Dear SaaStr: How Do I Know If My New VP of Sales is Working Out?
This is one of the most discussed topics on SaaStr, and a deep dive here:
In a nutshell, you’ll know if your VP of Sales is working out by looking at two things: results and team-building ability.
A great VP of Sales should start showing meaningful progress within one sales cycle—no excuses. Here’s what to watch for:
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Revenue Growth: Are they increasing revenue? A great VP of Sales should take the leads you already have and close more deals or drive higher deal sizes. If your revenue per lead doesn’t improve within one sales cycle, they’re not doing their job. Too much process talk, not enough talk about how to get more out of the deals already in process, is a big flag.
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Pipeline Metrics: Are they growing the pipeline? You should see more demos, more contracts being drafted, and a noticeable lift in pipeline metrics. If the pipeline isn’t growing, that’s a red flag.
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Team Building: Have they hired great reps? A strong VP of Sales will bring in 2-3 top performers they’ve worked with before. If they’re not recruiting talent or the reps they hire aren’t hitting quota within a couple of months, that’s a problem.
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Process Improvements: You only need a bit of this in the early days, too much is a bad sign. But you should see some quick upgrades here. Are they optimizing your sales process? A great VP of Sales will refine your sales playbook, improve forecasting, and implement better tools and systems. If they’re not making your sales process more efficient, they’re not adding enough value.
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Closing Deals: Are they closing deals themselves? Early on, a VP of Sales should be able to step in as a player-coach and close a few deals to show they understand the product and the sales process. If they can’t sell, they can’t lead.
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Alignment with Marketing: Are they working well with your VP of Marketing? Sales and marketing alignment is critical. If they’re not collaborating to drive leads and close deals, it’s going to hurt your growth.
If you’re not seeing progress in these areas within 90 days—or at most, one sales cycle—you’ve likely made a mis-hire. Don’t wait too long to make a change.
Time is your most valuable asset in SaaS, and a bad VP of Sales can cost you a year of growth.
