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How Turnstile Made Quote-to-Cash Self-Serve by Banning Custom Development

Michael Babineau saw the irony immediately. After selling Second Measure to Bloomberg, he and co-founder Lillian Chou were running a data analytics company that specialized in transforming unstructured data into actionable insights. Yet they were managing their own revenue operations through spreadsheets and manual processes.

“We’re used to taking messy, unstructured data, converting it into analytics and actionable insights,” Michael explains in a recent episode of BUILDERS. “And here we are still actually operating our business on spreadsheets. That seemed incongruent with how we thought the world should work.”

That disconnect became the catalyst for Turnstile, an AI-native quote-to-cash platform designed to solve a problem that plagues sales-led B2B companies: how to operationalize negotiated deals with non-standard terms.

The Structured Data Problem at the Root of Revenue Chaos

The root cause of revenue operations chaos isn’t workflow design or team structure—it’s the absence of structured commercial data. While product-led businesses with standard pricing tiers automate easily, sales-led companies negotiate custom agreements that create unique operational nightmares.

“The real crux of the problem are these negotiated agreements,” Michael says. “A sales rep comes in holding this piece of paper, like, look who I signed. And then you look at the terms and you’re like, oh, we’ve never done that before. I guess we have to figure out how to operationalize this. You offer them something different from what we’ve given other people under pricing terms and under billing terms that are different from what we’ve done before.”

Each negotiated deal becomes a manual workflow to implement. Without a structured system capturing these terms, companies resort to spreadsheets, calendar reminders, and tribal knowledge that inevitably breaks at scale.

One Turnstile customer discovered over $1 million in unbilled revenue during onboarding. “They came to us and said, hey, there’s a discrepancy here. Like the numbers aren’t lining up with our internal numbers for revenue,” Michael recalls. “They did a deep dive and they realized that they had over a million dollars in unbilled invoices. Like not even unpaid, but like unbilled invoices.”

This revenue leakage is remarkably common. Michael notes: “You’d be amazed at how often companies have some form of revenue leakage where per the contract, their customer owes them a certain amount of money, but for whatever reason that was never billed or it was incorrectly billed and no one noticed it.”

The Custom Development Ban That Forced Platform Flexibility

After working with initial design partners, Michael and his co-founders made a decision that would fundamentally shape their product trajectory: they banned custom development for individual customers.

“We set a hard rule internally that we are not going to do custom development for our customers,” Michael explains. “We will move things around on roadmap. We have a rapid response feature team who will, if there is a product gap or something we can rapidly address the product gap, but we’re not going to do it in a one-to-one way. We’re going to do it in a way where we’re actually building out the feature to satisfy the needs of that customer, but then it is available to all customers.”

This constraint forced genuine configurability into the platform. Traditional quote-to-cash vendors build rigid systems, then compensate with heavy professional services—custom development that takes weeks or months per implementation. “That’s what most companies in our space do,” Michael says. “Their professional services is heavy. They do a lot of custom work for their customers and that custom work is necessary because their underlying platforms are not flexible enough to support the needs of those businesses out of the box.”

By refusing this path, Turnstile had to solve the flexibility problem at the product level. The result: “Instead of going through like a multi-week white glove type process, which is where we started, folks can onboard now in minutes and in an entirely self-serve fashion.”

Building for Negotiated Deals Unlocks Earlier Market Entry

Quote-to-cash has traditionally been a growth-stage problem. Early companies handle everything manually, then invest in automation after reaching scale. “Early stage companies all do it by hand and then eventually they get big and they’re like, oh, we have 50 sales reps, we really need CPQ, or we have hundreds of customers, we really need billing automation,” Michael explains.

Turnstile inverted this by designing for maximum complexity first. “We built Turnstile to be ultra flexible and to address the needs of sales-led businesses who are negotiating every deal,” Michael says. “That flexibility has allowed us to actually support the needs of very early stage companies.”

The platform now supports companies “before you have standard pricing and packaging, while you’re still figuring it out and testing your pricing and you’re negotiating with your early customers.” By solving for non-standard contracts—the hardest case—they created a system that handles everything else trivially.

This architectural decision opened an entirely new market segment. “You can literally go to our website and sign up, and it starts at 100 bucks a month,” Michael says. Compare this to traditional implementations: “A Quote to Cash platform is traditionally a big heavyweight thing with like a three to six month implementation that costs you 50 grand, 100 grand and then you have this rigid thing that, you know, like heaven help you if you change your pricing.”

Category Education Versus Pain Recognition

Marketing to early-stage founders revealed a positioning challenge. The quote-to-cash category is well-understood by CFOs at billion-dollar companies but unknown to pre-seed founders. “When you say quote-to-cash to a founder fresh out of YC, they’re parsing it, trying to figure out what the heck that means,” Michael admits.

Yet these same founders intimately understand the operational pain. “As soon as you start talking about the challenges, they understand it because they’re feeling it,” Michael says. “If it’s like a pre-seed or even like Series A business, oftentimes it’s the founder doing all this stuff by hand. And believe me, speaking as a founder, you do not, I do not want to be doing this stuff by hand.”

The solution: lead with specific pain points rather than category positioning. Founders recognize spending hours monthly reviewing contracts to determine billing amounts. They know the pain of managing one-off Stripe plans for every negotiated deal. They feel the chaos of tracking subscription changes across spreadsheets.

“Every single time we talk to somebody, they’re feeling some degree of pain already,” Michael notes. “Mostly it’s about helping them understand that this is not big heavyweight enterprise software. They don’t have to go through like a multi-month onboarding implementation.”

Preventing Truth Drift Through System of Record Positioning

When companies lack a unified system for revenue data, “truth drift” emerges—discrepancies between contract terms and actual execution. “When you don’t have a single system of record for your revenue data, what happens is you end up with drift between what your contracts say and how you actually carried out the relationship between the customer,” Michael explains.

These discrepancies accumulate through discretionary decisions. “There are a lot of discretionary pieces in there where you say like, oh, well, you know what? We decided they were a little grumpy about the service they received in such and such month. We’re going to adjust the invoice for that month.” These manual adjustments create immediate value but leave permanent data inconsistencies.

“It’s very easy to do that manually, but it leaves you with this discrepancy between your contract terms and what actually happened,” Michael says. Starting with Turnstile from day one prevents this entirely: “If you start with us from day one, you get that unified system of record for free. We preserve the sanctity of the data, of this truth data.”

For later-stage companies, remediation becomes a significant onboarding task. “When we onboard later stage companies, this is a big part of what we do—we help them audit what actually happened and get them into our system in a clean way.”

The Rippling Playbook: Start With Startups, Grow Into Enterprise

Turnstile’s GTM strategy explicitly follows the Stripe and Rippling model. “The goal is to really, we’re following in the footsteps of Stripe and of Rippling where you start with startups and then you move up market and grow into enterprise,” Michael says.

The company targets two core segments today. First: companies under $2 million in ARR where “typically it’s founders doing all the operational bits of the revenue life cycle.” This is their self-serve motion at $100/month.

Second: companies between $2-20 million in ARR, where “you have a lot of repeatability, like your business is starting to work and you’ve probably hired a head of finance, ahead of operations, somebody who’s taking on this stuff and part of their job is to systematize it.” These customers are “thinking about how do we get from 5 million ARR to 100 million ARR.”

Turnstile already serves customers in the tens of millions of ARR. Enterprise readiness—supporting billion-dollar businesses—is “a 2027 thing,” Michael notes, because “a lot of their internal needs is just like enterprise ready type check-the-box needs that for us we’ve deprioritized in the face of things that deliver value to our customers today.”

Building for Human Operators and AI Agents Simultaneously

Michael describes Turnstile as “an AI-native quote-to-cash” platform with a specific architectural philosophy. “Turnstile is a platform that helps companies operate their revenue processes,” he explains. “Companies are at different stages in terms of AI adoption. Some people want to operate their revenue process with people and some want to operate them with agents.”

The platform provides both paths simultaneously. “We have strong UI where it makes it easy for a human operator to go through and to manage those elements of their business. But additionally we have the APIs and the hooks for agents to operate these things on behalf of the customer.”

They’re also building native agents into the platform. “We’re starting to build out agents to automate different parts of the stack as well. A good example here is we’re getting ready to release agentic dunning,” Michael says. Dunning—chasing overdue payments—becomes fully automated: “Finance people will no longer have to worry about chasing people down for these payments. We’re going to do it for them with the oversight of a human supervisor.”

This positions Turnstile at the intersection of structured data infrastructure and AI automation—solving the foundational problem while building toward an increasingly automated future.

The lesson for B2B founders building operations infrastructure: the structured data problem is your moat, custom development is your enemy, and solving for maximum complexity unlocks earlier market entry than incumbents can match.