Growth Pilots is one of the more exclusive performance marketing agencies in San Francisco, but they know how to help high-growth startups excel at paid marketing. CEO and founder Soso Sazesh credits his personal experiences as an entrepreneur along with his team’s deep understanding of high-growth company needs and challenges as to what sets Growth Pilots apart. Whether you’re a founder of a seed or Series D stage startup, learn more about Growth Pilots’ approach to growth and partnerships.
Advice to early-stage founders
“I think a lot of times, especially at the early stage, founders don’t have a lot of time so they’re willing to find the path of least resistance to get their paid acquisition channels up and running. If things are not properly set up and managed, this can lead to a false negative in terms of writing off a channel’s effectiveness or scalability. It’s worth talking to an expert, even if it’s just for advice, to ensure you don’t fall into this trap.”
On Growth Pilots’ operations
[pullquote align=”right” author=”Guillaume McIntyre, SF, Head of Acquisition Marketing, Instacart”]“They have good business acumen, move fast and work as an extension to your internal team.”[/pullquote]
“Something we pride ourselves on is working with relatively few clients at a time so we can really focus all of our team’s efforts and energy on doing the highest quality work. Each of our team members works on a maximum of two to three accounts, and therefore they’re able to get very invested in each client’s business and integrated into their team. We really try to simulate the internal team dynamics as much as possible and pairing that with our external capabilities and expertise.”
Below, you’ll find the rest of the founder reviews, the full interview, and more details like pricing and fee structures. This profile is part of our ongoing series covering startup growth marketing agencies with whom founders love to work, based on this survey and our own research. The survey is open indefinitely, so please fill it out if you haven’t already.
Interview with Growth Pilots Founder and CEO Soso Sazesh
Yvonne Leow: Tell me a little bit about your background and how you got into growth.
Soso Sazesh: I grew up in northern Minnesota where there is no tech industry whatsoever and then after high school, I came out to Silicon Valley and got exposed to the epicenter of the technology industry. I became very interested in startups and hustled to find startup internships so I could get experience and learn how they operated.
After a couple of startup internships, I got accepted to UC Berkeley and that gave me even more exposure to the startup ecosystem with all of the startup events and resources that UC Berkeley had to offer. I worked on a couple of startup projects while I was at UC Berkeley, and I taught myself scrappy product management and how to get software built using contract developers.
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As I was graduating, I had just launched my second startup project and it was growing organically but very slowly, and I realized I didn’t know how to acquire users. So I joined an SEM agency and that’s where I learned and fell in love with digital marketing. I helped companies successfully acquire users at scale using Google AdWords and finally solved for the missing skills I needed. After a couple of years, I ventured off to try my hand at starting a company again, this time with more experience and a co-founder.
We went through the AngelPad accelerator and raised a small round of capital – what would be called a pre-seed round nowadays. It was an eye-opening experience. I gained a lot of appreciation for what it meant to be a startup operator hustling to build a product people wanted and trying to acquire customers.
Startups are a roller coaster and we had a lot of ups and downs. We ultimately we’re not able to raise our next round of funding due to lack of traction and decided to shut the company down. As we were winding down, people in my network started coming to me looking for help with their digital marketing channels.
I started consulting for a few startups and identified an interesting opportunity, which was that very few startups knew how to do paid acquisition well and very few agencies were well-suited to work with startups. There was a huge gap in the market.
Some of these founders would come to me after trying to get paid acquisition to work on their own, but they didn’t have the time or expertise to do it properly. Some of them would hire an agency and not see results, because most agencies don’t understand the needs and grow-or-die nature of fast-moving startups. These agencies wouldn’t allocate the time and resources needed to really understand these startups and work closely with them to make their paid channels work.
So that’s exactly what I did and I was able to achieve results for them. I combined my previous expertise as a digital marketer with my recent startup operator experience and this allowed me to successfully help the startups I was consulting for. Due to the network effects in the startup community, I soon had more companies who wanted to work with me than I could take on alone and that’s what led me to start Growth Pilots.
Yvonne Leow: Awesome. How does Growth Pilots differentiate itself from other agencies?
Soso Sazesh: Growth Pilots is “the” performance marketing agency for high-growth companies. We’ve worked with over 120 venture-backed companies over the past five and a half years, and we have really tailored our service offering around the unique needs and challenges of high-growth companies as they move from stage to stage. We’ve had this internal framework that breaks down paid acquisition needs based on company stage.
The first is what we call the early stage. At the early stage, companies are looking to establish and validate their paid marketing channels. These companies are typically seed stage or Series A startups looking to find channels that allow them to hit their metrics to achieve their goals for their next round of funding. These companies require a lot of time and attention, which is a bit paradoxical because their budgets are not very large.
The second stage is what we call the scaling stage. This is when companies are trying to achieve escape velocity and growth matters above everything else. This typically happens at the Series A through Series C stage. Their business model is working and ideally within sight of positive unit economics if not already there, but the main focus is acquiring customers at the fastest rate possible and less so on efficiency or profitability. This stage requires all hands on deck and non-stop testing and optimization to squeeze out as much velocity as possible from each channel. The stakes are very high at this stage and category-leading companies often emerge here.
Finally is the late stage. These companies are typically Series C or Series D and beyond and preparing for an exit or IPO. Growth often becomes slightly less important at this stage and the focus shifts to efficiency and improved unit economics. Optimization becomes even more critical at this stage and measurement and attribution get a lot more sophisticated to fully measure the impact of the paid channels.
The needs of companies are vastly different at each of these stages. Our focus is on helping companies achieve their goals within each stage and helping them move to the next stage.
Yvonne Leow: Cool. If I’m a founder and I’d like to work with Growth Pilots, what can I expect are our next steps?
Soso Sazesh: The first step is understanding the business and assessing if there’s a mutual fit. We’re very selective about the companies we take on because over the course of the five and a half years we’ve been able to establish which business models and verticals are conducive to paid marketing success.
For instance, marketplaces, e-commerce, B2B SaaS, mobile apps, and other business models where there is a transactional component is typically a good candidate for paid acquisition. We want to know what the goals are and we want to be able to confidently say that we believe we can achieve the goals at hand. If we can’t say that, we won’t take the company on.
Step two is determining what stage of our framework the company falls into and what the opportunity looks like. If it’s an early stage company, it’s more about assessing the product, the market, and how reachable their target customers are online.
For scaling-stage and late-stage companies that are already up and running, we’ll dive into their current accounts and assess what the opportunity looks like and put together a strategy proposal based on our findings and outlook.
Yvonne Leow: What’s the typical length for each project or partnership?
Soso Sazesh: We’re not project-based so when a company comes to work with us we effectively become an extension of their marketing team. There’s no set duration. We’ve worked with some companies for five years and some companies we’ve worked with for 12 months.
If we work with a company less than 12 months, something is wrong and we probably shouldn’t have taken that company on as a client but you don’t always know how things will play out. Overall our goal is to work with companies in a long-term capacity as an integrated partner. Something we pride ourselves on is working with relatively few clients at a time so we can really focus all of our team’s efforts and energy into doing the highest quality work.
Each of our team members only works on a maximum of two to three accounts, and therefore they’re able to get very invested in each client’s business and integrated into their team. We really try to simulate the internal team dynamics as much as possible while balancing and pairing that with our external capabilities and expertise.
Yvonne Leow: Are you at the point in your experience that you can apply certain growth strategies and guarantee success?
Soso Sazesh: Guarantee is a tough word, but having worked with more than 120 startups we are definitely at the point where we have enough data points where we can look at a given business and assess the viability of whether they’ll likely see success on paid channels. Success being a combination of scale and efficiency.
Yvonne Leow: Can you talk a little bit about how you and your team assess that?
Soso Sazesh: The first things we look at are business model, product quality, and whether or not product market fit exists or is likely to be achieved. Even a great business model in a large market combined with a poor product or lack of product market fit is unlikely to succeed with paid acquisition. In the absence of having a live product, or if a company is too early to assess product-market fit, we look at other data points that we have found to be good indicators of viability. Some of these include competitor success with paid marketing, the founders’ backgrounds, amount of capital raised, and who their investors are.
Yvonne Leow: What were some of your greatest lessons learned when you started Growth Pilots?
Soso Sazesh: In the early days of Growth Pilots, there was so much activity and growth that we ignored important things like team infrastructure and people operations. We saw the effects of this in the form of team morale taking a hit and people not seeing a future with us. We eventually took notice and course corrected by investing heavily in people operations and employee development. In an ideal world, we would have done this much earlier.
Another interesting reflection is how critical the work we do is. I think this is what a lot of agencies get wrong. You need the commitment to work with startups. You can’t be one foot in and one foot out when a company may live or die by the work you are doing. A lot of the companies that we work with explicitly outline what goals they need to hit in order to raise their next round of funding and it becomes very clear what part we play in that.
Yvonne Leow: What advice would you give to early-stage founders who are deciding whether or not to work with an agency?
Soso Sazesh: When you work with an agency it’s really important to have clear goals and expectations established up front. A lot of times early-stage companies hire agencies, and agencies will gladly take their money, but the agency isn’t really investing the time that’s needed to get results. So asking “What does it look like to work with your agency? Who’s going to be working on my account? How much attention can I expect to receive?” Those types of questions are really important to clarify and especially at the early stage.
Yvonne Leow: What’s a common mistake you see founders make when it comes to growth?
Soso Sazesh: The most common mistake I see is not doing the upfront work and investment required to get optimal results with paid acquisition. A lot of times you see the founder mentality of move fast and figure things out later kicks in, but this can be dangerous when it comes to paid marketing when you’re directly paying for traffic and customers. This leads to companies not seeing the performance and scalability that they actually could and it contributes to the negative perception of channels like Google Ads and Facebook Ads. VCs, for example, love to bash paid marketing channels as being too expensive or too saturated. There is certainly some truth to the channels getting more crowded but at the same time, you would be surprised how poorly setup and managed some of the accounts are that we look at, including companies that have raised tens to hundreds of millions of dollars.
Yvonne Leow: Thanks for sharing. Last question: what is your payment structure?
Soso Sazesh: We charge based on a tiered percentage of ad spend managed with a monthly minimum retainer fee of $10,000 at the lowest level. Our minimum fee is frankly much higher than a lot of other agencies and that’s by design. This goes back to what I was saying before about early-stage companies requiring a disproportionate amount of work relative to their budgets in order to be successful with paid acquisition. We apply a lot more focus and resources than other agencies and this allows us to achieve success where other agencies can’t. The tradeoff is that we need to charge more to deliver this higher quality of service.
Founder Recommendations:
“They helped me raise $5M+ and ran one of the most successful pre-order campaigns in 2017.” – Roderick De Rode, Venice, CA, Founder & CEO, Spinn, Inc.
“They have helped us dramatically accelerate our growth and act as an extension of our internal team.” – Digital Advertising Manager in Corte Madera
“They helped us establish a low customer acquisition cost before we were even able to ship product and help us convert site visitors to customers when we had influxes of traffic from press we received.” – Stephen Kuhl, NYC, Co-founder & CEO, Burrow
“Largely instrumental in the way we optimize and measure success of our mobile app install campaigns.” – User Acquisition & Growth Strategist in Denver
“Growth Pilots is a great partner. I on-boarded them to build out, optimize and scale all paid search and social campaigns for Instacart. In a few months, paid search and social became some of our best performing channels. They have good business acumen, move fast and work as an extension to your internal team.” – Guillaume McIntyre, SF, Head of Acquisition Marketing, Instacart
source https://techcrunch.com/2019/06/11/verified-expert-growth-marketing-agency-growth-pilots/
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