I also think that many people, especially in the tech industry, don't understand the scope of functions included in "sales and marketing". It isn't just sales people calling up customers trying to sell enough to reach their quota. It is nearly everything involved in revenue generation of a company.
Also, given sufficiently large numbers, better asymptotic growth always beats. So this is less wrong when talking about huge businesses.
> Sales and marketing, almost always give linear multiples at best.
Counterexample: Apple's famous 1984 ad.
But I actually disagree with your example. I was expecting something like Dollar Shave Club to be used as a counterexample, where the entire value is arguably produced by marketing.
While I don't have metrics (and it is hard to even define a good metric to distinguish the leverage produced by marketing vs. excellent product development when they exist since day 1), I seriously doubt even Apple's 1984 ad had superlinear boost relative to the $ invested on it the ad had the product engineering was not good enough to sell itself.
In fact, I am not sure if it is fair to say the original Mac is an astounding commercial success relative to other computers at its time, unlike Apple II. I feel the ad was famous for its artistic value and post-hoc success of Apple, not much because it actually sold the product.
But back to the primary discussion, think about it this way: had Mac not been a revolutionary product that carried its weight, would that ad even meant anything? As in could you even sensibly run that ad for any product and expect good performance? (This is especially relevant since the ad is pretty abstract and non-product specific, so it is not crazy to imagine this hypothetical scenario.)
It's really hard for me to imagine or come up with an anecdote where a sales process or marketing initiative has had more than a linear multiplier. It could be 10x, but even that is usually very big. Never exponential, or even quadratic (though in network effect businesses the quadratic amplification via marketing sometimes exists.)
Have you ever started a company that successfully exited? Or managed a product from cradle to grave?
There is another comment in here about perspectives gained from taking on multiple roles. If you can’t think of a single case of a great salesperson adding multiples to a product’s performance, I gently suggest broadening your scope.
more than a linear multiplier
Read more carefully.
BTW, ever heard of word of mouth advertising? That's by definition exponential.
(I cannot distinguish product development from engineering as cleanly as you do, but on sales and marketing...)
Can't disagree more. At least with the definitions I have in my head, this sentence is logically inconsistent with such definitions. Engineering is the way you get non-linear leverages. Sales and marketing, almost always give linear multiples at best.
I feel once you have the "golden goose" leverage delivered by engineering in hand, you start calling it sales because that's the final step in conversion to $$$. Also, that's when the linear multiple provided by sales and marketing is the biggest in absolute numbers.
[But yes, if you call everything you see as "marginal contribution" engineering, and everything valuable "product development", then you tautologically "prove" your conclusion.]