Jason M. Lemkin explains how VPs of Sales improve revenue per lead by recruiting top talent and optimizing processes, then backfill gaps with marketing support. The conversation covers structuring compensation for SDRs, Account Executives, and sales leaders in early-stage companies.
Chapters
And let's assume that you're helping, you're doing everything you can, the sales are better than before, but not great. I'm going to suggest the problem's on marketing. Get her more leads. Got it. Get her more— the sales, VP of sales, the VP of sales' job is to take your core metrics and improve them. Whether it's to improve your revenue per lead 20% or 100% or 200% or 22%, situations can vary, competition can vary, product can vary, but it's to tilt the curve. Once your VP of Sales has tilted the curve, if she's truly trying, if she's giving it her all, recruiting the best people you can, your job is to backfill. And the simplest, best way to backfill is with marketing or customer assist. Get her another ally on the team so that she can tilt even just a little bit more.
Got it. What's the best way to set up comp structure for the SDR, for the AE, and the sales leader? And the second piece to this is, what's the difference between a sales manager and a VP of Sales in the early stage?