Jason M. Lemkin explains why early SaaS companies can grow with a handful of great salespeople, but scaling from $30M to $60M in a year requires more than doubling your team. A single rep typically closes around $1M in revenue.
About $1,000,000 ("maybe a million in revenue; maybe a little bit more").
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 and exceed quota and make a lot of money that's how you get off the ground in SaaS you get two 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 hit 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 maybe close a million in revenue maybe a little bit more but.
