Dear SaaStr: I’m at $5m ARR. Should I Hire a CRO?
No, you need a VP of Sales, not a CRO. But … but… in today’s world, sometimes you have to allow for a little title inflation. If they will be a hands-on sales leader, but just want the title, sometimes it’s worth bending here.
But you are too early for a true CRO.
A CRO is a great hire when you’re at $15M-$20M ARR and need someone to align multiple revenue functions—sales, marketing, customer success—under one leader. But at $3M ARR, you’re not there yet. Here’s why:
1. You Need a Doer, Not a Delegator
A CRO is typically a more strategic, high-level role. They’re focused on aligning teams, setting long-term revenue strategies, and managing multiple VPs. But at $5M ARR, you don’t need a strategist—you need someone who’s in the trenches, hiring reps, closing deals, and scaling your sales team. A VP of Sales is the right hire for this stage because they’ll be hands-on and focused on execution.
2. CROs Often Struggle to Hire Great VPs of Sales Under Them
Most startup CROs I’ve seen fail because they can’t hire a great VP of Sales under them. They take the title, but then spend 3-6 months trying to find someone to actually do the VP of Sales job. That’s not what you need right now. You need someone who *wants* to be a VP of Sales and is ready to own that role fully.
3. Your Marketing Leader Probably Doesn’t Need a Boss Other Than The CEO Right Now
Let marketing keep running marketing independently. At this stage, your sales and marketing leaders should report directly to you as the CEO. It’s your job to ensure they’re aligned and working together. Adding a CRO to manage both functions will just create unnecessary complexity and dilute focus.
4. Focus on Scaling Sales First
At $3M ARR, your biggest growth lever is sales. You need a VP of Sales who can hire 2-3 great AEs, build a repeatable sales process, and get you to $10M-$15M ARR. Once you’re at $10M-$15M ARR, you can start thinking about whether you need a CRO to align sales, marketing, and customer success. But for now, focus on nailing … sales.
5. Avoid Title Inflation. If You Can. But It’s Always Not Fatal.
Hiring a CRO too early sets misguided expectations. It signals to the team that you’re further along than you actually are. Plus, a CRO title can attract candidates who are more interested in the prestige of the role than in doing the hard work of scaling sales from $3M to $10M ARR. Stick with a VP of Sales for now—it’s the right title for the stage you’re at. But again, if you have the perfect candidate and they’ll do the work, they just want an inflated title … maybe take that risk.
In short: hire a hands-on VP of Sales, not a CRO.
Keep marketing and sales as separate functions reporting directly to you. Once you’re at $15M-$20M ARR, you can revisit the idea of a CRO. But for now, focus on finding a VP of Sales who can execute and scale your sales team. Let me know if you want to discuss how to structure the VP of Sales role or evaluate candidates.
