Jason M. Lemkin tells new VPs of sales that hiring more people isn't enough to grow revenue past early stages. Each rep has a ceiling around $1 million in revenue. Once you hit $10-30 million ARR, you can't reach $60 million without more than doubling your sales team.
Chapters
But especially as a first-time VP of sales, headcount alone will not drive revenue. Now, let's break this down. At some point as you scale, you can't have fewer, better reps. We all want that in the early days. We all want a handful, 2, then 4, then 8, then 10, a group of reps that can just all hit Nick Seed quota and make a lot of money. That's how you get off the ground in SaaS. You get 2 reps that really know how to do it. And then you add to that and everything's great for a while, but ultimately sometime past $10 or $20 million, $30 million of revenue. Ultimately, once you have a brand established and an engine that brings in leads all the time, you need headcount to get the plant. You cannot grow from $30 to $60 million in one year without more than doubling your sales team. It just becomes impossible. One human being can, can maybe close a million in revenue, maybe a little bit more, but