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Dear SaaStr: If a startup is at $1.5M ARR and is looking to hire an experienced COO how much equity should they give him/her? You should find, hire, and manage the VPs of Sales, Marketing, Customer Success, Product and Engineering and even Finance yourself. The post Dear SaaStr: If a Startup at $1.5M
Dear SaaStr: At What Point Should a StartupHire a Salesperson? If you hire a salesperson before 10 customers. And when you do go to hire that first sales rep, at the very minimum, only hire someone you’d truly, honestly buy your own product from — yourself. Never before. After 10 you will know.
You can talk about the roadmap or sales strategy until you’re blue in the face, but if you don’t have the team to do it at scale, there’s no point in talking a ‘big game.’ ” The best sales leaders are the ones that are even better recruiters than the CEO. It’s recruiting five or six.”
Lemkin Change his Point of View on The Value of a COO for Earlier Stage Startups? I felt part of your core job as CEO was to assemble a management team, not complain about how you couldn’t get it all done. I felt part of your core job as CEO was to assemble a management team, not complain about how you couldn’t get it all done.
I’m not talking about any close friends in sales here. But — there are a ton of folks I know that used to be great in sales. The other day someone who used to be an A+ sales leader emailed me about a position I’d introduced to him as a super hot start-up. And you just might want to hire him.
Yes, sometimes it’s OK to hire a VP of Sales that everyone loves. At least 9 times out of 10, if everyone on the team loves a VP of Sales, it’s the wrong hire. And this especially matters because I often see CEOs picking between 2 final VP of Sales candidates. VCs love VP of Sales that sell up well.
Dear SaaStr: What Are The Best Ways to Transition From The Founder-Led Sales Stage? Transitioning from founder-led sales to a commissioned sales team is one of the most criticaland trickysteps in scaling a SaaS business. Its where many startups hit roadblocks, but if you do it right, its a game-changer. Be specific.
During the Boom Times of late ’20-early ’22, we all often confused Taking Risks in hiring … with Just Plain Ignoring Flags. The best VPs of Sales I’ve hired were Directors of Sales before. That’s far better in my experience than hiring a random top tier university grad. Watch them fly.
5 Key Learnings from Scaling from 3 to 75 Go-To-Market Team Members in Less Than 12 Months The latest SaaStr CRO Confidential is out and Sam Blond did a great deep dive with Graham Mareno, VP of Worldwide Sales at Codeium. Create Compelling Economic Incentives For sales talent, compensation is critical.
Ah the VP of Sales. The toughest hire. The first post is What a Great VP of Sales Actually Does. So you expect the right things, and hire your rockstar at the right time to do the right things. The second post is a script for you to use (and modify as you see fit) – 10 Great Questions to Ask a VP Sales Candidate.
………………… Hiring a VP of Sales in a startup is an incredibly hard thing. Even if you hire the right person there is no guarantee your startup is going to make it. Understands and has experience running a sales org at your sales velocity (i.e. And just stop.
The biggest mistake folks make when they go to hire a VP of Sales is hiring a top AE that's never really built a team. But it does not remotely prepare you to be a VP of Sales on its own. Not until you are Uipath, or Canva, or Algolia, or whatever the next super hot startup is. Everything is overheated.
AI has ripped through categories like the post-sales space and customer support centers. You see this first point viscerally if you’re involved in post-sales or support. Sales is beginning to promise this. A small startup Jason invests in called MangoMint is coming up on $20M ARR with 100% growth for salon spa software.
What are the top 10 mistakes founders are still making today when hiring their VP of Sales? SaaStr CEO and Founder, Jason Lemkin, has done numerous surveys now that confirm that a startling 70% of first hires don’t make it. In this post, we’ll delve into the common pitfalls founders encounter when hiring a VP of Sales.
Dear SaaStr: Should SaaS Startups Really Have CROs or COOs? Is That Too Many Management Layers? Theres no way a SaaS startup needs a CRO or COO or other C-level Officers Without a Clear, Single Functional Area to Own Until $40m-50m+ in ARR. A great VP of Sales who took a company from $1m to $50m may want to try CRO now.
So we’ve spent a ton of time over the years on SaaS talking about hiring a great VP of Sales. Not only because it really matters, but because hiring the wrong VP of Sales can set you back a year — or longer. Don’t make this hire. 50% of what a VP of Sales really does is recruiting.
So did startups. Many mediocre hires were made to fill slots, reference checks not made, etc. VCs funded startups in a day, with limited diligence, sometimes at 100x revenue for the hottest of deals. And startups … well, they moved pretty darn quickly too. — Jason BeKind Lemkin #???????????? jasonlk) May 23, 2022.
Thats okayplenty of successful startups have been built by solo founders. Hire an Ex Post-Facto Co-Founder: This is someone who isnt technically a co-founder but acts like one. It could be a VP of Product, Sales, or Engineeringsomeone who takes ownership of a big chunk of the business and cares almost as much as you do.
On the hiring side, it often seemed like you just couldn’t hire anyone. Everyone was hiring everyone, anyone, back in mid-2021. We hired job hoppers that never stayed anywhere for more than 18 months for leadership roles. The post Lowering the Hiring (And Investing) Bar Didn’t Work appeared first on SaaStr.
Dear SaaStr: When should a bootstrapped startuphire a (CFO, COO, CMO)? How can a CEO hire those C-level positions for the first time as a CEO and entrepreneur? Here are some rough rules: You want a VP of Everything (Sales, Marketing, Product, Eng) by about $5m ARR, and ideally, Sales and Marketing well before that.
Ok we’ve talked a bit more on SaaStr over the years on how to hire a Great VP of Sales , but hiring a Great VP of Marketing is just as important. Maybe in some ways more so, in that you can generally hire a great VP of Marketing earlier. Do you make the hire now? Not just in sales. What do I mean?
As you scale up in SaaS, one thing I can almost guarantee is that you are going to hire some VPs who were either fired or quit their last role. Especially in Bay Area-centric startups. So you’ll end up hiring VPs who went through a significant transition at their last gig, sometimes an involuntary one. That can be great.
The biggest mistake you can make as a founder when you hire your first VP of Sales is stepping out of sales. It only works with the very best VPs of Sales. Every other first VP of Sales needs you doing at least half of what you were doing before. A founder hires a Pretty Good First VP of Sales.
One of the first what How to Hire a Great VP of Sales at the New York Enterprise Tech Meet-Up (thank you to John Lehr and Work-Bench for setting this up). The Number One Thing You Can Do to Accelerate Your Business Post-Initial Traction is Hiring a Great VP of Sales. I don’t know anything about sales.
Ah, hiring those first 1 or 2 sales reps. So often, they are mis-hires. But when you get that Sales Magician — they really can be a game changer. If that’s you, hiring your first few sales reps, here are our Top 10 SaaStr Posts on Hiring Your First Few Sales Reps: #1.
What almost never works, somewhat surprisingly, is hiring a Director of Outbound as your first outbound hire. I see many startups want to add outbound, but not really have a lot of experience. And especially, a new VP of Sales comes in without real outbound experience. Why does this seemingly logical hire fail?
Dear SaaStr: What are the signs that an enterprise SaaS startup is ready to scale by hiring more sales people? For a higher-velocity, in-bound driven SaaS product, most sales reps will have trouble processing more than 50 or so truly qualified leads a month. Before $10m ARR or so, more qualified leads = more sales.
His view is your sales team teaches your customers how to get value out of your product. Ron explains: “Wehire mostly technical backgrounds, but as our customers get larger and larger, you start to get global accountmanagers, and they’re going to have much more business strategic accountmanagement experience.
With 10+ years as a CMO at companies ranging from $1M to $1B in revenue, another 10+ years as CEO of companies in the $0-$100M range, and extensive experience as an independent director on startup boards, Dave offers a 360-degree perspective on marketing’s role in SaaS success. Better to hire for your specific needs and stage.
How Do You Sift Out the Bitter and Broken Individuals When Hiring? As a startup, most people who come to an interview appear happy. If it’s a role you’ve never hired, find someone great at it and have them do your final interview. What do the best Heads of Product and VPs of Sales say? Don’t hire those people to lead.
When I look at the VP of Sales / CRO that didnt work out the past 12-18 months across the SaaStr Fund portfolio and my ecosystem, one thing stands out. And its an old SaaStr theme: #1: You have to hire folks in sales where their last job was harder. There may exceptions at rocketships. You often fly. Voice APIs?
But, I know many of you have never hired a head of marketing before. And if you hire the wrong type — the more common type — then instead of more customers, you may end up with just a bunch of Blue Pens with your logo on them. Yes, you need it at scale — but not in the same ways startups do. That hire fails.
Q: Dear SaaStr: What Are Some Good Strategies To Hire People In The Early Days? A few basic thoughts … that many still don’t get right: Don’t hire anyone that doesn’t understand their functional area better than you do. Don’t hire anyone you don’t believe in. If you’re not sure how to hire for a role, get an advisor that does.
Salesforce: We Are Hiring 0 Engineers This Year. But Were Growing The Sales Team +20%. How Codeium Built A Billion-Dollar AI Company and a Winning Sales Machine #2. Top Posts: #1. The Per-Seat Model Isnt Dead. But Also, Surprisingly, It Was Never Domina nt. #2. Because AI. #3. Egnyte Sells to Private Equity for $1.5
So we’ve talked so much over the years on SaaStr on how to hire a great VP of Sales, the difference they’ll make, and how the level-up comes quickly. Just not at your startup. And VPs of Sales do, too. A ton of great VPs of Sales have sold sales tools and similar products. They know them.
Dont Forget the Services Revenue Top Vids & Pods: #1: Adding AI to SaaS: Inside the AI Product Strategies of Figma, Cloudflare, GitHub and Ramp #2: HubSpot Co-Founder Brian Halligan on How to Hire Great VPs and How M&A Really Works #3: How To Perfectly Pitch Your Seed Stage Startup With Y Combinator’s Michael Seibel #4: LIVE: Top 10 Learnings (..)
It was started in 2014 when founders Daniel and Jonathan were working together at a delivery startup and experienced firsthand how slow background checks were slowing down worker onboarding. The SMB sales team was incentivized purely on logo acquisition rather than revenue. With only 4% conversion by month two versus a 10% goal.
A rough structure from 1–25 sales reps: Early days: CEO acts as VP of Sales. CEO hires 2 reps, in the beginning, each barely pays for themselves, but by months 4–6 they are able to close 3x or more of their total compensation. CEO often struggles to manage so many directly, trains them poorly. This is a rough guide.
Dear SaaStr: What is The Biggest Difference Between Running a 10 Person Startup and a 100 Person Startup? The biggest structural difference is you have to hire all the VPs by employee 50–100. You have to let go of the many mistakes that will be made — so long as you hire great VPs to run the playbooks.
In a recent Workshop Wednesday, SaaStr Founder and CEO, Jason Lemkin sat down to discuss 9 signs a startup isn’t going to make it. So, let’s look at the nine signs a startup will likely not be a real success. Sign #2: You’re Too Slow to Hire VPs If you want to gauge momentum in a startup, see how quickly they hire VPs.
Dear SaaStr: What are some of the “ultimate sins” in marketing and sales and success in SaaS in the early stages? My list of some bad ones: Sales: Hiring any reps you wouldn’t buy from. Later, once you have a strong VP of Sales, it’s fine though. Your sales reps need to eat. Hiring just 1 rep.
Salesforce is ceding the startup CRM market to HubSpot. But I would tell every startup I invested in or worked with to move onto Salesforce — at least once they hire a real VP of Sales. I told them their VP of Sales would be used to Salesforce and pick it as their CRM, and you had to let them pick their tool of choice.
Hiring and Interviewing Tips: Jason emphasizes the importance of interviewing at least 30 candidates for a role and consulting with an expert in the field to interview the final candidate. Product-Led Growth (PLG) vs. Enterprise Sales: Jason discusses the evolution of PLG, noting that it’s essentially freemium with better analytics.
Top Posts: #1: The Top 10 Mistakes SaaS Startups Make: The 2025 Edition #2: When You Raise Venture Capital, A Clock Starts Ticking. At First, Softly. Then Louder and Louder. #3: 3: What Works Better for Field Marketing: Small, Intimate Events? Or the Big Mega Industry Events? #4: 4: AI is the Best Thing to Ever Happen to SaaS.
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