Hiring and Managing a Great VP of Sales in SaaS: The Complete Guide
Jason Lemkin outlines the critical role of a VP of Sales in SaaS companies, arguing that most first VP hires fail within 12 months. The article defines the top 5 responsibilities (recruiting, team support, sales tactics, strategy, and individual deal closing) and emphasizes that founders often hire for the wrong criteria, prioritizing individual selling ability over team building and scaling capabilities.
Metrics in this report
$500k - $20m+$
range
When VP of Sales role is most applicable in SaaS startups
400 - 500 dealsdeals/year
range
Deal closure volume needed with scaled 10-rep sales team
200 dealsdeals/year
example
Required deal closure volume to grow from $1m to $2m ARR with $5k ACV
$300k - $400k$
range
Target quota per individual sales rep at $1m-$2m ARR stage
$1m to $2m$
example
Example growth target requiring >$1m incremental ARR with new hires
20%+%
minimum
Of VP of Sales time should be spent on recruiting and talent acquisition