoogleSearch / Advertising

Named by Xander with Amazon and Facebook as taking increasing share of an ad ecosystem that is itself shrinking.

30:44Company →
AmazonE-commerce / Marketplace

Named by Xander with Google and Facebook as taking increasing share of an ad ecosystem that is itself shrinking.

30:44Company →
MetaAdvertising / Social

Named by Xander, as Facebook, with Google and Amazon as taking increasing share of an ad ecosystem that is itself shrinking.

30:44Company →
The New York TimesMedia / Publisher

Anthony's reference point for a traditional news authority, and the subscription Xander says his wife still reads while articles only reach him when they jump beyond the publication.

29:29 · 29:58Company →
LeanScaleGTM Operations

Anthony's company. He says starting it in 2021 was his first time being responsible for the whole business, and it changed how he viewed the executives he used to work under.

10:54Company →

People

Tools & software

GrainCall Recorder / Notetaker

Aqfer's call recording software (transcribed as 'green'). Xander uses it with a Claude plug-in to synthesize recent client meetings and for professional development on the CS team.

ClaudeAI Assistant

Transcribed as 'cloud' and 'quad'. Xander uses a Claude plug-in to Grain to synthesize a client's last few meetings, and his solutions team can use prepackaged, Claude-trained tools for various inputs.

SalesIntelData Enrichment

Used by Aqfer on the front end for prospecting and technographic information.

HubSpotCRM

Aqfer's CRM.

LinkedIn Sales NavigatorSales Prospecting

Part of Xander's sales stack, which he says you kind of have to have.

FigmaDiagramming / Visual Collaboration

What Aqfer's team uses to diagram a technical solution.

InstagramSocial Platform

One of the places Xander says he gets news and short-form content, and where he keeps up group threads with friends. He says its algorithm does a really good job serving short-form content.

Methodologies referenced Leader-generated half of the numberConference and channel-led pipelineCustomer call recording with AI synthesisPod versus layered coveragePrepackaged solution assemblyConference character
Frequently Asked Questions

Straight answers

Generated from the conversation, marked up for search and AI extraction.

How can a B2B company grow without SDRs?

Aqfer, a Series A marketing data platform, grew new business year over year with no SDR team, according to CRO Xander Kotsatos. Most of its leads come from conferences and through consulting and channel partners, and Xander tells reps he wants to be their best SDR, with his leads ideally getting them to half their number. It works because Aqfer has a specialized sell and a clearly defined ICP of ad tech companies, data companies, agencies and publishers, where domain expertise and relationships are key. He says Aqfer would need a much larger addressable market, such as selling to brands, to justify SDRs, and that the jury is still out on them overall.

Why does being right about the forecast matter almost as much as hitting it?

Aqfer CRO Xander Kotsatos tells his team that the most important thing in sales is hitting numbers and the second most important is being right about whether you will. He says it is almost as bad to obliterate a quarter without seeing it coming as it is to miss, because without an accurate feedback loop a company can't plan hiring, product, strategy or market spend. Host Anthony Enrico adds that a leader who can't tell the board whether it will be a good or bad quarter loses its trust.

How should one leader run sales, customer success and solutions together?

Xander Kotsatos, who runs all three at Aqfer, gives each a different mandate. Sales narrows focus, with distractions removed so reps can close. Customer success expands focus, because synthesizing across clients and products makes people more valuable on calls. Solutions sits in the middle, with expensive technical expertise used at full capacity while people also grow on the client side. He says the unexpected part of the job is making the functions work together, getting the structure right, and selling things the company can deliver and repeat.

Should sales reps use AI to write proposals?

Aqfer CRO Xander Kotsatos doesn't let his sales team use AI to write proposals, though he is much more open to it for solutions staff, whose work is bounded by fixed functionality and prepackaged products. He calls the bridge from the solution to the client's business fundamentally a creative exercise. AI could do a job of it, he says, but a rep who knows the company and has spoken to it can probably write a much more compelling argument and do what amounts to consulting.

Why is AI slop making curated content more valuable?

Xander Kotsatos, CRO at the marketing data platform Aqfer, says the prevalence of slop further highlights good content and curation of it. He once began each workday on AdExchanger's homepage and now relies on newsletters and feeds curated by groups of mostly industry veterans, which he trusts and which arrive already filtered. Articles reach him only if someone sends them or they appear on an aggregation layer he follows. LeanScale's Anthony Enrico says people are going back to trusted sources rather than searching through the volume themselves.

Can a Series A company go without a marketing team?

Aqfer has done so this year. CRO Xander Kotsatos says the company has had nobody in marketing all year, that its CEO and head of solutions did most of the heavy lifting on a website rebuild with help from consultants, and that new business still grew year over year. The choice let it invest more heavily in solutions and sales resourcing. He is not sure it is the best plan long term and says a growing Series A company will definitely need a marketing department.

Why can't AI be accountable for business decisions?

On the LeanScale Podcast, host Anthony Enrico argues that accountability is what remains for humans even if AI can take in more data: if something goes wrong, someone has to be there to fix it, and you can't blame the AI after putting your name on something. Aqfer CRO Xander Kotsatos keeps strategy and final decisions with people, using AI for research and editing. He also notes the contrast between self-driving, which is tightly regulated, and LLMs, where he sees no regulation around responsibility.

How do you keep your energy up at a conference?

Xander Kotsatos tells junior team members who are exhausted after day one to think of a character for day two, the character being themselves, and to play it. Going back to what that character would do paces you and removes you a little from the scenario. He pairs it with a media-training rule for any important conversation: decide on three things you want to get across and bridge each question back to one of them.

Full Transcript

The whole conversation

Broken into chapters, searchable, verbatim from the audio. Speakers inferred (not diarized).

00:00Intro: Xander Kotsatos, CRO at Aqfer

0:00 "I both say I'm a data-driven person and usually end up going with my gut, so two things can be true at once."

0:11 "My guest today is Xander Cotsatos, Chief Revenue Officer at Aquifer, where he is running three go-to-market departments at once for the first time in his career, spent running them one at a time."

0:22 "And we put on blazers, we put on ties, and we went in there and we just started working the room, and then play that character.

0:28 And then you're always going back to what that character would do rather than trying to think, 'What would I do?'"

0:35 "I have looked back on my career a little embarrassed. I was like, 'Wow, that chip on my shoulder is a little bit too big.' But maybe it was what was needed."

0:45 "Another thing I say about Sales is like, 'You are fundamentally tasked with controlling the uncontrollable.' The adage I like is like, 'AGI is supposed to be as smart as a human, but it's like, which human?'"

0:56 "Like, I can feel it getting annoyed by a car going slower in front of it, or like, trying to get past something. It's like, I don't know. It's like, almost too good."

1:04 "Yeah, do the easy things right, and that will give you a lot of grace on everything else."

1:14 "Xander, you graduated into the recession with no job, and you and a friend put on blazers and walked into an Alumni Council reception. You were not even invited to.

1:24 You walked out with an internship. Take us all back into that room, and what was actually going on through your head."

1:31 "Yeah, first, Anthony, thanks for having me on. Great to be here, and excited to talk."

1:36 "Yeah, I mean, it's been a little while, but that's basically exactly what happened. I did graduate from college in 2009, and I think the stat that came out of our graduation is 50% of the class didn't have a postgraduate activity,

1:53 which is actually, I think, a little bit echoing now with AI and kids coming out of college as well, but certainly in the in-between times did not happen so much.

2:05 Anyway, a buddy of mine and I, we did not have our next option, and we sent out resumes. We looked at all the different things we could do. We were kind of grasping at straws, and we said, "You know what?

2:20 There is an Alumni Council meeting coming, and it's interesting because the school really liked to curate those experiences for the alumni, right? Like, they would have kids on stage, and then specific meet and greets, etc. But within the student center, there was a room where they were having a reception afterward, and we put on blazers, we put on ties, and we went in there, and we just started working the room, which is kind of a wild thing to do in retrospect, but they actually loved it. I had a lot of great conversations, and 20 minutes in,

2:49 someone who had a PR agency within the omnicom group in DC said, "Hey, we're still looking for interns this summer, and do you want to apply?" And I did, and I got in, and that was my first job.

3:03 So, it was really good experience. I think the lesson there for anyone is just get out in the real world, put yourself out there, make connections. I think there's a big push from a mental health standpoint to do that, but also from a career development standpoint, so important.

3:19 The funny thing about it is I learned I was terrible at PR, and didn't like PR, but it got me my first thing, which got me my next thing, which got me into ad tech, and more tech, and digital advertising.

3:31 Well, I think that's the type of hustle you need in order to survive, and make it in startups, and then go to market. So, I'm assuming that that has translated throughout your career since then.

3:45 Yeah, it's funny. I mean, what I sort of did a little bit naturally, and just kind of growing up in a fairly outgoing household, I was never afraid to go into groups. I've almost, in some ways, become more self-conscious of that over time, right?

4:01 As anybody does. But, you know, everything from talking to professors, to when I was in high school, I did Model UN, just kind of, I was in musicals and stuff. So, I was fine going into uncomfortable situations, and I don't want to say acting, but putting yourself out there and trying to put your best foot forward.

4:21 In fact, I talked to people, more junior people on my team, when they go to conferences, and they say, "I'm so exhausted after day one." And I said, "For day two, think of a character. The character is yourself, and then play that character."

4:35 And then you're always going back to what that character would do, rather than trying to think, "What would I do?" And I think, even though it's a funny way to frame it, it's a good way to kind of pace yourself and almost remove yourself a little bit from the actual scenario.

4:52 So, you can go out and do networking and do your meetings as if, you know, it's sort of an out-of-body experience, as if it's an academic exercise. I've never actually heard that, but it makes a lot of sense, kind of separating from your, like, it and ego, and just playing the character, playing the role, like you mentioned.

5:10 Because then, I mean, inevitably, in sales and marketing and, I mean, just life in general, you're going to run into rejection. You're going to run into difficult situations. And I think it makes a lot of sense.

5:24 People who have embodied that, bringing on a character, have been able to turn on that performance. Other than trade shows, any other venues or situations you kind of recommend putting that mindset in?

5:40 That's interesting. I mean, for trade shows, so I said I was an extrovert. I'm really, whenever I take those personality tests, I'm like 54%, so 4% just over the ambivert line towards extrovert.

5:56 So, I am someone who gets some energy from the big conference activities, but not so much that I can do it nonstop, right, the way a 99%er would.

6:07 Yeah, I guess, really, for any difficult conversation, not that every meeting has to be a difficult conversation, but you have to be on your game, right?

6:16 Especially if you're in sales, you're trying to earn trust, or you're trying to sell someone, or you're trying to negotiate, or if, you know, something isn't going well with an existing client for proof of concept, you're trying to put them in, you know, all sorts of different things.

6:31 I think in all of those different scenarios, whether it is be a character or whatever, you have to have a process that you're going to follow, and you have to be prepared and have a story.

6:43 One of the things I did take away from that internship in PR, one of the things they had the interns do, actually, was they did some pro bono work with 501c3s, and we did with some of the more junior count executives for some small 501c3s, we did media training.

6:59 And the biggest thing that I took away from media training was before you go into any interview, whatever question they're going to ask, think of three things you want to get across.

7:10 And for every question, pretty much, you want to find a way to bridge back to one of those three things so that you can really get your message through. And so I think that is true for pretty much any conversation where you're trying to get a specific point across an interview, a sale, a client success meeting, etc.

07:31Owning sales, CS and solutions for the first time

7:31 I think that makes a ton of sense. We could all probably benefit from going through a little bit of media training. I'm curious throughout your career, you've ran sales, you've ran partnerships, you've ran support, where a lot of what you're mentioning you would be pulling from, and I think would resonate well in any of those departments.

7:50 This is the first time though, you're managing all three. Is there anything that's different about being accountable for the entire go to market org versus being specialized within one department?

8:04 Yeah, a few things. Well, the first thing is, when you're junior at a company, maybe not everybody feels this way, but I feel like I did at every company, you're kind of six months into an organization once you kind of know what you're doing, you look at the executives in that organization

8:20 and you're like, wow, if I could just be there, I would fix all the problems, right? Either they don't know what they're doing, or there are still all these problems here, like why don't they just do this, right? And as I become more senior, I become really humbled by how difficult that is in practice.

8:37 And there's a lot of reasons for that, right? And at some point, sort of by definition, as you advance in your career, you lose domain expertise, because you have more responsibility, you have responsibility over departments that you didn't grow up doing.

8:51 And so, because those are different functions, it's impossible to be a perfect operator in all of those and have an ideal, you know, perfect situation day to day.

9:03 So that being said, coming from, so before this, I was at Comcast, and I had a fairly decent sized team, but we were all focused on the sales motion, right? And today it is sales existing customer stuff and technical solutions.

9:21 And at a big company like Comcast, you know, time is stretched, you work on the same project for a while, the numbers are bigger, there are more stakeholders, it's more political, and people have less domain expertise.

9:33 At a startup, things move fast, decisions are made quickly, teams are smaller and they are specialized, right? And I sort of got bored of selling the same product for five years and explaining my domain to other executives at the company.

9:48 What I really wish for was a more dynamic environment. So to kind of your initial question, which is kind of funny, I spent five years wishing for a more dynamic environment.

9:58 And what has been really interesting coming into this role is I got what I wished for. And it's a lot of fun and very interesting, but it is exhausting all the contact switching because I am the CRO, but I do some CMO stuff, I do some CEO stuff, I do some strategy stuff.

10:17 And, you know, you kind of, the grass is always greener and you get what you wish for, but it is interesting kind of seeing both sides of that.

10:25 I can definitely empathize with that as well. And I think I had the exact same chip on my shoulder where I typically I had some sales roles, some marketing roles, really got in leadership and customer success.

10:40 I was my first VP type of role, then got into RevOps at a few companies and was always working underneath the CRO and always just in my head thought, oh my gosh, I could do this job so much better than that person can.

10:54 And I think starting LeanScale in 2021, that was my first time like, okay, you're responsible for the whole thing, even maybe more than what a CRO would be responsible for.

11:08 And there are just so many things, like you have no idea what's going on, you have no idea what pressures are coming from here or there. And this little thing that you think could be better and you have no idea why they're not working on it is because there's a priority that's 10 times the size of that and this isn't even important right now.

11:26 So I just, I have looked back on my career a little embarrassed. I was like, wow, that chip on my shoulder was a little bit too big, but maybe it was what was needed to have the courage to jump off and do my own thing too.

11:41 It's funny, I have friends that have gone the other direction, right? I have a friend who's CEO of a startup and he came from sort of a finance product consulting background. And he said, you know, I always thought the sales side of things would be all about smoothing and, you know, being gregarious and being out there.

11:57 And he said, you know, as an executive at some point, you sort of do that anyway. What he was really surprised about sales is sort of the sales operations piece that it is so much about organization, about being type A, about pushing the rock up the hill, about, you know, all the management in the system.

12:15 And I also think even in my own career, when I've gone back and forth for more technical roles into sales roles, I think the kind of picture of salespeople is they're just out there glad handing and there's some amount of that.

12:30 But the actual operations of the role are not only really important, but surprisingly difficult and tedious.

12:39 So whatever angle you come from, there's a lot to learn.

12:44 100%. Yeah, a lot of it looks obvious, like, oh, how difficult could it be to measure, you know, pipeline sales, turn retention? Why is this difficult? And then follow a sales process.

12:57 But the amount of variability on the go-to-market side, like, one, because it's not just all within your control. A lot of it has to do with reacting to external things that are happening too.

13:09 Is a competitor doing something different? Did some legislation pass? Did funding start moving in a certain direction? Are there new roles? Whatever it is.

13:17 It's like, oh my gosh, now we have to adapt messaging, how we sell. It feels like you're constantly reinventing everything. And if you don't have a really strong muscle to do that, you can get left behind really quick.

13:29Hit the number, then be right about whether you will

13:29 Yeah. And the other thing I tell my team is like, in sales, the most important thing is to hit numbers. But the second most important thing is to be right about whether you will or won't hit numbers.

13:40 Because it's almost as bad to absolutely obliterate a quarter to the upside, but be really wrong about it and didn't see it coming as it is to miss numbers.

13:51 But to know that you are going to and to actually plan for that. Because if you don't have an accurate feedback loop, you can't do all the things from hiring, to building the right product, to doing the right strategy, to doing market spend, anything.

14:05 Yeah, it just completely looks like you don't know what you're doing. And then to your point, once you get to planning, what are you going to do next?

14:12 How is the board going to trust you if you get on every single call and you're like, well, we'll just see what happens. Stay tuned. We'll see if it's a good quarter or a bad quarter.

14:24 What would have been maybe some pressures or stresses of getting into the CRO position that were a little unexpected or maybe not obvious at the beginning?

14:41 I guess I would say the highest pressure part of the role is something I'm familiar with, which is the sales side of it.

14:47 Another thing I say about sales is like you are fundamentally tasked with controlling the uncontrollable, which sort of goes back to the forecasting and being right.

15:00 You have to somehow manifest things to a certain degree. And there's a lot of process and know-how and relationships and all the things that go into that. But that probably is the biggest pressure.

15:12 The unexpected part of it is making the various functions work together well and having the right structure of the team.

15:24 And kind of second to that, making sure you have the right amount of time for the different folks in the different roles, like not have a bias toward, hey, I mean, ultimately, the CEO kind of is like head of sales, head of strategy, right?

15:40 Like that's the type of vision, right? But there's a big operational component. And the nice thing about sales is you can kind of sell it in and be like, okay, now we got to do it. But my team also does delivery, right?

15:54 And we stay with the clients. And so doing kind of that blocking and tackling of how do we grow this thing? How do we keep clients happy? How do we sell things that before it wasn't sell things that are good? But how do we sell things that are good that we can deliver on and repeat on and will be a good runway for upsell and the margin that we need to make all those things?

16:16 One thing, when I look at sort of my three departments, right, sales, CS, and solutions, sales is really about narrowing focus, right? Removing distractions from the reps, have them, you know, focus on closing, right?

16:29 And to a certain degree, the best thing for sales reps is if they wake up in the morning and have nothing, right? And have to outbound and have all their meetings set. And I'm sure my sales team, if they listen to this, they're going to be like, oh, we could do a lot better at that.

16:42 But, you know, it's really trying to put blinders on. CS and solutions, interestingly, to me, is much more about expanding focus because the more that they can synthesize information between their different clients, between the different products, the more valuable they'll be on calls and the more breadth that they can cover.

17:01 And to the degree that CS customer success tends to be more junior, that's a real focus. Solutions, I guess, is somewhere in the middle, right?

17:09 Like, tech expertise is expensive, so I want them to be used to full capacity, but I want them to be able to get in, get out, go to the next thing.

17:19 But, you know, it's also expansion for them. A lot of them are technologists first, so getting good at the client side, and a lot of them are specialists in certain parts of technology, and we kind of are in three different realms.

17:30 So to the degree that they can, you know, not only be an expert on, you know, data tech, but also cloud tech and ad tech is really important.

17:40 That's really interesting. I've definitely heard people talking about, hey, you need to really narrow the aperture for your sales team.

17:48 Like you mentioned, get them focused, get non-selling activities off of their plate, just get them focused on being in front of prospects, closing deals, and then driving that process.

17:59 I'd love to double click on what you mentioned on opening the aperture for the CS team and the CS organization. Intuitively, as I'm hearing it, it makes sense.

18:07 But what are some operational or tactical ways you're helping them open up their view, peek around corners, and get that broader sense that you're looking for?

18:19 Yeah, it's a good question, and I think, honestly, we're working on this. This is a lot of the conversations we're having internally, because with customer success, there's sort of three paths, right?

18:31 It's either you go in to... The funny thing about customer success is, as you move up, the less you talk to clients in some ways, right?

18:39 You're managing other people and trying to train them to do it. So that's one kind of angle, and I would say the internal operations angle, right? And the management angle.

18:51 One side is, a lot of CS people go into sales. I'm actually sort of an example of that, right? I started as a trader and account manager, and then went into sales.

18:59 And then the third is, some folks really like the technical aspect and become good sales engineers or solutions people, etc.

19:07 So a lot of it is broadly educating. One thing we've started to have a real focus on is recording existing customer calls, not just sales calls.

19:17 And this is one angle. Like many people, I'm conflicted on AI, but there's now our recording software is green, and there's now a cloud plug-in to green.

19:29 So one nice thing we can do is not only for me joining calls, but I don't have to bother people quite so much for every new call, like, "Where are we here?"

19:39 I can just use cloud to synthesize our last few meetings with green, but I can also use that sort of for a professional development standpoint with certain folks and pinpoint certain areas where we think we can expand.

19:51 And our CS team runs the gamut. We have somebody who's brand new who's fairly junior. We have kind of mid-level folks, and we have really senior folks on the team.

20:00 And they, to a certain degree, cover different accounts, but you also have a broad range of skill sets. And our team is small enough that, at least historically, solutions and CS and even sales to a certain degree, they've just kind of known who the players are and kind of adjusted based on that.

20:17 But we are really getting to the point, like I said, about 60% growth on our team this year, where we need to have much more defined roles and a much more defined process, and everybody covering at least the minimum or the expected things that they're doing so that as we grow, there's a repeatable process, right?

20:37 And maybe at some point, I mean, the old adage with CS and solutions is, like, do you have a pod structure? So everybody sort of has their own mini thing, like what we're doing now.

20:47 Or do you have sort of this fungible, you know, layered structure so that whoever gets paired together, it's okay because they know what the process is.

20:58 And the answer is both yes and no, probably. And I'm sure we'll try different things over the next however many months or years.

21:07 I think I've seen every single type of structure. All of them have trade offs, all of them have compromises. I do see a little bit of a trend where AEs are becoming more full cycle AEs and then potting up with the CSM rather than getting super specialized.

21:31 But that also is maybe more relevant in the enterprise segment. Mainly, I think people are just trying to be more efficient and have less resources on the team, but that's putting a burden on people needing to cover a little bit more of the cycle.

21:46 This is a little bit more specific to my industry, although maybe tech in general, but to your point, at least my first job in sales, I was fairly young, and it was sort of like, hey, you might have a few agency relationships, there aren't that many players out there.

22:05 There was only, you know, when I started, there was display advertising on websites and then as bandwidth got a little faster, we said, hey, maybe we can do video and then mobile phones came, we said now we can do mobile and then it was connected television, which became streaming, which became digital out, right?

22:20 So the ecosystem has grown massively and for that reason, salespeople have gone from, hey, I bet this person could email someone at an agency and develop a relationship and have some knowledge around what they're doing, to salespeople need to both have relationships in the industry so they can get in the door.

22:43 But also be technical enough and have enough domain expertise to create the bridge from our products to the need at the client and really sell that in and so they're not just salespeople, they really are account owners and strategists.

23:02 And one thing I tell my sales folks because they all are pretty senior is you are the CEO of your own business, right? Not only do you have the most financial upside and downside here, but you really need to run this, you know, for however long you are on the account as if, you know, it is your business and let me know what you need.

23:20 It's my job to get you the resourcing you need, right? But I agree. I've seen that too. One thing I think is really interesting about your structure is you're running go to market without STRs.

23:33Growing without SDRs: "I want to be your best SDR"

23:33 So I'd love to hear the why behind not investing in that type of role and where are you shifting investment instead in order to build pipeline?

23:46 Yeah, it's interesting. So the STR team was gone before I arrived here. And in my previous role, we had STRs and then we didn't, we kind of went back and forth.

24:00 Sort of what I said before, for our business, domain expertise and relationships are key, right? One thing I tell my team is I want to be your best STR, right? To the degree that I am going to every conference, to the degree that theoretically I have a good network.

24:15 On the team and that I talk to a lot of different folks right across accounts. I want to be your best STR, right? I tell my team, ideally, my leads get you to half your number, you are responsible for the other half.

24:28 Not to say there isn't work on that one half, but like I want to be accountable to that. And we do generate most of our leads from conferences and through consulting and channel partners.

24:40 Interestingly, like we have a specialized cell and we have a clearly defined ICP. So I think we would have to vastly expand our total addressable market if we wanted to bring in STRs, right?

24:54 Like if we started to say, I am going to sell to enterprises and just by way of background, like most of our clients are other ad tech companies, data companies, agencies, right? Like a pretty publishers, right? A pretty clearly defined set of folks in ad tech and martech.

25:11 But I think we would have to go to brands and a much larger B2B sales motion to justify having a team that did that.

25:22 Now, for what it's worth, we also have nobody in marketing right now. I'm not sure that's the best plan long term. And we haven't all year, right? But for instance, we just redid our website and our CEO and head of solutions did most of the heavy lifting we've had consultants come through.

25:38 It does show in the short term that like at least year over year, right? Demand Gen didn't suffer. We grew. We grew new business year over year without a marketing department. And it allowed us to invest more heavily in solutions and sales resourcing, which I think ultimately is what's going to get us new business in the short term.

26:00 But, you know, we're a series a company. If we continue to grow, we're going to need some of these things like we're going to need a sales operations department. We're definitely going to need a marketing department.

26:11 Some folks would say yesterday, right? And so I think the jury's still out on SDRs in total, but it's tough. They were really effective during COVID when people were moving digitally, but I just get hammered all day long, personally.

26:29 And personally, I've gotten to the point where I'm trying to like tune out emails, LinkedIn messages, phone calls, right?

26:38 Yeah. I mean, I have a fortunate enough to have a EA and she filters all of those. So when I log into my inbox, both on LinkedIn and in my email, she only tags the things that I need to see.

26:53 So I don't, those don't, I don't even see the subject line or like get the eyeball. So you got to get through Paulette before it even gets to, gets to me anyway.

27:02 But I think the volume and the noise has just gotten completely out of control. And it feels like the only way is to kind of the old school is the new school again, events, relationships.

27:19 I have seen content being very effective as well. If it resonates good content, not slop content, but those are the ways and all those require a lot of effort too.

27:33 Yeah. Partially the prevalence of slop is further highlighting good content and curation of that content, right?

27:42 Go deeper on that.

27:43 So journalism in general is under fire right now, right? And I think we all know that. But for instance, in our industry, the main in programmatic advertising, the main kind of independent folks in journalism focused on the industry are names like DigiDay, AdExchanger, Adweek, etc.

28:05 Those are still important brands and a really good article still rises to the top.

28:11 Historically, they've run a lot of the events, but I remember in 2018, I would get into the office. The first thing I would do is look at the homepage of AdExchanger to see what's going on.

28:21 And I don't do that anymore.

28:23 There are a couple groups within the industry of mostly veterans who are now either you can call them journalists or events companies, and they curate specific newsletter content, Twitter feeds, things like that. And that is what I pay attention to.

28:40 It lands in my inbox, and I trust those people and I know where it's coming from, and it's already kind of pre curated to the right content and I don't have to sift through, you know, all this other stuff.

28:53 I love that. And so, if I'm hearing you right, because the volume of content, the amount of slop, the amount of stuff you have to sift through has increased so much people are just not even looking in the sea of madness.

29:07 You're going back to some type of trusted source that's curating the good stuff out of the slop which gets it more eyeballs anyway. Yeah.

29:17 Yeah. And I mean, my own media consumption habits right like I listened to podcasts that's where I get most of my news for better for worse that in Instagram, it sounds terrible to say.

29:29 I think I'll follow the same thing. Then the like little headlines box on LinkedIn and it's like, if it's not that my wife, my wife is really good she'll still read the New York Times we still have a New York Times subscription, right.

29:41 But again, like the article has to jump beyond the publication in order for it to get to me at this point, either from somebody sending it or me seeing it on one of the aggregation layers that I pay attention to.

29:58 Where do you think this trend is going? Is it is anything going to change in the next couple years? You think it's going to continue to go that route? Are we going to find new authorities that have equal clout to what New York Times used to be?

30:12 What is it going to look like?

30:14 That's what I mean. It's a big question. I for a long time in my industry and the companies I've worked for, I felt really good about the part of my job that ultimately supported independent journalism and making the internet free.

30:33 And I felt really good about investing in the open web and having that be kind of the bastion in which I lived and the really dynamic ecosystem that we are in.

30:44 Since like into the 2020s and increasingly and now, especially with AI, not only are Google and Amazon and Facebook, for better or for worse, taking increasing amounts of market share of this ecosystem.

31:03 The ecosystem in general is just shrinking because folks are just browsing less, right? We see all that.

31:10 Even kind of the big wave right now in independent ad tech and more tech and sort of why I went, one of my theses around going from advertising to the data infrastructure and cloud side is that as things were moving to streaming television, that's been a big win.

31:28 Home's been a big win. Retail media has been a big win, but it's sort of like long form content in general is under fire, right? Because I think the number right now is broadcast media, believe it or not, is still like 130 billion a year and streaming media is about 35 billion or 40 billion a year.

31:46 I just saw these numbers last week at Adweek. When you look at the dollars decreasing percentage wise from broadcast, they are not showing up one to one on streaming. It's like 50 cents on the dollar.

31:58 So that means those dollars are either not being spent or they're being spent in emerging channels, AI, podcasting, social, you know, you name it.

32:09 But I think, and we see it in the M&A activity in the media space too, like content production is getting much more consolidated, media is being much more consolidated, just kind of all those old, you know, that vibrant ecosystem is really being squeezed.

32:30 And, you know, I'm part of the problem, so to speak, because I'm not consuming it either. Like I still, I cut cable last year, but I still belong to most of the streaming services, but I really don't watch them that much.

32:43 Like on a per hour basis, I don't watch them. And I probably should start cutting some of them when I'm not watching them because it adds up.

32:54 Yeah. They always get you with like one show, like HBO. I'm like, okay, House of Dragon, let me sign up. And then I don't watch anything for the next six months.

33:04 Yeah. Apple TV in particular will sign up for like two months and then cancel. Right. Netflix, I've been a member for a long time. Disney Plus because I have kids.

33:16 HBO. Gold. I think Disney Plus, that would be the last one we would rip out. I also have kids, but also just the quality, like every amazing Disney movie ever, you can watch it anytime and they're doing a great job, I think.

33:33 Yeah. And Disney's done well by consolidating Hulu and ESPN as well. I think HBO historically for the last twenty five years or longer has been like the gold standard of content. Right.

33:49 And I think they had a lifeline getting Discovery on there so I can watch TNT games for the NBA, things like that. I think merging. I've never signed up for Paramount Plus. I've wanted to watch some of the shows, but not enough to add another streaming service.

34:03 So I think consolidating that will help. It's interesting. Netflix is the one where I've really like hour by hour, my streaming consumption has gone down dramatically from, say, twenty twenty.

34:14 I'm kind of just realizing that as we're having this conversation, but I don't know. Maybe we cancel Netflix. We'll see. We heard it here.

34:22 Maybe. And not to go too deep on this, but I do feel like maybe I'm just older now, but I kind of feel like the same movies, same shows are just being regurgitated with new characters and slightly different thing.

34:38 I'm like, I feel like I've seen this exact movie a hundred times or this exact series a hundred times and it's not as exciting.

34:47 I don't know. Just I think maybe just the volume has gone up so much. It's like I've already seen it all. So it's not fun anymore. And I worry the golden age of content is ending. Right.

34:57 Either folks are going to use a lot more and maybe it's good. I mean, there is some good stuff out there or like, certainly the volume will go down the beginning of the streaming wars.

35:08 There was way too much content and it was way overspent versus the revenue right now the revenue is coming, but they're almost like overcorrecting.

35:17 So we'll see. And I'm again part of the problem, but I have to say platforms like Instagram, the algorithm do a really good job serving short form content that is generally pretty good.

35:32 And along with my algo and, you know, much like I've group texts with my college friends or my high school friends, like random groups of group thread texts on Instagram. And like it's not maybe the healthiest interaction.

35:50 Like I would never replace that with my in real life life, but I get I get genuine laughs out of it. You know, and and it's a fun way to keep in touch with people.

36:00 Yeah, even my wife and I are always shooting each other reels back and forth. And it's just like my wife finally got off Instagram, but I text her all the reels, which she can watch, I guess.

36:11 I know sometimes, depending on whatever industry you're in, it's kind of like you're trying to predict the future, open up your crystal ball, make some choices, make some decisions.

36:21 I think one of the things we talked about that every executive struggles with. And if you haven't been in that seat, then you might not know what this feels like, but you have to make decisions and calls with lack of data.

36:39 Everybody says like, oh, I'm a data driven CMO, I'm a data driven Sierra, blah, blah, blah, blah. That's fine. But usually you don't even have half the data you really need to make a really good decision.

36:51 But you have to make a call anyway. How have you navigated that in the past and in your new role?

36:57 I both say I'm a data driven person and usually end up going with my gut. So two things can be true at once.

37:09 We live in this world of data proliferation. And increasingly, I am trying to use data and synthesize it, especially with AI in a way that's helpful to my job.

37:22 I can't remember if I talked about our sales debt yet, but, you know, we use green. We use a company called Sales Intel on the front end to get sort of like prospecting information and technographic information, et cetera.

37:34 And then HubSpot is our CRM, right? And LinkedIn navigator because you kind of have to.

37:39 So I will sort of use all those tools with AI as much as I can to get the background information. But ultimately, the decisioning engine is me.

37:51 Again, sort of my approach to AI holistically is like it can do research for you. It can help you edit.

37:59 But the actual story and the decision making and the pre-planning at this point should be done by a human because otherwise it's like, what are we even there for?

38:12 Right. And maybe we get to a point where, you know, with true AGI, the adage I like is like, AGI is supposed to be as smart as a human, but it's like, which human, right?

38:24 It's a pretty big range, right? But there are some folks who I think are amazing at this. And if AGI got there, that would be great.

38:34 But at this point, I think it's really important that the strategy and the ultimate decision making is done by the human side, even if some of the pre-planning and research and the editing is done with AI.

38:50AI can't be accountable: Waymo vs. LLMs

38:50 The only thing I've been able to boil down, like first principles on this topic, because the question would be, well, could it be a better decision making engine than what your brain would be?

39:04 Or it can get more data, it can get more inputs, it can create better. So when you ask, what are the humans left for?

39:11 The only thing I can really think of is AI can't be accountable. And if something goes wrong, who's going to be there to fix it?

39:23 And not to take it too far, but if it goes wrong and can't be fixed, what kind of justice can be had?

39:30 And I think those are all like human things that need to be satisfied in order to make a deal, move something forward, whatever it is.

39:37 And if you're going to be accountable, and you're using AI to do something, then you still need to make sure that if you're putting your name on something, you believe in everything that it says, because you're not going to be able to just blame the AI for it after.

39:52 Yeah, what's really funny to me is two different applications in the United States right now of AI have taken two totally different paths. If you look at self driving, all the data is there with Waymo and LiDAR technologies where self driving is way better than people.

40:11 It's not perfect, but it is way better than humans. And we are still very, very reticent to let it even make one mistake. And that could set things back, you know, tremendously, even if replacing with the human is ultimately going to be worse in many cases, right?

40:31 There is LLMs you see kind of to your point, like, what was the hugging face instant where it's like, just like if a person had hacked, like they would be doing a perp walk right now, right?

40:44 And so the fact that this model has obfuscated responsibility, it's like there is absolutely no regulation around that. And it is fascinating to me that we are simultaneously under the same regulatory environment, looking at these two very opposite paths.

41:03 And you see the drawbacks to both, right? Like, I think self drive, like if I had the ability to decide when to enable self driving and when not to, and most people did, like we would be there basically today.

41:18 But we don't have that ability in most cases because it is, you know, so tightly regulated. Whereas on the LLM side, it's like, what won't we let it do, right?

41:29 That's a complete wild west on the LLM side. And nobody, nobody cares. And they're given a lot of grace and a lot of excuses, 100%. I am promoting Waymo as much as I can.

41:40 So I'm in Phoenix. They've done a great job out here. It's a great hub. They've been testing out here for years. Anytime I need a ride, I go Waymo because I feel safer than whoever's going to come pick me up.

41:54 Are they Jaguars in Phoenix as well? They are Jaguars. And they just recently, they released a bus version. I'm pretty sure it's like a, it looks like the Volkswagen bus.

42:08 I'm not sure if it's the same one, but you sit in it like a limo so you can fit more people in it. Interestingly, they've done such a good job where it feels like a human is driving in a weird way.

42:21 There's a certain assertiveness to the way they drive that I can feel it getting annoyed by a car going slower in front of it or trying to get past something. It's almost too good.

42:35 I can't remember where I listened to someone, but somebody was talking about self-driving. This was earlier on before it was as good as it is now, but they were like, even today we could do self-driving if we could turn it on for everybody all at once.

42:50 Because basically they could all communicate, but it was so fascinating to your point. If every car was self-driving, you know how when you're in a long line of cars that are stopped at a stoplight? First the first car goes, then the second car. You have to get all that room.

43:05 But basically with self-driving, if they all could communicate, everyone could start at once and that distance, it would be perfect. There's all these little things that would just drastically help all sorts of traffic patterns if it could just flip.

43:23 I'm a big fan of Waymo too. I live in Philly. I do wonder how are Waymo's going to do New York? How are Waymo's going to do Center City Philly or downtown Boston where I grew up? How do people do it? Barely.

43:37 Not well, not well.

43:39 No, not well at all. I was in San Francisco for a conference and they have them running through the city. It's not quite as aggressive as a New York or something, but they work. The only thing I found was difficult.

43:59 This is a very interesting phenomenon. I think that happens. People don't respect the Waymo's because they know that they will just stop. So as you're in a Waymo going through the middle of San Francisco, people just walk right in front of it.

44:14 Pedestrians are cutting off your Waymo and it's stopping every single time and it creates a weird, I don't want to call it incentive, but if it's a person behind it, I'm not crossing the street. I'm not going to walk right in front of a car because I'm worried it's going to hit me.

44:32 If it's a Waymo though, they know it's not going to do anything and it causes issues where they just don't go as fast or move as fast. So anyway, I think to your point, though, they'll need all be hooked up.

44:44 It's funny you say that because I moved from New York City to the suburbs of New York City right before the pandemic when I had my first child. I came into Grand Central, but it was either a long walk or an annoying transfer to get to my office.

44:58 And so I got one of those electric scooters and everyone was like, aren't you worried about all the cars? And I was like, the cars are fine. It's the bikes and the people who just aren't looking and just step right out.

45:12 And I'm both an advocate for pedestrians and public transit and in practice when I'm a driver or certainly a scooter, they're the worst. So two things can be true at once, right?

45:27 That's right. That's right. With access to AI, access to basically unlimited research, unlimited reasoning, still not always having every single bit of data. You mentioned I'm data driven, but also go with my gut.

45:45 For those listening, maybe they're in an executive role the first time, they're in a leadership role for the first time. How do you navigate that? Do you have any processes you follow, any thought experiments that you follow to help you know if you're following your gut, you can trust it?

46:01 It's like everything kind of depends, right? So going back to usage of data or AI in proposals, for instance, with my team, I don't let sales use AI to write proposals.

46:20 But on the solution side of things, I'm much more open to it because they are having, they're doing a much more data driven role, right? Like we only have X amount of functionality at the company.

46:35 We only have X amount of prepackaged products. Doesn't mean there aren't some things that could be built or some combinations of things, but ultimately like it is what it is.

46:46 And so the actual technical solution, the, you know, we use Figma for the diagram of the solution, etc. Having prepackaged, quad trained things for various inputs is fine.

47:01 But the bridge from our solution to the client's business is fundamentally a creative exercise. And it's not that AI couldn't do a job of it, right? It could, but ideally my sales rep who either has contact there, knows the company, has spoken to the company,

47:23 can probably write a much more compelling argument for this company and actually do some, you know, essentially consulting on it, right?

47:32 So I guess that's sort of where I draw the line.

47:38 You know, I've talked about how the sales side, I'm trying to control the uncontrollable. And so you want to be data driven, but we're mostly dealing with humans who are buyers and the market, which is fickle.

47:53 It's a tough thing. Also with HR stuff, you know, if you're designing a team or designing a process, you want to look at what else is out there and you want to be informed by that.

48:06 So ultimately, you have to do what's right for your organization, and you have to do what's right for the people that you have or the people that you're going to have.

48:14 And so that is something where you have to make a call where it's like, okay, I understand, like, in business school, right? We read the case study, we understand the model, you have to know the rules to break the rules.

48:29 And that's sort of where I draw the line.

48:32 I think that makes a ton of sense. And one thing AI doesn't do, you'll still have to direct it to do this afterwards, but once you make a decision, there's a lot of execution to be done.

48:42 And I think even if you have maybe a B, I'll call it a C+ strategy, but if you execute A+, you're going to win.

48:53 So I think that's a part where, you know, make a call, stick to it, adjust if you have to, but usually the results come through execution more so than having the best, most well thought out decision and strategy.

49:09 Yeah, do the easy things right. And that will give you a lot of grace on everything else.

49:14Wrap

49:14 Xander, this has been awesome. Thanks for everything you shared on the podcast, especially just your perspective on bringing the departments together.

49:23 You know, you mentioned being an individual contributor to a lot of these departments, leading a lot of these departments, but things really change once you are accountable and own the entire thing.

49:33 And I also really like your sober approach to AI, how to use it, when to use it well, what stays human.

49:42 I think a lot of what you laid out would be helpful for any CRO, head of ops, CMO that's listening today and appreciate everything you shared.

49:50 And I also, I can't wait to see what you do next and follow you in your career.

49:58 Well, I appreciate that. Maybe we'll have to have a part two, but thanks so much for having me. Obviously a lot going on for everybody, but this was a great conversation and thanks so much.

50:12 (whooshing)