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There are two dominant enterprise AI sales playbooks: the lighthouse strategy (winning high-profile, high-risk logos where social proof travels) and the land grab strategy (replacing existing workflows at scale where buyer math is the selling point).

Joe Schmidt introduces a 2x2 framework for evaluating AI startup go-to-market strategies based on buyer exposure/risk and whether proof travels in the market, distinguishing lighthouse from land grab plays. ✦ AI generated

Joe Schmidt · a16z Podcast · 2026-08-13 · original ↗

starts at this moment · 3:06

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What are the lighthouse and land grab sales playbooks?

We really were thinking about, 'Okay, what are the axes that we should be kind of mapping opportunities against?' And so, we decided upon like the Y axis is really what we called like the buyer's exposure... And then the X axis is whether or not proof travels in any given market... if you think about the top right would be proof travels in this market... and it's high buyer exposure and high buyer risk. And that's a lighthouse market... And the bottom left would be, you know, low proof traveling, but also low buyer exposure. And that would be a land grab market.

verbatim transcript · starts at 3:06

Transcript · around this moment

2:46driving from SFO into the city? When does it make sense for you to kind of do a more targeted sales activity or like motion elsewhere? >> Yeah, and I think the way that we tried to make this make sense, of course, we did very uh consulting style with a 2 by 2 matrix. Um I did never work at a consulting firm, but um I'll do my best.

3:06Uh and so, we really were thinking about, "Okay, what are the the axes that we should be kind of mapping opportunities against?" And so, we decided upon like the Y axis is really what we called like a the buyer's exposure. Um and it's it's intentionally called exposure because there's the exposure of, you know, making a mistake with the solution that you buy. There's also the the exposure of the solution

3:24inside of your company. Like, does this does this product that I'm selling to my customer end up you know, being is it shown to their end customers, right? Which is actually an important distinction. Um and really just kind of the overall risk associated with buying this piece of software. So, that was like kind of the Y axis, and it goes from like high to low. Um and then the

3:41the X axis is whether or not proof travels in any given market. And so, you know, if you think about like the top right would be proof travels in this market. Um and it's it's high buyer exposure and high you know, high buyer risk. Um and the bottom left would and and that's a lighthouse market, right? This is to be clear. Um and the bottom left would be, you

3:59know, low low uh you know, low proof traveling, but also low buyer exposure. Uh and that would be a land grab market. Um and so I think those are actually quite different and if you think about the the, you know, the standard markets that fit into the lighthouse model, it's, you know, regulated industries. Often times there's a a more constricted number of logos. Um if you're wrong in

4:19the industry, like if the buyer buys the wrong piece of software and it ends up doing the wrong thing, uh it can lead to a you know, very bad things happening for your firm, uh including, you know, potentially getting in trouble with the regulator, you know, even going uh and and doing something illegal. That's very bad, uh of course. Um and then uh you know, on the on the flip side, when you

4:36when you're looking at the more of a land grab market, there's an established budget. People have very, you know, used to and accustomed to paying for a type of service, and you can kind of come in there and show like the end buyer the math of like, "Hey, my solution is better than whatever solution you're you're using today, whether that's, you know, a software driven solution or

4:53human driven solution." So, you know, the the the kind of distinction that we drew was between like proof on the the top right of the of the of the quadrant and math on the bottom left of the of the quadrant. Um and that's how we kind of thought about the framework. >> Yeah, and >> Andy, we'll get into your background uh in a little bit, but I think first maybe

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