ManifestoPhase 3: Scale
Manifesto

Phase 3: Scale

With a validated commercial product, a functioning PLG motion, and a community that continues to thrive, the flywheel is now spinning with significant momentum. The immense potential energy built in the first two phases can now be converted into kinetic energy to power a scalable and hyper-efficient enterprise sales machine. The focus in Phase 3 shifts from proving the model to scaling it predictably. The community is no longer just a project to be nurtured; it is a strategic weapon—an unassailable competitive moat, a powerful lead generation engine, and a source of profound market intelligence.

Build the Enterprise Sales Team

This is the point at which it finally makes sense to hire traditional enterprise sales representatives. However, their role is fundamentally different from that in a closed-source company. They are not cold calling or hunting for leads in the dark. They are harvesting the high-intent opportunities that the flywheel surfaces automatically.

The data generated by the open source project and the self-service commercial product is their targeting system. They can see which Fortune 500 companies have dozens of developers using the open source version, or which mid-market firms have just hit the usage limits of the free commercial tier. These are not cold leads; they are warm, pre-qualified opportunities where the product has already been adopted and validated internally.

The salesperson's job is to engage with these accounts, not to sell the technology, but to orchestrate the commercial relationship. They are the "sales-assist" layer that helps navigate procurement, legal, and security reviews, and builds the business case for a larger, strategic investment. The community has already done the heavy lifting of convincing the developers; the sales team's role is to convince the CIO and the CFO.

Shift the Sales Narrative: From "How" to "Why"

The sales conversation itself evolves dramatically. In the early phases, discussions are about technical features and implementation—the "how." In Phase 3, the conversation elevates to business value and strategic impact—the "why."

The sales team focuses on solving enterprise-level problems. They don't sell code; they sell outcomes. They articulate the return on investment (ROI) by reducing operational costs. They address risk by providing enterprise-grade security, compliance, and support SLAs. They enable strategic initiatives by providing a scalable, reliable platform for innovation. The technical superiority of the project is the foundation, but the enterprise sale is built on the pillars of economic value and risk mitigation.

As the flywheel spins faster, it creates powerful network effects that widen the company's competitive moat. A massive user community creates a rich ecosystem of third-party integrations, plugins, and tutorials, increasing the switching costs for any competitor. This vibrant ecosystem also becomes a huge advantage in the war for talent; the best engineers want to work on the projects that are the recognized standards in their field.

The critical metrics in this phase are those of a mature enterprise software business: ARR growth, Net Dollar Retention (NDR), Customer Lifetime Value (LTV), and the efficiency of the sales and marketing engine. However, these metrics must always be viewed alongside the health of the community. A successful COSS company at scale is one that has built two thriving, symbiotic ecosystems: a community of open source users and a customer base of commercial enterprises, with the flywheel acting as the powerful, perpetual engine connecting the two.