Sales Talent Agency reposted this
"We need to hire a Head of Sales to help us find Product Market Fit." It's SHOCKING how often Seed round companies make this mistake. This is no longer a grey area. Various approaches have been tried over the last 20+ years, and the ideal approach has been identified. This is what it looks like: - Finding Product Market Fit is the hardest part of building a company. The majority of folks who try, fail. Those who succeed, usually have a founder leading the sales process in the early days. They find it because of Founder Led Sales, not in spite of it. - Founder Led Sales is critical because they need to own the feedback loop, and use it to make adjustments to the idea, till they land on something that has initial Product Market Fit. It's an extremely iterative process, and the founder owning it helps minimize friction and increase the speed of iteration. - Once they have some early signals of success, they should hire 2 AEs and see if they can gain some momentum. If they can, now they have the signal to go and hire a Head of Sales. Why? Because a Head of Sales can come in and increase the productivity per rep, create a playbook and scale the team up. That's what they do. They amplify Product Market Fit. They don't find it. ------ Other important lessons about this problem: 1. While a company searches for initial PMF, or when they are hiring and ramping up the 2 AEs, they might need strategic guidance. Most Founders are not sales experts so they need help. This is where fractional sales leaders come into play. 2. Once the 2 AEs are productive, they can hire a full time Head of Sales, but not a CRO or VP of Revenue. They need functional leaders, who are ready to roll up their sleeves and create a playbook that drives repeatability, predictability and scalability. That's a very hands on job, which is why they need a Head of Sales, not a Head of Revenue/VP of Revenue/CRO. 3. Don't comp the AEs on revenue initially. Pay them a high base salary + equity OR a base salary + quarterly bonuses based on Management Based Objectives (MBOs). During this period we are gathering data to figure out a realistic and fair quota to pay commissions on. Till we have that data, setting a quota is like shooting in the dark. ------ Anyone telling a Founder to hire a Head of Sales before they have initial signals of PMF and 2 AEs hitting quota don't know what they are talking about OR are trying to make some $$. Don't fall for it. ------ We talk about this and other fun topics for Founders & Operators on Topline 🎙️ You can 🎧 to the latest episode by clicking 'view my website.' ------