      SaaStr · 2021-01-30
      · 1950d
    

Optimal Timing for Hiring a VP of Marketing in Early-Stage SaaS

Jason Lemkin argues that SaaS founders should hire a VP of Marketing early—ideally once they have 2 scaled sales reps and around $20k MRR—rather than waiting until the company is larger. A great VP of Marketing can improve lead conversion by 20%, increase revenue per lead, and help qualify sales reps before a formal sales leadership structure exists. The key is hiring a senior, experienced marketer rather than underhiring for a junior marketing manager role.

7 metrics· Cited 0× in the knowledge base ·Open source ↗

Metrics in this report

AppDynamics Marketing-Sourced Pipeline

85-90%

achieved

Percentage of closed business from marketing after early VP hire

Customer Count for VP of Marketing ROI

10count

breakeven

Paying customers for VP of Marketing to be cost-accretive

Deal Size for VP of Marketing Value

$5,000-$10,000$

minimum ACV

Annual Contract Value threshold for marketing leadership ROI

Growth Acceleration from Early VP Marketing Hire

10-20%

estimated

Faster time to $1m and $10m ARR

MRR at VP of Marketing Hire

$20,000$

recommended

Early-stage SaaS company

Pipeline Improvement from VP of Marketing

20%

minimum

Deals pushed through pipeline

Sales Reps at Hire Milestone

2count

minimum

Scaled sales reps before VP of Marketing hire